A remittance-basis jurisdiction operating a flat 0% special regime for qualifying incoming professionals, layered over the country's social-security charge.
Malta's Malta Nomad Permit (Year 1) applies a flat 0% to qualifying income for 1 years, layered over the country's social-security charge. The effective burden on $120,000 settles at 4.9%, leaving $114,130 in hand.
A walk through the four statutory channels by which Malta claims part of a resident's gross compensation — followed by any special regime that overrides them.
4-bracket progressive system running from 0% to 35% on taxable income.
| Taxable income | Rate |
|---|---|
| up to 12,000 | 0.00% |
| 12,000 – 16,000 | 15.00% |
| 16,000 – 60,000 | 25.00% |
| over 60,000 | 35.00% |
On social security, employees pay 10.0%. Contributions cap at 54,000 EUR ($58,696) of annual base.
| Party | Rate | Cap |
|---|
| Instrument | $75k gross | $120k gross | $200k gross |
|---|---|---|---|
I. Statutory deductions | |||
Personal income tax Malta Nomad Permit (Year 1) | — | — | — |
Social security · employee 10.0% employee · capped | −$5,870 | −$5,870 | −$5,870 |
| Gross income | $75,000 | $120,000 | $200,000 |
| Total deductions | −$5,870 | −$5,870 | −$5,870 |
| Effective rate | 7.8% | ||
Tax residency in Malta is established by the jurisdiction's headline test[1]: physical presence of more than 183 days in a rolling twelve-month period, supplemented by 183+ days; non-dom status is default for most foreigners. Spouses and unemancipated minors are typically presumed to share the residency of the principal earner unless rebutted.
Once resident, any special regime is not automatic. Most jurisdictions require a formal registration with the tax authority within a defined window following arrival, together with proof of qualifying activity and a lookback period of prior non-residency. Late registration forfeits the regime for the year in question and, in some cases, for the entire benefit window.[2]
The common pitfalls are predictable. Treaty interaction with the home state can override the local regime where the home jurisdiction asserts primary taxing rights — most relevantly, United States citizens remain subject to US federal tax on worldwide income, with foreign-tax-credit relief but no escape from the higher of the two bills. Activities undertaken before registration is approved may also fall outside the regime entirely.[3]
| PPP basis · NYC = 100 | Malta | New York · NY | Δ |
|---|---|---|---|
Cost-of-living index Indicative · placeholder until COL table ships | 60.0 | 100.0 | -40.0 pts |
Nominal net (annual · $120k) From the engine — exact | $114,130 | $77,900 | +$36,230 |
| Real net · NYC basket | $190,217 | $77,900 | +$112,317 |
Every figure in this country reference traces to a primary instrument. We publish the model and welcome correction.
Read the full note ↗| Employee / self-employed | 10.00% | €54,000 |
Healthcare financing on the resident side is normally embedded inside the social-security charge rather than carried as a separate payroll line. The Comparely engine models healthcare as part of the social contribution unless a country exposes a distinct line item — track additions in the schema for future surfacing.
| Instrument | Rate |
|---|---|
| Dedicated health levy | — |
| Long-term care levy | — |
| Embedded in social charge | included |
Malta Nomad Permit (Year 1). Caps qualifying income at a flat 0%, replacing the default progressive schedule. Benefit runs for 1 year from first qualification.
Malta Nomad Permit (Year 2+). Caps qualifying income at a flat 10%, replacing the default progressive schedule. Benefit runs for 3 years from first qualification.
| PIT rate · qualifying income | 0.00% |
| Duration | 1 yrs |
| Applies to employment | yes |
| Applies to self-employment | yes |
| Minimum income (local) | 42,000 |
| 4.9% |
| 2.9% |
| Net take-home | $69,130 | $114,130 | $194,130 |
| Net · monthly equiv. | $5,761 | $9,511 | $16,178 |
Table 1 · Net take-home under the auto-picked regime, three income points, FY 2026 indicative. Highlighted column is the $120k worked example used elsewhere on the site. |
| Arrival (day 0) | Establish address; obtain tax ID |
| Day 0 – 90 | Visa application (if required) and bank account |
| Day 183 | Default residency threshold crossed |
| Year-end | Tax year closes |
| Year + 1 · Q1 | Special-regime registration window (if any) |
| Year + 1 · Q2–Q3 | First annual return |