Malta has long attracted foreign national investors, retirees, and families, with an estimated 30% of the population of the small European island now comprising expatriates.
Despite pressure to reform previous ‘golden passport’ visa programmes in compliance with EU regulations, the country continues to incentivise migration through low taxation that falls short of being considered a tax haven.
Chase Buchanan Private Wealth Management, a global provider of expat-specific financial advice and wealth management advisory support, has analysed Malta’s position as a tax-friendly destination and explained some of the reasons high-earning professionals, retirees, and corporations are choosing to relocate.
Statistics Demonstrating the Demand for Low-Tax Residency Within Malta
According to the most recent data, published in 2023, one in five Maltese residents is a foreign national, representing a fivefold increase since 2011. Just under 15,000 people had migrated to Malta in the year before the census, which is three times as many as during the previous report.
Within the last ten years, the ‘usual resident’ population living all or most of the time in Malta has more than doubled, making the island the most densely populated EU country.
In addition, the number of active businesses trading in Malta has grown, with over 57,500 companies trading in 2021, an increase of 1.1% or 605 new organisations having been established within a 12-month period.
More than half of those relocating to Malta are non-EU citizens, including British expatriates, and around a third originate from outside Europe – showing that a large proportion of those choosing Malta as their new place of residence are not simply moving under European freedom of movement rules.
Impacts of the Closure of the Maltese Golden Passport on Immigration Numbers
The controversial and now-abolished ‘golden passport’ previously offered by the Maltese government, allowing citizenship by investment, closed to applicants in spring 2025.
This followed conflicts with the European Court of Justice around the ethics behind visa schemes that, in effect, granted immediate citizenship rights to foreign nationals based solely on financial contributions.
While the scheme closure, alongside the end of similar initiatives in other EU countries, has impacted the investment revenues collected by the Maltese government, which are thought to have reached €1.4 billion over the last decade, the impacts have primarily led to foreign nationals simply applying for alternative visa routes.
Tax Incentives in Malta Relevant to High-Earning Professionals
The Maltese Global Residence Programme (GRP) was launched in 2013. It is available to non-EU applicants who can secure tax residency via a renewable permit, provided they demonstrate a stable income and the means to sustain their living expenses without reliance on the Maltese government.
Expatriates must meet several criteria, such as purchasing or renting a property in Malta for a minimum threshold value, paying a non-refundable application fee, and holding comprehensive health insurance coverage.
In return, successful applicants gain favourable tax treatments through a ‘special tax status’, which means residents pay no Maltese tax on overseas income that is not remitted to the country, and pay a flat rate of 15% on transfers made.
Capital gains originating outside Malta are not taxable, even if the gains are transferred to Malta, and tax residents remain entitled to double taxation relief to protect against supplementary tax liabilities in two jurisdictions.
Although a minimum €15,000 annual tax liability is imposed, the reality is that exemptions against foreign-sourced income, or flat rate taxation on that remitted to Malta, is a considerable tax advantage.
Professionals working within the country also pay standard income tax rates on local earnings up to an upper tax bracket of 35% – itself beneficial when compared to the additional-rate tax brackets in the UK and many other jurisdictions.
Residency Routes in Malta Offering Tax Incentives forRetirees
A separate scheme, the Malta Retirement Programme (MRP), provides similar tax advantages. However, as the name suggests, it is focused on offering affluent retirees a visa route that requires them to invest in the Maltese property market in return for low, fixed-rate taxes.
This visa is open to both EU and non-EU applicants whose pension is their primary income source, with the same 15% flat-rate income tax applied to foreign income transferred to Malta, subject to a minimum tax obligation of €7,500 per annum and an additional €500 for each dependent.
As with the GRP, expatriates must purchase or rent a home in Malta for a minimum value, hold health insurance, and meet minimum stay requirements, accepting that, under this visa category, residents are not permitted to work.
Alongside the low 15% flat-rate tax, there are no inheritance, estate, or wealth taxes payable. Although expatriates must always assess their exposure to inheritance and succession taxes in their country of citizenship, this can be a substantial incentive.
Reviewing General Maltese Taxation Rates
We’ve looked at just two of the most in-demand visa and residency pathways for wealthy professionals and retirees considering a Maltese relocation. However, Malta is already seen as a tax-friendly destination without considering these specific exemptions and allowances.
The progressive income tax rates we’ve mentioned are lower than those in the UK and in many EU countries, and the government levies no inheritance or wealth taxes.
Corporation tax rates for businesses, while appearing relatively high at 35%, can also be effectively reduced by significant margins. Foreign shareholders can, for example, apply for sizable tax refunds, which is one of the reasons Malta has become a lucrative destination for corporate offices and headquarters, especially for international firms.
Another meaningful aspect for expatriates, irrespective of the visa route or residence programme they intend to apply for, is the remittance-based tax system.
This enables non-domiciled residents who live in the country, a common scenario for foreign nationals, to avoid the situation where overseas incomes and earnings are fully taxable in their country of tax residency.
Coupled with generous allowances and varied tax credits and exemptions, it is widely anticipated that Malta will continue to be considered one of the most tax-efficient destinations for expatriates, and that the closure of the ‘golden passport’ will have little notable impact on immigration applications.
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About Chase Buchanan Private Wealth Management
Chase Buchanan is a highly regulated wealth management company that specialises in providing global finance solutions for those with a global lifestyle. We are global financial advisers, supporting expatriates around the world from our regulated European headquarters, and local offices across Belgium, Canada, Canary Islands, Cyprus, France, Malta, Portugal, Spain, the UK and the USA.
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