15% Tax for Foreign Professionals Private Taxation

Special tax rate for Foreign Professionals

Foreign professionals who take up employment in Malta in target sectors qualify for a 15% tax rate on their salary. This option is available to qualified persons who occupy eligible offices with companies licensed or recognized by the Malta Financial Services Authority (MFSA) such as banks, fund managers and insurance companies as well as companies operating internet gaming and lottery services that are licenced by the Malta Lotteries and Gaming Authority (LGA).

Eligible offices include the following posts:

• CEO
• COO
• CFO
• Chief Commercial Officer
• Chief Risk Officer
• Chief Technology Officer
• Portfolio Manager
• Chief Investment Officer
• Senior Trader/Trader
• Senior Analyst (including Structuring Professional)
• Head of Marketing
• Head of Investor Relations
• Fraud and Investigations Officer
• Odds Compiler Specialist
• Head of Research and Development (including Search Optimisation and Systems Architecture)
• Head of Distribution Channels

A number of conditions are applicable:

• The minimum salary must be Euro 75,000 per annum (excluding any fringe benefits and allowances) adjusted annually in line with the Retail Price Index. The 15% flat rate is imposed up to a maximum income of Euro 5,000,000 and the excess is exempt from tax.
• The 15% tax rate applies for a consecutive period of 5 years for individuals hailing from the European Economic Area and Switzerland and for a consecutive period of 4 years for third country nationals.
• The 15% tax rate is optional – if the option is not availed of, the salary will be subject to Maltese tax at normal rates ranging from 0% to 35% (progressive charged at 0%, 15%, 25% and 35%).
• The individual will be required to spend time in Malta in connection with his employment
• A health insurance is required

For further information, kindly contact Dr. Christian Farrugia