Malta introduces new 15% tax regime for highly skilled professionals

Malta has launched a new tax framework aimed at attracting highly skilled professionals, introducing a flat 15 per cent income tax rate on qualifying employment income.

On 23rd January 2026, the Malta Tax & Customs Administration published the Tax Treatment of Highly Skilled Individuals Rules, 2026, through Legal Notice 20 of 2026. The new rules replace a range of existing incentive schemes, including the Highly Qualified Persons Rules, consolidating them into a single framework.

The regime applies retroactively from 1st January 2026 and offers eligible individuals a flat 15 per cent tax rate on qualifying employment income of up to €7 million per annum.

Who qualifies?

To benefit from the new rules, individuals must earn a minimum annual salary of €65,000, excluding fringe benefits. This threshold will increase by €10,000 every five years.

The income must arise from employment activities carried out in Malta and be taxable under the Income Tax Act. Applicants must also be non-domiciled in Malta and meet a series of personal and professional conditions, including holding recognised qualifications, having private medical insurance, suitable accommodation, and sufficient financial resources to support themselves and their family without relying on social assistance.

The rules apply strictly to employees, meaning individuals must perform genuine and effective work under the direction of an employer.

Eligible roles and sectors

Applications are limited to individuals occupying eligible offices within organisations regulated or recognised by Maltese authorities, including the Malta Financial Services Authority, Malta Gaming Authority, Transport Malta, the Office of the Chief Medical Officer, and Malta Enterprise.

Eligible roles generally include C-suite executives, senior management, and highly specialised positions, particularly in sectors such as finance, gaming, aviation, maritime, healthcare, and STEM-related fields.

Qualifying individuals are taxed at a flat 15 per cent rate for an initial five-year period, with the possibility of two further five-year renewals, subject to continued eligibility. No deductions, credits, or reliefs may be claimed against income taxed under this regime.

Individuals already benefiting from previous incentive schemes as at 31st December 2025 may, subject to conditions, apply to transition to the new rules.