In January 2026, the Government of Malta introduced a landmark shift in its fiscal policy with the publication of Legal Notice 20 of 2026, officially titled the Tax Treatment of Highly Skilled Individuals Rules.
Effective from 1 January 2026, this new regime consolidates multiple legacy tax incentive programmes into a streamlined, unified framework. This strategic move is designed to enhance Malta’s competitiveness by attracting and retaining highly skilled expatriates and specialised professionals across the globe.
A Coherent 15% Flat Tax Framework
The new rules replace several previous sector-specific schemes including the Highly Qualified Persons Rules and specialized tax regimes for the innovation, aviation, maritime, and family office sectors. In their place is a single, coherent 15% flat tax regime on qualifying employment income.
Key Tax Benefits
- Preferential Rate: A flat 15% tax rate on qualifying employment income earned in Malta.
- Income Cap: This rate applies to income up to an annual cap of €7 million. Any income exceeding this threshold is taxed at standard Maltese rates.
- Competitive Advantage: This regime offers a significant advantage over Malta’s standard progressive tax structure, which can reach up to 35%.
Eligibility Criteria
To qualify for this regime, individuals must satisfy the following conditions:
- Status: Be non-domiciled in Malta and employed under a qualifying contract.
- Income Threshold: Earn a minimum annual salary of €65,000 (excluding fringe benefits). Note: This threshold is scheduled to increase by €10,000 every five years.
- Qualifications: Hold professional qualifications or at least five years of relevant experience.
- Stability: Maintain stable financial resources, appropriate accommodation in Malta, a valid travel document, and private medical insurance.
- Eligible Roles: Typically senior or specialised positions regulated or recognised by Maltese authorities (e.g., MFSA, MGA, Transport Malta, Malta Enterprise, and the Chief Medical Officer).
Long-Term Stability: Duration and Extensions
Once approved, beneficiaries enjoy the 15% tax rate for an initial five-year period. To support long-term career planning and employer stability, individuals may apply for two further five-year extensions, allowing for a total of up to 15 years under the regime.
Transitioning from Legacy Schemes
Individuals already benefiting from older tax incentive programmes as of 31 December 2025 are not left behind. They may apply to transition into the new regime, provided they meet the updated eligibility conditions and comply with application deadlines.
Strategic Impact for Employers and Professionals
By consolidating multiple incentive schemes, Malta has significantly reduced administrative complexity. This unified framework creates much-needed clarity for employers looking to attract senior professionals in key sectors, including finance, technology, healthcare, aviation, gaming, and maritime services.
Contact Us for Assistance:
If you require assistance navigating these new rules or wish to discuss how they impact your specific situation, the team at Aliant+ is ready to help.
Please contact our Malta Accounting firm at : https://aliantplus.com/directory/stephen-balzan/
Disclaimer: The above does not constitute tax or legal advice and is up to date on the date it was published. Please ensure that you take appropriate advice from tax or legal professionals before making any decisions based on the above