Introduction of Legal Notice 20 of 2026
The Maltese authorities have enacted Legal Notice 20 of 2026, introducing updated Tax Treatment of Highly Skilled Individuals Rules. These rules apply to qualifying professionals employed in Malta and are designed to modernise the fiscal incentive status while addressing policy, integrity, and international alignment considerations.
The new framework applies to applications submitted from the effective date of the Legal Notice, subject to transitional provisions for existing beneficiaries.
How the New Rules Differ from the Previous Framework
Under the former framework, eligibility was broader and sector-focused, with a relatively expansive interpretation of qualifying roles and income. Legal Notice 20 of 2026 introduces a more calibrated approach, narrowing eligibility to specific categories of highly skilled individuals whose roles demonstrate measurable economic and professional substance in Malta.
Key differentiators include tighter role definitions, revised minimum remuneration thresholds, and enhanced ongoing compliance obligations. The rules also reinforce the distinction between tax residence, special tax status, and immigration position – concepts that were often conflated under the earlier framework.
Policy Direction and Practical Implications
The revised rules reflect Malta’s broader policy direction towards sustainable talent attraction, ensuring that preferential tax treatment is linked to genuine professional contribution rather than purely contractual arrangements. For employers and qualifying individuals, this means earlier planning, clearer role substantiation, and careful review of employment structures.
Existing beneficiaries and prospective applicants should assess their position under the new rules to determine eligibility, transitional treatment, and long-term implications.
