Malta already offers an attractive income tax rate for individuals. The income tax for people earning over €19,500 and under €60,000 per year is currently at 29%. This will change next year, as the government just revealed the new tax rates for individuals for 2015. The reduction of the tax rate was announced by the finance minister Edward Scicluna during the budget speeches on November 17. This rate will be reduced to 25%, which is in line with the Digital Gaming Strategy plan that was announced three years ago. The plan aims to make Malta more attractive by giving incentives to foreign iGaming companies to move their business to the islands, and for qualified persons moving to Malta for work. The people that will benefit the most from the upcoming tax reduction are people who are employed in the iGaming and finance sector who earn more than €19,500 per year.
The tax rate for people who earn more than €60,000 a year will remain at 35%. However, with this reduction, a person earning €60,000 a year will still save €3,600 in taxes per year.
The income tax rate in Malta is considerably lower compared to other countries in the EU, such as the United Kingdom, where the income tax is currently at 20% for income under £31,865, and 40% on income between £31,866 and £150,000. Due to different levels of costs of living expenses and housing prices, employees cannot expect to have the same salary in Malta as in the United Kingdom. However, it is very likely to have more money at the end of the day, as the cost for living expenses and accommodation in Malta is considerably cheaper than in the United Kingdom. In this case it can be well worth it to consider moving to Malta, as the taxation structure can allow you to have more money to spend. With this in mind, it should also be said that the iGaming industry in Malta offers great employment opportunities for skilled workers, and they are always looking for qualified personnel. Also entrepreneurs wanting to set foot and starting a business in Malta can benefit from these incentives.
