Highly Skilled Individuals Rules 2026 in Malta: Legislative Conditions and Tax Treatment 

This article provides a technical overview of the legislative conditions and applicable tax treatment associated with the Highly Skilled Individuals framework introduced in Malta in 2026. 

The article is intended as a reference overview of the rules as set out in law, rather than confirmation of eligibility or guidance on how the framework should be applied in any specific case. In practice, acceptance under this framework depends on how the relevant conditions apply to an individual’s particular circumstances and how these are assessed by the competent authorities. 

Context and Scope 

The Highly Skilled Individuals framework applies to individuals earning employment income in Malta under defined legislative conditions. It operates within the broader Maltese tax system and interacts closely with employment law, sector specific regulation, and immigration requirements. 

This article focuses on outlining the legislative conditions linked to eligibility and the tax treatment that applies where the framework is accepted. It does not attempt to address how these rules play out in practice or why eligibility may fail despite apparent compliance. Those practical considerations are covered separately in our explanatory article on what changed in 2026 and who actually qualifies. 

Conditions for Eligibility

• The individual must earn taxable employment income in Malta under a qualifying contract of employment, amounting to at least €65,000 per year. Additionally, the minimum threshold will be increase by €10,000 every five years. 

• In possession of the relevant professional qualifications 

• Must be recognised as an employee in accordance with Maltese law, perform genuine and effective work for or under the direction of another person, be remunerated accordingly, and demonstrate adequate and specific competence as required by the competent authority 

• The individual has not benefited under article 6 of the Income Tax Act 

• The individual proves to the satisfaction of the competent authority (Malta Financial Services Authority, Malta Gaming Authority, Transport Malta, Malta Enterprise and Office of the Chief Medical Officer to the Government) the  that he performs activities of an eligible office 

• Fully discloses and declares, for tax purposes, all emoluments and any related income derived from a qualifying contract of employment that is chargeable to tax in Malta. 

• Is not domiciled in Malta 

• Has sufficient financial means, suitable accommodation in Malta, a valid travel document, and private medical insurance covering himself/herself and his/her family in line with Maltese standards. 

Applicable Tax Treatment 

Where the legislative conditions are met and the framework is accepted by the competent authorities, a specific tax treatment applies to qualifying employment income. 

Under the framework, income derived from a qualifying contract of employment is subject to a flat tax rate of 15%. No entitlement arises to any reliefs, deductions, credits, or set offs in relation to that income, and the tax treatment is capped at emoluments of up to €7 million per annum. This treatment applies only to qualifying employment income and does not automatically extend to other sources of income. 

Application Procedure and Duration 

Applications under the Tax Treatment of Highly Skilled Individuals Rules must be lodged with the Competent Authority during the period from 1 January 2026 to 31 December 2035. No applications will be accepted after 31 December 2036. 

Where an application is approved, the preferential tax status is granted for an initial term of five years and may be renewed on two further occasions, each renewal conferring an additional five-year period. Unlike the former Highly Qualified Persons Rules, the Highly Skilled Individuals Rules do not differentiate between nationals of the EEA or Switzerland and third-country nationals. Accordingly, the duration of each extension period is uniform and applies equally to all eligible individuals, irrespective of nationality. 

Transitional Arrangements 

The Tax Treatment of Highly Skilled Individuals Rules contain transitional arrangements for persons who, as of 31 December 2025, were already benefiting from one of the following tax regimes: 

• the Highly Qualified Persons Rules; 

• the Qualifying Employment in Innovation and Creativity (Personal Tax) Rules; 

• the Qualifying Employment in Aviation (Personal Tax) Rules; 

• the Qualifying Employment in Maritime Activities and the Servicing of Offshore Oil and Gas Industry Activities (Personal Tax) Rules; and 

• the Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules. 

Eligible individuals may continue to benefit under the new framework, provided they submit an application to the relevant competent authority and meet all applicable eligibility requirements. Transition into the new regime does not occur automatically and is conditional upon approval. 

Any request to transition must be filed by no later than 31 December 2028