Malta distinguishes for tax purposes between residence and domicile. Anyone who moves their residence to Malta without acquiring a Maltese domicile - that is, without a permanent rooting in Malta by birth or deliberate choice - qualifies as a non-domiciled resident. These individuals are taxed on the remittance basis: foreign income is subject to Maltese income tax only to the extent that it is actually remitted to Malta. Foreign capital gains are entirely tax free, regardless of whether they are transferred to Malta.
Non-dom status is particularly relevant for high-net-worth individuals and entrepreneurs with income from international sources. The minimum tax for non-dom residents in Malta is EUR 5,000 per year. There is no formal application procedure - the status follows automatically from the person's tax position. What matters is that the taxpayer can demonstrate that their domicile of origin lies outside Malta and that they have not established a domicile of choice in Malta.
Since the United Kingdom abolished its non-dom regime (from April 2025, replaced by the Foreign Income and Gains regime), Maltese non-dom status has gained significance: Malta is one of the few EU countries that still offers remittance-basis taxation, which has made it a natural destination for internationally mobile UK leavers. In return Malta expects genuine tax residence: the taxpayer must demonstrably have their centre of life in Malta and must not retain an overriding tax domicile in another country. UK leavers should also plan their departure carefully under the Statutory Residence Test to avoid remaining UK tax resident.
