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Malta Rental Income Tax Calculator 2026

Work out the tax on rent from immovable property in Malta for 2026. Malta lets you tax long-term rental income at a flat, final 15% rate on the gross rent (declared on form TA24) instead of adding it to your other income at the normal progressive rates. This calculator shows the 15% final tax and your net rent, and compares it against declaring at your marginal income-tax rate so you can pick the cheaper route. Free, instant and based on the rates published by the Malta Tax and Customs Administration (MTCA / CFR).

Your Malta rental income tax

  • 15% final tax (TA24)€1,800.00
  • Net rent after tax€10,200.00
  • Effective rate15.00%
  • Tax if declared at normal rates€3,000.00
  • Saving with the 15% final taxSaves €1,200.00 vs declaring at your 25.00% marginal rate

How is rental income taxed in Malta in 2026?

When you rent out property situated in Malta, you can choose how the rent is taxed. The headline option is the 15% final withholding tax under Article 31D of the Income Tax Act, declared and paid on form TA24. It is charged on your GROSS rent received during the year, with no deductions whatsoever — you cannot subtract maintenance, agency fees, loan interest, ground rent or licence fees. The rate is 15% and it is final: there is no further tax, no set-off and no refund on that income, and the rent need not be declared in your annual return once the 15% has been paid. It applies to long-term lettings of both residential and commercial property, to individuals and companies, resident or non-resident, but excludes rent from related parties. The TA24 is due by 30 April of the year following the rental year — so 2026 rent is declared by 30 April 2027. The 15% route is optional and all-or-nothing for the year: if you elect it, it applies to ALL your qualifying rental properties that year. The alternative is to DECLARE the rent at the normal progressive rates (0%, 15%, 25% and 35%), added to your other income, where allowable expenses CAN be deducted. The break-even is exactly a 15% marginal rate: if the rent would be taxed below 15% at the normal rates the normal route wins, and above 15% the final tax wins. Worked example: on €12,000 of gross rent, the 15% final tax is €12,000 × 0.15 = €1,800.00, leaving net rent of €10,200.00 at an effective rate of 15.00%. If you instead declared that €12,000 at a 25% marginal rate it would cost €12,000 × 0.25 = €3,000.00 (before any expense deduction), so the 15% final tax saves €1,200.00 over the normal route. A second check: €9,600 of gross rent at the 15% final rate is €9,600 × 0.15 = €1,440.00, leaving €8,160.00 net, again a 15.00% effective rate. At the break-even, €12,000 declared at a 15% marginal rate costs €12,000 × 0.15 = €1,800.00 — exactly equal to the 15% final tax, so the two routes are identical. This calculator covers the standard 15% scheme only; it does not model the reduced 5% rate for 7-year Housing Authority lets or the 10% restored-property cases. Long-term residential letting is exempt from VAT, so no VAT is charged to the tenant.

Official source: CFR Malta (MTCA) · Data updated: 2026-06-04

Frequently asked questions

What is the 15% final tax on rental income in Malta?

It is an optional flat rate under Article 31D of the Income Tax Act, declared on form TA24. You pay 15% on the GROSS rent received during the year — with no deductions for maintenance, agency fees, loan interest or any other expense. The tax is final: there is no further tax and no refund on that income, and the rent need not be included in your annual return once the 15% is paid. On €12,000 of gross rent the tax is €1,800.00, leaving €10,200.00.

Can I deduct expenses against my rental income?

Not under the 15% scheme. The 15% final tax on form TA24 is charged on gross rent with no deductions of any kind. If you want to deduct allowable expenses — maintenance, ground rent, licence fees and similar — you must instead declare the rent in your annual tax return at the normal progressive rates. That is the alternative this calculator compares against.

Should I use the 15% final tax or declare at the normal rates?

It depends on your marginal income-tax rate. The break-even is exactly 15%. If the rent would be taxed below 15% at the normal rates (for example it falls in your 0% tax-free band), declaring it is cheaper. If it would be taxed above 15% (the 25% or 35% bands), the 15% final tax is cheaper. At a 15% marginal rate the two are identical: €12,000 declared at 15% is €1,800.00, the same as the 15% final tax.

What property and tenancies does the 15% rate cover?

It applies to long-term rental of immovable property situated in Malta — both residential (since 2014) and commercial tenements (since 2016). It is available to individuals and companies, resident or non-resident, but it excludes rent received from related parties. The election is all-or-nothing for the year: if you choose the 15% route it applies to all your qualifying rental properties that year.

When is the TA24 due and how do I pay?

The 15% final tax is declared and paid on form TA24 by 30 April of the year following the rental year. So rent earned in 2026 is declared by 30 April 2027 (and 2025 rent by 30 April 2026). You can file and pay the TA24 online through the Malta Tax and Customs Administration. Once paid, that rental income does not have to be repeated in your annual income-tax return.

Are there lower rates than 15% for some lettings?

Yes, in specific cases. A reduced 5% final rate applies to property rented for 7 or more years to the same tenant under a registered Housing Authority private-rent scheme, and certain restored or regenerated properties can attract 10%. These are special cases with their own conditions and are not modelled in this calculator, which covers the standard 15% scheme and the normal-rates comparison. Confirm any reduced rate with the MTCA.

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