Highly Qualified Persons Programme
The aim of Malta’s Highly Qualified Persons Programme is to attract highly professional individuals looking for an alternative residence, based on a Mediterranean Island that forms part of the European Union.
Malta have experienced incredible growth in the finance, fintech, aviation, gaming and professional services spheres, creating strong demand for highly qualified workers in these specific fields. Individuals who apply for and succeed in qualifying for the Malta Highly Qualified Persons Programme benefit from special tax status: 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 this €5 million threshold) will not be subjected to additional tax.
Employment Legal Basis
Employment contracts from companies that are licensed by the following institutions are recognised under this scheme:
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The Malta Financial Services Authority
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The Malta Gaming Authority
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Companies holding an Air Operators Certificate or an Aerodrome Licence issued by Transport Malta.
Eligibility Criteria
Eligible persons apply for a special tax status under the Highly Qualified Persons Programme if they satisfy the following conditions:
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If income received amounts to a minimum of €75,000 adjusted annually and in line with the Retail Price Index. The minimum income (based on the Retail Price Index published by the Malta National Statistics Office) must exceed €84,991;
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They reside in accommodation considered normal and acceptable when equated to a similar family in Malta;
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Their employment is with a company qualified under the definition of ‘eligible office’;
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The applicant possesses the necessary qualifications and a minimum of 5 years of experience
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He/she must not be domiciled in Malta;
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The applicant is not benefitting from any other special tax programmes in Malta;
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The applicant is deemed to be a fit and proper person;
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The applicant must be in possession of a health insurance policy covering himself and his dependents.
Senior positions which qualify under this scheme include the following:
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Actuarial Professional
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Aviation Continuing Airworthiness Manager
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Aviation Flight Operations Manager
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Aviation Ground Operations Manager
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Aviation Training Manager
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Chief Executive Officer
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Chief Financial Officer
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Chief Commercial Officer
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Chief Insurance Technical Officer
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Chief Investment Officer
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Chief Operations Officer (including Aviation Accountable Manager)
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Chief Risk Officer (including Fraud and Investigations Officer)
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Chief Technology Officer
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Chief Underwriting Officer
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Head of Investor Relations
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Head of Marketing (including Head of Distribution Channels)
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Head of Research and Development; (including Search Engine Optimisation and Systems Architecture)
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Portfolio Manager
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Senior Analyst (including Structuring Professional)
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Senior Trader/Trader
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Odds Compiler Specialist
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.
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Taxation of Highly Qualified Persons
Individuals who are registered under this scheme, benefit from a favourable tax rate of 15% on all income derived as a result of 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.
More information regarding this programme may be requested from The Office of the Commissioner for Revenue.
