Highly Qualified Persons Rules

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.

Benefits of Highly Qualified Persons Programme

  1. Qualify for a 15% flat tax rate;
  2. Tax-free income on any income exceeding €5 million per annum;
  3. You can extend the 5-year programme to 10 years for EU/EEA/Swiss nationals;
  4. For non-EU/EEA/Swiss nationals, you can extend the 4-year programme to 8 years.
Does this programme interest you? Contact us for more information.

Am I Eligible for the Highly Qualified Persons?

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

  • Receive employment income no less than €84,991 per annum that is subject to tax in Malta as of 2019;
  • 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.

View overlooking the Grand Harbour Marina

Highly Qualified Persons Rules FAQ

Who recognises and licences the companies?

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

What does ‘eligible office’ mean?

The eligible office is an employment or office listed in the schedule.

What employment positions qualify 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

Colourful Steps in Valletta, Malta’s Capital City.

What are the tax considerations of the Highly Qualified Persons Rules?

Successful application for the Highly Qualified Persons Rules 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 Highly Qualified Persons Rules 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 Highly Qualified Persons Rules in Malta.

Non-EU nationals are entitled to benefit from the Highly Qualified Persons 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 HQPR in Malta.

How can I apply for the Highly Qualified Persons Rules in Malta?

Firstly, the Commissioner of Inland Revenue requires that you must obtain a signed declaration from the Malta Financial Services Authority or the Malta Gaming Authority.

Secondly, the relevant authority will check the appropriate conditions for the Highly Qualified Persons Rules, as outlined above, are met and subsequently will endorse the form. This declaration will then be used and attached to the individual’s income tax return and filed accordingly.

Do you have any more questions? Contact us and we can help

Papilio Services Limited

Are you considering applying to the Highly Qualified Persons Rules? Papilio Services can assist you in preparing the declaration, application as well as inform you about all the compliance issues, such as the timely completion and submission of the personal tax returns.

We also offer a variety of services for business and individuals from other residency programmes, company formation, tax advice and much more. We pride ourselves on client retention and quality service, offering bespoke and tax-efficient solutions for international companies and individuals.

If you would like any more information on how we can help you, contact us through email enquiry@papilioservices.com or call us directly +356 2122 7553. We look forward to hearing from you.

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