Individual Tax Programme Rules, 2026

L.N. 195 of 2026

INCOME TAX ACT

(CAP.123)

Individual Tax Programme Rules, 2026

IN EXERCISE of the powers conferred by articles 56(23) and 96

of the Income Tax Act, the Minister responsible for finance has made

the following rules:-

(1) The title of these rules is the Individual Tax Citation and

commencement.

Programme Rules, 2026.

These rules shall come into force on 1 st January 2027.

(2)

In these rules, unless the context otherwise requires

Interpretation.

"Act" means the Income Tax Act;

"appointed day" means the date on which the

Commissioner for Tax and Customs shall determine in writing

that an individual is granted special tax status under these rules;

"application" means an application submitted in accordance

with rule 3(1);

"authorised mandatary" means a person who is

(a) in possession of a warrant to practice as an

advocate under the Code of Organization and Civil Cap. 12.

Procedure;

(b) a person who holds a warrant to practice as a

legal procurator under the Code of Organization and Civil Cap. 12.

Procedure;

(c) a person who has been appointed notary public

in accordance with the provisions of the Notarial Cap. 55.

Profession and Notarial Archives Act; or

(d) a person who holds a warrant to practice the

profession of accountant under the Accountancy Profession Cap. 281.

Act

Provided that a person that is not an individual,

having at least seventy-five per cent (75%), directly or indirectly,

of its shareholders, partners or other members, as the case may

be, who are persons in possession of the above-mentioned

warrants shall also be considered to be an authorised mandatary;

"authorised registered mandatary" means an authorised

mandatary who is registered with the Commissioner for Tax and

Customs under these rules;

"beneficiary" means an individual who has been granted

special tax status in accordance with rule 3;

"Commissioner" means the Commissioner for Tax and

"dependant" means

(a) the beneficiary’s spouse or person with whom

the beneficiary is in a stable and durable relationship;

(b) minor children including adopted minor

children and children who are in the care and custody of the

beneficiary or the person mentioned in paragraph (a);

(c) children who are under the age of twenty-five

(25), including adopted children and children who are in

the care and custody of the beneficiary or the person

mentioned in paragraph (a), provided that such children are

not economically independent; and

(d) children including adopted children and

children who are in the care and custody of the beneficiary

or the person mentioned in paragraph (a), who are not

minors but who because of circumstances of illness or

disability of a serious gravity, are unable to maintain

themselves and in any case

(i) is not a beneficiary under the Residents

Scheme Regulations, the High Net Worth Individuals

- EU/EEA/Swiss Nationals Rules, the High Net

Worth Individuals - Non-EU/EEA/Swiss Nationals

Rules, the Qualifying Employment in Innovation and

Creativity (Personal Tax) Rules, the Highly Qualified

Persons Rules, the Senior Employees of Family

Offices, Back Offices and Treasury Management

Operations Tax Rules, or the Tax Treatment of Highly

Skilled Individuals Rules, Qualifying Employment in

Aviation (Personal Tax) Rules and Qualifying

Employment in Maritime Activities and the Servicing

of Offshore Oil and Gas Industry Activities (Personal

Tax) Rules; and

(ii) resides with the beneficiary in the

qualifying property;

"EEA" means the members of the European Union,

Iceland, Norway and Liechtenstein;

"Fund" means the United Nations Joint Staff Pension Fund;

"household staff" means an individual who has been

providing services regulated by a contract of service to the

beneficiary for at least two (2) years prior to an application for

special tax status in terms of these rules provided that the

Commissioner for Tax and Customs is satisfied that the service is

required to be provided in whole or in part within the qualifying

property;

"lease" includes sub-lease;

"long-term resident" means

(a) a person who has long-term resident status in

accordance with the Status of Long-term Residents (Third S.L. 217.05.

Country Nationals) Regulations;

(b) a person who applies for long-term resident

status under the Status of Long-term Residents (Third S.L. 217.05.

