Top careers in Malta with special tax rates: Is your profession included?

If you are considering a career in Malta, the country offers an attractive package for highly qualified professionals with competitive salaries and favorable tax rates. This refers to the “Highly Qualified Persons Rules” (SL 123.126), which allow for a flat tax rate of 15%. Important advantages:

• Flat tax rate of 15%: Applies to income from eligible items.
• High income tax exemption: Income over € 5,000,000 is tax-free!
• Various sectors: opportunities in finance, gambling, aviation and more.

But what exactly does this mean? Background to the tax guidelines for highly qualified persons Malta’s economy has been growing steadily since its accession to the EU in 2004. With this growth comes more and more companies – especially in the financial services, gambling, aviation and reproductive medicine sectors – that require qualified workers. The Maltese government has therefore introduced the “Highly Qualified Persons Rules” (SL 123.126). This system aims to attract highly qualified persons for “eligible positions” in companies that are licensed or recognized by the relevant authorities. The rules have applied since January 1, 2010 for income from the 2011 assessment year and for aviation positions from January 1, 2012. The program ends on 31 December 2030, applications can be submitted until 31 December 2025. Who is eligible for funding in Malta? Eligible positions include:

• CEO, CFO, CTO
• Senior Analysts, Portfolio Managers
• Aviation Managers
• Embryologists, Lead Quality Managers and more!

Areas that are promoted:

1. Financial services:
   • Chief Executive Officer
   • Chief Financial Officer
   • Portfolio Manager
   • Senior Trader
2. Gambling:
   • Chief Operations Officer
   • Head of Marketing
   • Senior Analyst
3. Aviation:
   • Aviation Flight Operations Manager
   • Aviation Training Manager
   • Chief Risk Officer
4. Reproductive medicine:
   • Embryologist
   • Lead Quality Manager

Rules of the program:

75. a) Income from employment: Income from a qualifying employment contract in an eligible position is subject to a fixed tax rate of 15%, provided the income is at least €75,000 (adjusted annually). The tax rate applies up to an income of € 5,000,000, above which the income is tax-free. The tax rate applies for five years for EU/EEA/Swiss citizens and for four years for third-country nationals. Individuals who have already been working in an eligible position for two years before the program comes into force will benefit for the remaining years. An extension for a further five years (EU/EEA/Switzerland) or four years (third countries) is possible.

The minimum earnings, based on the retail index of the Office for National Statistics, are:

• €75,000 for the base year 2010
• €76,136 for the base year 2011
• €78,207 for the base year 2012
• €80,100 for the base year 2013
• €81,205 for the base year 2014
• €81,457 for the base year 2015
• €82,353 for the base year 2016
• €82,881 for the base year 2017
• €84,016 for the base year 2018
• €84,991 for the base year 2019
• €86,385 for the base year 2020
• €86,938 for the base year 2021
• €88,242 for the base year 2022
• €93,669 for the base year 2023
• €98,436 for the base year 2024

75. b) Qualifying employment contract: An individual can benefit from the tax rate if:

1. The income is taxable in Malta.
2. The employment contract is subject to Maltese law and involves genuine work in Malta.
3. It has professional qualifications and at least five years of professional experience.
4. No deductions were claimed for relocation costs.
5. All income must be disclosed and taxed.
6. An eligible activity is carried out.
7. Sufficient resources, adequate accommodation, valid travel documents and health insurance must be proven.

Exclusions from the program: Persons who own more than 25% of a licensed company or who were already employed in unlicensed companies in Malta before the start of the program are excluded. Application: Applications for participation in the program should be sent to:

• The Chairman of the Malta Financial Services Authority (Financial Services)
• The Chairman of the Lotteries and Gaming Authority (gambling)
• The Chairman of the Authority for Transport in Malta (Aviation)
• The Chief Medical Officer (Reproductive Medicine)

The application must be submitted annually together with the tax return. You can find more information on the program here: https: //cfr.gov.mt/en/inlandrevenue/legal-technical/Pages/Tax-Guidelines-on-Highly-Qualified-Persons-Rules.aspx We will be happy to provide you with further details on entitlements and the application process in a free initial consultation.