Highly Skilled Individuals Rules – L.N. 20 of 2026

On 23 January 2026, the Government of Malta published L.N. 20 of 2026 introducing the Tax Treatment of Highly Skilled Individuals Rules (the ‘Rules’), with effect from 1 January 2026.

These Rules consolidate and replace various special tax programmes already in place for eligible qualified expatriates across a number of industries, and introduce a harmonised framework for the taxation of employment income derived by qualifying beneficiaries in eligible roles at the reduced flat rate of income tax of 15%, subject to conditions.

The programmes being replaced by the Rules are the:

• Highly Qualified Persons Rules;
• Qualifying Employment in Innovation and Creativity (Personal Tax) Rules;
• Qualifying Employment in Aviation (Personal Tax) Rules;
• Qualifying Employment in Maritime Activities and the Servicing of
• Offshore Oil and Gas Industry Activities (Personal Tax) Rules; and
  Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules.

Eligible roles

The Rules set out a number of ‘eligible offices’ that are regulated, licensed, or recognised by designated competent authorities across various industries previously catered for by the relevant programmes being replaced – the Malta Financial Services Authority, Malta Gaming Authority, Transport Malta, Malta Enterprise and the Office of the Chief Medical Officer.

Whilst the eligible roles are largely aligned to the eligible offices previously permitted under the programmes being replaced, some additional eligible offices have been introduced.

Eligible beneficiaries

With the Rules targeting expats, qualifying beneficiaries are also required to possess relevant professional qualifications or, alternatively, a minimum of five years of comparable professional experience. Other requirements set out within the Rules include having sufficient stable resources, living in suitable accommodation in Malta, holding valid travel documents, maintaining private medical insurance covering beneficiaries and their family, and not being domiciled in Malta.

Lastly, beneficiaries are required to be employed in Malta under a contract in an eligible office and must receive annual emoluments of at least €65,000, which shall be adjusted upwards by €10,000 every five years. The 15% tax rate applies to employment income from eligible roles up to €7,000,000 per year. Income in excess of €7,000,000 shall be chargeable at the rate of 35%.

The benefits conveyed by the Rules are applicable for a period of 5 years, with the option of two further extensions of 5 years each, subject to conditions. The benefits under the Rules shall not apply beyond 31 December 2040.

Furthermore, the Rules also include transitional provisions which are applicable to beneficiaries benefitting under the programmes which are being replaced. Extensions are subject to a renewed application to be submitted with the respective competent authority, within the stipulated timeframes.

Deloitte’s view

Deloitte welcomes the introduction of the Rules as a positive step towards streamlining Malta’s various special tax regimes for eligible qualified expatriates into one special tax framework with consistent conditions. The harmonisation of the various sector-specific programmes into a single, transparent framework should enhance certainty and administrative efficiency.

Prospective beneficiaries are advised to carefully assess their eligibility and prepare the necessary documentation to meet application deadlines.

Deloitte remains available to assist in determining how the new rules may apply to your specific situation and ensuring that these changes are implemented accurately.