Capital Gains Tax in Malta - Guide on Capital Gains Rules

The capital gains tax in Malta is one of the most important levies as it is imposed on the disposal of various types of assets held here. Below, our accountants in Malta explain the main rules under which the capital gains tax is imposed and how we can assist with its imposition.

Quick Facts
Applicability	Capital gains tax in Malta is applicable on the transfer of assets and certain specified financial instruments.
Capital gains tax rate in Malta	0% to 35% (progressive rates) for individuals, 35% for companies; Maltese property transfers are generally subject to a final tax of 8% (2%-12% in specific cases).
Exemption	Immovable property sales in Malta can be exempt if the property was the taxpayer’s own residence for at least 3 years and is sold within 12 months of vacating it.
Holding period	A reduced 5% final tax applies to property sold within 5 years of acquisition; otherwise the rate is generally 8% (10% if acquired before 2004).
Calculation basis	The capital gain is calculated as the difference between the transfer value and the acquisition cost, adjusted for certain expenses.
Intellectual property	Under Maltese tax laws, capital gains tax applies to static intellectual property when authority is transferred, making them taxable.
Resident vs. non-resident	Individuals resident and domiciled in Malta are taxed on worldwide gains; residents who are not domiciled and non-residents are generally taxed only on gains from Malta-situated assets.
Tax payment deadline	Capital gains tax is payable within 30 days from the date of transfer, and late payments may incur penalties and interest.
Property valuation	The value of the property for tax purposes is generally the higher of the transfer value or the market value at the time of transfer.
Foreign investment	Gains derived from the disposal of shares in companies owning immovable property in Malta are subject to capital gains tax.
Compliance requirements	Taxpayers are required to submit a capital gains tax return, providing details of the transfer and supporting documentation.
Double taxation treaties	Malta has an extensive network of double taxation treaties that may impact the taxation of capital gains for non-resident taxpayers.
Joint ownership	Jointly owned property may be eligible for a double threshold, effectively increasing the exemption for each joint owner.
Renovation and improvement	Expenses related to the renovation or improvement of the property can be included in the acquisition cost, reducing the capital gain.
Professional advice	Due to the complexity of Maltese capital gains tax regulations, seeking professional advice is advisable for accurate compliance and optimization of tax liabilities. Our accountants in Malta offer detailed assistance in this regard.

Who must pay the capital gains tax in Malta?

Both natural persons and companies are subject to the capital gains tax in Malta.

What is the capital tax rate in Malta?

The rate applies as follows:

0% to 35% on natural persons;
35% on Maltese companies;
in the case of property transfer, the rate of the tax starts at 8%, however, lower rates of 2%, 5%, 7%, 10% and 12% are also in place;
these rates are also influenced by Malta’s double tax treaties that number around 80 at the moment.

The gains are often factored into the company’s or person’s taxable income for determining the tax rate. It is important to note that capital gains made outside of Malta are only subject to taxation in Malta if they accrue to persons who are both ordinarily resident and domiciled in Malta.

NOTE: Natural persons can pay the capital gains tax as singles or as a couple, depending on their marital status. Our accountants also assist Maltese citizens and residents, so feel free to discuss the payment of this tax with us.

What is a capital gain?

A capital gain is an income obtained AFTER the sale/transfer of an asset.

In Malta, capital gains are considered investments, thus, taxed accordingly. An important aspect to consider is that the levy is imposed when the asset is sold at a higher price than bought.

Capital gains are treated differently based on the residency of the payer, which is why, when dealing with such particularities, you can rely on our accountants in Malta.

How do I recognize a capital gain?

Capital gains have a few particularities and can be recognized after the following:

they represent the increase in value and are realized when the asset is sold;
they cover various types of assets, among which goods bought for personal use or for investment purposes;
they are purchased on a short or long term and must be declared when filing the income tax returns.

What are the types of assets/income on which the Maltese capital gains tax apply to?

The following:

company shares;
securities;
intellectual property rights (copyrights, patents, trademarks, etc.);
some transactions of immovable property;
donations from companies;
exchange of assets;
interests in partnerships or trusts held in Malta.

NOTE: Each type of income must be assessed individually for the purpose of the capital gains tax. This is why many clients work with our accounting firm in Malta to get acquainted with their tax obligations.

How will I know if I must pay a capital gains tax in Malta?

Here are the most important criteria to help you:

the types of assets;
the source of income;
the market value.

IMPORTANT: Our accountants in Malta can assist in checking all the conditions under which the capital gains tax applies, as there are various assessments to be made.

How do I pay the capital gains tax in Malta?

Compared to the corporate tax or personal income tax in Malta, the capital gains levy is imposed after the sale or disposal of the assets qualifying for it.

In the case of Maltese companies, the transfer of assets is added to the other income of the business, and the total amount of the tax will be charged at once. This implies a simplified taxation regime so that companies do not have to pay levies several times.

In order to pay this tax in Malta, a person or company must be registered for taxation with the Commissioner for Tax and Customs.

Are there any exemptions from paying the capital gains tax in Malta?

Yes, exemptions apply in the following scenarios:

on gains from securities listed on the Stock Exchange;
on foreign-sourced capital gains of non-residents and of residents who are not domiciled in Malta (even if remitted);
under the participation exemption scheme, qualifying corporate shareholdings can benefit from a 0% rate on the capital gains tax.

If you need assistance with respect to the capital gains tax in Malta, feel free to approach our accounting firm. Contact us for tailored accounting services in accordance with your needs.

Simon Ciantar, CPA · 13 October 2026Simon Ciantar is CEO of Ciantar Associates and a qualified accountant and registered auditor.