What's new?
Instead of navigating multiple tax regimes, the Rules introduce a single, consistent framework across key sectors, including financial services, gaming, aviation, maritime and shipping, offshore oil and gas services, healthcare, and STEM (Science, Technology, Engineering and Mathematics) driven and advanced technology roles.
This consolidation reflects Malta’s strategic focus on remaining competitive for global talent, providing greater certainty for employers and key employees, and enabling long‑term workforce planning through to 31 December 2040.
These new rules do not alter the general infrastructure of Maltese income taxation for other items of income and gains. This makes for a very interesting proposition for international talent in the context of Malta’s source and remittance basis of taxation for non-domiciled individuals and the absence of gift, inheritance, wealth and exit taxes for individuals moving out of the country.
- Who can benefit?
- What is the tax benefit for qualifying individuals?
- How to apply under the rules?
- Duration of the 15% rate
- What about beneficiaries who were already taxed at 15% under the previous rules?
Who can benefit?
The rules target senior and specialist roles that drive high‑value economic activity within the targeted sectors. Eligible offices include (but are not limited to):
Chief executive officers
Chief financial officers
Chief or heads of risk officers
Chief operations officers
Portfolio managers and senior traders
Chief investment officers
Senior structuring professionals
Chief people officers
Chief legal officers
Flight operations managers
The list of eligible offices is set out in the Schedules to the Rules, where eligible offices are grouped by the respective industry for which each competent authority is responsible for. The competent authorities include the Malta Financial Services Authority (MFSA), Malta Gaming Authority (MGA), Transport Malta, Office of the Medical Officer to Government and Malta Enterprise.
Qualifying individuals should also satisfy a number of conditions, including, amongst others:
- They need to earn an annual gross basic salary of at least €65,000 increasing by €10,000 every five years.
They need to hold the relevant professional qualifications / experience.
- Not be domiciled in Malta, and have not previously benefited from Article 6 of the Income Tax Act.
They need to declare all Malta‑taxable income related to the qualifying employment, including income from related entities.
What is the tax benefit for qualifying individuals?
Qualifying beneficiaries may choose to tax their qualifying employment income (up to €7 million) at a flat rate of 15%, instead of Malta’s progressive tax rates which reach 35% once the individual’s Maltese chargeable income exceeds €60,000. This provides a substantial tax advantage for senior talent and supports employers in attracting and retaining key employees.
Other income chargeable to Maltese income tax, including employment income exceeding €7m should be considered to constitute remaining income and subject to tax at a flat 35% tax rate.
The treatment of income not chargeable to Maltese income tax (e.g. unremitted non-Maltese source income and non-Maltese sourced capital gains) remains unchanged.
The applicability of the 15% flat rate should be analysed on a case-by-case basis by considering the overall tax result for the qualifying individual as the Rules does not allow for tax credits, deductions or reliefs, which may, in certain situations, present a better result.
How to apply under the rules?
Applications for eligibility may be submitted to the relevant competent authority between 1 January 2026 and 31 December 2035, with no applications accepted after 31 December 2036.
If approved, the competent authority will issue them with a formal determination confirming that they are beneficiaries in terms of the rules within the prescribed timeline.
Beneficiaries should continue satisfying the conditions outlined in the rules on an on-going basis and abide to annual compliance obligations.
Duration of the 15% rate
Once approved, the 15% tax rate applies for five consecutive years from the year in relation to which a formal determination was issued. Qualifying beneficiaries may apply for two further extensions of five years each, up to a maximum of 15 consecutive years.
These rules will remain in force until 31 December 2040, providing long-term stability for applicants and employers.
What about beneficiaries who were already taxed at 15% under the previous rules?
Subject to the satisfaction of certain conditions (including minimum salary thresholds), individuals benefiting under the following rules as at 31 December 2025 may transition to the new regime, subject to application by 31 December 2028:
Highly qualified persons rules
Qualifying employment in innovation and creativity rules
Qualifying employment in aviation rules
Qualifying employment in maritime and offshore oil and gas rules
Senior Employees in family office, back office, and treasury rules
Once transitioned, beneficiaries receive a new five-year entitlement (including two further extensions of five years each) under the updated framework.
Notably, where an individual’s gross basic salary under the previous rules was below the new €65,000 minimum (excluding fringe benefits), the prior minimum will apply for the calendar year ending 2026 and will then increase by €10,000 in each of the following two years, until it reaches the standard €65,000 minimum required under the new Rules.
How can we help?
Our specialised tax and immigration may help you in assessing whether the new Rules apply (and are beneficial) to you or your employees, and whether beneficiaries under the previous legislation continue to qualify under the new rules. We can also support you throughout the renewal or application process, ongoing Maltese tax compliance, immigration guidance, social security matters, and any related international and other tax considerations.
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