UK to Malta: An automatic journey

Bernard Gauci  -  19/September/2012

UK tax residence rules tend to be very strict and often many fear that although they would have left the UK, they would still be considered tax resident in the UK from an HRMC’s point of view.

An Improvement

During April 2012, new UK residence rules have been proposed which seem to be much clearer and provide greater assurance.

For further information on these new rules kindly contact us.

Paying tax in Malta

Foreigners residing in Malta are not taxed on their worldwide income, but only on Maltese source income and capital gains and on foreign source income received in Malta. Foreign source capital gains are not taxed even if received in Malta. The applicable income tax rates (Tax rates 2012) in such cases would be the following:

Married Persons

Income (€)   Tax Rate
 0 - 11,900 0%
 11,901 - 21,200  15% 
 21,201 - 28,700    25% 
 over 28,701      35% 

Single Persons

Income (€)   Tax Rate
 0 - 8,500 0%
 8,501 - 14,500  15% 
 14,501 - 19,500    25% 
 over 19,501      35% 

In addition to the above general tax law, Malta also offers two other specialised residence schemes: the Highly Qualified Individuals Scheme and the High Net Worth Individuals Scheme. Subject to certain conditions, both schemes involve a flat tax rate of 15% on applicable income.

For further information on these schemes, kindly visit our web-site

UK/Malta Tax Treaty

A double taxation treaty between the UK and Malta is in force, and this seeks to ensure that the same income or gain is not taxed twice.

Pension Income (QROPS)

Malta meets the HMRC regulations for a UK Qualifying Recognised Overseas Pension Scheme (QROPS). This allows people who are no longer resident in the UK to transfer pension benefits accumulated in a UK recognised pension scheme to a recognised pension scheme in Malta.

Rental Income from the UK

It is normal for persons who become Maltese residents to maintain their UK property and lease it out. This rental income (and also any gains from the property’s potential sale) would be taxed in the UK; however, we are able to guide you through alternative methods in order to keep the tax burden at a minimum.

Inheritance Taxes in Malta

There are no inheritance taxes in Malta although stamp duty is chargeable on transfers of immovable property in Malta (at 5%) or on transfers of shares in Maltese companies (at 2%)

Substantiating Maltese Residence

Following three months of residing in Malta, foreigners could apply for a registration certificate as long as evidence of economic self-sufficiency is given.

Health Care

Persons transferring their residence to Malta become eligible for Malta’s free medical system as long as an S1 certificate would have been obtained from the UK HRMC. Inability to obtain an SI certificate would still not preclude access to free medical care, since this would still be possible through the Malta-Britain Reciprocal Health Agreement.

For any queries about the aforementioned issue, kindly contact Mr Joseph Gauci (Managing Partner) or Mr Benjamin Griscti (Senior Advisor) at:

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