Qualifying Employment in Innovation and Creativity (Personal Tax) (Amendment) Rules, 2019

The Qualifying Employment in Innovation and Creativity (Personal Tax) Rules (“Rules”) are available to nationals of the European Economic Area, Switzerland and third countries.

These Rules allows persons employed in a role directly engaged in carrying out, or management of research, development, design, analytical or innovation activities, to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.

For a candidate to qualify, their annual income must exceed €52,000. This does not include the value of fringe benefits and applies to the derived income received from an eligible office.

Individuals must be in possession of a relevant qualification or adequate professional experience for a minimum of three (3) years in a role comparable to that of the Eligible Office.

The 15% tax rate shall apply for a consecutive period of up to four (4) years commencing from the year immediately preceding the year of assessment in which the person is first liable to tax.  This may be extended by a period not exceeding five (5) years.

Qualifying Criteria

In addition to the minimum annual income requirement, a beneficiary must satisfy the following criteria which requires that they:

  • are not domiciled in Malta
  • do not derive employment income subject to tax and received in respect of work carried out in Malta or any period spent outside Malta in connection with such work or duties
  • are protected as an employee under Maltese law
  • prove to the satisfaction of the competent authority that they are in possession of professional qualifications
  • are in receipt of stable and regular resources which are sufficient to maintain them and the members of their family (without recourse to the social assistance system in Malta)
  • reside in accommodation regarded as normal for a comparable family in Malta and which meets the general health and safety standards in force in Malta
  • are in possession of a valid travel document
  • are in possession of sickness insurance (for themselves and members of their family)