Country Nationals) Regulations;

"Member organisation" means the United Nations and any

specialised agency or other organisation admitted to membership

in the Fund;

"Minister" means the Minister responsible for finance;

"minor" is an individual of either sex who has not yet

attained the age of eighteen (18) years;

"not economically independent" means a person who is not

able to financially support oneself without relying on the

beneficiary;

"occupational retirement scheme" means a retirement

scheme established for, or by, an employer or a number of

employers or an association representing employers, jointly or

separately, for the benefit of employees and includes an overseas

retirement scheme;

"overseas retirement plan" means a bona fide scheme or

arrangement, organised under the laws of a country outside of

Malta, which govern the rights and responsibilities of the parties

thereto, and under which payments are made to beneficiaries for

the principal purpose of providing retirement benefits;

"overseas retirement scheme" means a scheme or

arrangement, organised under the laws of a country outside

Malta with the principal purpose of providing retirement

benefits;

"pension" means periodic payments paid to a former

employee in respect of past employment including where

remunerations are paid in respect of services rendered to a State

or a political subdivision or local authority thereof

Provided that "pension" also includes remunerations

paid as lifetime or temporary annuities, as well as regular income

from an occupational retirement scheme, personal overseas

retirement plan and insurance policies but does not include a

pension in the form of a lump sum payment without periodic

pension payments and any capital sum received by way of

commutation of pension, retirement or death gratuity or received

as consolidated compensation for death or injuries that are

exempt under article 12(1)(h) of the Act;

"permanent resident of Malta" means

(a) an individual who has the right of permanent

residence in accordance with article 6 and is in possession

of a permanent residence certificate issued in accordance

with article 7 of the Free Movement of European Union

Nationals and their Family Members Order; or

(b) an individual who applies for the right of

permanent residence in accordance with article 6 of the

Free Movement of European Union Nationals and their

Family Members Order;

"primary residence" means the dwelling house in which an

individual habitually resides as his principal place of abode

worldwide;

"property" means any immovable property situated in

Malta or Gozo and any right over such property;

"public interest" includes the interests of public safety, the

protection of public order, national security, territorial integrity,

public health or morals;

"qualifying property" means a qualifying owned property

or a qualifying rented property, as the case may be;

"qualifying property holding" means a holding which arises

where a beneficiary

(a)

owns qualifying owned property; or

(b)

rents qualifying rented property as lessee;

and in either case, occupies such property as his

primary residence

Provided that only the beneficiary and the persons

qualifying as his dependants or household staff reside in the

qualifying property, provided that the Commissioner has been

duly notified of such dependants or household staff who shall so

reside therein

Provided further that persons who do not qualify as

dependants in accordance with these rules but who are bound to

live within the same matrimonial home may reside in the

qualifying property together with the beneficiary, as long as the

Commissioner has been notified that such financially

independent persons shall so reside therein;

"qualifying owned property" means an immovable property

purchased at a consideration of not less than seven hundred

thousand euro (€700,000) for a property situated in Malta or

Gozo

Provided that the Commissioner or any officer, perit

or surveyor authorised by him in writing, shall have full and free

access to the qualifying owned property to the extent that such

access is likely to assist in determining the value of the said

property

Provided further that an immovable property

purchased by a beneficiary before or up to the date of the coming

into force of these rules for a consideration which is less than the

amount indicated above shall be considered to be a "qualifying

owned property", as may be determined by the Commissioner in

guidelines published under the provisions of article 96(2) of the

Act;

"qualifying rented property" means a property taken on at

lease of not less than fourteen thousand euro (€14,000) per year

for a property situated in Malta or Gozo;

"rights acquired under this law" means the right to pay tax

at the rate of tax provided in article 56(23) of the Act and these

rules;

"special carer" means an individual who has been in an

employment relationship with the beneficiary, as evidenced by a

contract of service, for at least two (2) years prior to the

application in accordance with rule 3, provided that the

Commissioner is satisfied that the service is required to be

provided, whether in whole or in part, within the qualifying

property;

"third-country national" means any person who is not a

citizen of the European Union within the meaning of Article 20

of the Treaty on the European Union and the Treaty on the

Functioning of the European Union;

"United Nations pension" means a pension paid out of the

United Nations Joint Staff Pension Fund;

"Widows’ and, or Widowers’ Benefit" means the benefit

payable to the surviving spouse of a participant who, at the date

of death, was entitled to a retirement, early retirement, deferred

retirement or disability benefit, or who died in service, provided

that the surviving spouse was married to the participant at the

date of death or, where separated prior to the death of the

participant, was married to the participant at the date of

separation and remained so married until the participant’s death.

