Tax Treatment of Highly Skilled Individuals in Malta: What Changed in 2026 and Who Actually Qualifies
Headlines about a 15% tax rate for highly skilled individuals have attracted significant attention since Malta updated its framework in 2026. The revised rules are not a standalone incentive, nor are they automatically available based on income level or job title alone. Eligibility depends on a combination of role, regulation, employment structure, and substance in Malta.
This article provides a factual and cautious explanation of what changed in 2026, who the framework is designed for, and how we are able to assist. It is intended to support informed assessment rather than assumptions, and it should be read alongside professional tax, regulatory, and employment advice.
What Changed in Malta’s Tax Framework in 2026
In 2026, Malta introduced Legal Notice 20 of 2026, which consolidated and replaced earlier rules that had applied to highly qualified or highly skilled individuals. The intention was to modernise and streamline the framework, particularly in light of changes across regulated industries and increased scrutiny on substance, governance, and regulatory alignment.
The new rules apply from 1st January 2026 and sit within the broader structure of the Income Tax Act. The legislation itself does not operate in isolation. It interacts with employment law, immigration requirements, sector specific regulation, and corporate governance obligations.
While the previous Highly Qualified Persons rules were well known, the 2026 framework should not be treated as a simple continuation. Certain concepts may appear familiar, but eligibility must be reassessed under the new legal notice rather than assumed to carry over automatically. Where interpretation remains subject to administrative practice or future guidance, this should be treated with caution and verified on a case-by-case basis.
Who the Rules are Designed For
The 2026 framework is designed to apply in situations where Malta based businesses require senior expertise in roles that are strategic, specialised, or regulated. This includes both employers seeking to fill such positions and individuals who occupy them.
Typical contexts may include financial services, iGaming, crypto and regulated technology, as well as aviation and maritime activities. In these sectors, certain functions are subject to regulatory oversight, and individuals may be required to demonstrate competence, experience, and ongoing accountability. The framework recognises this reality by linking tax treatment to the function actually performed rather than to a generic classification of skill.
What Has Changed Under Malta’s New Highly Skilled Individuals Framework
The Highly Skilled Individuals Rules represent a clear departure from Malta’s former Highly Qualified Persons framework, introducing a more modern and unified regime for the taxation of highly skilled professionals. While the HQP Rules were narrowly focused on specific senior roles and applied different extension periods depending on an individual’s nationality—allowing EEA and Swiss nationals longer extensions than third-country nationals—the new rules adopt a broader, more inclusive approach. Under the Highly Skilled Individuals Rules, nationality is no longer a determining factor, and all qualifying individuals benefit from the same initial five-year period, renewable twice for further five-year terms. The new framework also consolidates and replaces several legacy regimes, incorporates transitional provisions for existing beneficiaries, and places greater emphasis on skills, economic contribution, and streamlined administration, thereby enhancing Malta’s attractiveness as a destination for internationally mobile talent.
A further notable change introduced by the Highly Skilled Individuals Rules concerns ownership restrictions at employer level. Under the previous Highly Qualified Persons Rules, beneficiaries were subject to stricter limitations, including a prohibition on benefiting from the regime where the employing company was owned or controlled by the applicant. The new Highly Skilled Individuals Rules adopt a more flexible and commercially aligned approach, easing this restriction and allowing eligibility to be assessed with greater focus on the individual’s role, substance, and economic contribution rather than on ownership alone.
How A2CO Supports Eligibility Assessment
A2CO approaches the 2026 framework as a coordination exercise rather than a single tax question. Our role is to help clients assess eligibility by bringing together tax, compliance, corporate, and regulatory considerations in a structured manner.
This includes reviewing how roles are defined and exercised, identifying where regulatory recognition is required, and ensuring that employment and governance arrangements are aligned.
Our focus is on helping clients understand whether the framework is likely to apply in their specific circumstances and where further clarification or restructuring may be needed before reliance is placed on it.
For employers and individuals who want to understand how the 2026 rules may apply to them, an initial eligibility assessment can help clarify assumptions and highlight potential gaps before they become compliance issues.
