Highly qualified persons

The Highly Qualified rules are of a particular interest to individuals employed in the gaming, financial and air craft sector.

When an individual is employed in highly qualified eligible office with companies licensed and/or recognised by the Malta Financial Services Authority, companies licensed by the Lotteries and Gaming Authority and companies holding an Air Operators’ Certificate they may have their income coming from such employment taxed at a mere flat rate of 15%. The employment income must be not less that Euro 75,000 per annum. Any income over Euro 5,000,000 is exempt from tax.

The beneficial 15% flat rate applies for 5 consecutive years in the case of EEA and Swiss nationals, and for 4 consecutive years in the case of Third Country nationals. This period may be increased.

This allows many tax beneficial opportunities when coupled with the corporate tax regime in Malta.

The conditions for applying for the Highly Qualified Persons Rules are the following:-

  1. The individual is protected as an employee under Maltese Law
  2. The employment income must be subject to income tax in Malta
  3. The beneficiary has not benefitted from deductions available to investment services expatriated with respect to relocation costs and other deduction
  4. The beneficiary 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
  5. The beneficiary proves to the satisfaction of the competent authority that he performs the activities of an eligible office.
  6. The individual proves to the satisfaction of the competent authority that:
  • s/he 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;
  • s/he resides in accommodation regarded as normal for a comparable family in Malta and which meets the general health and safety standards in force in Malta;
  • s/he is in possession of a valid travel document;
  • s/he is in possession of sickness insurance in respect of all risks normally covered for Maltese nationals for himself and the members of his family; and
  • s/he is not domiciled in Malta.

Eligible offices include:

  • Actuarial Professional
  • Aviation Accountable Manager
  • Aviation Continuing Airworthiness Inspector
  • Aviation Operations Inspector
  • 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
  • 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

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