Maltese domiciled individuals who are established abroad in a field of excellence and return to work in Malta, may benefit from a reduced tax rate of 15%.

Eligibility

A number of conditions must be satisfied in order to be eligible for the flat tax rate, as follows:

The beneficiary must show that s/he has been ordinarily resident in Malta for at least 20 years, however s/he has not been ordinarily resident in Malta for the 10 consecutive years prior to returning to Malta.
The beneficiary must be established in a field of excellence where an eligible person has professional competence in a relevant area in the manufacturing and research and development sectors as defined from time to time by Malta Enterprise, namely:
- The carrying out of Industrial Research;
- The carrying out of Experimental Development;
- Product development;
- Senior management of autonomous manufacturing units and/or research facilities.
The beneficiary must receive a minimum income of €75,000 from a qualifying contract of employment, consisting of emoluments received from an eligible office. The related contract of employment would need to be approved in writing by Malta Enterprise.

The benefit

A beneficiary may opt to be taxed at the flat tax rate of 15% on their income earned from a qualifying contract of employment in an eligible office.

The individual will be able to benefit from the flat tax rate for a consecutive period of five years, commencing from the first year of assessment in which they are first liable to tax upon their return.

How can we help?

KPMG in Malta can advise and assist you with the application, correspondence and submission of the application, and other relevant documentation required in order to avail yourself from such status from the relevant Authority, as well as advising you in relation to the international tax implications of taking up residence in Malta.

If you would like to know more about this status, or discuss any other personal income tax matter, please do get in touch with us.