How are dividends from a Maltese company I own shares in taxed?
- 09.08.2026
I work remotely from home for a significant portion of my working time, and I’ve incurred additional costs as a result, things like increased utility bills and setting up a proper home office space. I want to understand whether these kinds of costs are actually tax-deductible under Maltese tax law.
Whether home-related work expenses are deductible depends significantly on your specific employment status and the nature of the expense, since under the Income Tax Act, Chapter 123 of the Laws of Malta, the general principle for deductibility of expenses is that they must be wholly and exclusively incurred in the production of your income, meaning expenses that are genuinely and specifically related to your work, rather than general household costs you would have incurred regardless, are more likely to qualify, though the specific rules and practical application can differ meaningfully depending on whether you're an employee working from home versus genuinely self-employed running your business from a home office. For employees specifically, the ability to claim deductions for home working costs is generally more limited than for self-employed individuals, who often have somewhat greater scope to properly apportion and claim a reasonable business-use percentage of costs like utilities or a dedicated home office space as legitimate business expenses, though correctly and defensibly calculating this kind of apportionment, and knowing exactly which specific categories of home-related costs genuinely qualify under current Maltese tax rules, requires careful and accurate application rather than broad assumptions. Given the genuine complexity and importance of getting this specific area of deductible expenses correct, and the risk of either under-claiming legitimate relief or over-claiming in a way that could create problems later, it would be worth consulting an accountant to properly assess exactly what you can legitimately claim given your specific employment status and circumstances.
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