Taxation for UK residents on Malta

Updated 2015-04-08 11:47

I am NOT a Financial Advisor, I am just another expat. If in doubt seek professional advice.

This is my interpretation on Malta tax liability and double taxation.
This is a practise, as a UK Expat, that I follow and I do not pay tax, in Malta, on any of my pensions.


Everyone is required to register for Income Tax if resident on Malta.

In general, individuals are considered to be resident in Malta if they spend more than 183 days in a calendar year in Malta.
(Whether you are liable to pay any tax will depend upon your circumstances.)

An individual, who is either resident in Malta or domiciled in Malta, but not both, is subject to tax on income arising in Malta, on income arising abroad but received in Malta, and on capital gains arising in Malta. Individuals who are neither resident in Malta nor domiciled in Malta (temporary residents) are subject to tax only on income and capital gains arising in Malta.

This includes the use of Credit/Debit cards connected with any bank outside Malta.

Transfer of savings does not (usually) attract tax.

Registration may be done by attending either of the two offices in Floriana, Malta or Rabat (Victoria) Gozo.

Malta: Block 4, Vincenzo Dimech Street, Floriana.

Gozo: Enrico Mizzi Street, Victoria

Double Taxation Convention

Malta has Double Taxation agreements with many other States to prevent taxes being imposed twice in many and various situations but for most people on this forum, the biggest area of concern is pensions.

A list of all States with which Malta has agreements may be found here:

Reference to the 'Double Taxation' query and discussion. (UK only)

This is my understanding of the Agreement between Malta and the UK regarding this issue and should be read from the perspective of being on Malta, paying taxes to Malta and what Malta has agreed with the UK. (If one was in the UK then obviously the perspective would be reversed.)

Specific reference is made to

SIGNED 12 MAY 1994
Entered into force 27 March 1995
Effective in United Kingdom from 1 April 1996 for corporation tax and from 6
April 1996 for income tax and capital gains tax
Effective in Malta from 1 January 1996

Available here:

Article 18 Pensions.

(1) Subject to the provisions of paragraph (2) of Article 19 of this Convention, pensions and other similar remuneration paid in consideration of past employment, or any annuity paid, to a individual who is a resident of a Contracting State shall be taxable only in that State.

Para (2(b)) of Article 19 states: (b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

This means to me that in regard of income sourced from pensions, one can only be taxed on Malta if one is a Maltese National and resident here. If one is not both then this does NOT apply.

Also and according to UK HMRC:

most pensions - most UK government (eg civil service) pensions are only taxed in the UK



All relevant income derived from or remitted to Malta should be declared on the Malta tax return and that includes pensions. Attach a copy of the relevant P60's and let the office apply the convention. It is advisable to attach a letter to any tax return further explaining the circumstances. It is important to attach copies of P60s because that proves income and tax already paid.

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