Filing US Taxes While Living in Malta: A Comprehensive Guide

If you’re a US citizen enjoying life in Malta, with its Mediterranean sunshine, historic charm, and easy pace, you still need to keep up with your IRS filing duties. The US–Malta expat tax system can feel tricky but with the right knowledge, you can take advantage of treaties, credits, and exclusions that prevent double taxation. Whether you’re working remotely from Valletta or retired by the sea in Gozo, this guide will help you understand your tax responsibilities. Here’s to staying compliant while making the most of expat life in Malta!

Do I Need to File US Taxes?

US-Malta Tax Deadlines

Catch Up With The Streamlined Procedure

US-Malta Expat Tax Agreements

Maltese Taxes for US Expats: Navigate US-Malta Expat Tax Obligations

FBAR & FATCA Reporting for US-Malta Expat Tax Compliance

Optimize Your Taxes with US Tax Benefits: US-Malta Expat Tax Strategies

3 Things to Know About Self-Employment in Malta

Investing in Malta as a US Expat

Retirement in Malta

Let MyExpatTaxes Help!

Do I Need to File US Taxes?

The US is one of only two countries that taxes based on citizenship rather than residency. No matter where you live or where your income in generated, as a US citizen or green card holder, you’ll need to file your US taxes if you meet any of the thresholds.

In 2025, you’ll need to file your 2024 US taxes:

Filing Status	Income Threshold
Single	$14,600
Married Filing Jointly	$29,200
Married Filing Separately	$5
Self-Employed	$400
Qualifying Widow(er)	$29,200
Head of Household	$21,900

US-Malta Tax Deadlines

As a US expat, you automatically receive a 2-month filing extension to get your US filing in order. Note that your tax payment still needs to be made by April 15th to avoid penalties.

Deadline	Date
Standard Filing Deadline	April 15th
Automatic Extension for Expats	June 16th
Deadline for Expats Filing an Extension (file by June 15th)	October 15th
FBAR Deadline for Expats	October 15th
Deadline for Expats if you Filed a Second Extension	December 15th

The Maltese tax year follows the calendar year (1 January to 31 December) and your tax return is typically due on the 30th of June the following year. Special schemes with earlier deadlines apply for taxpayers such as part-time workers, and those with rental income.

You can stay up-to-date with US deadlines (as well as tips and offers) straight to your inbox with the MyExpatTaxes newsletter. No spam: guaranteed.

Catch Up With The Streamlined Procedure

Ok, so you know that you have to file your US taxes from abroad. But, what if that was new information?! Well, luckily, there’s an IRS amnesty program, the Streamlined Procedure, that allows you to become compliant with just 3 years of tax returns and 6 FBARs. If you file before the IRS contacts you, you won’t face any failure-to-file or FBAR penalties.

US-Malta Expat Tax Agreements

The US-Malta Tax Treaty aims to prevent double taxation and outlines which country has taxing rights over different types of income—like salaries, pensions, dividends, and business profits. In some cases, the treaty can lower or eliminate taxes on certain income sources. However, the Savings Clause limits many of these benefits for US citizens, allowing the US to tax its citizens as though the treaty didn’t exist. Still, the treaty is helpful for clarifying taxing rights and supports the use of foreign tax credits to reduce or eliminate double taxation.

There’s no totalization agreement between the US and Malta. This means self-employed expats or those working abroad for US companies might end up paying into both countries’ social security systems. You also can’t currently combine work credits across systems to qualify for benefits. The good news: if you qualify, you may be able to collect retirement benefits from both countries.

Maltese Taxes for US Expats: Navigate US-Malta Expat Tax Obligations

Tax Residence

If you stay in Malta for 183 days in any 12 month period, or your permanent residence is in Malta, you’ll be officially resident in Malta for tax purposes, with residency backdated to the first day of your stay.

Malta taxes its residents on worldwide income, and non-residents are taxed only on Maltese-sourced income.

