Malta Highly Qualified Persons Rules Program: Key Takeaways

Malta Highly Qualified Persons Rules Program: Key Takeaways

6 months ago

The Malta Highly Qualified Persons Rules program (HQRP) was introduced with the aim of attracting highly qualified and experienced individuals to the islands to contribute their expertise and skills to the islands where often there is a skill gap present.

Malta, as a small island with a population of just over 520,000 has a limited talent pool and naturally skill shortages in certain professions and industries arise. AIMS International Malta alongside its international partners aims to close this shortage by utilizing its local and global reach to give clients options for their recruitment and executive search requirements. The Malta Highly Qualified Persons Rules program offers a competitive tax regime for those who qualify, making it a viable and attractive option for individuals in various industry sectors such as financial services, investment, insurance, aviation and maritime.

Malta Highly Qualified Persons Rules Program: Tax Benefits

One of the key elements of the Malta HQPR program is the fact that it offers a flat rate form of taxation of 15% for successful applicants on their qualifying income subject to a minimum tax liability. This tax rate is applicable for the duration of the program, of which an EU or EEA Citizen can be on the program for 5 years, which can be renewed twice to give a total timespan of 15 years. For non-EU citizens, the duration of the program is 4 years which can also be renewed twice to give a total of 12 years. The annual salary in both cases has to be over the relevant threshold set by the government which currently stands at just under €100,000 per annum and is increased annually.

Eligible Office

For an individual to qualify for the Malta Highly Qualified Persons Rules Program applicants must meet specific criteria related to their qualifications and their experience in relation to the role and the industry. The applicant must hold a senior position such as a director or a specific qualifying position that is defined by the government for a particular industry. The applicant should not have been resident in Malta for the previous 5 years to the application.

Why Malta?

Malta benefits from a fantastic climate for most of the year and despite being a small island, it is full of history and culture. English is a national language alongside Maltese and legislation is drafted and understood in both languages. Business is generally conducted in English. Malta has a successful and diverse financial services industry despite the island's size which is widely seen as one of the leading financial jurisdictions around the world.

Around thirty percent of the islands' workforce is foreign from a variety of countries with the UK, Germany and Scandinavia historically having sizeable expat communities. Malta is also increasingly popular with Eastern European nationals who contribute employees in a number of important sectors and Italy owing to the proximity of the island.

How Can AIMS International Malta Help?

AIMS International Malta offers a full executive search service offering to assist clients with their recruitment needs and requirements. As part of an international Executive Search group that is present in over 50 countries worldwide, we are able to assist with multi-office searches for high-level candidates to assist with the filling of certain high-level skill shortages in the Malta market.

AIMS International Malta can help with the application of the Highly Qualified Persons Rules through its associated company which is licensed by the Malta Authorities to act as a mandatory.

Share this article