Malta has a progressive taxation system under which individuals are taxed between 15% and 35% of their income (2004).

Permanent residents are charged a reduced rate of 15% on any income remitted into the country (not on capital), subject to a minimum tax of LM1,000 per annum.

Other foreign nationals who stay in Malta for more than 182 days per year are taxed on their income in Malta and overseas, up to the maximum 35% tax rate on remitted income exceeding LM10,000. Foreign residents who work in Malta only pay tax on the income they earn in Malta. The first LM4,000 is tax-free.

Malta has Double Taxation treaties with thirty-four other countries which means that tax paid in one country can be offset against any tax payable in the other.

There are no property taxes or rates in Malta. For permanent residents, no death duties are payable in Malta on the proceeds of sale of property or investments. However, transfer duties will be payable on immovable property in Malta and on shares in any local companies.