Malta’s Res Non-Dom Taxation after the Abolition of UK Non-Dom
Dr Jean-Philippe Chetcuti, Senior Partner, Chetcuti Cauchi Advocates, A Leading Law Firm in Malta
Malta’s Res Non-Dom, Capital City: VallettaFor many decades, Malta has attracted some of the world’s most successful business families and entrepreneurs to its shores on account of its pleasant Mediterranean lifestyle, security, and ease of integration and doing business in a fully English-speaking environment.
As a millennial tax law graduate spanning Malta and the UK, I witnessed first-hand Malta’s enthusiastic bid for EU membership, culminating in accession in 2004, adopting the Euro in 2007. I remember vividly my and my partners’ excitement at the European Union quality stamp to an ambitious and fast-growing island financial centre.
Malta’s source and remittance tax system for non-doms has been an important component in Malta’s attractiveness for the setting up of private wealth structures and family offices.
Over this period, I have had the honour of forming part of the ongoing public-private effort to build an attractive, yet prudent legal and tax framework with a quality-over-quantity approach. The development of Malta’s tax system for individuals, companies and trusts, anchored solidly in Malta’s Anglo-Saxon tradition yet accommodating of Continental Civil Law countries, quickly crystallised Malta as an attractive domicile for high-net-worth families from across the globe who either sought a tax residence for family members, or even the naturalisation as a Maltese citizen by investment.
Res Non Dom Taxation in Malta
Malta owes its reputation as an attractive destination for executives and high net worth individuals not least to its Res Non-Dom tax system that has remained consistent over the years, providing legal certainty for tax planners. Malta continues to retain the classical form of the remittance basis of taxation since its introduction during the British colonial era, presenting significant opportunities for resident non-doms in Malta.
For foreigners resident in Malta, the Res Non-Dom Tax System allows for capital gains tax planning for persons anticipating significant liquidity events: IPOs, M&As, private equity buyouts or management buyouts, or outright sale of a business. It also ensures foreign income is not tax reportable or taxable in Malta except for a part, if any, that is remitted to Malta.
Thanks to Malta’s membership of the EU and its high standards of anti-money laundering measures, Malta presents a reputable, onshore and internationally compliant jurisdiction for efficient tax residency.
Other Taxes: An important feature of Malta’s tax system that appeals to HNWIs is the absence of wealth taxes, inheritance taxes, or estate duties, which are common in many other countries. This allows for the easier transmission of wealth across generations, with opportunities to use Malta as a key domicile for family wealth preservation.
(First published on: Global Private Client Digest here.
➡️ Overview of Malta’s Res Non-Dom Tax System
➡️ Malta Tax Residence Certificates
About the Author
Dr Jean-Philippe Chetcuti, Chetcuti Cauchi Advocates on Malta’s Res Non-Dom Taxation
Dr Jean-Philippe Chetcuti has advised some of the world’s most accomplished high-net-worth individuals and family offices for over 25 years on matters of personal tax planning, investor citizenship programmes, tax residency, and international wealth structuring. JP is a member of the International Bar Association Private Client Wealth and Immigration and Nationality sections, and has served as chairman of the Malta Branch of STEP, the Society of Trust & Estate Practitioners.
