In 2014, the Maltese Government introduced a scheme for individuals to regularise their tax position with respect to past undeclared rental income. Landlords (resident individuals, non-resident individuals or companies) leasing out ‘residential tenements’ (includes dwelling house or part thereof which is occupied as a residence or a garage) to individuals can opt to have their gross rental income taxed at the final withholding tax of 15%.
Landlords leasing out commercial tenements or Malta Tourism Authority licence tenements are not eligible for the 15% final withholding tax. where the 15% tax regime is exercised, it shall also apply to other rental income derived by the landlord from other ‘residential tenements’.
