Highly Qualified Persons Rules

Tax Scheme for Highly Qualified Persons

Following Malta’s expansion in the financial, gaming, and aviation services sectors, the authorities introduced the Tax Scheme for Highly Qualified Persons to attract professionals occupying certain eligible positions. These eligible positions must be with companies licensed and/or recognized by one of the competent authorities regulating financial services, gaming, aviation, or reproductive technologies.

The scheme targets positions for which there is a shortage of Maltese professionals to meet the demand in the aforementioned sectors.

The Highly Qualified Persons Rules (Subsidiary Legislation 123.126) provide a 15% tax rate on emoluments derived by non-domiciled individuals from a qualifying contract of employment with a company licensed by one of the following competent authorities; 

Competent Authorities

The law stipulates that the following are the competent authorities:

• • The body referred to under the Financial Institutions Act
  • The Lotteries and Other Games Act
  • The Authority for Transport in Malta
  • The Office of the Chief Medical Officer to the Government

Benefits of the Scheme

• • A flat tax rate of 15% is charged on gross emoluments up to €5 million (without the possibility of claiming any relief, deduction, reduction, credit, or set-off of any kind).
  • No income tax is charged on gross emoluments exceeding €5 million.
  • The benefit applies for a consecutive period of four or five years (as applicable), starting from the year in which the person first becomes liable to tax under these rules.
  • No determination by the competent authority shall be issued after 31 December 2025, and any such determination must refer to employment in respect of which the benefit commences by 31 December 2026 and ceases to apply by 31 December 2030.

Summary of Conditions

The law establishes a minimum yearly income, which for 2025 is €100,061. This minimum is adjusted annually in line with the Retail Price Index.

In addition to meeting the minimum income requirement, a highly qualified person must:

• • Derive employment income subject to income tax in Malta under Article 4(1)(b) of the Income Tax Act.
  • Hold an employment contract governed by Maltese law and prove to the satisfaction of the competent authority that the contract involves genuine and effective work carried out in Malta.
  • Provide evidence of professional qualifications.
  • Fully disclose for tax purposes and declare all emoluments received under a qualifying contract of employment, as well as any income received from persons related to the employer, as chargeable to tax in Malta.
  • Prove that he/she performs activities of an eligible office.
  • Demonstrate that he/she has stable and regular resources sufficient to maintain themselves and their family without recourse to Malta’s social assistance system.
  • Reside in Malta, hold a valid travel document, and possess sickness insurance covering all risks normally covered for Maltese nationals, for themselves and their family members.
  • Not be domiciled in Malta.

Eligible Employments and Offices

Employment or offices with companies licensed and/or recognized by the competent authority, or with undertakings holding an Air Operator’s Certificate issued by the competent authority, include the following roles:

• • Chief Executive Officer, Chief Risk Officer (including Fraud and Investigations Officer), Chief Financial Officer, Chief Operations Officer (including Aviation Accountable Manager), Chief Technology Officer, Chief Commercial Officer
  • Portfolio Manager, Chief Investment Officer, Senior Trader/Trader, Senior Analyst (including Structuring Professional), Actuarial Professional, Chief Underwriting Officer, Chief Insurance Technical Officer, Odds Compiler Specialist, Head of Research and Development (including Search Engine Optimisation and Systems Architecture), Aviation Continuing Airworthiness Manager, Aviation Flight Operations Manager, Aviation Training Manager, Aviation Ground Operations Manager
  • Head of Marketing (including Head of Distribution Channels), Head of Investor Relations

Employment with undertakings holding an aerodrome licence issued by the competent authority includes the role of Chief Executive Officer.

Employment in the Assisted Reproductive Technology sector includes the roles of Embryologist, Responsible Person, and Lead Quality Manager.

For more information on this scheme, please contact us at:
📞 (+356) 2155 9999
📧 info@jcordina-andco.com