Your Career in Malta: Special Tax Rates for Qualified Professionals in specific sectors

Would your professional position be subject to an attractive tax package which Malta offers for highly- qualified individuals in specific industry sectors?

The country has adapted the Highly Qualified Persons Rules (S.L. 123.126), allowing for a flat tax rate of 15% for eligible qualified professionals.

Primary advantages are:

- Flat tax rate of 15% which is applicable on all income arising from eligible items;

- Income over 5 million euro is tax-free thanks to the high-income tax exemption;

- EU/EEA/Swiss nationals can extend the 5-year scheme to 10 years; and

- Non-EU/EEA/Swiss nationals can extend the 4-year scheme to 8 years.

These tax guidelines are designed to attract skilled human resources to the island, especially in sectors like financial services, aviation, reproductive medicine and gaming.

Since Malta joined the European Union in 2004, its economy has been steadily growing, leading to an increasing demand for qualified professionals. To address this need, the Maltese government established the Highly Qualified Persons Rules (S.L. 123.126).

The programme will run until December 31, 2030, with applications accepted until December 31, 2025.

Some eligible professionals for funding include:

- CEO, CFO, CTO, COO positions;

- Senior Analysts, Portfolio Managers; 

- Lead Quality Managers and Embryologists; and

- Aviation Managers.

- For more details, please contact us.

Promoted Industry areas include:

- Aviation;

- Reproductive Medicine;

- Financial Services; and

- Gambling.

The main rule: Income from a qualifying employment contract in an eligible position is taxed at a fixed rate of 15%, provided the annual income is at least around € 99,000 (year 2024, income is adjusted each year).

This tax rate applies to income up to €5,000,000, with any earnings above that threshold being tax-free. 

The rate is valid for five years for citizens of the EU, EEA, and Switzerland, and for four years for third-country nationals. 

On the basis of the retail index of the Office for National Statistics, the minimum earnings are:

- €98,436 for the base year 2024.

An individual is able to benefit from the tax rate if the following criteria are satisfied:

1.1 Income is taxable in Malta;

1.2 The employment contract is subject to Maltese law and involves work in Malta;

2. The applicant has professional qualifications and at least five years of professional experience;

4. All income must be disclosed and taxed;

3. An eligible activity is carried out;

5.1 No deductions were claimed on the basis of relocation costs; and

5.2 Sufficient resources, adequate accommodation, valid travel documents and health insurance.

Persons owning over 25% of a licensed company cannot benefit from the scheme.

Applications for participation, which have to be sent to the relevant authorities, must be renewed annually together with the applicant's tax return.

For information on how you can benefit from this programme and apply please get in touch with us at Dr Kresse International Law: [email protected].