TAX TREATMENT OF HIGHLY SKILLED INDIVIDUALS RULES

SUBSIDIARY LEGISLATION 123.219

TAX TREATMENT OF HIGHLY SKILLED

INDIVIDUALS RULES

1 st January, 2026

LEGAL NOTICE 20 of 2026.

The title of these rules is the Tax Treatment of Highly

Skilled Individuals Rules.

(rules 2 and 3)

Competent authorities and eligible offices

Competent authorities

(a)

the Malta Financial Services Authority established by the

Malta Financial Services Authority in respect of any eligible office

with any undertaking licensed and, or recognised by the said body;

(b)

the Malta Gaming Authority established by article 5 of

the Gaming Act, in respect of any eligible office with any undertaking

licensed and, or recognised by the said body;

(c)

the Authority for Transport in Malta established by article

5 of the Authority for Transport in Malta Act in relation to the

following

(i)

any undertaking holding an air operators’

certificate issued in accordance with article 35 of the Air

Navigation Act, or an aerodrome license issued in accordance

with article 75 of the said Act;

(ii)

any undertaking holding a Document of

Compliance issued in terms of the International Safety

Management (ISM) Code or a Seafarer Recruitment and

Placement Services Licence issued in terms of the Maritime

Labour Convention, 2006;

(iii) any undertaking engaging the particular individual

for work on board any ship, excluding ships operating on regular

services as well as ships whose use or operation requires

certification in accordance with the Commercial Vessels

Regulations and which are berthed or anchored within the

territorial waters of Malta or any port in Malta for at least a

period of one (1) month over a calendar year, any undertaking

engaging in Shore Based Ship Management (Commercial

Management) (hereinafter collectively referred to as "maritime

activities"). For the purposes of this employment, the term

"regular services" shall have the meaning assigned to it in

Directive (EU) 2017/2110 of the European Parliament and of

the Council of 15 November 2017 on a system of inspections

for the safe operation of ro-ro passenger ships and high-speed

passenger craft in regular service and amending Directive 2009/

16/EC and repealing Council Directive 1999/35/EC; or

(iv) any undertaking which carries on mainly a trade

or business consisting in the Servicing of the offshore oil and

gas and ancillary services industry (hereinafter "Servicing of

the offshore oil and gas and ancillary services activities");

(d)

Office of the Chief Medical Officer to Government; and

(e)

Malta Enterprise.

Eligible offices regulated, licensed or recognised by the

above-mentioned competent authorities

.

Chief Executive Officer

.

Chief and, or Head Risk Officer (including Fraud and

Investigations Officer)

.

Chief Financial Officer

.

Chief Operations Officer

.

Chief Technology Officer/Chief Digital Officer

.

Chief Information Officer

.

Chief Customer Experience Officer

.

Chief Commercial Officer, (CCO)

.

A Chief and, or Head Compliance and AML (Anti-

Money Laundering) Officer

.

Head of Marketing (including Head of Distribution

Channels)

.

Chief Information Officer

In these rules, unless the context otherwise requires

"Act" means the Income Tax Act;

"artificial arrangements" means arrangements the terms

of which include

(a)

a beneficiary who receives any benefit or

payment, in whatever form, from a person who is related

to his employer and such beneficiary does not declare for

tax purposes such benefit or payment in Malta or is not

liable to tax on such income in Malta;

(b)

arrangements of collusion between

employer and employee to ensure that a contract which

in substance does not fall within the scope of these rules

and article 56(21) of the Act would be given a form

which enables it to qualify for benefits referred to in

these rules;

"Commissioner" means the Commissioner for Tax and

Customs;

"competent authority" means the body, agency, authority,

office or other person referred to in the Schedules;

"eligible office" means an employment or office where

the employment, office, employee or the employer, or any

combination thereof, is regulated, licensed or recognised by a

competent authority referred to in the Schedules;

"professional

qualifications"

means

relevant

qualifications attested by evidence of education qualifications

or, by way of derogation, when provided for by national law,

attested by at least five (5) years of professional experience of a

level comparable to education qualifications and which are

relevant in the profession or sector specified in the work

contract or binding job offer

Provided that for the purpose of this definition

"education qualification" means any evidence of formal

qualifications issued by an educational establishment attesting

the successful completion of a post-secondary education

programme, namely a set of courses provided by an educational

establishment recognised as an education institution by the

jurisdiction in which it is situated. An education qualification

shall be taken into account, on condition that the studies

required to acquire it lasted at least three (3) years; and

"professional experience" means the actual and lawful

pursuit of the profession concerned.

