Moving from Germany to Malta in 2026 is a textbook EU-internal relocation for the German founder, retiree or post-exit HNWI who wants an English-speaking, common-law-influenced base inside Schengen with a hard cap on personal tax. Malta’s Residence Programme (TRP) — the EU/EEA/Swiss equivalent of the Global Residence Programme — taxes foreign income at a flat 15% on remittance, leaves foreign capital gains at 0% even when remitted, and converts the entire personal tax bill into a predictable €15,000 minimum annual tax. Inheritance tax, gift tax and wealth tax are all zero. The Maltese side is one of the cleanest in the EU; the difficulty sits squarely on the German side. The §6 AStG Wegzugsteuer triggers on departure for any shareholding ≥1%, and — exactly as with Cyprus’s non-dom regime — the BMF treats Malta’s TRP/GRP remittance basis as a Niedrigsteuer-equivalent preferential regime, which means §2 AStG erweiterte beschränkte Steuerpflicht keeps your German-source income in the German tax net for the next ten years. This guide walks the move end-to-end with that asymmetry as the central theme.
The Tax Delta at a Glance
| Germany (current) | Malta (after move) | |
|---|---|---|
| Personal income tax | 14% to 42% progressive; 45% Reichensteuer above €277,826 | 15% flat on foreign income remitted under TRP/GRP; €15K minimum annual tax; 35% on Malta-source income |
| Solidarity surcharge | 5.5% on income tax | None |
| Church tax | 8–9% of income tax | None |
| Capital gains / dividends | 25% Abgeltungsteuer + Soli = 26.375% flat | 0% on foreign capital gains, even when remitted |
| Foreign dividends / interest / rental | Worldwide on unbeschränkt Steuerpflichtige | 15% only when remitted (0% if kept offshore); foreign rental same |
| Wealth / inheritance / gift | 0% wealth (suspended 1997); 7%–50% Erbschaftsteuer | 0% inheritance, 0% gift, 0% wealth, 0% net-worth tax |
| Corporate tax | 15% KSt + ~14–17% Gewerbesteuer = ~30% combined | 35% headline; ~5% effective via 6/7 refund to non-resident shareholders |
| VAT | 19% standard | 18% standard |
| Effective rate (typical entrepreneur on €1M foreign income, €200K remitted) | ~26.4% | ~€15K (1.5%) under TRP |
The headline: a German founder living off €500K–€2M of offshore dividends saves roughly the full 26.375% Abgeltungsteuer plus solidarity surcharge by moving — but only after settling the §6 AStG bill, accepting that German-source income remains in the German tax net for ten years under §2 AStG, and bringing only what they actually need to spend onto the island.
Step-by-Step Move
Step 1: Confirm you can legally cease German tax residency under §1 EStG
German tax residency is anchored in §1 EStG read together with §§ 8 and 9 of the Abgabenordnung. You are unbeschränkt steuerpflichtig on worldwide income if you have either a Wohnsitz — a dwelling kept under circumstances indicating you will retain and use it (§8 AO) — or a gewöhnlicher Aufenthalt, a habitual abode generally presumed at six months / 183 days of continuous presence (§9 AO). The Finanzamt applies the Gesamtbild der tatsächlichen Verhältnisse, the overall picture of the actual circumstances.
Malta makes the German Wohnsitz question structurally easier than Cyprus does, because Malta’s TRP imposes a maximum day-count (no more than 183 days in any single other country) but no Maltese minimum-stay floor — meaning a Berlin or Munich apartment “kept for visits” is, in the Finanzamt’s reading, exactly the kind of retained facility that re-establishes Wohnsitz under §8 AO regardless of how few nights you spend there. Sell the German Wohnsitz, or convert it to an arm’s-length tenancy of 12+ months with a third-party tenant at market rent. File the Abmeldebescheinigung at the Bürgeramt with the Maltese address as the new residence; deregister Krankenkasse (or convert to Anwartschaftsversicherung), Rundfunkbeitrag (GEZ), Stadtwerke, and any active Vereine, Kammer or Berufsverband memberships that imply continuing presence.
Step 2: Plan around §6 AStG Wegzugsteuer — and the §2 AStG Niedrigsteuer trap
Germany’s exit tax under §6 of the Außensteuergesetz applies on the day you cease unbeschränkte Steuerpflicht to anyone who (a) holds at least 1% of the share capital of any corporation — German GmbH/AG or foreign Ltd, S.A., Inc. — and (b) was unbeschränkt steuerpflichtig for at least 7 of the last 12 years before departure. Both conditions must be met. The Finanzamt deems the shares sold at fair market value and taxes the unrealised gain under the Teileinkünfteverfahren (60% of the gain at marginal rate plus 5.5% Soli) — typically about 28% of the gain for top-bracket exiters.
