Residencies

Cyprus vs Malta: residency and tax

Cyprus and Malta are the two EU island states that founders and investors compare when they relocate. Both tax non-domiciled residents lightly on foreign income: Cyprus exempts their dividends and interest from its defence contribution, while Malta taxes foreign income only when it is remitted. They differ on corporate tax, minimum taxes and residence routes.

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Updated 26 October 2026

The table compares the tax residence tests, the treatment of non-domiciled residents, tax rates, the regimes for newcomers and the residence routes for non-EU nationals.

Cyprus vs Malta: residency and tax, side by side
Criterion	Cyprus	Malta
Tax residence	More than 183 days in the tax year, or 60 days under the 60-day rule (conditions apply)	More than 183 days in a calendar year, or from arrival when you move to settle
Foreign income of non-domiciled residents	Dividends and interest exempt from defence contribution until deemed domicile after 17 of 20 years	Taxed only when received in Malta; foreign capital gains not taxed (remittance basis)
Charges linked to the non-dom position	Optional extension after deemed domicile: EUR 250,000 per 5-year period, up to 2 periods	Minimum tax of EUR 5,000 a year where foreign income is at least EUR 35,000 (not for special tax status holders)
Personal income tax rates	0% up to EUR 22,000; 20% / 25% / 30%; 35% above EUR 72,000 (from 2026)	0% up to EUR 12,000; 15% / 25%; 35% above EUR 60,000 (single rates, 2026)
Corporate income tax	15% from 2026-01-01 (12.5% until 2025)	35%; a 6/7 shareholder refund usually applies to distributed trading profits, leaving about 5% Malta tax
Regime for new employees	50% of pay above EUR 55,000 exempt for up to 17 years, after 15 years of non-residence	15% flat rate on qualifying salary in eligible senior roles (Highly Skilled Individuals Rules), subject to a salary floor
Residence for non-EU nationals	Residence permit from the Civil Registry and Migration Department; EU citizens register and receive a registration certificate instead	Malta Permanent Residence Programme: EUR 37,000 contribution, and a home bought from EUR 375,000 or rented from EUR 14,000 a year
Banking partners in our network	4	5

Tax residence: Cyprus Tax Department, tax residency and domicile (Cyprus); Malta Tax and Customs Administration, tax residence (Malta). As of 2026-10-25.
Non-domiciled residents: Cyprus Tax Department (Cyprus); Malta Tax and Customs Administration, guidance note on the remittance basis (Malta). As of 2026-10-25.
Non-dom charges: Cyprus Tax Department (Cyprus); Malta Tax and Customs Administration, remittance basis guidance (Malta). As of 2026-10-25.
Personal income tax rates: KPMG Cyprus on the 2026 tax reform (Cyprus); Malta Tax and Customs Administration, tax rates 2026 (Malta). As of 2026-10-25.
Corporate income tax: KPMG Cyprus and EY (Cyprus); PwC Worldwide Tax Summaries, Malta corporate income determination (Malta). As of 2026-10-25.
Regime for new employees: PwC Worldwide Tax Summaries, Cyprus individual income determination (Cyprus); Malta Tax and Customs Administration, special schemes for individuals (Malta). As of 2026-10-25.
Residence: Civil Registry and Migration Department (Cyprus); Residency Malta Agency, MPRP, and Legal Notice 146 of 2025 (Malta). As of 2026-10-25.

General information, not legal or tax advice. Approval always rests with the institution or authority.

Our take

Cyprus suits founders who will run an EU company from the island, pay themselves a salary and receive dividends and interest, and who can meet the 183-day or the 60-day test.

Malta suits non-EU families who want permanent EU residence through the MPRP, and residents with foreign income who can live with the remittance basis and a minimum tax. In both countries the benefits depend on actually living there and on leaving your current tax residence properly.

Questions

Is Cyprus or Malta better for non-doms?

They work differently. Cyprus exempts non-domiciled residents' dividends and interest from its defence contribution until deemed domicile after 17 of 20 years. Malta taxes non-domiciled residents' foreign income only when it is brought into Malta, with a EUR 5,000 minimum tax once foreign income reaches EUR 35,000.

How many days must I spend in Cyprus or Malta?

Cyprus treats you as tax resident after more than 183 days in a tax year, or 60 days under its 60-day rule if every condition is met. Malta applies more than 183 days in a calendar year, or treats you as resident from arrival when you move to settle.

Can non-EU citizens get residence in Cyprus or Malta?

Yes, through a residence permit. In Malta the Permanent Residence Programme grants permanent residence for a EUR 37,000 contribution and a qualifying home. In Cyprus non-EU nationals need a residence permit, which shapes the timing of any tax plan.