(rules 2 and 3)

Competent authority and eligible offices

Competent Authority

The Malta Financial Services Authority established by the Malta

Financial Services Authority Act in respect of any eligible office with

any undertaking licensed and, or recognised by the said body;

Eligible offices regulated, licensed or recognised by the above-

mentioned competent authority

.

Portfolio Manager

.

Chief Investment Officer

.

Senior Trader

.

Senior Structuring Professional

.

Actuarial Professional

.

Chief Underwriting Officer

.

Chief Insurance Technical Officer

.

Head of Investor Relations

.

Private Equity Fund Manager

Eligible offices with Family Offices

(i)

eligible offices listed in this part of this Schedule

held within the context of Single Family Offices and held with

(a)

fund managers established in Malta which

are exempt from the requirement for an investment

services licence in accordance with regulation 3(1)(f) of

the Investment Services Act (Exemption) Regulations, to

the extent that the notified PIF they manage constitutes a

family office vehicle which invests the private wealth of

its investors without raising external capital;

(b)

fund managers established in Malta which

are exempt from the requirement for an investment

services licence in accordance with regulation 3(1)(t) of

the Investment Services Act (Exemption) Regulations, to

the extent that the notified PIF they manage constitutes a

family office vehicle which invests the private wealth of

its investors without raising external capital;

(c)

registered trustees which invest, on behalf

of a family trust, inter alia in a notified PIF which is

managed by a fund manager which is exempt from the

requirement for an investment services licence in

accordance with regulation 3(1)(f) or regulation 3(1)(t)

of the Investment Services Act (Exemption) Regulations,

to the extent that the notified PIF they manage

constitutes a family office vehicle which invests the

private wealth of its investors without raising external

capital;

(d)

licence holders which invest the private

wealth of investors without raising external capital. For

the purposes of this sub-paragraph (d), "licence holder"

shall also include notified PIFs.

(ii)

eligible offices listed in this part of this Schedule

held within the context of Multi Family Offices and held with

Licence Holders which invest the private wealth of investors

without raising external capital.

(iii) eligible offices listed in this part of this Schedule

held with companies and other undertakings carrying on Back

Office Services to the undertakings referred to in paragraph (i)

or (ii) in this part of this Schedule that is confirmed as such in

writing by the competent authority for the purposes of these

rules.

(iv) eligible offices listed in this part of this Schedule

held with companies and other undertakings carrying on

Treasury Management Operations to the undertakings referred

to in paragraph (i) or (ii) in this part of this Schedule that is

confirmed as such in writing by the competent authority for the

purposes of these regulations.

(v)

for the purposes of paragraphs (i) to (iv) of this

part of this Schedule

"eligible offices listed in this part of this

Schedule" means

.

Head of the Back Office and, or

Chief Executive Officer, General Manager,

Country Head, Managing Director or equivalent

designation

.

Chief and, or Head Risk Officer

Chief and, or Head Compliance and Anti-Money

Laundering Officer

.

Portfolio Manager

.

Chief/Head Investment Officer

.

Senior Trader

.

