Even though your income will be taxed at source (i.e. the tax will be removed – in most cases – before you are paid), you still need to submit a tax return on an annual basis. You can do this yourself or have an accountant do it for you. You will generally receive this by post and will be provided a guide book on how to fill the form in. Make sure that you don’t go over the due date as there are penalties linked to late submissions.
You can calculate your Net salary by using a Malta salary calculator.
Tax rates for non-residents
Individuals relocating to Malta will be subject to a higher tax band for the first 183 days. This will be partially refunded via tax rebate, after this timeframe elapses. More information about tax rates for non residents can be found here. Standard Maltese tax rates apply to those who have been residing in Malta for more than 183 days. Click here for standard Maltese tax rates.
The Inland Revenue Department is responsible for the administration of income tax in Malta.
Tax rates for Highly Qualified Persons
If your area of expertise is one of these, then you might qualify for a flat tax rate of 15%.
Salaries might be lower than elsewhere, but there are some notable exceptions, such as the gaming industry. However, it is possible to live quite cheaply in Malta, so a skilled foreign worker will likely end up with as much, if not more, disposable income as they would in other countries, especially compared to much of Northern Europe. Check out the site salariesinmalta.com for a guide or read up more here.