Do I pay tax when I sell shares in Malta?
If you sell shares that are listed on the Malta Stock Exchange — or on another exchange recognised by the Commissioner — the gain is exempt. Zero tax, no matter how long you held them and no matter how big the gain. The rule sits in article 5(6)(b) of the Income Tax Act. But read the next word carefully, because the same sentence excludes funds: see the ETF trap.
One red dot: the tax only comes on the day you sell.
There is no holding period
Most countries that exempt share gains make you wait — six months, a year, longer. Malta does not. A share bought in March and sold in May is treated exactly like one held for fifteen years.
There is also no annual allowance to keep track of, because there is nothing to allow against. The exemption is not a threshold; it is the whole rule.
The worked example
You buy shares for €10,000 and sell them for €16,000. Gain: €6,000.
Tax: €0. The full €6,000 is yours.
Sell the same shares four weeks after buying them and the answer is still €0. Nothing about the timing changes it.
Stamp duty — and when it does not apply
Separately from income tax, a 2 % stamp duty can apply to certain transfers of shares. It is a duty on the transfer itself, not a tax on your profit, and it does not touch every trade.
Two situations where it does not apply: foreign securities traded through a licensed local broker, and fund units. So for a normal portfolio of international shares bought through a Maltese broker, stamp duty is usually not part of the picture.
The typical beginner's mistake
Reading "share gains are exempt in Malta" and applying it to an ETF. The exemption is written for shares that are not securities in a collective investment scheme — see the ETF trap.
How you see it in Kiggo
Kiggo's portfolio shows gain and loss per position, so you can see what you have realised and what is still only on the screen. Kiggo does not calculate your tax and does not report anything to the Commissioner.
Related terms
Frequently asked questions
Does it matter how long I held the shares?
No. There is no minimum holding period for the exemption on listed shares.
Does it cover foreign shares?
It covers shares listed on the Malta Stock Exchange or on another exchange recognised by the Commissioner. Whether a particular foreign exchange is recognised is worth checking before you rely on it.
Do I still have to keep records?
Yes. Exempt is not the same as invisible — keep your contract notes so you can show what you sold and when.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-18.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
