Malta is further consolidating its position as a leading financial services hub with the introduction of a new tax regime effective from 1 January 2025 (YA 2026). The framework targets senior professionals in single or multi-family offices, back-office operations, and treasury management functions, offering an attractive flat tax rate to highly qualified individuals in executive roles.

Eligibility criteria

The rules apply to professionals occupying senior positions such as Chief Executive Officer, Head of Risk, Portfolio Manager, or equivalent. To qualify, individuals must:

  • Take up eligible employment in Malta after 1 January 2025
  • Hold the necessary professional qualifications or possess at least five years of relevant experience
  • Earn a minimum annual remuneration of €65,000, which increases by €10,000 every five years
  • Not be domiciled in Malta and meet the established residence, health insurance, and resource requirements

Tax incentive

Eligible individuals benefit from a flat 15% tax rate on employment income up to €7 million per year. Any income exceeding this threshold is taxed at the standard personal income tax rates. Deductions or credits are not permitted unless specifically provided for by law.

Duration of benefit

The reduced rate applies for an initial five-year period, renewable for two additional five-year terms, provided all conditions continue to be met. The regime is valid for income earned up to 31 December 2040.

Application process

Applications are to be submitted to the Malta Financial Services Authority (MFSA) and must include documentation verifying qualifications, employment, health insurance, and suitable accommodation in Malta.

Strategic impact

This initiative strengthens Malta’s competitive edge in attracting senior financial talent and high-value investment. By combining favourable tax treatment with a robust regulatory framework, Malta continues to position itself as a trusted jurisdiction for wealth management, family offices, and international finance operations.

Beyond immediate fiscal benefits, the regime supports Malta’s long-term vision of nurturing a sophisticated financial ecosystem grounded in governance, innovation, and operational excellence. It represents a strategic step towards reinforcing Malta’s reputation as a forward-looking, stable, and well-regulated hub for private wealth and cross-border financial services.
For tailored guidance on eligibility and application support, our team at RSM Malta can provide advice on how this regime may benefit your organisation or professional trajectory.
 

Written by Melanie Ciappara, Senior Manager – Direct Tax Advisory & Compliance