Because Malta is in the EU, the move qualifies for the §6 Abs. 4 AStG deferral regime as reformed by the 2022 ATAD-Umsetzungsgesetz: a seven-year interest-free instalment plan is the default, and EU/EEA exits avoid the Sicherheitsleistung (security deposit) the Finanzamt routinely demands for non-EU destinations such as the UAE or Panama. The §6 Abs. 3 Rückkehrerregelung also remains practically available for Malta-bound founders — intent-to-return is credible inside the EU.
The harder problem is §2 AStG erweiterte beschränkte Steuerpflicht. This is the 10-year “extended limited tax liability” that catches German nationals (or anyone who held German citizenship within the prior 10 years) who were unbeschränkt steuerpflichtig for at least 5 of the last 10 years before departure and who move to a Niedrigsteuerland — defined under §2 Abs. 2 AStG as a country where the individual’s destination-state tax burden on the same income is less than two-thirds of the corresponding German burden, or one offering a preferential regime that produces materially the same result.
Malta’s headline rates (35% personal, 35% corporate) sit above the two-thirds threshold and would on their own pass the test. The TRP/GRP non-dom regime fails it almost automatically, however, because the 15% flat on foreign remittances, the 0% on foreign capital gains, and the €15K cap deliver a tax burden far below two-thirds of the corresponding German rate on the same income. The BMF has historically treated Maltese remittance-basis claimants as being inside §2 AStG on exactly this basis — alongside Cyprus and Ireland non-doms. The practical effect: for 10 years following departure, German-source income (German rental, German GmbH dividends, German director’s fees, German pensions) remains taxable in Germany at ordinary rates rather than under the lighter §49 EStG limited-tax regime, and German capital gains on disposal of German Kapitalgesellschaft shares retain a German taxing right that the DE-MT treaty does not fully displace.
Mitigation strategies that work for Malta-bound founders:
- Restructure GmbH → KG or GmbH & Co. KG before exit. Partnerships sit outside §6 AStG.
- Strip German-source income before the move. Sell the German Mietshaus, redomicile the holding company, terminate German director appointments — the smaller the German-source pool, the smaller the §2 AStG bite.
- Time the §6 AStG exit to a low-valuation window; FMV at departure date drives the assessment, and a year of weak earnings can save six figures.
- Stay below 1% through pre-departure dilution where the holding is borderline.
- Match remittances to spend, not income. Malta’s 15% bites only on what you bring in; the ability to keep foreign income offshore is the structural feature that makes the GRP/TRP economics work and makes the §2 AStG attribution defensible as actually reflecting Maltese law.
Step 3: Establish Malta tax residency — and elect the TRP
For a German national, immigration is a one-time formality. EU/EEA citizens use the Residence Programme (TRP) — the EU/EEA/Swiss equivalent of the GRP, with mechanically identical tax treatment. The substantive steps:
- Secure qualifying property. Purchase a Maltese property for at least €275,000 (or €250,000 in Gozo / South Malta), or sign a long-term lease at €9,600/year (€8,750 Gozo/South). The property must remain held throughout residency.
- Engage an Authorised Registered Mandatory (ARM). Malta does not accept TRP/GRP applications direct; only licensed agents may file. Expect €5,000–€15,000 in advisory fees.
- File the TRP application with the Commissioner for Revenue, including police certificate, source-of-wealth file, Schengen-wide health insurance with €30,000+ cover, and proof of stable and regular resources. Expect 3–4 months to determination.
- Pay the €6,000 application fee (€5,500 if the property is in Gozo or South Malta) on filing.
- On approval, sign the special tax-status confirmation and pay the €15,000 minimum annual tax — the floor under the TRP, not an estimated payment, and not refundable.
- Register with Identità Malta for the residence card (eRP/eResidence card) and with the Inland Revenue Department for a Maltese tax number.
The binding day-count constraint is the inverse of Cyprus’s: no minimum stay in Malta, but you must not spend more than 183 days in any other single jurisdiction during the year — otherwise that other country may claim primary tax residency and the Finanzamt has an easy argument that Malta was never your real residence. Most TRP holders spend 30–120 days a year on the island and document the rest carefully.
The full Maltese-side mechanics, including the GRP/TRP, MPRP (residence by investment), and ordinary-residence routes, sit in Tax-Free Residency in Malta.
Step 4: Document the break — the DE-MT treaty applies
The Germany-Malta Double Tax Convention signed 8 March 2001 (in force from 27 December 2001), as amended, replaced the older 1974 treaty and is fully operational. It provides a textbook OECD Article 4 tie-breaker (permanent home → centre of vital interests → habitual abode → nationality), withholding caps of 5/15% on dividends (Article 10), 0% on interest (Article 11), and 0% on royalties (Article 12), with the credit method for relief on the residence-state side. The exchange-of-information article brings Malta fully inside the EU/OECD automatic exchange framework — Malta is a fully participating CRS jurisdiction in 2026, and there is no banking-secrecy advantage to retreat to.