Personal Income Tax

Malta has a progressive tax system, with different rates according to family status.

Married resident taxpayers have a €15,000 personal allowance and tax rates of between 15-35%, capped at 35% for income over €60,001.

Parents with children under 18 (or between 18-23 and in full time education) have a personal allowance of €13,000, and tax rates of between 15-35%, capped at 35% for income over €60,001.

Single taxpayers, or those opting to file separately, have a personal allowance of €12,000, and tax rates of between 15-35%, capped at 35% for income over €60,001.

Qualifying part-time workers pay 10% on the first €10,000 of income. Those in part-time self employment pay 10% on the first €12,000 of profits.

Social Security

Both the employer and employee contribute 10% of salary in social security contributions, up to a maximum of €54.43 per week (2025).

Self-employed workers contribute 15% of the previous year’s net income, up to a maximum of €81.64 per week.

Special Program for Expats

Expats from outside the EU who take up residence without being employed are taxed a flat 15% on foreign-sourced income, subject to a minimum €15,000 in tax paid per year. This program is available if you purchase property for over €275,000, or rent for a minimum of €9,600 per year (2025).

FBAR & FATCA Reporting for US-Malta Expat Tax Compliance

US expats living in Malta must follow FBAR and FATCA reporting rules—two key compliance requirements aimed at stopping offshore tax evasion by ensuring foreign financial accounts and assets are disclosed to US authorities.

If your combined maximum foreign account balances exceed $10,000 at any point during the year, you’ll need to file the FBAR. The FBAR is filed separately from your tax return using FinCEN Form 114.

Under FATCA, you’re also required to report foreign accounts and assets if their total value exceeds $200,000 on IRS Form 8938, which is filed with your federal return.

Good to know: MyExpatTaxes includes FBAR and FATCA reporting in its standard filing process—no extra forms or fees required.

Optimize Your Taxes with US Tax Benefits: US-Malta Expat Tax Strategies

The IRS offers several tax breaks to help US expats minimize or eliminate their US tax bill while living in Malta.

Foreign Earned Income Exclusion (FEIE)

The Foreign Earned Income Exclusion allows you to exclude up to $126,500 of foreign earned income, such as salary or self-employment income, from your US taxes. If you have qualifying housing expenses in Malta above $20,240, you may also benefit from the Foreign Housing Exclusion. To be eligible, you need to pass either the Bona Fide Residence Test (being a resident of a foreign country for an entire tax year) or the Physical Presence Test (being physically present in a foreign country for at least 330 full days during any 12-month period). You can apply for both with Form 2555.

Foreign Tax Credit (FTC)

The Foreign Tax Credit gives you a dollar-for-dollar credit to offset US taxes with the amount you paid to Malta, and can be applied to both earned and passive income. This is especially useful if you earn passive income or if your Maltese tax bill exceeds your US tax liability. Just remember that foreign-earned income can only offset US-earned income, and the same applies to passive income. You can claim the FTC with Form 1116.

Child Tax Credit (CTC)

The Child Tax Credit lets you reduce your US tax bill by up to $2,000 per qualifying child under age 17. You might also qualify for a refundable amount of up to $1,700 per child through the Additional Child Tax Credit (ACTC). To get the full refund, you need earned income of between $2,500 and getamount key=’higher_adjusted_income_single’]. You won’t be eligible for the ACTC if you use the FEIE.

Tax Tip: No matter your tax situation, MyExpatTaxes will calculate the best tax benefits available to you, so you never pay a cent more than you have to!

3 Things to Know About Self-Employment in Malta

Self employment comes with its own set of US-Malta expat tax rules.

