Malta Highly Qualified Persons Rules (HQP)

Malta Highly Qualified Persons Rules, or HQPR, was a scheme introduced in 2011 through Maltese Parliament Legal Notice 106. This Malta Residence programme seeks to attract highly qualified persons in the financial, gaming and aviation sectors by offering a 15% flat rate of tax on any income generated in Malta.

As Authorised Mandatories (ARM00905), we can help our clients obtain this Malta tax residence programme. Contact us and we will arrange a residence planning consultation to understand your situation and start the application process for the HQP Rules scheme.

Benefits of the Highly Qualified Persons Rules (HQP) in Malta

1. Qualify for a 15% flat tax rate on any income earned in Malta.
2. Tax-free income on any income exceeding €5 million per annum.
3. EU/EEA/Swiss nationals can extend the 5-year scheme to 10 years.
4. Non-EU/EEA/Swiss nationals can extend the 4-year scheme to 8 years.

Requirements for the Highly Qualified Persons Rules in Malta

To qualify for Malta’s Highly Qualified Persons Rules, you must achieve all the below conditions to be eligible for the scheme. You must:

  • Receive employment income no less than €86,938 per annum that is subject to tax in Malta as of 2021.
  • Obtain an employment contract subject to the laws of Malta.
  • Have at least five years of professional work experience.
  • Hold sufficient professional qualifications related to the field of work.
  • Prove that you can perform their duties sufficiently for the eligible office (more information below regarding what qualifies as ‘eligible office’).
  • Not have benefitted from the special income tax provisions relevant to Investment Services and Insurance Expatriates.
  • Receive regular and stable income which are of a sufficient level to be able to support yourself and any dependents without needing the assistance of the social security system in Malta.
  • Reside in suitable accommodation in Malta.
  • Not be domiciled in Malta.
  • Have a valid travel document.
  • Hold European health insurance coverage for yourself and your family.

    Employment positions in Malta for the Highly Qualified Persons Rules?

    ‘Eligible office’ in the financial services and gaming sectors (and undertakings holding an air operators’ certificate) includes employment in one of the following positions:

  • Actuarial Professional
  • Aviation Continuing Airworthiness Manager
  • Aviation Flight Operations Manager
  • Aviation Ground Operations Manager
  • Aviation Training Manager
  • Chief Executive Officer
  • Chief Financial Officer
  • Chief Commercial Officer
  • Chief Insurance Technical Officer
  • Chief Investment Officer
  • Chief Operations Officer (including Aviation Accountable Manager)
  • Chief Risk Officer (including Fraud and Investigations Officer)
  • Chief Technology Officer
  • Chief Underwriting Officer
  • Employment in the Assisted Reproductive Technology sector:
  • Embryologist
  • Responsible Person
  • Lead Quality Manager
  • Head of Investor Relations
  • Head of Marketing (including Head of Distribution Channels)
  • Head of Research and Development; (including Search Engine Optimisation [SEO] and Systems Architecture)
  • Portfolio Manager
  • Senior Analyst (including Structuring Professional)
  • Senior Trader/Trader
  • Odds Compiler Specialist

    Malta Licencing Authority

    The Malta Financial Services Authority (MFSA) recognises and licences companies including financial institutions, insurance companies and intermediaries, investment services licence holders, funds, and pension schemes.

    The Malta Gaming Authority (MGA) regulates and licences companies within the remote gaming, casino gaming and sports betting industry.

    Tax considerations of the Highly Qualified Persons Rules in Malta

    Successful application for the HQP Rules Malta would be entitled to a 15% flat rate on all employment income.

    The tax benefits for EU, EEA and Swiss nationals are available for a consecutive period of 5 years. This period starts from the first year the applicant of HQPR is subject to tax. Applicants can also apply to a one-time extension of 5 years, giving a total of 10 years that an individual can benefit from the programme in Malta.

    Non-EU nationals are entitled to benefit from the HQP rules in Malta. Non-EU citizens can apply for a maximum period of 4 years. Individuals can appeal for a one-time extension of 4 years, giving a total of 8 years individual can benefit from the programme.

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    Are you considering applying for the Highly Qualified Persons Rules in Malta?

    Papilio Services can help! As accredited agents through Identity Malta, we will assist you with the Commissioner of Inland Revenue and obtaining signed declarations from the Malta Financial Services Authority or the Malta Gaming Authority. Moreover, we will assist you in filing your income tax return form correctly.

    Contact us and we will arrange a residence planning consultation to understand your situation and start the application process for the tax residence programme.

    Contact Us