Rental Income & Tax

In Malta, rental income is taxed at a flat rate of 15%, whether it’s derived from short-term or long-term lease agreements. This 15% rate is a final tax, applied to the gross rental income without allowing for any deductions.

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Alternatively, taxpayers have the option to declare their rental income as part of their annual tax return. When doing so, the income will be taxed at the applicable progressive tax rate for individuals or the standard corporate tax rate of 35% for companies.

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Selecting the appropriate tax rate depends on your overall financial circumstances. Our team is here to help you assess your options and choose the most beneficial approach. We provide comprehensive support, including preparing and filing all required compliance documentation, Eco Contribution Returns, assisting with applications for the 15% tax regime, and assessing eligibility for available tax rebates. We can also assist you or your company in preparing your annual tax return to ensure full compliance with Maltese tax regulations.