Last updated : 11.05.2026
Expense rules in Malta.
Malta applies VAT at 18%, the lowest in the EU. EU member since 2004, eurozone since 2008. Attractive tax regime for holdings.
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1Expense rules & reclaimable VAT
VAT 18% standard (lowest in EU), 7% hotels, 5% medicines/books. EU recovery available.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 18% | Deductible | EU invoice |
| Lodging | 7% | Deductible | Reduced lodging rate |
| Alcohol | 18% | Limited | Excluded from business meals |
| Fuel | 18% | Deductible | Detailed invoice |
| Transport | 18% | Deductible | Taxi/airfare/ferry |
| Client gifts | 18% | Non-deductible | Strict cap |
Receipt
EU invoice
VAT number required
Meal cap
<= EUR 55/pers
Above: justify
SourcesMalta Tax Authority
2Mileage allowance
No official scale. Company agreement typically EUR 0.25-0.30/km.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | EUR 0,28 | Company agreement | Capped by agreement |
| Company car | – | Fuel card | – |
| Taxi/Bolt | – | 100% on receipt | Receipt required |
Tracking
Logbook
Date, distance, purpose
SourcesMalta Tax Authority
3Per diem and travel allowances
No official tax per diem. Company policy EUR 110-170/day by area.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Valletta | EUR 30 | EUR 110 | EUR 170 |
| Sliema/St Julian’s | EUR 30 | EUR 120 | EUR 180 |
| Mdina | EUR 25 | EUR 90 | EUR 140 |
| Gozo | EUR 22 | EUR 75 | EUR 120 |
Currency
EUR
Eurozone
SourcesMalta Tax Authority
4Foreign VAT recovery
VAT recovery via 8th Directive (EU companies). Non-EU: 13th Directive subject to reciprocity.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| EU companies | 8th directive | Sept 30 (year N+1) | Electronic portal |
| Non-EU companies | 13th directive | Sept 30 (year N+1) | Reciprocity required |
| MT companies | Immediate credit | Monthly/quarterly | VAT return |
Statute of limitations
6 years
Keep invoices
SourcesMalta Tax Authority
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