Senior Structuring Professional

"licence holder" means a person who holds a licence issued by

the Malta Financial Services Authority;

"Multi Family Office" means a licence holder that exclusively

manages the wealth of more than one (1) high-net-worth family;

"Notified PIF" means a notified Professional Investor Fund

established in accordance with the Investment Services Act (Notified

CISs) Regulations;

"registered trustee" means a trustee which is registered with the

competent authority in terms of article 43B of the Trusts and Trustees

"Single Family Office" means an undertaking that solely

manages the wealth of a single high-net-worth family;

(1)

Income from a qualifying contract of employment

shall qualify under these rules when it is received by a beneficiary and

consists in income subject to tax under article 4(1)(b) of the Act,

exclusive of the annual value of any fringe benefits, of a minimum of

sixty-five thousand euro (€65,000) and consists of emoluments from an

eligible office

Provided that the said minimum of sixty-five thousand

euro (€65,000) shall be adjusted by an increase of ten thousand euro

(€10,000) every five (5) years with effect from the year subsequent to

the year in which these rules come into force

Provided further that where the minimum income

specified under the legislation listed in paragraphs (a) to (e) of rule

12(1) was below sixty-five thousand euro (€65,000), the minimum

amount of income referred to in this sub-rule shall be as follows

(a)

for the first year in which these rules come into

force, the minimum amount shall be the amount applicable to

that beneficiary specified in the rules listed in paragraphs (a) to

(e) of rule 12(1);

(b)

for the second year in which these rules are in

force, the minimum amount shall be the amount for the first year

increased by ten thousand euro (€10,000); and

(c)

for the third year in which these rules are in force,

the minimum amount shall be the minimum amount referred to

in sub-rule (1).

(2)

A qualifying contract of employment shall be considered

to be such if the employment activity contemplated in the contract of

employment is an eligible office.

(3)

The offices which are eligible for the reduced rate of tax

are listed in the Schedules.

(rules 2 and 3)

Competent authority and eligible offices

Competent Authority

The Authority for Transport in Malta established by article 5 of

the Authority for Transport in Malta Act in relation to the following

(i)

any undertaking holding an air operators’

certificate issued in accordance with article 35 of the Air

Navigation Act, or an aerodrome license issued in accordance

with article 75 of the said Act; or

(ii)

any undertaking holding a Document of

Compliance issued in terms of the International Safety

Management (ISM) Code or a Seafarer Recruitment and

Placement Services Licence issued in terms of the Maritime

Labour Convention, 2006;

(iii) any undertaking engaging the particular

individual for work on board any ship, excluding ships

operating on regular services as well as ships whose use or

operation requires certification in accordance with the

Commercial Vessels Regulations and which are berthed or

anchored within the territorial waters of Malta or any port in

Malta for at least a period of one (1) month over a calendar

year, any undertaking engaging in Shore Based Ship

Management

(Commercial

Management)

(hereinafter

collectively referred to as "maritime activities"). For the

purposes of this employment, the term "regular services" shall

have the meaning assigned to it in Directive (EU) 2017/2110 of

the European Parliament and of the Council of 15 November

2017 on a system of inspections for the safe operation of ro-ro

passenger ships and high-speed passenger craft in regular

service and amending Directive 2009/16/EC and repealing

Council Directive 1999/35/EC; or

(iv) any undertaking which carries on mainly a trade

or business consisting in the Servicing of the offshore oil and

gas and ancillary services industry (hereinafter "Servicing of

the offshore oil and gas and ancillary services activities");

Eligible offices regulated, licensed or recognised by the

above-mentioned competent authority

Aviation

.

Chief Investment Officer

.

Chief Insurance Officer

TAX TREATMENT OF HIGHLY SKILLED INDIVIDUALS

.

Accountable Manager

.

Deputy Accountable Manager

.

General Manager

.

Flight Operations Manager

.

Nominated Person Flight Operations

.

Training Manager

.

Nominated Person Training

.

Ground Operations

.

Nominated Person Ground Operations

.

Continuing Airworthiness Manager

.

Nominated Person Continuing Airworthiness

.

Compliance Manager

.

Quality Systems Manager

.

Safety Manager

.

Flight Dispatch Manager

.

Instructor Manager

.

Head of Marketing

.

Head of Public Relations

.

Actuary

.

Underwriting Manager

.

Risk Management Officer

.

Key account manager

.

Product coordinator

.

Material coordinator

.

Engineering reporter

.

Aeronautical engineer

.

Head of Maintenance Operations

.

Aviation Systems Developer

.

Key Aviation Specialist

Maritime Activities

.

Managing Director

.

General Manager

.

Crewing Manager

.

Technical Manager

.

Chartering Manager

.

Operations Manager

.

