Property January 2026 6 min read
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.