(1) An individual, as duly represented by an authorised

registered mandatary, may apply to the Commissioner for special tax

status under these rules, in such form as the Commissioner may

require and by paying a non-refundable administrative fee upon

application. Special tax status shall be categorised as follows

(a)

global resident status;

(b)

EU, EEA, Swiss resident status;

(c)

retired pensioner status;

(d)

UN pensioner status.

(2) The non-refundable administrative fee mentioned in sub-

rule (1) shall amount to eight thousand and five hundred euro (€8,500)

for special tax statuses granted in accordance with such rule.

(3) Where it is established that the individual mentioned in

sub-rule (1) qualifies as a beneficiary, the Commissioner shall

determine in writing that such individual is granted special tax status

under these rules

Provided that without prejudice to the powers of the

Commissioner, including for the avoidance of doubt, that of

determining at any time that any such special tax status is no longer

applicable in line with the provisions of regulation 6, such special tax

status shall apply for a term of five (5) years

Provided further that any granting of special tax status

made before or up to 31st December 2026, including for the avoidance

of doubt, any applications for the granting of such status received up to

the same date, shall continue to apply until 31st December 2031

Provided further that any special tax status granted in

accordance with sub-rule (1) may, at the option of the applicant, be

renewed for further periods of five (5) years. Any application for

renewal shall be submitted to the Commissioner, in such form and

accompanied by such documents as the Commissioner may require

and by paying a non-refundable administrative fee of two thousand

five hundred euro (€2,500) upon application and such renewal shall

not be unreasonably withheld by the Commissioner.

(4) Following the death of a beneficiary, the special tax status

granted in accordance with sub-rule (1) shall be granted to a dependant

of such deceased beneficiary who has inherited the property that was

the primary residence of such beneficiary, or who rents a qualifying

rented property immediately after the death of the said beneficiary and

satisfies all the other requirements established in rule 4. Such status

shall only be transferred once the said dependant provides proof to the

Commissioner that all the requirements of rule 4 are satisfied in such

manner as the Minister may determine after consultation with the

Commissioner.

(5) An individual who has been granted special tax status in

accordance with sub-rule (1) shall notify the Commissioner through

his authorised registered mandatary of a change in the dependants of

such individual by not later than four (4) weeks from the date when the

change occurs. Such notification is to be made on such form as may be

required by the Commissioner

Provided that where such notification is not made within

the time specified, the person responsible for such event shall be

charged an administrative penalty of five thousand euro (€5,000).

A beneficiary is an individual who proves to the

satisfaction of the Commissioner that

(a) he is a third country national and is not a long-term

resident, Maltese, EEA or Swiss national, if such individual is

applying for special tax status in accordance with rule 3(1)(a);

(b) he is an EU, EEA or Swiss national but is not a

Maltese national or a permanent resident of Malta, if such

individual is applying for special tax status in accordance with

rule 3(1)(b);

(c) he is not a Maltese national, a long-term resident or

permanent resident of Malta, if such individual is applying for

special tax status in accordance with rule 3(1)(c) or (d);

(d) he is not a person who benefits under the Residents

Scheme Regulations, the High Net Worth Individuals - EU/EEA/

Swiss Nationals Rules, the High Net Worth Individuals - Non-

EU/EEA/Swiss Nationals Rules, the Qualifying Employment in

Innovation and Creativity (Personal Tax) Rules, the Highly

Qualified Persons Rules, the Senior Employees of Family

Offices, Back Offices and Treasury Management Operations Tax

Rules, or the Tax Treatment of Highly Skilled Individuals Rules,

Qualifying Employment in Aviation (Personal Tax) Rules and

Qualifying Employment in Maritime Activities and the Servicing

of Offshore Oil and Gas Industry Activities (Personal Tax)

Rules

Provided that no individual shall benefit under

multiple special tax status categories under rule 3(1);

(e)

he holds a qualifying property holding;

(f) he is in receipt of stable and regular resources which

are sufficient to maintain himself and his dependants without

recourse to the social assistance system in Malta;

(g) he is in receipt of a pension, as supported by

documentary evidence, all of which is received in Malta and

constitutes at least seventy-five per cent (75%) of the

beneficiary’s chargeable income, if such individual is applying

for special tax status in terms of rule 3(1)(c);

