In 2010, the Government of Malta introduced the ‘The Highly Qualified Persons (HQP) Rules’, for EU, EEA and Swiss expatriates working in Malta under an eligible contract of employment, and which are employed in certain named positions within licensed business activities falling under the Financial Services, Online Gaming or International Transportation (Aviation and Maritime) sectors.
The HQP Rules allow expatriate employees in certain C-Level and highly technical positions to benefit from a 15% flat income tax rate, provided the yearly income is above €81,500. This special 15% flat income tax rate was originally valid for a period of 5 years, however the Government of Malta has recently amended the rules to extend the applicability of the 15% tax rate for a further 5 years. This amendment was published through Legal Notice 225 of 2015 of the Laws of Malta.
Expatriates from countries outside of the EU, the EEA or Switzerland can also qualify for the HQP, however different rules and obligations apply, such as the qualifying period for the applicability of the 15% flat income tax rate being for a period of 4 years. Avviza’s founder, Mr Reuben Portanier was one of the working group members which originally introduced the HQP.
Should you wish to learn more about Malta’s HQP rules, please send us an email to email@example.com