Malta has formally introduced the Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules, 2025 (Legal Notice 250 of 2025, issued under the Income Tax Act, Cap. 123). The measure, effective from 1 January 2025 and applicable as of the year of assessment 2026, creates a dedicated 15 per cent tax rate for qualifying senior employees within Malta-based family offices, back-office support operations, and treasury management undertakings.
Purpose and Scope
The new framework strengthens Malta’s competitiveness as a hub for private wealth management and related financial services. It seeks to attract senior international professionals to Malta-based single-family and multi-family offices, back-office service providers, and treasury management operations, each defined precisely under the Rules and supervised by the Malta Financial Services Authority (MFSA).
Key Features of the Regime
- Tax Rate: Qualifying income is taxed at a flat 15 % rate under Article 56(21) of the Income Tax Act.
- Income Range: The 15 % rate applies to employment income not exceeding €7 million per year. Any emoluments above this threshold are taxed at normal progressive rates.
- Minimum Chargeable Income: A minimum €65,000 must be chargeable to tax each year (excluding fringe benefits).
- Automatic Adjustment: The €65,000 threshold increases by €10,000 every five years, starting the year following the Rules’ commencement (i.e. from 2026).
- Duration: The reduced rate applies for an initial five-year period, renewable twice for further five-year extensions (up to 15 years in total).
- End Date: No benefits may apply to income earned after 31 December 2040.
- No Reliefs or Deductions: The 15 % rate applies “without the possibility to claim any relief, deduction, reduction, credit or set-off of any kind”, save for standard tax-withholding deductions under Article 23 of the Income Tax Management Act.
Eligible Offices and Employers
The Schedule to LN 250/2025 specifies which positions and entities qualify:
Eligible senior positions include:
- Head of Back Office, Chief Executive Officer, General Manager, Country Head, Managing Director (or equivalent)
- Chief or Head Risk Officer
- Chief or Head Compliance and Anti-Money Laundering Officer
- Fraud and Investigations Officer
- Portfolio Manager
- Chief or Head Investment Officer
- Senior Trader
- Senior Structuring Professional
These roles must be held within qualifying undertakings, namely:
- Single Family Offices (managing the wealth of one high-net-worth family)
- Multi-Family Offices (licensed entities managing wealth for multiple high-net-worth families)
- Back Office service providers or Treasury Management operations supporting such family offices, as confirmed in writing by the MFSA, for the purposes of these Rules.
The law also recognises as qualifying undertakings fund managers, registered trustees, and Notified PIFs operating as family-office vehicles investing private wealth without raising external capital, provided they fall within the MFSA’s scope.
Eligibility Criteria for Beneficiaries
To qualify, an individual must satisfy all of the following:
- Employment income: Derived from a qualifying contract of employment taxable under Article 4(1)(b) of the Income Tax Act.
- First employment in Malta: The individual’s first employment in Malta must be in an eligible office, and they must not have earned income taxable under Articles 4(1)(a) or (b) before 1 January 2025.
- Employee protection: Must be protected as an employee under Maltese law, performing genuine and effective work for or under the direction of another person.
- Professional qualifications: Must hold recognised qualifications or at least five years of relevant professional experience, as defined in Rule 2.
- Tax disclosure: Must fully declare all employment income and any related income from connected persons in Malta.
- Residence and resources: Must prove stable and regular financial resources, maintain suitable accommodation in Malta, and hold valid private health insurance for themselves and their dependants.
- Non-domiciled status: Must not be domiciled in Malta.
- Other conditions: The MFSA may impose further conditions, including requirements for training local personnel.
Application and Determination Process
- Application period: Applications may be submitted between 1 January 2025 and 31 December 2034.
- Final acceptance cut-off: No application will be accepted after 31 December 2035.
- Processing: The MFSA must issue a determination within 90 days of receiving a complete application.
- Option exercise: Once approved, the individual must exercise the 15 % option via a signed declaration endorsed by the MFSA, applicable from the year of assessment 2026 onwards.
Anti-Abuse Provisions and Compliance
The Rules contain explicit anti-abuse provisions, empowering the Commissioner for Tax and Customs to disregard artificial arrangements or cases of collusion between employer and employee that attempt to misuse the regime.
If the Commissioner determines that artificial arrangements have been used, they may issue an order recalculating tax “in such amount as may be necessary to nullify benefits obtained”.
Standard objection and appeal rights under the Income Tax Management Act apply.
Both the Commissioner and the MFSA retain powers to request information, employer certifications, or documentation to confirm eligibility. Failure to comply may result in loss of the preferential treatment.
Impact and Opportunities
This dedicated 15 % regime enhances Malta’s appeal for senior professionals in family office and treasury functions, encouraging the establishment of high-value operations and knowledge transfer on the island.
For employers, it creates a clear, compliant framework to attract experienced executives.
For individuals, it offers a transparent and competitive tax environment, provided all regulatory and substantive conditions are satisfied.
How Can We Help?
Our Private Client and Corporate Services teams can provide tailored assistance to high-net-worth individuals (HNWIs), family offices, and corporate groups seeking to benefit from Malta’s new Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules, 2025.
We support both employers and senior employees in navigating the eligibility, application, and compliance process. This includes verifying that roles qualify as eligible offices, preparing and submitting applications for formal determinations under Article 56(21) of the Income Tax Act, and ensuring adherence to the five-year (renewable) preferential tax period at the reduced 15% rate on qualifying income.
Beyond the incentive itself, our team advises on relocation and residency planning, tax-efficient employment structuring, trust and foundation administration, wealth and succession planning, and corporate substance solutions to support the establishment or expansion of Single Family Offices, Multi Family Offices, Back Offices, and Treasury Operations in Malta.
We work closely with clients and their advisors to define strategic, operational, and personal objectives, ensuring that both employers and key professionals can maximise the benefits offered under Malta’s evolving fiscal framework.
Contact us today to learn how we can assist you in assessing eligibility, preparing applications, and structuring your Maltese operations in full compliance.