• If you earn $400 or more from self-employment, you need to file a US tax return—regardless of where you live.
• Since there’s no US-Malta totalization agreement, you’ll owe 15.3% in US self-employment tax on your net earnings. This tax builds your credits toward Social Security and Medicare benefits. While the FEIE and FTC can lower your income tax liability, neither can reduce your self-employment tax.
• Malta also requires self-employed residents to register and pay into the local National Insurance and health systems. VAT applies to turnover above certain thresholds (€35,000 for goods, €30,000 for other activities).

Investing in Malta as a US Expat

Malta’s stable economy and attractive residency options make it a promising base for US expats looking to build wealth. Here are a few popular ways to invest while living in Malta:

• Property: Real estate in areas like Valletta, St. Julian’s, and Swieqi is popular with both locals and foreigners. US citizens need a Maltese tax ID to handle fees and taxes, and if the property won’t be your primary residence, you’ll also need an Acquisition of Immovable Property permit. Work with a trustworthy bilingual notary or lawyer, and expect 5% stamp duty and 1-2% in notary fees. If you rent out your Maltese property, don’t forget to report the income on your US tax return using Schedule E.
• Retirement Accounts (IRAs/Roth IRAs): As a US expat, you may still be eligible to contribute up to $7,000 per year, provided you have qualifying earned income and don’t exceed the modified adjusted gross income thresholds for your filing status. These accounts offer tax advantages and help keep your retirement savings on track—even from abroad.
• US-Based Stocks & Bonds: Many expats continue investing in US assets to avoid the complexities of foreign funds. Non-US mutual funds are often classified as PFICs by the IRS, leading to complex reporting and higher taxes. Staying with US-based investments helps you avoid filing Form 8621 and simplifies your tax situation.

Already holding Maltese or other foreign funds? MyExpatTaxes can help you navigate PFIC rules and file accurately.

Retirement in Malta

Malta’s warm climate, English-speaking population, and laid-back island life make it a favorite among US retirees, and the country often ranks highly in the top countries to retire.

The Malta Retirement Programme (MRP) allows Americans over 55 years old to secure residency in exchange for meeting income and housing requirements. Malta has to be your main place of residence, and you’ll need health insurance and to prove that you receive a pension in Malta that makes up at least 75% of your income. With a cost of living 41% lower than in the US (averaging $1475 per month in 2025), your pension could cover a comfortable way of life. Malta has no wealth, inheritance, estate or gift taxes, making it attractive in estate planning.

Under the US–Malta Double Taxation Relief Treaty, US Social Security and government pensions are taxed solely in the US; all other US-source pensions paid to Malta residents are taxable only in Malta.

For pension income taxable in Malta, from the 2025 tax year onwards, pensioners aged over 61 years receive an 80% exemption on their foreign or local pension income, capped at €13,309 under the gradual exemption policy that began in 2022. The remaining taxable pension is subject to Malta’s standard progressive rates, but pensioners also benefit from a 15% tax rebate on pension income above certain thresholds.

Malta is known for its high life expectancy and excellent healthcare, ranking #18th best healthcare in the world in 2025. As public healthcare is only available to EU citizens, US expats need private health insurance. While costs depend on your age and health, most Americans find private coverage very reasonable in comparison to costs back home.

Sliema, St Paul’s Bay, and Gozo are top picks for retirement, offering a mix of lively communities, coastal views, and quiet charm. With its combination of history, sea views, and favorable expat policies, Malta is a relaxed and tax-friendly place to enjoy your retirement.

Let MyExpatTaxes Help!

As you settle into life in Malta, don’t let tax season catch you off guard. Getting your US-Malta Expat Tax sorted early means way fewer headaches later (and maybe even a bigger refund). Whether you’re working, investing, or retired, we’ll help you make sense of your filing requirements.

Tax time doesn’t have to be stressful or time-consuming. Most of our clients e-file in under 30 minutes! Or you can upgrade to our Premium plan to work with a Tax Professional for the ultimate peace of mind. No matter your situation, we have an affordable solution for you.

Join our thousands of satisfied clients and make filing your US return the easiest part of your year.