As from 1 January 2026, Malta introduced a new incentive regime granting a 15% beneficial income tax rate for up to 15 years to resident, non-domiciled individuals in Malta who earn income from a qualifying contract or eligible office in an effort to attract highly skilled individuals. Applications for the regime may be made between 1 January 2026 and 31 December 2035. This framework consolidates and replaces several other sector-specific incentive programmes, outlined below.
To qualify for the beneficial rate, the employment income must be received by a “beneficiary” from an “eligible office,” with the annual income at least EUR 65,000. An office is considered eligible if it appears on a list of qualifying positions in the rules and is regulated, licensed or recognised by one of the designated competent authorities. In addition, the individual must meet all of the following requirements:
Eligible individuals may benefit from the 15% rate for an initial five-year period, starting from the year the application is approved. Two additional five-year extensions may be granted, subject to the fulfilment of certain conditions. Thus, the overall benefit can last for 15 years.
The Maltese competent authority is required to issue an acceptance or denial of applications within 90 days of receiving a complete application.
The rules include transitional measures for individuals benefiting from any of the following programmes:
Extensions may be available in certain circumstances.
The consolidation of multiple sector-specific regimes into a single harmonised framework is expected to improve consistency and administrative efficiency. Prospective beneficiaries should assess their eligibility carefully and ensure that all required documentation is submitted within the prescribed deadlines.
Audrey Azzopardi
Sara Farrugia
BDO in Malta
Eligibility Criteria
To qualify for the beneficial rate, the employment income must be received by a “beneficiary” from an “eligible office,” with the annual income at least EUR 65,000. An office is considered eligible if it appears on a list of qualifying positions in the rules and is regulated, licensed or recognised by one of the designated competent authorities. In addition, the individual must meet all of the following requirements:
- Receives employment income from an eligible office;
- Is protected as an employee under Maltese law;
- Holds professional qualifications;
- Does not benefit from the Investment Services and Insurance Expatriate Regime;
- Declares emoluments received from the qualifying contact of employment for tax purposes;
- Performs activities associated with an eligible office;
- Has stable and regular resources sufficient to maintain themself and their family without recourse to Malta’s social assistance system;
- Resides in accommodation compliant with Malta’s general health and safety standards;
- Holds a valid travel document;
- Has private medical health insurance; and
- Is not domiciled in Malta.
Duration and Administration
Eligible individuals may benefit from the 15% rate for an initial five-year period, starting from the year the application is approved. Two additional five-year extensions may be granted, subject to the fulfilment of certain conditions. Thus, the overall benefit can last for 15 years.The Maltese competent authority is required to issue an acceptance or denial of applications within 90 days of receiving a complete application.
Transitional Provisions
The rules include transitional measures for individuals benefiting from any of the following programmes:
- Highly Qualified Persons Rules;
- Qualifying Employment in Innovation and Creativity (Personal Tax) Rules;
- Qualifying Employment in Aviation (Personal Tax) Rules;
- Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules; and
- Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules.
Extensions may be available in certain circumstances.
BDO Takeaway
The consolidation of multiple sector-specific regimes into a single harmonised framework is expected to improve consistency and administrative efficiency. Prospective beneficiaries should assess their eligibility carefully and ensure that all required documentation is submitted within the prescribed deadlines.Audrey Azzopardi
Sara Farrugia
BDO in Malta