Question 1

What is the 15% flat rate option for rental income tax in Malta?

Accepted Answer

In Malta, landlords can opt to pay a final withholding tax of 15% on gross rental income (form TA24) instead of declaring it as part of their normal income and paying tax at progressive rates. The 15% is applied to the gross rental income with no deductions allowed. It is a final tax, meaning no further tax is due on that rental income.

Question 2

Should I choose the 15% flat rate or normal tax rate for rental income in Malta?

Accepted Answer

It depends on your marginal tax rate and expenses. If your other income puts you in the 25% or 35% bracket, the 15% flat rate is usually cheaper. If your total income is low (within the 0% or 15% bands) or you have large deductible expenses, declaring at progressive rates can result in less tax. This calculator compares both options with your actual numbers.

Question 3

What expenses can be deducted from rental income in Malta?

Accepted Answer

Under the progressive route you may deduct ground rent payable, licence fees under the Guest Houses and Holiday Furnished Premises Act, interest on loans taken to acquire or improve the property, and a further 20% maintenance allowance calculated on the rent remaining after ground rent and licence fees. Under the 15% TA24 option no deductions are permitted.

Question 4

Is it mandatory to register rental income with the tax authorities in Malta?

Accepted Answer

Yes, all rental income in Malta must be declared to the Malta Tax & Customs Administration. If you opt for the 15% final withholding tax, the TA24 form and payment are due by 30 April of the following year. Private residential leases must also be registered with the Housing Authority under the Private Residential Leases Act.

Question 5

Can I use the 15% rate for some properties and progressive rates for others?

Accepted Answer

No. The chosen method applies to all your rental income in that tax year. You must select one taxation method per year and apply it consistently across all rental properties — you can, however, switch methods from one year to the next.

Rental Income Tax Calculator

Malta Rental Income Tax 2026: 15% Flat Rate Guide