Selling an asset in Malta? Estimating capital gains tax
How to estimate capital gains tax on shares, property or other assets sold in Malta: gain, costs, rate and net proceeds.
Key facts
| Place | Malta |
|---|---|
| Tax | VAT |
| Standard rate on file | 18% |
| Multiply net price by | 1.18 |
| Tax share of a gross price | 15.25% |
| Currency | EUR |
Working out the gain
The taxable gain is usually the sale price minus the purchase price and allowable costs, such as broker fees, legal fees or improvement costs. If the result is negative, you have a loss, which may be offset against other gains depending on the rules in Malta.
Worked example
Here is the calculation with sample figures. Change any number in the Malta Capital Gains Tax Calculator to run your own.
| Purchase price | €25,000.00 |
| Sale price | €37,500.00 |
| Costs and fees | €500.00 |
| Tax rate (%) | 20% |
| Taxable gain | €12,000.00 |
|---|---|
| Tax | €2,400.00 |
| Net amount | €34,600.00 |
Rates, allowances and holding periods
Many countries tax gains at a different rate from salary, offer an annual tax-free allowance, or reduce the rate for assets held longer. Some exempt a main home. Because these rules differ so widely, the calculator uses an editable rate that you can set from current guidance in Malta.
Keep the paperwork
Keep purchase contracts, statements and receipts for costs. Without them, proving your cost basis can be difficult years later.
Quick reference at 18%
Common amounts in Malta, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| €10.00 | €1.80 | €11.80 | €8.47 |
| €50.00 | €9.00 | €59.00 | €42.37 |
| €100.00 | €18.00 | €118.00 | €84.75 |
| €250.00 | €45.00 | €295.00 | €211.86 |
| €500.00 | €90.00 | €590.00 | €423.73 |
| €1,000.00 | €180.00 | €1,180.00 | €847.46 |
| €5,000.00 | €900.00 | €5,900.00 | €4,237.29 |
How Malta compares
Standard rates on file for other countries. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 18% |
|---|---|---|
| Lebanon | 11% | lower |
| Lithuania | 21% | higher |
| Luxembourg | 17% | lower |
| Mexico | 16% | lower |
| Morocco | 20% | higher |
| Nepal | 13% | lower |
Using the calculator step by step
- Open the Malta Capital Gains Tax Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 18%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Zero rate
- A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
- Tax credit
- An amount subtracted directly from the tax bill, worth its full face value.
- Standard rate
- The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
- Effective rate
- Total tax divided by total income, the average rate you actually pay.
- Net amount
- The amount before tax is added. On an invoice it is the figure the tax is calculated on.
Common mistakes to avoid
- Forgetting to deduct buying and selling costs.
- Ignoring an annual allowance or holding-period relief.
- Not keeping records of the original purchase price.
Run your own numbers. The Malta Capital Gains Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
How is a capital gain calculated?
Sale price minus purchase price minus allowable costs.
What rate applies to capital gains in Malta?
It depends on the asset, your income and how long you held it. Set the rate in the calculator from current guidance in Malta.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.