Expatriates that are employed by or provide services to Investment Services companies or Insurance companies may benefit from a favourable tax status due to a variety of tax exemptions in place.

For the purpose of this exemption an investment services company is a company that holds an investment services licence under the Investment Services Act or is recognised by the authority to manage, administer, safe keep or provide investment advice about collective investment schemes.

Likewise, for the purpose of this exemption, an insurance company is a company that is authorised under the Insurance Business Act and whose sole activities relate to insurance.

To ensure that the applicant is eligible for these tax incentives, they must satisfy both points below: 

1. The applicant is not an ordinary resident in Malta and not domiciled in Malta. 
2. The applicant was not resident in Malta for a minimum period of three years immediately preceding the year in which they commence employment. Moreover, during the three years, the individual must be employed in a similar position outside Malta.

An investment services expatriate or insurance expatriate, for the period from the year preceding the first year of assessment can benefit from a tax exemption on income relating to the following expenditure that may be incurred by Investment Services Company or Insurance Company of which they are an employee:

• Removal costs when relocating to or from Malta;
• Accommodation expenses that have occurred in Malta;
• Travel expenses for investment service expatriates and insurance expatriates with visits to and from Malta to visit family;
• Car allowance to use in Malta;
• A subvention of €600 per calendar month;
• Medical expenses and medical insurance; and
• • School fees in respect of the children of the Investment Services 

The expatriate shall also be exempt from tax with regards to fringe benefits or other extensions such as receipt of interests, discounts, premiums or royalties.

As Malta residency specialists, we can assist and advise individuals with all residency requirements concerning the Investment Services Expatriate or Insurance Expatriate tax benefits as well as a variety of other residency programmes.

For more information on whether you may qualify for the tax exemption on Investment Services and Insurance Expatriates, please contact us by emailing us on enquiries@papilioservices.com or call us directly on +356 2122 7553, or by filling out the contact form below.