What the New Guidelines Mean for Malta’s Highly Skilled Individuals Tax Rules

Background 

Following the introduction of the Treatment of Highly Skilled Individual Rules 2026, the Malta Tax & Customs Administration (MTCA) has published its ‘Guidelines in Relation to the Tax Treatment of Highly Skilled Individuals Rules’ (hereinafter the ‘Guidelines’) to clarify certain aspects of the regime, issue the official application form template, designate Malta Enterprise as a Competent Authority and provide detailed descriptions of eligible offices. 

The Guidelines aim to enhance legal certainty for employers, highly skilled individuals and other stakeholders by aligning the practical application of the Rules with the underlying policy intent. 

Clarifications Regarding Certain Rules  

The Guidelines clarify the application of several key provisions of the Tax Treatment of Highly Skilled Individuals Rules, 2026.  

Rule 3: Minimum Income Requirement and Adjustments 

The Guidelines confirm that the minimum annual income requirement under Rule 3 is: 

• Basis Years 2026-2030: €65,000 (subject to any lower minimum thresholds that may apply under earlier rules); 

• Basis Years 2031-2035: €75,000; 

• Basis Years 2036-2040: €85,000. 

These thresholds are intended to increase in line with the phased structure of the regime, reflecting the planned five‑year steps of the Rules. 

 Rule 5(5): Determination of the Application 

Under Rule 5(5), as clarified by the Guidelines, the relevant Competent Authority shall inform the Commissioner for Revenue of its determination to either approve or refuse an application. The Commissioner for Revenue shall then endorse that determination. Once endorsed, the Competent Authority is required to notify the applicant of the final decision. 

The Official Application Form and Guidelines 

The Guidelines set out the official application form template to be submitted for a formal determination of eligibility under the Rules. This template is intended to align applications with the requirements of Rule 5(1) and Rule 7(2), ensuring that all necessary information is provided at the outset. 

The application must include the following information and supporting documents: 

• General Particulars of Employee (name, address, phone number, email, date of birth, etc). 

• Employer’s Details (name of entity, type of sub-sector, personal details of employer, designation, PE number, etc); 

• Employment Details (position held, date of commencement, FS4, annual salary, duration, description of main activities) 

• Declaration by Employee (regarding work permit authorisation for TCNs (where applicable), sufficient accommodation and others) 

• Accompanying Documents (lease agreement, purchase agreement, medical insurance, contract of employment, FS4, passport/ID card, residence card, proof of residence). 

Malta Enterprise as a Competent Authority 

The Guidelines clarify that Malta Enterprise shall act as the Competent Authority for all entities involved in manufacturing, software development, certain industrial services and other innovative activities that do not fall under any other Competent Authority listed in the Rules. 

This broadens the practical scope of the regime by bringing additional types of innovative and industry‑focused roles within a clearly defined approval framework, thereby extending the reach of the highly skilled individuals tax regime beyond its original remit. 

Eligible Office Specifications  

The Schedules to the Guidelines provide detailed descriptions of the eligible offices that are regulated, licensed or otherwise recognised by the Competent Authorities referred to in the Rules.  

While the Rules themselves list the eligible offices in a high‑level manner, the Guidelines supplement this by specifying the functions and responsibilities associated with each office, thereby enhancing legal certainty for investors, employers and employees considering applications. 

Outlook 

The Guidelines are a welcome development, as they provide practical clarity on the operation of the Tax Treatment of Highly Skilled Individuals Rules, 2026, particularly in relation to eligibility criteria, application requirements and the role of Malta Enterprise. By setting out a structured application‑form template and clarifying the responsibilities of the Competent Authorities and the Commissioner for Revenue, the regime is now easier to navigate for both employers and prospective beneficiaries. 

The expanded scope for eligible offices and the more detailed descriptions in the Schedules also enhance legal certainty, making it easier for investors and businesses to assess whether specific roles fall within the regime.  

Overall, the Guidelines signal an intention to administer the highly skilled individuals tax framework in a more consistent and transparent manner, while leaving room for further refinements as the regime matures. 

Contact Us 

For further information on the Tax Treatment of Highly Skilled Individuals Rules, 2026 and their practical impact on employers and employees, please contact us. Our team can assist with eligibility assessments, application preparation and compliance under the new regime. 

Written by Matthew Muscat 

This article is intended for general information purposes only and does not constitute tax, legal or other professional advice. It provides a high-level summary of the Guidelines and reflects our interpretation of the Guidelines as at the date of publication.  

The application and impact of the Guidelines may vary depending on individual circumstances, and the Guidelines are subject to change and to interpretation by the relevant authorities. Accordingly, this article should not be relied upon as a substitute for specific professional advice.  

Readers are encouraged to seek tailored advice before taking any action based on the information contained herein.