Malta 15% Expat Tax 2026: HSI Rules (Formerly HQP)

2. Key Benefits

• The 15% rate is elective. No reliefs, deductions or credits can be claimed against income taxed at 15%
• Income above €7 million is taxed at the normal progressive rates
• Normal Class 1 SSC rules still apply

3. Eligibility Requirements

• Minimum income: qualifying employment income of at least €65,000 a year, which is lower than the old HQP threshold
• Not domiciled in Malta
• Qualifications: a course of at least three years, or at least five years of comparable professional experience
• Eligible office under a genuine employment contract with a licensed or recognised employer
• Stable resources, suitable accommodation, a valid travel document and private health insurance for you and your family
• You cannot have previously benefited under article 6 of the Income Tax Act

4. Eligible Employers & Roles

Your employer must be regulated, licensed or recognised by one of five competent authorities:

• Malta Financial Services Authority (MFSA)
• Malta Gaming Authority (MGA)
• Authority for Transport in Malta (Transport Malta)
• Office of the Chief Medical Officer
• Malta Enterprise

Eligible offices are generally C-level and senior management roles and specialised STEM functions that fall within the employer's regulated activity.

5. 15% Flat Rate vs Standard Tax Rates

Here's how the 15% flat rate compares to the 2026 single tax rates at different salary levels:

At €200,000 a year, the 15% rate saves over €30,000 a year compared with the standard single rates.

6. How to Apply & Transition Rules

• Apply to the relevant competent authority (one of the five bodies above). Processing can take up to 90 days
• Applications are accepted from 1 January 2026 to 31 December 2035, and benefits apply to income up to 31 December 2040
• Existing HQP beneficiaries must move to the HSI Rules by 31 December 2028. If your old minimum income was below €65,000 it stays the same in year one, rises by €10,000 in year two and reaches €65,000 in year three

Because the rules are new, check the latest guidance from your competent authority and the Malta Tax and Customs Administration before you rely on the 15% rate.