Commercial/Business Development Manager

.

Manager responsible for ESG/Energy Transition

.

Technical Ship Superintendent

.

Designated Person Ashore

.

Master

.

Chief Mate

.

Second Officer

.

Company Security Officer

.

Chief Engineer

.

Second Engineer

.

Chef

Servicing of the Offshore Oil and Gas and Ancillary

Services Industry Activities

Head of Training Academy (which Academy shall be certified

by an international accreditation institution).

A beneficiary is an individual who satisfies all of the

following conditions

(a)

he is an individual who derives income subject to

tax under article 4(1)(b) of the Act, being emoluments payable

under a qualifying contract of employment, and received in

respect of work or duties carried out in Malta, or with regard to

any period spent outside Malta in relation to such work or

duties, or on leave during the carrying out of such work or

duties;

(b)

he is protected as an employee in accordance with

Maltese law, irrespective of the legal relationship between the

employee and the employer, for the purpose of exercising

genuine and effective work for, or under the direction of,

someone else, is paid, and has the required adequate and

specific competence, as proven to the satisfaction of the

competent authority;

(c)

he proves to the satisfaction of the competent

authority that he is in possession of professional qualifications;

(d)

he is not an individual who has benefited under

article 6 of the Act;

(e)

he 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

who is related to his employer in respect of an activity which is

substantively derived from the employment covered by the

qualifying contract of employment as are chargeable to tax in

Malta;

(f)

he proves to the satisfaction of the competent

authority that he performs activities of an eligible office;

(g)

he proves to the satisfaction of the competent

authority that

(i)

he is in receipt of stable and regular

resources which are sufficient to maintain himself and a

family in Malta which are comparable to his, without

recourse to the social assistance system in Malta;

(ii)

he resides in accommodation regarded as

normal in Malta for himself, and where he forms part of a

family living in Malta, for a comparable family in Malta,

and which satisfies the general health and safety

standards in force in Malta;

(iii)

he is in possession of a valid travel

document;

(iv) he is in possession of private medical

insurance in respect of all risks normally covered for

Maltese nationals for himself and the members of his

family, irrespective of who is responsible for the cost of

such insurance; and

(v)

he is not domiciled in Malta; and

(h)

such other conditions as may be deemed fit by the

competent authority, including conditions in respect of training

personnel in the field of expertise related to the relevant eligible

office of the beneficiary.

(rules 2 and 3)

Competent authority and eligible offices

Competent authority

Office of the Chief Medical Officer to Government

Eligible offices in Assisted Reproductive Technology (ART)

regulated, licensed or recognised by the above-mentioned

competent authority

.

Embryologist

.

Responsible Person

.

Lead Quality Manager

(1)

An application for a formal determination relating

to eligibility under these rules and article 56(21) of the Act shall be

made on such form or in such manner as the competent authority, in

agreement with the Commissioner, may require and shall contain the

information and documents therein requested

Provided that such an application may be made between

1 st January 2026 and 31 st December 2035

Provided further that no such application may be accepted

by any competent authority after 31 st December 2036.

(2)

Such application shall be submitted to the relevant

competent authority which shall process the application and issue a

formal determination of eligibility under these rules and article 56(21)

of the Act or a refusal of the application, as the case may be, within a

period of ninety (90) days from receipt of the said application in such

manner as the Commissioner shall determine.

(3)

For the purpose of processing an application under these

rules, the said competent authority may require the applicant to

produce, within the time indicated by the competent authority in that

request, such further information and documents as they may consider

necessary, including certifications and declarations of the employer of

that individual. Where such a request is made, the period of ninety (90)

days referred to in sub-rule (2) shall commence to run from the date of

receipt of the information requested.

(4)

If an individual fails, without any valid reason, to fully

comply with any request made by the competent authority under the

provisions of sub-rule (3) within the time indicated, the competent

authority shall refuse the application and inform the Commissioner of

such refusal.

(5)

Within the period referred to in sub-rule (2) or (3), as the

case may be, the competent authority shall inform the Commissioner of

such determination or refusal. The Commissioner shall endorse such

determination or refusal and inform the applicant accordingly, in such

manner as the Commissioner shall determine.

