Malta Rental Income Tax 2026: 15% Flat Rate Guide
Should you choose the 15% flat rate or progressive tax for your rental income in Malta?
Two Tax Options for Rental Income
| Option | Rate | Deductions |
|---|---|---|
| 15% Flat Rate | 15% | No deductions allowed |
| Progressive Tax | 0-35% | Expenses deductible |
When to Choose 15% Flat Rate
- Your rental income is higher than €14,500/year
- You have minimal expenses to deduct
- You want simple tax compliance
- The property is registered with the Housing Authority
Comparison Example
Rental income: €15,000/year
- • 15% Flat Rate: €15,000 × 15% = €2,250 tax
- • Progressive (single, no other income): ~€885 tax
In this case, progressive taxation is better if rental income is your only income.
Malta Calculator Editorial Team
Financial Content Specialists | Malta Tax & Employment Experts
Our team specializes in Maltese tax law, social security contributions, and employment regulations. All content is reviewed against official sources from the Malta Commissioner for Revenue and the Department of Social Security.
Official Sources
Data verified as of 1 January 2026. Rates and thresholds are subject to change based on Malta government budget announcements.
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the 15% flat rate is honestly one of the best things about property investment in malta. So much simpler than adding it to your income and paying progressive rates
Question - if I rent out a room in my apartment (not the whole thing), do I still qualify for the 15% flat rate? Or is it different for partial rentals?
Good article. Worth noting you need to register the lease with the Housing Authority to qualify for the 15% rate. Some people forget this step and end up paying more.
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