Malta, with its Mediterranean lifestyle and historic charm, hosts expatriates from around the globe. Expats settling in Malta will quickly learn that being a non-domiciled resident of Malta brings about attractive tax benefits. These benefits are typically only applicable on foreign sourced income, which excludes any form of business activity carried out physically from Malta.  

While creative work carried out physically from Malta is subject to tax in Malta, creative practitioners working from Malta may be eligible to the reduced tax rate of 7.5% on the gross income derived from their creative work.  

 Let’s break down the details: 

Who Qualifies? 

The reduced tax rate applies to both full-time and part-time self-employed creative practitioners engaged in the following activities: 

  • Theatrical, Stage, Motion Picture, and TV Productions: If you’re treading the boards, capturing scenes on film, or creating captivating TV content. 
  • Exhibitions: Artists exhibiting their work—whether paintings, sculptures, or other forms. 
  • Literary and Musical Works: Writers, poets, composers, and musicians fall under this category.  
  • Intellectual Property and Royalties: If you’re earning from intellectual property rights or royalties. 

 How It Works 

The 7.5% reduced tax rate applies to the first EUR 50,000 of taxable profits from artistic activity. Any additional income beyond this threshold is added to your main income and taxed at the applicable progressive rates. 

 Application Process 

  • Apply with Arts Council Malta: To benefit from this reduced rate for the basis year 2023, an application needs to be submitted to Arts Council Malta by 15th April 2024, noon 
  • Filing of the prescribed TA Form: Once approved by Arts Council Malta an applicant needs to file the prescribed TA Form. 
  • Submission and Payment: Submit the TA form to the Malta Tax and Customs Administration along with your payment by 30th April 2024. 

Remember, compliance is key; consult professionals for assistance and guidance. For personalized guidance, reach out to our tax team at Sheltons Malta or write to us on [email protected]. 

Disclaimer: This article provides general information and should not be considered professional advice. Always consult a tax professional for personalized guidance.