The objective of the Highly Qualified Persons Rules, is the creation of a scheme to attract highly qualified persons to occupy “eligible office” with companies licensed and/or recognized by one of the Competent Authorities regulating financial services, gaming, aviation and reproductive technologies for specific positions where Maltese highly qualified persons are not enough to meet the demand from the mentioned sectors.
Individual income from a qualifying contract of employment in an “eligible office” with a company licensed by the Competent Authority is subject to tax at a flat rate of 15% provided that the income amounts to at least €98,436 for basis year 2024. Competent Authorities can only issue determinations of who is authorised under this scheme till 31 December 2025. Those declared as eligible will be charged a 15% flat tax rate till 31 December 2030.
Apart from the minimum income, for a high qualified person to be eligible for the scheme, the person needs to:
- derive employment income subject to income tax in Malta
- have an employment contract subject to the laws of Malta and proves to the satisfaction of the Competent Authority that the contract is drawn up for exercising genuine and effective work in Malta
- prove that he/she is in possession of professional qualifications and has at least five years professional experience;
- fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment and all income received from a person related to his employer paying out income from a qualifying contract as chargeable to tax in Malta;
- proves that he/she performs activities of an eligible office; and
- proves that he/she is in receipt of stable and regular resources which are sufficient to maintain himself and the members of his family without recourse to the social assistance system in Malta, resides in Malta, is in possession of a valid travel document, is in possession of sickness insurance in respect of all risks normally covered for Maltese nationals for himself and the members of his family.
The positions determined to be ‘eligible office’ are:
- Actuarial Professional
- Aviation Continuing
- Airworthiness Manager
- Aviation Flight Operations Manager
- Aviation Ground Operations Manager
- Aviation Training Manager
- Chief Executive Officer
- Chief Financial Officer
- Chief Commercial Officer
- Chief Insurance Technical Officer
- Chief Investment Officer
- Chief Operations Officer (including Aviation Accountable Manager)
- Chief Risk Officer (including Fraud and Investigations Officer)
- Chief Technology Officer
- Chief Underwriting Officer
- Head of Investor Relations
- Head of Marketing (including Head of Distribution Channels)
- Head of Research and Development; (including Search Engine Optimisation and Systems Architecture)
- Portfolio Manager
- Senior Analyst (including Structuring Professional)
- Senior Trader/Trader
- Odds Compiler Specialist
- Embryologist
- Responsible Person
- Lead Quality Manager
If you are a highly qualified person, holding a key position with a licensed entity in financial services,
gaming, aviation or in reproductive technologies, and you wish to discover if you qualify for such a tax scheme, then contact GTG’s Partner, Dr Cherise Abela Grech at cabelagrech@gtg.com.mt
You many also wish to read:
Amendments to the Highly Qualified Persons Programme
Citizenship and Residency Schemes