Highly Qualified Persons Programme

This specific programme is designed for highly qualified individuals who are not domicilied in Malta.

Special Tax Rates

An individual who has been granted this special tax status will be subject to tax at a flat rate of 15% on income derived from a qualifying contract of employment.

Conditions to satisfy 

  • The individual is not domiciled in Malta;
  • The individual receives income, being emoluments payable under a qualifying contract of employment, and received in respect of work or duties carried out in Malta;
  • He is protected as an employee under Maltese Law, has adequate and specific competence, and is in possession
    of professional qualifications;
  • He is not a person who has benefitted under Article 6 of the Income Tax Act (Investment Service and Insurance Expatriate);
  • The individual fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment;
  • He proves that he performs activities of an eligible office. The eligible office is usually a senior position (as
    defined) with companies licensed/recognised by MFSA, companies licensed by the MGA, and undertakings
    holding an Air Operators’ Certificate or an Aerodrome License issued by Transport Malta. An application for a
    formal determination must be made to the Chairman of the MFSA, MGA or Transport Malta;
  • He is in receipt of stable and regular resources which are sufficient to maintain himself and his dependents.

Minimum Tax Requirement

Benefciaries who qualify and receive a minimum employment income may benefit from such special tax rate. The minimum income (revised annually in terms of the Retail Price Index published by the NSO) is set at €82,353 for basis year 2016.

Tax Implications

Income received from a qualifying contract of employment be taxed at a flat rate of 15%. No further tax would be charged
on income from a qualifying contract of employment in excess of €5,000,000. Any other income, that is chargeable to tax in Malta, will be subject to tax at the rate of 35%.

Annual Compliance

  • Filing an annual income tax return;
  • Filing of an annual declaration signed by the beneficiary and endorsed by the related authority.

How can Mazars help 

Mazars is a global integrated firm with presence in major economies of the world, so we understand the complexities
of tax in today’s global economic climate. We provide both national and international tax advice to a diverse global client-base. We work with global owner managed businesses and European listed companies, but also with local companies, and private individuals.

So wherever you are located, we can support you with local and global advice.

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