In 2011, a new tax programme was introduced for highly qualified individuals entitled the Highly Qualified Persons Rules. The programme is aimed at attracting highly qualified professionals in the sectors of the financial services, gaming and aviation industry to work with companies who are licensed by the Malta Financial Services Authority (MFSA), the Malta Gaming Authority (MGA) and companies that hold an air operators certificate issued by Transport Malta (TM), respectively.
Once approved by the respective authorities, these highly qualified and experienced professionals are qualified to benefit from a tax rate of 15% that would be chargeable on the employment income one derives from a Maltese employer.
The flat tax rate of 15% is available to EU, EEA and Swiss nationals for a consecutive period of five (5) years, which period is to commence in the year in which the individual is first liable to tax in Malta. EU, EEA or Swiss nationals who shall apply for the said tax benefit, shall be eligible to a one-time extension of the programme for a further five (5) years, upon application and submission of the required documents. Thus the qualified period shall be of a maximum of ten (10) years.
On the other hand the qualifying period of assessment for third country nationals is of four (4) years which yet again shall commence in the year in which the individual is first liable to tax in Malta.
On the 14th of July 2017, the Government of Malta issued Legal Notice 192 of 2017, whereby such legal notice has amended the eligibility period for third country nationals availing of the Highly Qualified Persons Rule programme. The Rules now provide for a third country national to a one-time extension of the progamme, upon application, for a further four (4) year period. Thus a third country national may now take advantage of this programme for a maximum period of eight (8) years.
Should the qualified third country national avail of the aforementioned extension, the individual may physically stay in Malta for more than 1,460 days on the basis of such extension, and thus would not be required to leave Malta after the initial four (4) year period.
The Malta Highly Qualified Persons Rules builds on the success of Malta’s reputation in attracting highly professional expatriates that seek an alternative residence base in the Maltese islands. After Malta joined the European Union in 2004, Malta has seen an economical growth in the financial, gaming and aviation industry which have attracted highly qualified employees.
