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 a qualification or experience relevant to the eligible office;
- 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 individual does not control more than 25% of the shares of the undertaking in which he is employed;
- He is in receipt of stable and regular resources which are sufficient to maintain himself and his dependents without recourse to the social assistance system in Malta;
- The individual resides in accommodation regarded as normal for a comparable family in Malta, and which meets the health and safety standards in force in Malta; and
- Is in possession of a valid travel document as well as medical insurance which covers himself and his dependents.
Minimum Tax requirement
Benefciaries who qualify and receive employment income of a minimum of €45,000 may benefit from such special tax and thus minimum tax payable is €6,750 annually. An application form has to be submitted to Malta Enterprise.
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. The said 15% tax rate shall apply for a consecutive period of not more than 3 years.
- Filing an annual income tax return