(h) he is in receipt of a United Nations pension or a

Widows’ and, or Widowers’ Benefit, of which at least forty per

cent (40%) is received in Malta, if such individual is applying for

special tax status in accordance with rule 3(1)(d);

(i)

he is in possession of a valid travel document;

(j) he is in possession of sickness insurance in respect of

all risks across the whole of the European Union normally

covered for Maltese nationals, for himself and his dependants;

(k) he is not domiciled in Malta and that he does not,

within five (5) years from the date of application in place, intend

to establish his domicile in Malta;

(l) he can adequately communicate in one of the official

languages of Malta; and

(m) he is a fit and proper person.

(1) In these rules and in article 56(23) of the Act, the rate 15% rate.

of fifteen cents (0.15) for every euro shall apply to any income arising

outside Malta, including income arising outside Malta and received in

Malta during the whole of the year in which the special tax status was

granted, in the year immediately preceding the year of assessment

which is received in Malta by the beneficiary, the beneficiary’s spouse

and children referred to in paragraphs (b) and (d) of the definition of

the term "dependant" in rule 2, with the possibility to claim relief of

double taxation in accordance with article 74(a) and (b) of the Act

Provided that the minimum amount of tax payable in terms

of these rules and article 56(23) of the Act, in respect of the income

arising outside Malta of the persons who have been granted special tax

status in terms of rule 3(1)(a) and (b) shall be thirty-five thousand euro

(€35,000) for any year of assessment. Such minimum amount is

payable in full in both the year when the special tax status was granted

and in the year when the individual ceases to possess the said special

tax status

Provided further that the minimum amount of tax payable

in terms of these rules and article 56(23) of the Act in respect of any

year of assessment by persons who have been granted special tax

status in accordance with rule 3(1)(c) shall be fifteen thousand euro

(€15,000) per year of assessment. Such minimum amounts are payable

in full in both the year when the special tax status was granted and in

the year when the individual ceases to possess the said special tax

status.

(2) In the case of a beneficiary who has been granted special

tax status in accordance with rule 3(1)(d), such beneficiary’s United

Nations pension income or Widows’ and, or Widowers’ Benefit, as the

case may be, received in Malta following the granting of the special

tax status, shall be exempt from income tax. Tax shall be charged at the

rate of fifteen cents (0.15) for every euro on any income, excluding the

United Nations pension or Widows’ and, or Widowers’ Benefit arising

outside Malta in the year immediately preceding the year of

assessment in which it is received in Malta by the beneficiary, the

beneficiary’s spouse and children referred to in paragraphs (b) and (d)

of the definition of the term "dependant" in rule 2, following the

granting of the special tax status, with the possibility to claim relief of

double taxation under article 74(a) and (b) of the Act

Provided that the minimum amount of tax payable in

accordance with these rules and article 56(23) of the Act in respect of

the income arising outside Malta, excluding United Nations pension

income or Widows’ and, or Widowers’ Benefit of the persons referred

to in this sub-rule shall be twenty thousand euro (€20,000) in respect

of the beneficiary.

(3) Income of a beneficiary, the beneficiary’s spouse and

children referred to in paragraphs (b) and (d) of the definition of the

term "dependant" in rule 2 that is not chargeable to tax under these

rules at the rate referred to in sub-rule (1) shall be charged as separate

income at the rate of thirty-five cents (0.35) for every euro.

(4)

Notwithstanding any provision of the Act

(a) subject to the provisions of paragraph (b), the

minimum tax referred to in the provisos to sub-rule (1) shall be

payable by not later than the 30th April of the year immediately

preceding the relevant year of assessment. Such payment shall be

accompanied by a return submitted to the Commissioner that

provides proof that all the requirements of rule 4 continue to be

satisfied. The said return, which shall be in such form as the

Commissioner may determine, does not need to be submitted in

the year in which the special tax status is granted;

(b) in the case of the year in which the special tax status

is granted, where it is evident that the special tax status shall not

be granted before the 30th April, the minimum tax referred to in

the provisos to sub-rule (1) is to be paid before the special tax

status is granted;

(c) any tax paid in accordance with the provisions of sub-

rule (1) shall not be refundable.