Build a contemporaneous evidence file on both legs. Germany side: Abmeldebescheinigung; sale or arm’s-length tenancy contract on the German Wohnsitz; cancelled utilities and Krankenkasse; school cancellations for children; bank accounts moved to non-resident profile and Freistellungsauftrag revoked. Malta side: TRP approval letter, eResidence card, Maltese property deed or registered lease, Maltese bank account, Maltese tax number, ARM filing record, and contemporaneous travel records (boarding passes, calendar entries, mobile cell-tower data) proving you did not exceed 183 days in any other single country.
Step 5: First-year compliance and the §4 ErbStG 5-year tail
In the German departure year, you file a final Einkommensteuererklärung declaring worldwide income up to the departure date and German-source income only thereafter. The §6 AStG Wegzugsteuer assessment is filed on the same return, with the §6 Abs. 4 instalment election made explicitly and no Sicherheitsleistung required for the EU destination. The §2 AStG return for years 1–10 is a separate annual filing on Form ESt 1 C, declaring all German-source income at ordinary rates plus any foreign income above the de minimis threshold of €16,500.
The first Maltese filing — personal income tax return — is due by 30 June of the year following the residency year, declaring Malta-source income and the value of foreign income remitted to Malta during the year. The €15,000 minimum is due in any event; the 15% rate applies to remittances above the implied break-even point of €100,000.
One trap that catches Germans late: §4 ErbStG keeps you within the German Erbschaftsteuer net for 5 years after departure regardless of where you or your heirs live. Malta has no inheritance tax, gift tax or wealth tax — but a German national who dies in Sliema three years after Abmeldung leaves a worldwide estate fully exposed to German Erbschaftsteuer at 7–50%. Pre-departure gifts inside the €400,000 spouse / €400,000 per-child allowances and the use of family-foundation structures are the standard work-arounds; they need to be set up well before the move.
Cost & Timeline
| Phase | Cost (USD) | Time |
|---|---|---|
| German tax planning + §6 AStG / §2 AStG modelling (pre-move) | $5,000–$25,000 | 2–4 months |
| §6 AStG Wegzugsteuer assessment (founders only) | Up to ~28% × FMV gain | Filed with departure return |
| Final Einkommensteuererklärung + Abmeldung | $1,500–$5,000 | Filed by 31 July of following year |
| Maltese ARM legal & filing fees | $5,500–$16,000 | 3–4 months |
| Maltese Govt application fee | €6,000 (€5,500 Gozo/South) | One-off |
| Property: rental route (€9,600/yr lease, first year) | ~$10,500 | One-off + annual |
| Property: purchase route (€275K Malta / €250K Gozo) | $275K–$300K | One-off |
| Move + setup (banking, eResidence card, utilities) | $3,000–$8,000 | 1–2 months |
| Annual Maltese minimum tax | €15,000 | Annual |
| First-year Maltese personal income tax return | $2,000–$5,000 | Annual |
| First-year §2 AStG return (years 1–10) | $1,500–$4,000 | Annual |
| Total year-1 effective cost (founder, rental route) | $45,000–$80,000 | 6–10 months |
The cash-flow burden is heavier than Cyprus’s (which has no minimum tax and no licensed-mandatory monopoly) but materially lighter than Italy’s €300K flat tax. Malta’s economics work best for HNWIs whose remittance discipline keeps the implied effective rate well below 15%.
Treaty Considerations
The 2001 DE-MT DTT allocates primary taxing rights on most cross-border income flows to the residence state (Malta post-move), with secondary withholding rights at the source (Germany) capped at 5/15% for dividends and 0% on interest and royalties. Real estate is taxed where the property sits (Article 6) — German Mietshäuser remain in the German tax net under §49 EStG limited tax liability after departure, with credit on the Maltese side (or, more often, simply nil Maltese tax under the non-remittance treatment).
The Article 4 tie-breaker is the practical workhorse if the Finanzamt opens an audit and disputes your Wohnsitz cessation 2–3 years after departure: permanent home, then centre of vital interests, then habitual abode, then nationality. Because the TRP imposes no Maltese minimum stay, a “permanent home in both states” finding is genuinely possible, kicking the analysis to centre-of-vital-interests — where a retained Berlin apartment, a German GmbH directorship, German-resident family, or an active German Steuerberater mandate can each tip the cascade back toward Germany. The 30–120 days of actual Maltese presence that most TRP holders log is meaningful evidence here, but the file needs to be built deliberately.