(6)

The competent authority shall, on an annual basis, send a

list of applications received and their status to the Commissioner.

(rules 2 and 3)

Competent authority and eligible offices

Competent authority

The Malta Gaming Authority established by article 5 of the

Gaming Act, in respect of any eligible office with any undertaking

licensed and, or recognised by the said body.

Eligible offices regulated, licensed or recognised by the

above-mentioned competent authority

.

Odds Compiler Specialist

.

Head of Research and Development (including Search

Engine Optimisation and Systems Architecture)

.

Portfolio Manager

.

Senior Analyst

.

Senior Trader

.

Head of Investment/Chief Investment Officer

.

Head of Responsible Gaming

.

Chief People Officer

.

Chief Legal Officer

(1)

Once a formal determination of eligibility has

been issued by the competent authority under the provisions of rule 5,

the option available under article 56(21) of the Act may be exercised

Provided that such option available may not be exercised

in respect of any year of assessment preceding the year of assessment

2027. (2)

The said option shall be exercised by means of a

declaration signed by the beneficiary and endorsed by the competent

authority that shall be made on such form publicly available on the

apposite website or in such manner as the Commissioner may require.

Such declaration shall specify the years of assessment in relation to

which the exercise of the option relates.

(3)

The said option shall not be deemed to have been validly

exercised unless the income to which it applies has been fully and

correctly declared in the said tax return and unless the said declaration

and tax return are filed by not later than the relative tax return date.

(rules 2 and 3)

Competent authority and eligible offices

Competent authority

Malta Enterprise

Eligible offices in the area of STEM (Science, Technology,

Engineering and Mathematics) regulated, licensed or recognised

by the above-mentioned competent authority

Science

.

Biologist

.

Chemist

.

Physicist

.

Environmental Scientist

.

Medical Researcher

Technology

.

Software Developer/Engineer

.

Data Scientist

.

Cybersecurity Analyst

.

Web Developer

.

Artificial Intelligence Specialist

Engineering

.

Mechanical Engineer

.

Civil Engineer

.

Electrical Engineer

.

Chemical Engineer

.

Aerospace Engineer

Mathematics

.

Mathematician

.

Statistician

TAX TREATMENT OF HIGHLY SKILLED INDIVIDUALS

.

Operations Research Analyst

(1)

The benefits under these rules and article 56(21)

of the Act shall apply in relation to employment income that is

specified in rule 4 and that is earned during a period of five (5) years

commencing to run from the year in relation to which a formal

determination was issued under the provisions of these rules, and as

determined under rule 5(2)

Provided that the option under article 56(21) of the Act

shall be exercised as provided under the provisions of rule 6.

(2)

Without prejudice to the provisions of sub-rule (3), any

individual who benefits under the provisions of sub-rule (1), upon

submitting an application on such form or in such manner as the

competent authority, in agreement with the Commissioner, may

require, shall be eligible to two (2) further extensions of five (5) years

for his qualifying period, as subject to the continued adherence to the

other provisions of these rules and article 56(21) of the Act. Such

application shall be made during the year before the end of the relevant

five (5) year qualifying period.

(3)

Notwithstanding any stipulation to the contrary

contained in these rules and article 56(21) of the Act, benefits under

the provisions of these rules and article 56(21) of the Act shall not

apply in relation to income earned after 31st December 2040.

When an individual exercises the option available under

article 56(21) of the Act in respect of a year of assessment, the

minimum amount of income which shall be chargeable to tax at the

reduced rate provided for in the said article in respect of that year of

assessment shall be deemed to be sixty-five thousand euro (€65,000)

Provided that the minimum amount of income of sixty-

five thousand euro (€65,000) shall be adjusted in accordance with the

provisions of the provisos to rule 3(1)

Provided further that in the case of a beneficiary to whom

the second proviso to rule 3(1) applies, the minimum amount of income

which shall be chargeable to tax at the reduced rate shall be determined

in accordance with the minimum amounts applicable for the first,

second, and third years, as specified in the said proviso

Provided further that the rate of fifteen percent (15%)

shall apply without possibility to claim any relief, deduction, reduction,

credit or set-off of any kind. Notwithstanding the generality of

foregoing, a beneficiary shall be allowed deductions of tax in

accordance with article 23 of the Income Tax Management Act.

