Standard Progressive Tax Rate (click here)
Rental income from immovable property situated in Malta is taxable in Malta, even if the owner of the property is not resident in Malta.
The rental income would normally be taxed at the normal tax rates applicable in Malta (progressive rates up to a maximum of 35% depending on the amount of the income). Deductions for interest paid on loan financing of the purchase of the property, and some other small deductions are usually allowed against the rental income.
A special tax scheme for rental income is available whereby the rental income, without any deductions, is brought to tax at 15%. Using the special tax scheme is at the option of the owner. Short lets to tourists may be classified as a trade and result in VAT registration obligations for the owner and Malta Tourism Authority licence obligations for the property in question.