On 23 January 2026, the Malta Tax & Customs Administration (the “MTCA”) published the Tax Treatment of Highly Skilled Individuals Rules, 2026 (the “Rules”) by means of Legal Notice 20 of 2026. The Rules introduced a flat income tax rate of 15% on qualifying employment income and replace previous incentive programmes applicable to highly skilled individuals, including the Highly Qualified Person Rules.

The Rules apply with effect from 1 January 2026 to qualifying employment income that:

1. is chargeable to tax in Malta under the Income Tax Act (the “ITA”);
2. amounts to a minimum of €65,000 per annum, exclusive of the annual value of any fringe benefits (subject to statutory minimum increases, as set out below) ; and
3. arises from employment activities carried out in Malta.

In addition, individuals seeking to benefit from the Rules must satisfy the following conditions:

1. The individual qualifies as an employee under Maltese law, performs genuine and effective work under another person’s direction, and holds adequate and specific competence approved by the relevant competent authority;
2. The individual has not previously benefited under article 6 of the ITA (for example, in respect of the provision of qualifying services to a licensed or authorised investment services or insurance entity);
3. The individual is in possession of the required professional qualifications and performs employment activities within an eligible office;
4. The individual fully discloses and declares all employment income in accordance with the Rules; and
5. The individual demonstrates that s/he:
   • Is in receipt of stable and regular resources to maintain himself and family in Malta, without recourse to the social assistance system in Malta;
   • Resides in a suitable accommodation in Malta, satisfying the general health and safety standards in force in Malta;
   • Holds a valid travel document;
   • Is in possession of private medical insurance, which shall cover all risks normally covered for Maltese nationals, for himself and his family; and
   • Is not domiciled in Malta.

It is also relevant to note that, under the Rules, the minimum annual qualifying salary threshold of €65,000 shall increase by €10,000 every five years.

Individuals who qualify under the Rules shall be subject to Maltese income tax at a flat rate of 15%, applicable to qualifying employment income of up to €7 million per annum.

Beneficiaries of the Rules are not entitled to claim any relief, deduction, reduction, credit, or set-off of any kind in respect of their qualifying employment income taxed at the income flat rate of 15%.

The flat tax rate of 15% applies for to individuals holding an eligible office for a period of 5 years and following the initial 5 year period, a further two renewals, each for a period of five years, may also be availed of.

Applications under the Rules may be made by individuals performing activities which qualify as eligible offices with employers that are regulated, licensed, or recognised by any of the following entities:

1. Thee Malta Financial Services Authority;
2. The Malta Gaming Authority;
3. The Authority for Transport in Malta;
4. The Office of the Chief Medical Officer to Government; and
5. Malta Enterprise.

Eligible offices generally include C‑level executive roles, senior management positions, and specialised functions in areas such as science, technology, engineering, and mathematics, provided that such roles fall within the regulatory remit of the employer and are recognised as eligible by the relevant competent authority.

Applications under the Rules must be submitted to the relevant competent authority listed above and must specify the year of assessment from which the Rules should apply.

Applications are to be processed within 90 days, although the competent authority may, at their discretion, request additional information or documentation.

Individuals who, on the 31^st December 2025, qualified as beneficiaries under the (a)  Highly Qualified Persons Rules, (b)  Qualifying Employment in Innovation and Creativity(Personal Tax) Rules, (c)  Qualifying Employment in Aviation (Personal Tax)Rules, (d)  Qualifying Employment in Maritime Activities and the Servicing of  Offshore Oil and Gas Industry Activities(Personal Tax) Rules and (e) Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules, may, subject to certain conditions apply to be beneficiaries under the new Rules.

The Rules can be accessed here.

With the introduction of the Tax Treatment of Highly Skilled Individuals Rules, 2026, Malta continues to strengthen its position as a competitive jurisdiction for attracting highly skilled professionals seeking to relocate and reside in Malta while benefiting from a favourable tax regime on qualifying employment income.

Fenech & Fenech can assist both employers and employees in assessing eligibility under the Rules, navigating the application process, and ensuring ongoing compliance with applicable tax and regulatory obligations.

This article has been prepared by the law firm’s Tax Team. For more information concerning any personal or corporate tax matter, please do not hesitate to contact the team on tax@fenechlaw.com