Malta has taken a further step in strengthening its position as a hub for international talent through the introduction of Legal Notice 20 of 2026, the Tax Treatment of Highly Skilled Individuals Rules. Effective from 1 January 2026, this new framework replaces a number of sector-specific incentive regimes with a single, harmonised tax regime aimed at providing greater clarity, consistency, and long-term certainty for both employers and highly skilled professionals relocating to Malta
A Simplified Tax Regime for International Talent
Malta previously operated a number of sector-specific tax incentives, each with its own eligibility rules and administrative requirements. These included regimes covering highly qualified persons, innovation and creativity, aviation, maritime, and family offices.
These frameworks have now been consolidated into a single regime. The result is a simpler, more accessible system that offers greater certainty for employers and professionals, while strengthening Malta’s appeal as a destination for highly skilled expatriates.
Key Features of the Highly Skilled Individuals Regime
A Flat 15% Tax Rate on Employment Income
Eligible individuals may opt to be taxed at a flat rate of 15% on qualifying employment income earned in Malta. This applies instead of the standard progressive personal income tax rates, which can reach up to 35%.
For senior executives and specialists, this represents a significant reduction in overall tax exposure and enhances Malta’s competitiveness as a relocation destination.
Minimum Income Threshold and Scope
To qualify, individuals must earn at least 65,000 euros per year from qualifying employment in Malta, excluding fringe benefits. This threshold is set to increase by 10,000 euros every five years.
The 15% tax rate applies to qualifying employment income of up to 7 million euros per annum. Income above this level is subject to Malta’s standard progressive tax rates capped at 35%.
Eligibility Conditions
Applicants seeking to benefit from the Highly Skilled Individuals Regime must satisfy a number of statutory and practical requirements, including the following:
- Non-domiciled status in Malta.
- Be employed in Malta under a qualifying contract of employment.
- Earn a minimum annual remuneration of 65,000 euros, excluding fringe benefits.
- Possess recognised professional qualifications or demonstrate relevant professional experience.
- Maintain appropriate residential accommodation in Malta.
- Hold valid private medical insurance covering Malta.
- Demonstrate financial self-sufficiency and hold valid travel documentation.
These requirements are designed to ensure that the regime applies to internationally mobile professionals with the skills, experience, and economic substance to contribute meaningfully to Malta’s economy.
Duration of the Benefit
The preferential tax treatment applies for an initial period of five years. Subject to continued eligibility, it may be extended twice for further five-year periods, up to a maximum of fifteen years in total.
Transitional Provisions
Individuals who are already benefiting from one of the legacy incentive regimes may transition to the new framework, provided that a new application is submitted within the prescribed time limits. These transitional arrangements are intended to ensure continuity while gradually aligning all beneficiaries with the unified system.
What This Means for Employers and Professionals
For employers, the introduction of a single consolidated regime simplifies workforce planning and talent acquisition, offering a clear and consistent tax framework for senior hires across a broad range of industries, including financial services, gaming, aviation, maritime, healthcare, and technology.
For professionals, the flat 15% tax rate enhances Malta’s competitiveness as a relocation destination, particularly for senior executives, specialists, and individuals in high-value roles. The regime offers predictability, long-term visibility, and a transparent set of eligibility criteria that support both relocation decisions and retention strategies.
Conclusion
The Tax Treatment of Highly Skilled Individuals Rules marks an important development in Malta’s ongoing efforts to attract and retain internationally mobile talent. By replacing multiple sector-specific incentives with a single, transparent, and robust framework, the regime offers both employers and professionals a clearer and more predictable tax environment.
How NCMB Can Assist
NCMB supports both employers and internationally mobile professionals in understanding and applying Malta’s tax framework for highly skilled individuals. Our assistance covers the full lifecycle of the regime, from assessing eligibility and structuring employment arrangements to preparing and submitting applications and managing ongoing compliance.