When an individual exercises the option available under

article 56(21) of the Act in respect of a year of assessment, the rate of

fifteen percent (15%) shall apply on an amount of emoluments payable

not exceeding seven million euro (€7,000,000). Any emoluments

payable in excess of the said amount of seven million euro

(€7,000,000) shall constitute remaining income for the purposes of

paragraph (a) of the proviso to article 56(21) of the Act and

consequently, the tax on such remaining income shall be calculated at

the rates that would have been applicable to that remaining income had

the option not been exercised.

(1)

For the purpose of ascertaining an individual’s

right to exercise the option referred to in article 56(21) of the Act and

ensuring the proper application of these rules and article 56(21) of the

Act, the Commissioner and, or the competent authority may require

that individual to produce, within the time-frame indicated by the

Commissioner and, or the competent authority in such request, any

further information and documents as they may consider necessary,

including certifications and declarations of the employer in connection

with such individual.

(2)

If an individual fails, without any valid reason, to comply

with any request relating to his income made to him by the

Commissioner and, or the competent authority in accordance with this

rule, the Commissioner may order that article 56(21) of the Act shall

not apply to such income. In such a case, the Commissioner may make

an assessment and the tax on such income shall be calculated at the

rates provided for in the Act without any reference to the said article.

Where an individual fails to produce the information requested

pursuant to a request made by the competent authority on its own, the

said competent authority shall inform the Commissioner without delay

and in any case not later than thirty (30) days of such failure.

(1)

Where any person, in order to obtain benefits

under these rules, makes use of artificial arrangements, the

Commissioner shall by order in writing, determine the liability to tax

of the said person, for any year of assessment, in such manner and in

such amount as may be necessary in the circumstances of the case to

nullify benefits obtained under these rules.

(2)

A person who disagrees with an order served upon him in

accordance with sub-rule (1) shall have the same rights to object such

order and to appeal from a decision of the Commissioner refusing that

objection as if that order were an assessment issued in accordance with

the Income Tax Management Act, and the relevant provisions of the

said Act relating to objections and appeals shall apply mutatis

mutandis.

(1)

Individuals who, on the 31 December 2025

qualified as beneficiaries under the

(a)

Highly Qualified Persons Rules;

(b)

Qualifying Employment

in

Innovation

and

Creativity (Personal Tax) Rules;

(c)

Qualifying Employment in Aviation (Personal

Tax) Rules;

(d)

Qualifying Employment in Maritime Activities

and the Servicing of Offshore Oil and Gas Industry Activities

(Personal Tax) Rules; or

(e)

Senior Employees of Family Offices, Back

Offices and Treasury Management Operations Tax Rules,

shall, where an application is made with the relevant competent

authority, be considered to be a beneficiary under these rules. The

competent authority shall issue a determination to this effect within

sixty (60) days of submission of such application and inform the

Commissioner thereof in such manner as the Commissioner may

determine. Where a determination is issued under this rule, the

individual shall be considered a beneficiary for a period of five (5)

years commencing to run from the year of assessment in which the

determination is issued, and the provisions of rule 7(2) shall apply

mutatis mutandis to any individual benefiting from this rule

Provided that such application shall be made not later

than 31 December 2028, in such manner and as the Commissioner and

the competent authority shall determine

Provided further that notwithstanding any other

provision to the contrary, the provisions of the second proviso to rule

5(1) of the Highly Qualified Persons Rules shall continue to apply

under these rules and article 56(21) of the Act, for income earned in

the year in which the application under this rule has been made by

individuals that were beneficiaries under the said Highly Qualified

Person rules.

(2)

Notwithstanding any provision in the Income Tax Acts

and rules and regulations made thereunder

no determination shall be issued after 31 st

(a)

December 2025 for applications made after that said date; and

(b)

no further benefit may be availed of after year of

assessment 2030,

under the rules referred to in sub-rule (1)(a) to (e).