Europe

Malta

Corporate rate
35%
Top personal rate
35%
VAT / GST rate
18%
One-sentence summary Malta's corporate tax position: 35. Personal income tax: 35. VAT/consumption tax: 18.

Corporate Tax Rate

Malta's headline corporate income tax (CIT) rate is 35.

Personal Tax Rate

The headline personal income tax (PIT) rate is 35.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 18. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

Personal tax residence in Malta is generally determined by domicile and location of a permanent home rather than a fixed day count, though a stay of around 183 days is commonly cited as a practical trigger. Companies registered in Malta are considered both resident and domiciled there, and are subject to Maltese tax on worldwide income and capital gains. Foreign-source income of Malta-resident-but-non-domiciled individuals is generally taxed only when remitted to Malta (broadly defined, including transfers to a Maltese bank account).

CFC Rules

Malta introduced CFC rules effective January 1, 2019, implementing EU ATAD. The regime applies where a Maltese taxpayer, alone or with associated enterprises, holds more than 50% of voting rights, capital, or profit entitlement in an entity (the control test) that also fails a low-taxation test. Malta's participation exemption separately shelters qualifying dividends and capital gains from a "participating holding" - broadly, at least 10% direct equity ownership in a non-Malta company, or a smaller stake held continuously for at least 183 days with sufficient investment.

Thin Capitalization / Interest Limitation

Malta has no thin capitalization rules and no fixed debt-to-equity ratio - historically this made debt push-down structures (via assignment, transfer, or contribution) relatively straightforward. Since ATAD implementation, an interest limitation rule caps deductible exceeding borrowing costs at 30% of tax-EBITDA; the rule does not apply where borrowing costs do not exceed EUR 3 million, and financial undertakings are excluded. Unused interest capacity can be carried forward up to five years.

Treaty Network

Malta maintains an extensive treaty network of almost 70 double tax treaties in force. Malta signed and ratified the OECD's Multilateral Instrument (MLI), which modifies its covered treaties.

Source: PwC Worldwide Tax Summaries - Malta (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 19 February 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.