Malta vs Portugal — Tax Comparison 2026
Maltese taxes vs Portuguese taxes, at a glance. Malta: 0%–35% across 4 brackets. Portugal: 13%–48% across 9 brackets. Compare take-home pay side by side for employees and contractors.
Are taxes higher in Malta or Portugal?
For most remote workers, taxes are higher in Portugal. At $100,000, an employee in Malta takes home $72,582 versus $56,649 in Portugal — a difference of $15,933 per year. For contractors, Malta comes out ahead: $70,884 versus $61,430.
Estimates based on 2026 rates and approximate exchange rates. Actual take-home varies by individual circumstances.
USD amounts use approximate exchange rates (EUR: 1.1680, EUR: 1.1680). Local currency figures are exact.
| Metric | Malta | Portugal |
|---|---|---|
| Gross (EUR/EUR) | €85,618 | 85 618 € |
| Gross (USD) | $100,000 | $100,000 |
| Income Tax | €20,566 | 27 698 € |
| Social Security | €2,908 | 9418 € |
| Net (EUR/EUR) | €62,143 | 48 502 € |
| Net (USD) | $72,582+$15,933 | $56,649 |
| Effective Rate | 27.4% | 43.4% |
Gross (EUR/EUR)
Malta
€85,618
Portugal
85 618 €
Gross (USD)
Malta
$100,000
Portugal
$100,000
Income Tax
Malta
€20,566
Portugal
27 698 €
Social Security
Malta
€2,908
Portugal
9418 €
Net (EUR/EUR)
Malta
€62,143
Portugal
48 502 €
Net (USD)
Malta
$72,582
+$15,933Portugal
$56,649
Effective Rate
Malta
27.4%
Portugal
43.4%
Where identifiable, mandatory health contributions are shown separately. For other countries, health coverage is included in the Social Security amount.
Bottom Line
At $100,000/year income
Malta gives you $15,933 more per year ($1,328/mo) as an employee
Malta gives you $9,454 more per year ($788/mo) as a contractor
Take-Home Pay at $60K, $100K and $150K
Net income after income tax and social contributions, converted to USD at approximate exchange rates. Effective rate in parentheses.
Employees
| Gross (USD) | Malta net | Portugal net | Who keeps more |
|---|---|---|---|
| $60,000 | $45,574 (24.0%) | $38,889 (35.2%) | Malta (+$6,685) |
| $100,000 | $72,582 (27.4%) | $56,649 (43.4%) | Malta (+$15,933) |
| $150,000 | $105,082 (29.9%) | $77,372 (48.4%) | Malta (+$27,710) |
Contractors / Self-Employed
| Gross (USD) | Malta net | Portugal net | Who keeps more |
|---|---|---|---|
| $60,000 | $43,876 (26.9%) | $40,224 (33.0%) | Malta (+$3,652) |
| $100,000 | $70,884 (29.1%) | $61,430 (38.6%) | Malta (+$9,454) |
| $150,000 | $103,384 (31.1%) | $89,968 (40.0%) | Malta (+$13,416) |
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How Taxes Work
Malta Tax System
Employee
- ·2026 single taxpayer rates.
- ·4 brackets: 0% (up to €12,000), 15% (€12,001–€16,000), 25% (€16,001–€60,000), 35% (above €60,000).
- ·Married/parent rates differ.
- ·SSC: 10% of salary, maximum €55.93/week (~€2,908/year) for those born after 1 Jan 1962.
- ·Non-domiciled residents taxed on remittance basis only — foreign income not remitted to Malta is generally not taxed.
- ·Nomad Residence Permit holders: 0% tax year 1, 10% flat rate thereafter (special regime, not modeled).
Contractor
- ·Self-employed (Class 2 SSC).
- ·Same 4 progressive brackets.
- ·SSC: 15% of prior-year net income, maximum €83.89/week (~€4,362/year).
- ·Business expenses deducted from actual receipts (no flat rate).
- ·Non-domiciled: remittance basis (only income remitted to Malta is taxed).
- ·Minimum €5,000 tax if foreign income ≥€35,000 not fully remitted.
Portugal Tax System
Employee
- ·IRS 2026: 9 brackets (12.5%-48%).
- ·Dedução específica €4,587.
- ·Employee SS 11% (no cap).
Contractor
- ·Simplified regime (regime simplificado).
- ·IRS on 75% of income (coeficiente 0.75, Art. 31 CIRS).
- ·SS: 21.4% on 70% of income, capped at 12×IAS/month.
- ·No dedução específica for Category B.
Full Malta Tax Calculator →
Detailed breakdown with custom income
Full Portugal Tax Calculator →
Detailed breakdown with custom income
Visa Options
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Frequently Asked Questions
How do Malta and Portugal's tax rates compare for remote workers?
- ·Portugal's standard rates reach 48%, with the IFICI program (NHR successor) offering 20% flat on qualifying income.
- ·Malta's NRP offers 0% tax year 1 and 10% flat thereafter — half of Portugal's IFICI rate.
- ·However, IFICI lasts 10 years vs Malta's NRP which is renewable for 3 years max. For short-term stays, Malta wins; for long-term, Portugal's longer regime may be more valuable.
Which is better for English-speaking digital nomads?
- ·Malta is one of only two EU countries where English is an official language (the other being Ireland).
- ·Portuguese is needed for daily life in Portugal outside tourist areas.
- ·This makes Malta significantly easier for English speakers — no language barrier for banking, bureaucracy, healthcare, or daily life.
How do digital nomad visa requirements compare?
- ·Malta's NRP requires €42,000/year (~€3,500/month) gross income.
- ·Portugal's D8 visa requires €3,680/month (4x minimum wage).
- ·Requirements are similar.
- ·Malta's NRP includes a built-in tax benefit (0%/10%).
- ·Portugal's D8 is separate from IFICI eligibility.
- ·Both are EU/Schengen with residency pathways.
- ·Malta is smaller but more tax-efficient; Portugal has more diverse lifestyle options.