Rental Income Tax In Malta

If you receive rental income from property in Malta, you may be eligible for a beneficial tax rate of 15% by declaring such income via a TA24 form. This reduced final tax rate applies to Maltese residents, non-Maltese residents, individuals, and companies receiving rental income.

It’s important to note that the 15% tax rate is applied to the gross rental income without any deductions for expenses such as maintenance costs. The TA24 form and payment must be submitted by April 30th of the year following the relevant year.

The option to have rental income taxed at 15% is made annually, so you may choose to opt out of this regime and declare the income in your tax return at the normal applicable rates in the following year.

It’s important to declare rental income properly, as undeclared rental income is subject to tax at a rate of 35% on the gross rental income, in addition to interest and additional tax payable under the Maltese Income Tax Acts, following an investigation by tax authorities.

If you require assistance with filing your TA24 form or have any questions about the 15% final tax on Maltese rental income, please contact us for more information.