Expatriates in Malta

Malta offers an attractive fiscal and business environment for expatriates, professionals and international executives relocating to the island. In addition to a competitive personal tax system, Malta offers a number of residence and employment incentives designed to attract highly skilled individuals.

Our specialists assist expatriates throughout the relocation process, providing advice on tax residence, employment taxation, immigration, social security, property acquisition and ongoing tax compliance.

Tax Incentives for Highly Skilled Individuals

From 1 January 2026, Malta introduced the Tax Treatment of Highly Skilled Individuals Rules, replacing a number of previous preferential tax regimes, including the Highly Qualified Persons Rules. The new rules provide a harmonised framework for eligible individuals employed in qualifying positions within regulated sectors.

Subject to satisfying the statutory conditions, qualifying employment income may be taxed at a flat rate of 15%, rather than the ordinary progressive income tax rates of up to 35%.

The scheme applies to individuals occupying an eligible office with entities regulated or licensed by the relevant Maltese competent authority, including the Malta Financial Services Authority (MFSA), the Malta Gaming Authority (MGA), Transport Malta and other qualifying sectors prescribed by law.

General Eligibility

Applicants must satisfy a number of statutory conditions, including:

• Employment under a qualifying contract governed by Maltese law.
• Occupation of an eligible office with a qualifying employer.
• Possession of the required professional qualifications and relevant experience.
• Receipt of employment income exceeding the statutory minimum threshold applicable under the Rules.
• Residence in suitable accommodation in Malta.
• Possession of comprehensive sickness insurance.
• Holding a valid travel document.
• Sufficient financial resources to support themselves and their dependants without recourse to Malta's social assistance system.
• Full compliance with Malta's tax reporting obligations.

Eligibility is determined by the relevant competent authority and the Malta Tax and Customs Administration in accordance with the applicable legislation.

Foreign Income

Individuals who become tax resident but are not domiciled in Malta are generally taxed on:

• income arising in Malta;
• foreign income remitted to Malta; and
• certain other income specifically chargeable under Maltese tax law.

Foreign-source income which is not remitted to Malta is generally not subject to Maltese income tax. Foreign capital gains are generally not taxable in Malta, even if remitted, subject to the applicable provisions of Maltese tax legislation.

Professional advice should always be obtained, as the tax treatment depends on an individual's residence, domicile and personal circumstances.

Applying for the Scheme

Applications must be submitted to the relevant competent authority together with the prescribed documentation demonstrating that all qualifying conditions have been satisfied.

Following approval, beneficiaries are required to comply with the annual reporting requirements prescribed by the Malta Tax and Customs Administration.