Compare · Malta vs United States
Malta vs United States for Australians leaving home
Malta:Remittance basisAU tax treatyUnited States:Worldwide taxAU tax treaty
The regimes are genuinely different: Malta is a remittance-basis tax system while United States runs worldwide tax, which of your income streams each one actually touches matters more than any headline rate.
Both have a tax treaty with Australia, so either way you get a tie-breaker if the ATO contests your departure, and capped withholding (15%/10% vs 15%/10% on unfranked dividends/interest).
Malta is the cheaper place to live day to day, roughly 70% of Sydney's basket against United States's 115% (indicative, ex-rent), which can outweigh a thinner tax saving over a full household budget.
Personalise this, enter your numbers once and every figure below becomes yours: “your estimated income tax: $14,200”, not “0, 22%”. Open the Country Comparison tool →
| 2 destinations | MaltaMalta | United StatesUnited States |
|---|---|---|
| Tax | ||
| Regime | remittance, worldwide income not taxed | worldwide, taxes worldwide income |
| Income tax on salary | Progressive 0, 35% on Malta-source and remitted employment income. Work physically done in Malta is Malta-source, the remittance basis does not shelter your laptop income. | Federal 10, 37% plus state tax (0, 13.3%) plus FICA (7.65% employee side). A US$150k salary in California pays roughly 30%+ combined; in Texas closer to 24%. |
| Capital gains | Foreign capital gains are outside the net for non-doms even when remitted, the standout feature. Malta-situated assets are taxable normally. (0% typical) | Long-term (12+ months) federal rate 0/15/20% plus 3.8% NIIT above ~US$200k income; short-term gains at full ordinary rates. States tax gains as ordinary income, California adds up to 13.3%. (15% typical) |
| Dividends | Foreign dividends: taxable only if remitted (progressive rates); keep them offshore and pay nothing beyond the €5k minimum tax. Australian franking credits are worthless here. | Qualified dividends at 15% (20% top). Australian franking credits are invisible to the IRS, franked dividends are just taxable income with a credit for the AU WHT. |
| Interest | Taxed locally around 35% | Taxed locally around 24% |
| Crypto | Malta distinguishes "coins" (currency-like, trading gains may be exempt as currency) from tokens; long-term investment gains on financial tokens by non-doms arising offshore are foreign capital gains, not taxed even if remitted. Day-trading is income. Get the classification opined. | Crypto is property: every disposal (including spending and swaps) is a capital gains event, short-term gains at ordinary rates, long-term at 0/15/20%. Broker reporting to the IRS is now systematic. |
| Australia tax treaty | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available |
| Social security | Class 1/Class 2 social security ~10% capped at modest levels; excluded from the calculation. | FICA (6.2% social security capped + 1.45% Medicare uncapped) applies to US employment; a totalisation agreement with Australia prevents double super/social security in most postings. |
| Visa | ||
| Best pathways |
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|
| Visa ease | 6/10 | 6/10 |
| Family on visas | Dependants covered on main pathways | Dependants covered on main pathways |
| Fastest timeline | ~1 month on the quickest pathway | ~2 months on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $3,200/mo | $7,500/mo |
| Rent (couple, monthly) | $2,000/mo | $4,500/mo |
| International school (per child/yr) | $12,000 | Free / local system viable |
| Health cover (family/yr) | $3,500 | $20,000 |
| Cost of living vs Sydney | 70% of Sydney (ex-rent) | 115% of Sydney (ex-rent) |
| Relocation one-off | ~$20,000 | ~$30,000 |
| Flights home (return, pp) | $2,500 | $2,000 |
| Life | ||
| Timezone vs AEST | 9h behind | 18h behind |
| Flight from Sydney | ~23 hours | ~13.5 hours |
| English | 10/10 | 10/10 |
| Safety | 8/10 | 6/10 |
| Healthcare | 7/10 | 8/10 |
| Schooling | 7/10 | 8/10 |
| Climate | Mediterranean, hot summers, mild winters, on a small, dense, windy island. | Continental spread, LA is 20, 28°C and sunny most of the year; pick your city, pick your climate. |
Costs, rates and visa figures are country-module data marked indicative until individually verified; FX and rental markets move constantly.
Honest downsides, side by side
Every destination hub on this site carries its downsides in the open. Here are both lists together, because the right question is rarely “which is better?” and usually “which set of problems would you rather live with?”
Malta
- It is genuinely small, 27km end to end, construction everywhere, Europe's densest population; island fever is the number-one reason expats leave.
- The remittance basis needs discipline: separate offshore accounts, clean capital/income segregation, and records the Commissioner will accept, sloppy banking converts "not taxable" into "taxable".
- Reputation risk: Malta has spent years on and off financial-crime grey lists; banks are compliance-heavy and account opening is slow.
- Summer is hot, crowded and touristy; public infrastructure (roads, buses, power in heatwaves) strains visibly.
United States
- This is a move for career and earnings, not tax, combined federal + state + FICA in a coastal city will roughly match or exceed your Australian rate.
- Healthcare is tied to employment and ruinously expensive without it; a family plan's premiums and deductibles can exceed A$25k/year of exposure.
- The IRS relationship is sticky: green card holders are taxed on worldwide income for life until formal surrender, and FBAR/FATCA reporting on Australian accounts carries brutal penalties for innocent omissions.
- Your superannuation is a US tax problem: no treaty article clearly protects it, and treatment (foreign grantor trust? employee trust?) is unsettled, specialist advice is non-optional.
- Gun violence, litigation culture and the cost of failure (no safety net) are real quality-of-life deductions Americans price in and Australians don't.
Make this comparison yours
The table above shows the general figures. Enter your income and family once and the tax rows become your numbers, “your estimated income tax in Sliema/St Julian's: $14,200”, not a range.