Europe
Malta IP Box Regime
95% deduction yields effective 1.75% rate when nexus ratio is 1
Indefinite · Foreign income partly exempt
Europe
Malta Highly Qualified Persons (HQP) Rules
Malta's HQP rules offer a flat 15% tax rate on employment income (capped at €5 million) for executives in financial services, gaming, and aviation sectors for up to 5 years.
Regime overview
- Status
- Active
- Type
- Preferential
- Duration
- 5 years
- Highlight
- 15% flat tax on employment income up to EUR 5M in qualifying sectors
Tax regimes comparison
Default Rates
- Eligibility
- Any resident
- Duration
- Indefinite
- Income Tax
- 0-35%
- Foreign Income
- Remittance basis
- Capital Gains
- 35% / 8%
- Dividends
- None
- Wealth Tax
- None
- Inheritance Tax
- None
Highly Qualified Persons (HQP) Rules
- Eligibility
- Residency
- Duration
- 5 years
- Income Tax
- 15% flat
- Foreign Income
- Taxed
- Capital Gains
- N/A
- Dividends
- N/A
- Wealth Tax
- None
- Inheritance Tax
- None
IP Box Regime
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 1.75% effective
- Foreign Income
- Partially exempt
- Capital Gains
- 95% deduction
- Dividends
- Standard Malta rates
- Wealth Tax
- None
- Inheritance Tax
- None
Retirement Programme (MRP)
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 15% flat
- Foreign Income
- Remittance basis
- Capital Gains
- 0%
- Dividends
- 0%
- Wealth Tax
- None
- Inheritance Tax
- None
| Tax Type | Default | Highly Qualified Persons (HQP) Rules | IP Box Regime | Retirement Programme (MRP) |
|---|---|---|---|---|
| Eligibility | Any resident | Residency | Residency | Residency |
| Duration | Indefinite | 5 years | Indefinite | Indefinite |
| Income Tax | 0-35% | 15% flat | 1.75% effective | 15% flat |
| Foreign Income | Remittance basis | Taxed | Partially exempt | Remittance basis |
| Capital Gains | 35% / 8% | N/A | 95% deduction | 0% |
| Dividends | None | N/A | Standard Malta rates | 0% |
| Wealth Tax | None | None | None | None |
| Inheritance Tax | None | None | None | None |
| Learn more | Learn more |
Key benefits
15% flat tax on employment income up to EUR 5M
5-year duration, renewable
Combinable with Non-Dom for foreign income
Requirements and considerations
None
Migration pathways
Program details
The Highly Qualified Persons (HQP) Rules provide a preferential 15% flat tax rate on employment income for senior executives and specialists in Malta's key industries: financial services, remote gaming, and aviation. The regime is designed to attract top talent to these strategic sectors.
The 15% flat rate applies to employment income up to EUR 0K million per year. Income above this cap is taxed at the standard 35% rate. The benefit lasts for 5 consecutive years from the first year of application.
Qualifying positions include CEOs, CFOs, COOs, CIOs, CTOs, senior portfolio managers, actuaries, head of risk management, and similar executive roles. The minimum annual salary must be at least EUR 92K (for gaming) or EUR 86K (for other qualifying sectors).
Interested in Highly Qualified Persons (HQP) Rules?
Our tax advisors can help you evaluate eligibility requirements and optimize your tax position under this regime.
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EUR-Lex Court Judgment C-181/23·Last checked: 16/01/26
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