The Malta Tax Treatment of Highly Skilled Individuals Rules, 2026 were published by the Malta Tax & Customs Administration on 23 January 2026 through Legal Notice 20 of 2026. The Rules introduce a preferential flat income tax rate of 15% on qualifying employment income earned in Malta by highly skilled professionals and replace several legacy incentive regimes, including the Highly Qualified Persons Rules.
The new regime applies with effect from 1 January 2026 and forms part of Malta’s broader strategy to attract senior executives, specialists, and highly qualified professionals operating in regulated and strategically important sectors.
Scope and Application
The Rules apply to employment income that is chargeable to tax in Malta under the Income Tax Act, arises from employment activities physically carried out in Malta, and meets a minimum annual remuneration threshold of €65,000, excluding the annual value of fringe benefits. This minimum qualifying salary threshold is subject to statutory increases and will rise by €10,000 every five years. Only income derived from qualifying employment activities falls within the scope of the preferential tax treatment.
Eligibility Requirements
To qualify under the Tax Treatment of Highly Skilled Individuals Rules, an individual must qualify as an employee under Maltese law and perform genuine and effective work under the direction and control of an employer. The individual must possess adequate and specific professional competence approved by the relevant competent authority and must not have previously benefited from the incentive available under article 6 of the Income Tax Act.
Eligibility further requires the individual to hold appropriate professional qualifications, occupy an eligible office, and fully disclose and declare all employment income in accordance with the Rules. Applicants must also demonstrate that they have stable and regular financial resources sufficient to support themselves and their family in Malta without recourse to the Maltese social assistance system. They must reside in suitable accommodation meeting local health and safety standards, hold a valid travel document, and maintain private medical insurance providing coverage equivalent to that available to Maltese nationals. Individuals who are domiciled in Malta are expressly excluded from benefiting under the regime.
Tax Treatment and Duration
Qualifying individuals are subject to a flat Maltese income tax rate of 15% on qualifying employment income of up to €7 million per annum. No deductions, allowances, reliefs, tax credits, or set offs may be claimed in respect of income taxed at this preferential rate.
The tax benefit applies for an initial period of five years for individuals holding an eligible office. Following the expiry of this initial period, the benefit may be renewed on two further occasions, with each renewal granted for an additional five-year period, subject to continued compliance with the applicable conditions.
Eligible Offices and Employers
The Rules apply to individuals occupying eligible offices with employers that are regulated, licensed, or recognised by the Malta Financial Services Authority, the Malta Gaming Authority, Transport Malta, the Office of the Chief Medical Officer to Government, or Malta Enterprise.
Eligible offices typically include senior executive roles, C-level positions, senior management functions, and highly specialised roles, particularly within sectors such as financial services, gaming, aviation, maritime services, technology, engineering, and other knowledge-based industries. In all cases, the role must fall within the regulatory remit of the employer and be recognised as eligible by the relevant competent authority.
Application Process
Applications under the Rules must be submitted to the relevant competent authority and must specify the year of assessment from which the preferential tax treatment is to apply. Applications are generally processed within ninety days, although the competent authority may request additional information or supporting documentation as part of the assessment process.
Transitional Provisions
The Rules also include transitional arrangements for individuals who were beneficiaries as of 31 December 2025 under existing incentive schemes, including the Highly Qualified Persons Rules and other qualifying employment tax regimes. Subject to meeting the prescribed conditions, such individuals may apply to transition to the Tax Treatment of Highly Skilled Individuals Rules, 2026.
Advisory and Ongoing Support
The introduction of the Tax Treatment of Highly Skilled Individuals Rules, 2026 further reinforces Malta’s position as a competitive and tax-efficient jurisdiction for highly skilled professionals seeking relocation opportunities. Our firm advises both employers and individuals on eligibility assessments, employment structuring, preparation and submission of applications, and ongoing compliance with Maltese tax and regulatory obligations.
