Highly Skilled Individuals: a targeted incentive for global talent

The Highly Skilled Individuals Rules introduce a consolidated framework for the taxation of highly skilled professionals, aimed at attracting talent to Malta, covering a range of sectors, including financial services, gaming, aviation, maritime, offshore oil and gas, family offices, healthcare (ART), and STEM.

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Key features:

The programme offers a number of advantages for qualifying individuals:

• ‍Favourable tax rate: 15% flat tax on qualifying employment income derived from an eligible office.‍
• Validity: Initial benefit period of 5 years.‍
• Renewability: extendable twice for further 5‑year periods (up to 15 years in total).

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Eligibility criteria:

The regime is available to:

• EU, non-EU, EEA, or Swiss nationals.
• Individuals who possess the requisite professional qualifications, generally evidenced by a post-secondary qualification of at least three years’ duration or, where permitted, five years of comparable professional experience.

In addition, applicants must:

• Occupy senior or specialised roles within regulated or recognised sectors with minimum annual income of €65,000, exclusive of fringe benefits, increased by €10,000 every 5 years.
• Hold valid travel documents.
• Have valid health insurance coverage and suitable accommodation in Malta.
• Not be domiciled status in Malta.

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Tax treatment:

• The 15% rate applies without the possibility of claiming deductions, credits, reductions or set-offs, except for deductions permitted under Article 23 of the Income Tax Management Act.
• Applies to income up to €7,000,000, with any excess taxed at standard rates.
• The preferential rate applies only where the income is fully and correctly declared.

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Conclusion:

With its 15% flat tax rate, clearly defined eligibility criteria, and consolidated legal framework, Malta’s Highly Skilled Individuals Rules provide a structured and competitive incentive for internationally mobile professionals seeking to establish their career within the European Union. Should you wish to explore Malta's Highly Skilled Individuals Rules further, our team would be pleased to assist you in starting your application and guiding you through the process.