Malta Highly Qualified Persons Rules For The Financial Sector

Malta Tax Incentives

Malta Highly Qualified Persons Rules For The Financial Secto


The Malta Highly Qualified Persons Rules (“HQP Rules”) aim at attracting highly professional expatriates seeking an alternative residence base. Malta has experienced expansion in the financial sectors, creating a need for expatriate highly qualified workers to complement the local work force. Such highly qualified expatriates are offered special tax status with a personal tax rate of 15% on employment income from eligible offices under a qualifying contract of employment in Malta up to a maximum of €5,000,000. Amounts derived from the contract of employment in excess of €5,000,000, are not subject to tax.






Country Highlights

EU: Member of the EU & Eurozone DOUBLE TAX TREATIES: Extensive double tax treaty network
SCHENGEN STATUS: Full Member Since 2007 FINANCIAL SECTOR EXPANSION: 25% Annual growth
GDP GROWTH: 6.6% in 2017 (EC) FINANCIAL SERVICES FRAMEWORK: EU and OECD approved
UNEMPLOYMENT RATE: 3.7% in 2017 (EC), lowest in EU TAX SYSTEM: EU Approved


Legal Basis

The legal basis for the HQP Rules is found in L.N. 106 of 2011, as amended and updated by subsequent legal notices.


Benefits

  • Straightforward Mechanism; 15% Tax Rate on Full Salary
  • Clear Regime; Eligible Offices Prescribed by Law
  • Efficient Procedure for the Employer
  • Certainty for a fixed term


Eligibility

  • Employment in Eligible Office
  • Salary Threshold; €84,991 (2019)
  • Be able to Maintain Himself and the Family
  • In Possession of a Valid Travel Document & Insurance
  • Not Domiciled in Malta


Process & Timeline




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