The DTT does not override §2 AStG. The German position is that erweiterte beschränkte Steuerpflicht is consistent with treaty obligations because it taxes only German-source income, and the Article 21 (“Other Income”) residual saving clause preserves Germany’s narrow taxing rights on items not specifically allocated. Malta non-dom audits under §2 AStG do happen; the conservative posture is to assume §2 AStG applies and price it in.
Common Mistakes
- Assuming the 15% rate is the all-in number. It is the rate on remittance only — the binding floor is the €15,000 minimum, the implied break-even is €100,000 of remittance, and the §2 AStG bill on retained German-source income sits on top of both for 10 years.
- Keeping a German Wohnsitz “for visits”. Available and used = unbeschränkte Steuerpflichtigkeit under §8 AO. The TRP’s lack of a Maltese minimum-stay rule makes the dual-residency risk worse, not better.
- Filing the TRP without a property arrangement that meets the threshold. Sub-€9,600 leases, informal lodging, and shared occupancy all fail the qualifying-property test and void the TRP rate retroactively.
- Triggering §6 AStG by accident. Founders who restructured to a partnership but converted back to a GmbH within seven years of departure walk straight into Wegzugsteuer.
- Ignoring §4 ErbStG 5-year tail on Erbschaftsteuer. Malta has no inheritance tax — but Germany continues to tax a German national’s worldwide estate for five years after departure regardless.
- Bringing too much income into Malta. Every euro remitted above €100,000 is taxed at 15%; capital and pre-residency savings should fund Maltese living costs first to keep the effective rate at the €15K floor.
FAQ
Will I still file a German tax return after moving to Malta?
For the departure year, yes — a final Einkommensteuererklärung covering worldwide income up to the departure date and German-source income only thereafter. Then for 10 years following departure, an annual §2 AStG return on German-source income at ordinary rates (not the lighter §49 EStG limited-tax basis), assuming the BMF treats the Maltese TRP/GRP regime as a Niedrigsteuer regime for your fact pattern — which it almost always will.
Does the §6 AStG Wegzugsteuer apply if I move to Malta?
Yes — the substantive rule applies to all destinations. But Malta as an EU destination qualifies for the §6 Abs. 4 AStG seven-year instalment plan without the Sicherheitsleistung that the Finanzamt demands for non-EU exits, and the §6 Abs. 3 Rückkehrerregelung remains practically usable.
Do I have to spend any minimum time in Malta?
No — there is no minimum-stay floor in Malta itself. The binding rule is the opposite cap: you may not exceed 183 days in any single other country during the year. In practice, building a defensible centre-of-vital-interests file means spending 60–120 days a year on the island, even though it is not legally required.
How is my German GmbH dividend taxed after the move?
Source-state withholding under the DE-MT treaty is capped at 5% (qualifying corporate shareholders) or 15% (portfolio). The dividend is then in principle taxable in Malta only on remittance, at 15%, with credit for the German withholding under Article 23 of the DTT. Note that §2 AStG may push the German treatment back to ordinary Abgeltungsteuer rates for the first 10 years if the corporation is German-source.
Can I keep my German Krankenversicherung?
Statutory Krankenversicherung (gesetzliche KV) ends with Abmeldung — convert to an Anwartschaftsversicherung if you anticipate a return. EU rules under Regulation 883/2004 give portable rights to Maltese public healthcare once you register as resident; Malta’s TRP also requires private Schengen-wide health cover with €30,000+ cover as a permanent eligibility condition, which most Germans satisfy by maintaining a German PKV with international rider.
How long does the full Germany-to-Malta move take?
Realistic timeline 6–10 months from first planning meeting to TRP approval letter, eResidence card, Maltese tax number and €15,000 minimum tax paid. The §6 AStG planning and final German return run in parallel and can extend the closure to 12 months.
Next Step
For the full destination-side breakdown, see Tax-Free Residency in Malta and the persona pages Malta for Entrepreneurs and Malta for Retirees. For the broader exit framework across all major origin countries, see How to Legally Exit a High-Tax Country.
Book a free consultation — we specialize in Germany-to-Malta relocations, §6 AStG instalment planning, and the §2 AStG / TRP interaction specifically.
Last updated: 2026-04-27
Sources:
– Bundesministerium der Finanzen — Außensteuergesetz §§ 2, 6 (https://www.gesetze-im-internet.de/astg/)
– DBA Deutschland-Malta vom 8. März 2001 (https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Malta/)
– Commissioner for Revenue, Government of Malta — Residence Programme rules (https://cfr.gov.mt/)
– PwC Worldwide Tax Summaries — Malta & Germany (https://taxsummaries.pwc.com/malta, https://taxsummaries.pwc.com/germany)
– KPMG Malta — Tax Card 2026 (https://kpmg.com/mt/en/home/insights/tax.html)