When thinking about relocating to another country and taking up a job there, one question that people will usually ask is how much the income tax and other deductions from the salary are, and how much the cost of living is. Malta offers an interesting taxation on income tax, and especially high earners can benefit from this.
The main industries in Malta are the finance and iGaming industry. These two sectors contribute most to the GDP, and many skilled workers from all across the world are coming to Malta for work. More and more companies are establishing their business in Malta, creating a dynamic industry with a high demand for qualified workers.
When working in Malta you will have to pay income tax and national insurance contributions. The income tax depends on how much you earn. The income tax rates for 2024 are as follows:
TAX RATES
| Category | From (€) | To (€) | Rate | Subtract (€) |
|---|---|---|---|---|
| Single Rates | 0 | 9,100 | 0% | 0 |
| 9,101 | 14,500 | 15% | 1,365 | |
| 14,501 | 19,500 | 25% | 2,815 | |
| 19,501 | 60,000 | 25% | 2,725 | |
| 60,001 | and over | 35% | 8,725 | |
| Married Rates | 0 | 12,700 | 0% | 0 |
| 12,701 | 21,200 | 15% | 1,905 | |
| 21,201 | 28,700 | 25% | 4,025 | |
| 28,701 | 60,000 | 25% | 3,905 | |
| 60,001 | and over | 35% | 9,905 | |
| Parent Rates | 0 | 10,500 | 0% | 0 |
| 10,501 | 15,800 | 15% | 1,575 | |
| 15,801 | 21,200 | 25% | 3,155 | |
| 21,201 | 60,000 | 25% | 3,050 | |
| 60,001 | and over | 35% | 9,050 |
Source: CFR Malta
Especially Highly Qualified Persons can benefit from this taxation, as income of €75,000 or more is subject to a flat tax rate of 15% (more information you will find here). Social Security Contributions Calculator.
The national insurance contributions are either 10% or a weekly rate of €49,97. This includes health insurance and state pension contributions. It is also possible to take out additional private health insurance, that gives priority and special treatments in hospitals.
The cost of living is reasonable, considering many goods have to be imported. Rent depends on where you live, and popular localities, such as Sliema or St. Julians, are considerably more expensive than other places. It is possible to find good accommodation from between €400 and €700. Flat sharing is also popular among foreign workers, giving you more flexibility and less contractual obligations.
A relocation to Malta for business or personal reasons can be an interesting and rewarding opportunity, not because of the attractive work opportunities, but also because the Maltese islands have a lot more to offer than just work. A rich history and influences from many cultures have created a unique people and plenty of interesting sights. Not to mention the lovely weather in summer and the pristine waters…
Disclaimer: The above-mentioned article is simply based on independent research carried out by Dr. Werner and Partner and cannot constitute any form of legal advice. If you would like to meet up with any of our representatives to seek further information, please contact us for an appointment.
