Income tax incentives for Highly Qualified Persons
A new tax regime, namely “The Highly Qualified Persons Regulations” aims to attract highly-qualified professionals, predominantly within the financial services, aviation and gaming sectors, who would be working with licensed companies in Malta. The qualification is valid for up to five years, enabling the holder to qualify for an income tax rate of 15% compared with the usual progressive rate up to 35%, on Malta source qualifying income.
Whether you are considering to relocate for work or lifestyle, Malta might be the location for you and your family to enjoy the most comfortable and relaxed environment in which to live and work. Relocating your business or family to Malta can be beneficial for a number of reasons, including the advantages the island offers and its excellent tax regimes. This section will mention the incentives offered by the country.
The Global Residence Programme Rules, 2013 (“GRP Rules”) introduced from 1st July 2013, offers favorable tax status to those individuals wishing to relocate or retire in Malta.
Individuals who qualify under the GRP Rules are taxable at the rate of 15% on foreign source income remitted to Malta with the possibility to claim double taxation relief. Any other income of the aforementioned persons that is not covered by these Rules shall be charged at the rate of 35%. This is subject to a minimum tax payment of €15,000 per annum payable by not later than the 30th April of the year in which the income is received in Malta and such payment must be accompanied by a return made to the Commissioner that provides proof that all the requirements continue to be satisfied.
Our team can assist individuals, families, company executives and high net worth individuals taking up residence in Malta, by adopting a holistic approach to cover all aspects of moving and abiding to statutory requirements.
Malta’s positive attributes compared to other EU or Mediterranean locations:
- The country’s stability and fiscal policy agreements
- European Union membership
- English speaking hospitable people
- World Health Organization highly rated health service
- High standard of security and stability
- Low cost of living
Double taxation agreements with over 70 countries may also mean that retirees taking on permanent residence in Malta may have their pensions remitted to them in Malta free of income tax and then taxed at 15% in Malta.