Tax is often one of the first things South Africans want to understand when they start looking seriously at Malta.

And that is understandable.

South Africa’s highest personal income tax rate currently reaches 45%, while Malta’s standard personal tax rates reach a maximum of 35%.

But Malta’s appeal is not simply about comparing two percentages.

What makes Malta interesting is the way its tax system can work for international individuals, business owners and families with interests in more than one country.

For certain people who are resident in Malta but not domiciled here, the remittance basis of taxation may apply. Depending on individual circumstances, this can create a very different tax position from what someone may be used to in South Africa.

Malta also offers specific tax programmes for qualifying international residents, with different options depending on someone’s circumstances and long-term plans.

For business owners, Malta has a well-established corporate tax system which, depending on the structure, can also offer attractive tax efficiencies.

This can be particularly relevant for entrepreneurs, high-net-worth individuals and family offices looking at Malta as part of a wider international structure.

Another important point for South Africans is that Malta and South Africa have a double taxation agreement.

For someone moving to Malta while still holding property, investments, business interests or income in South Africa, this can be an important part of understanding how the two tax systems work together.

Of course, there is no one-size-fits-all answer when it comes to tax.

Where you are resident, where your income comes from, how your assets are held and how your business is structured can all make a difference.

But for South Africans looking internationally, Malta’s tax environment is certainly one of the reasons the country continues to attract attention.

When choosing where to live or base a business, how much does the tax environment influence your decision?