The Malta Highly Qualified Persons Rules builds on the success of Malta’s reputation in attracting highly professional individuals seeking an alternative residence base in a warm Mediterranean Island in the European Union.
The Programme seeks to entice highly professional individuals looking for an alternative residence base than their current domicile. Given the substantial expansion that the Maltese Islands have experienced in the finance, fintech, aviation, gaming and professional services spheres, this has created a strong demand for highly qualified workers to complement the local workforce. Individuals who avail from the Malta Highly Qualified Persons Programme benefit from a special tax status with a personal tax rate of 15% on employment income derived from a qualifying contract of employment in Malta up to a maximum of €5,000,000. Additional income generated through such employment (over the €5 million treshold) would not be subject to further tax.
Only employment contracts from companies that are licensed by the following entities are recognised under the scheme:
An individual is eligible to apply for a special tax status under the Highly Qualified Persons Programme if he satisfies the following conditions:
Senior positions which are eligible under this scheme include the following professions:
Individual income derived from employment in an ‘eligible office’ will not qualify for the scheme if a claim is made for any relief, deduction, reduction, credit or set-off of any kind except for any income tax deducted at source.
Malta has a very interesting tax regime for digital nomads, where foreign income is not taxed if it’s not remitted to the country itself. They will only be taxed locally on income earned for work done for Maltese companies, if any.
Individuals who register under this scheme benefit from a favourable tax rate of 15% on all income derived from their employment in Malta. This 15% flat rate is imposed up to a maximum of €5,000,000, and any excess of this amount is not subject to tax.
The tax benefits under this scheme apply to EEA and Swiss nationals for a maximum consecutive period of 5 years preceding the first year of assessment and to third country nationals for a maximum consecutive period of 4 years. EEA/Swiss nationals who avail themselves of this tax benefit shall be eligible upon application, for a one-time extension of 5 years, making the qualifying period, a maximum of 10 years of assessment.
This programme may be requested from The Office of the Commissioner for Revenue.