(5)

(a)

Notwithstanding any provision in the Act, an

individual who falls under the definition of "long-term resident" or

"permanent resident of Malta" as defined in rule 2 shall be taxable on

any income accruing in or derived from Malta or otherwise, and

whether received in Malta or otherwise in respect of income

mentioned in article 4 of the Act and subject to tax at the rates

mentioned in article 56 of the Act.

(b) In the case where the individual referred to in paragraph (a)

is a beneficiary or dependant, the relevant authorised registered

mandatary shall

(i) enquire and obtain information from the relevant

beneficiary as to whether such beneficiary or any of his

dependants falls under the said definition of "long-term resident"

or "permanent resident of Malta" as at the 31st December of each

year from the year of the appointed date onwards; and

(ii) notify the Commissioner of any individual that is a

beneficiary or dependant that falls under the said definition of

"long-term resident" or "permanent resident of Malta" by not

later than the 30th April following the 31st December referred to

in sub-paragraph (i) on such form as the Commissioner may

determine. Where the authorised registered mandatary shall not

be able to obtain such information, he is to notify the

Commissioner by the said 30th April of this state of affairs and

provide proof that at least two (2) attempts at enquiry were

made. Where such notifications shall not be made within the

time specified, the authorised registered mandatary shall be

charged an administrative penalty of ten thousand euro

(€10,000).

(1) An individual shall, with immediate effect from the Cessation of

beginning of the relative year of assessment, cease to possess special special

status.

tax status under these rules

(a)

if the individual becomes a Maltese national;

(b) if at any time, after the appointed day, such individual

does not hold a qualifying property holding, including in the case

where the said individual lets or sublets the qualifying property

holding;

(c) if at any time, after the appointed day, such individual

becomes a long-term resident or permanent resident of Malta;

(d) in cases where a beneficiary was granted special tax

status in terms of rule 3(1)(c), if the individual fails to receive in

Malta all the pension indicated in the documentary evidence

submitted to the Commissioner according to rule 4(g);

(e) in cases where a beneficiary was granted special tax

status in terms of rule 3(1)(d), if the individual fails to receive in

Malta at least forty percent (40%) of the United Nations pension

or Widows’ and, or Widowers’ Benefit as indicated in the

documentary evidence submitted to the Commissioner according

to rule 4(h);

(f) if after the appointed day, the individual does not

have private medical insurance in respect of all risks normally

covered for Maltese nationals for himself and his dependants;

(g)

if the individual’s stay is not in the public interest;

(h) if the individual stays in any other jurisdiction for

more than one hundred and eighty-three (183) days in a calendar

year;

(i) if the individual ceases to be duly represented by an

authorised registered mandatary;

(j) if any dependants, including additional dependants

are determined to be not fit and proper;

(k) if the beneficiary fails to effect payment of the

minimum amount of tax payable in terms of rule 5(1) or 5(2) or

fails to effect payment within the time limit imposed in

accordance with rule 5(4);

(l) if the beneficiary fails to submit the return in

accordance with rule 5(5); or

(m) if the individual fails to possess any criteria required

in accordance with rule 4.

(2) An individual who ceases to possess special tax status for

any of the reasons specified in sub-rule (1) shall notify the

Commissioner through his authorised registered mandatory of such

fact by not later than four (4) weeks from the date when he becomes

aware of such fact. This notification is to be made on such form as may

be required by the Commissioner. Where such notification is not made

within the time specified, the individual responsible under this

paragraph shall be charged an administrative penalty of five thousand

euro (€5,000).

(3) An individual shall with immediate effect, cease to possess

special tax status from the relative year of assessment in accordance

with these rules if he notifies the Commissioner through his authorised

registered mandatory of his intention not to remain in possession of

such special tax status on such form as the Commissioner may require.

(4) An individual shall, with effect from the beginning of the

relative year of assessment, cease to possess special tax status under

these rules if he is in breach of the Act and, or of the Income Tax Cap. 372.

Management Act.

(5) The Minister shall have the power to pardon any failure to

satisfy any one of the conditions in sub-rule (1) if

(a) such failure was due to unforeseen circumstances

which are beyond the control of the individual;

(b)

such individual notifies the Minister of such failure;

and

(c) such individual has exercised his best efforts to

remedy the failure.

