Highly Skilled Individuals Rules, 2026

As of 1 January 2026, Malta offers a 15% flat tax rate on qualifying employment income for highly skilled professionals. These rules replace earlier incentive schemes (including the HQP Rules) and aim to help employers attract and retain top talent.

To benefit, an employee must:

• Earn at least €65,000 per year (excluding fringe benefits). This minimum will rise by €10,000 every five years.
• Work in Malta and be formally employed (not self-employed).
• Have the necessary qualifications and experience.
• Not have previously claimed benefits under Article 6 of the Income Tax Act.
• Meet basic residency and compliance requirements, including:
  • Stable income and no reliance on Maltese social assistance
  • Suitable accommodation
  • Private medical insurance
  • Valid travel document
  • Not being domiciled in Malta

• 15% flat tax rate on qualifying income up to €7 million.
• No deductions or tax credits can be claimed against this income.
• Benefit period: 5 years, with the possibility of two renewals (5 years each).

Employees must hold senior or specialised positions with companies regulated or licensed by:

• Malta Financial Services Authority
• Malta Gaming Authority
• Transport Malta
• Office of the Chief Medical Officer
• Malta Enterprise

Typical eligible roles include C-level positions, senior management, and specialised technical roles (STEM, innovation, medical roles, etc.).

• Applications are submitted to the relevant authority regulating the employer.
• Applicants must indicate the first year of assessment.
• Processing typically takes up to 90 days, though extra information may be requested.

Individuals who were benefiting from previous tax schemes as of 31 December 2025 may transition to the new Rules if they meet the updated requirements.

The full legal notice is available here

If you need help assessing eligibility or preparing applications, Fenech & Fenech’s Tax Team can assist – contact tax@fenechlaw.com