Malta

Short History: From the Phoenicians, Romans, Arabs, and Byzantines, Malta has had a colorful history. Following these ancient civilizations, Malta was under the rule of the British Empire until 1964. Recognizing independent sovereignty in 1974, Malta adopted many of the legal and educational systems of the British and English is still an official language of the country. Malta became an EU member-state in May 2004 and joined the Eurozone in 2008. Today it is a cultural hub that has attracted a wide-range of foreign nationals to the country.

Taxes: The tax regime in Malta is very attractive for both individuals and corporations. There are a number of double tax treaties and personal income tax rates vary from 0%-35% for local income. Malta’s personal tax is based on a remittance system: Residents who are not domiciled in Malta are only taxed on income sourced in Malta; foreign income is only taxed if remitted to Malta (15%). The corporate tax rate is 35%. However, upon distribution of profits to its shareholders, these shareholders are eligible to claim a full or partial refund of the taxes. In Malta, there is no gift tax, inheritance tax, or wealth tax.

Advantages & Disadvantages: The weather of Malta is one of its biggest advantages. Abundantly sunny and mild year-round, Malta is a destination that can be enjoyed any time of year. It is also rather affordable compared to other European countries. Internet and mobile services are often cited as expensive and slow in comparison to other Western countries, one of the few drawbacks for foreigners. However, the country is one of the safest in the EU with an extremely low crime rate. Another downside is the condition of traffic infrastructure, which has been improving in the last few years but still continues to be listed as a disadvantage.

Languages: The official languages of Malta are English and Maltese, making it a top choice for foreign nationals looking to make the move abroad. Roughly 90% of the population speaks English. Yet, learning the Maltese language garners more respect and acceptance by the locals.

Healthcare: In Malta, healthcare is considered free for those who are employed. Malta ranks in the top EU countries for overall quality care. Also, private insurance is quite inexpensive and allows patients to skip long waits and processes often found at the public institutions.

Retirement: EU nationals may benefit from the new Malta retirement tax program. Under the program, retirees are eligible for a personal tax liability of 15% on any foreign income that is remitted to Malta. There is a minimum Malta tax liability of 9,000 USD (7,500€) per year. Locally-sourced income is taxed at a flat rate of 35%. The conditions include spending a minimum of 90 days yearly in Malta and purchasing real estate at a minimum of 322,000 USD (275,000€) or renting annually at a minimum of 11,000 USD (9,600€).