(1) For the purpose of ascertaining an individual’s Request for and

entitlement to rights acquired in accordance with these rules and exchange

information.

ensuring the proper application of these rules, the Commissioner may

require that individual or the relevant authorised registered mandatary

to produce, within the time indicated by the Commissioner in such

request, such information and documents as the Commissioner may

consider necessary, including certifications and declarations.

(2) Notwithstanding any other provision in any other law, the

Commissioner and the competent authority in relation to the Status of

Long-term Residents (Third Country Nationals) Regulations or in

relation to the Free Movement of European Union Nationals and their

Family Members Order, as the case may be, may exchange

information that is in their possession concerning an individual

(a)

who submits an application in accordance with rule 3;

(b)

that is a beneficiary; or

(c) that has long-term residence status in accordance with

the Status of Long-term Residents (Third Country Nationals) S.L. 217.05.

Regulations or that has a right of permanent residence in terms of

the Free Movement of European Union Nationals and their S.L. 460.17.

Family Members Order, as the case may be.

(3) The information referred to in sub-rule (2) may be

exchanged for the purposes of these rules and for the purposes of the

long-term residence status in accordance with the Status of Long-term

Residents (Third Country Nationals) Regulations or for the purposes

of the right of permanent residence in accordance with the Free

Movement of European Union Nationals and their Family Members

Order, as the case may be.

For the purpose of ascertaining an individual’s entitlement

to rights acquired in accordance with these rules and ensuring the

proper application of these rules, the Commissioner may require that

individual or the relevant authorised registered mandatary to produce,

within the time indicated by the Commissioner in that request, such

information and documents as the Commissioner may consider

necessary, including certifications and declarations.

If an individual benefits under these rules where such

individual was not so entitled, the Commissioner may issue an

assessment in terms of article 31 of the Income Tax Management Act.

The return required in terms of article 10 of the Income Tax

Management Act shall, in the case of a beneficiary in accordance with

these rules, include such form as the Commissioner may require.

(1) An individual shall authorise a person who is an

authorised registered mandatary to act on his behalf in respect of all

applications, correspondence, submissions, filings, declarations and

notifications contemplated in accordance with these rules. Such acts

shall be submitted by the said authorised registered mandatary.

(2) The authorisation referred to in sub-rule (1) shall be made

in such form as the Commissioner may require.

(3) Unless the Commissioner specifically authorises in writing,

a person may not authorise more than one (1) authorised mandatary.

(4) Registration as an authorised registered mandatary with the

Commissioner shall be made by filling in and submitting to the

Commissioner such form as the Commissioner may require.

(5) Registration as an authorised registered mandatary in

accordance with these rules shall be subject to such terms and

conditions as the Commissioner may impose from time to time.

(6) Acceptance of registration in accordance with these rules

shall be notified by the Commissioner to the person requesting such

registration.

(7) When a person who has been registered with the

Commissioner desires to cancel such registration, he shall make a

request in such form as the Commissioner may require.

The Commissioner may give notice in writing to any Compliance

authorised registered mandatary to furnish him, within a reasonable monitoring.

time stated in such notice, not being less than twenty (20) days, such

information as may be necessary in order to verify that such authorised

registered mandatary is complying with the obligations established in

these rules. Such requests shall be sent to that authorised registered

mandatary either by electronic means to his verified email address or

sent by post to the authorised registered mandatary’s registered

address. Where any of the information requested is not submitted to

the Commissioner within the time limit specified in the notice, the

authorised registered mandatary shall be liable to an administrative

penalty of not less than five hundred euro (€500) and not exceeding

nineteen thousand, two hundred and fifty euro (€19,250)

Provided that where the Commissioner is satisfied that the

default in respect of which the administrative penalties have been

imposed were justifiable, the Commissioner may remit such

administrative penalties in whole or in part as he may think fit. In

every case the Commissioner shall inform the said authorised

registered mandatary in writing

Provided further that where an authorised registered

mandatary repeatedly fails to carry out a function required under these

rules, he shall cease to be an authorised registered mandatary, in such

manner and form as the Commissioner may determine. For the purposes

of this paragraph, "repeatedly" means more than two (2) failures of

carrying out functions required under these rules.

€1.44