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, gaming and aviation sectors, creating the need for additional highly qualified workers. Malta offers a special tax status by setting the personal tax rate on employment income from eligible offices under a qualifying contract of employment in Malta at 15%, up to a maximum of €5,000,000. Any amount in excess of this, being derived from the contract of employment, is not subject to tax.






Country Highlights

EU: Member of the EU & Eurozone4% in 2017 (EC), lowest in EU 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: 4% 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
  • Flexible Regime; Eligible Offices Prescribed by Law
  • Efficient Procedure for the Employer
  • No Minimum Presence Required


Eligibility


In order to qualify for the tax status under the HQP Rules, the professional should enter into a qualifying contract of employment in respect of an eligible office with a company licensed or recognized by the Malta Financial Services Authority.


Process & Timeline




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Key Contacts

Ms Michelle de Maria

Partner, Tax

+356 22056692

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