Taxes in Malta for American Retirees
Taxes in Malta
When Malta starts taxing you, how it treats a U.S. pension, and what the United States still expects from you regardless.
When you become tax resident
Ordinary residence and domicile determine the basis of taxation. Malta taxes on a remittance basis for individuals resident but not domiciled, meaning foreign income is taxed only when brought into Malta.
How your foreign pension is treated
Under the Malta Retirement Programme, foreign pension income remitted to Malta is taxed at a flat 15 percent, subject to a minimum annual tax. Foreign income not remitted to Malta is generally not taxed, and foreign capital gains are not taxed even if remitted, which is an unusual and valuable feature.
The U.S. tax treaty position
A U.S.-Malta income tax treaty is in force. Note that certain Maltese pension arrangements were the subject of a U.S.-Malta competent authority agreement addressing abusive structures; ordinary retirees are unaffected but be wary of any scheme marketed on that basis.
Wealth tax
None.
Other taxes and reporting
No annual property tax, which is unusual in Europe. Stamp duty applies on purchase. No inheritance tax, though a duty applies on transfers of Maltese immovable property and shares.
Remember the U.S. side
The United States taxes its citizens on worldwide income wherever they live. Moving does not end your filing obligation, and FBAR reporting is triggered by an aggregate of 10,000 dollars across foreign accounts at any moment in the year.
Taxes in Malta: common questions
When do I become tax resident in Malta?
Ordinary residence and domicile determine the basis of taxation. Malta taxes on a remittance basis for individuals resident but not domiciled, meaning foreign income is taxed only when brought into Malta.
Will Malta tax my U.S. pension?
Under the Malta Retirement Programme, foreign pension income remitted to Malta is taxed at a flat 15 percent, subject to a minimum annual tax. Foreign income not remitted to Malta is generally not taxed, and foreign capital gains are not taxed even if remitted, which is an unusual and valuable feature.
Do I still file a U.S. return?
Yes. The United States taxes its citizens on worldwide income wherever they live, and moving does not end the obligation. You get an automatic extension to June 15, the Foreign Tax Credit usually prevents genuine double taxation, and FBAR is a separate filing triggered by an aggregate of 10,000 dollars across foreign accounts at any point in the year.
Verified Sep 7, 2026 Primary sources: residencymalta.gov.mt, cfr.gov.mt, identita.gov.mt
This resource is provided free by Federal Apostille as an educational tool. It is not legal, tax, immigration or financial advice, and no attorney-client relationship is created by using it. Immigration rules, income thresholds, fees and processing times change frequently and often without notice, and consulates apply them differently. Always confirm current requirements with the official government source and the specific consulate that has jurisdiction over your U.S. state of residence before you act. Every figure on this site carries the date we last verified it and a link to the primary source.
