1. Single and Multi-Family Offices: Duly licensed or recognized entities managing private wealth.
2. Back-Office Operations: Companies providing essential administrative, IT, and support services to family offices.
3. Treasury Management Operations: Entities handling liquidity, capital, and risk management for family office structures.

• Chief Executive Officer (CEO) / Managing Director / General Manager
• Head of Back Office
• Chief Risk Officer / Head of Compliance (including AML Officers)
• Portfolio Manager / Chief Investment Officer
• Senior Trader / Senior Structuring Professional

• Minimum Salary Threshold: The gross basic salary must meet the prescribed minimum threshold (excluding fringe benefits). This threshold is subject to periodic increases in line with the legislation.
• “First Employment” Rule: The individual must be taking up their first employment in an eligible office in Malta and must not have earned Maltese employment or business income before January 1, 2025.
• Qualifications & Experience: Applicants must possess a recognized professional qualification or at least five years of relevant professional experience.
• Non-Domiciled Status: The individual must not be domiciled in Malta.
• Substance & Residency: The employee must perform genuine and effective work in Malta, reside in “normal” accommodation for their family, and hold private health insurance.

• Extensions: Beneficiaries may apply for up to two extensions of five years each.
• Maximum Benefit: A total of 15 years of tax benefits.
• Sunset Clause: The rules are currently scheduled to cease on December 31, 2040.

• Deadlines: The application window for new beneficiaries remains open until December 31, 2034.
• Formal Determination: Once the authority verifies that all conditions—including salary, qualifications, and the “eligible office” status—are met, they will issue a formal determination.

For further information and for a tailored discussion of your requirements, please contact Brainston Advisory.

📞 +356 2152 1025/6

✉️ info@brainston.mt

An individual may only benefit if they hold an “eligible office” with an undertaking that is licensed or recognised by a statutory competent authority named in the rules.

Malta Financial Services Authority

• for eligible offices within licensed or recognised financial services undertakings;

Malta Gaming Authority

• for eligible offices within licensed gaming operators;

Transport Malta, in relation to:

• aviation undertakings holding Air Operator Certificates or aerodrome licences
• maritime undertakings holding ISM or MLC certification
• shore-based ship management and offshore oil & gas servicing companies

The Office of the Chief Medical Officer to Government

• in respect of highly skilled medical and healthcare roles;

Malta Enterprise

• covering recognised strategic, innovation-driven and STEM-based industries.

This structure makes the regime a sector-specific tool, not a general expatriate tax programme.

• Be non-domiciled in Malta
• Derive qualifying employment income in Malta
• Hold an eligible office within a licensed or recognised undertaking
• Earn at least €65,000 per year (excluding fringe benefits)
• Possess recognised qualifications or professional experience
• Be protected as an employee under Maltese law
• Hold private medical insurance and maintain normal accommodation in Malta

Substance is essential. Artificial job titles, restructured remuneration, or collusive arrangements are expressly targeted by anti-abuse provisions.

First renewal       ->        +5 years

Second renewal       ->    +5 years

Maximum benefit    ->    15 years

Up to                       ->      31 December 2040

If you are considering this regime, contact Brainston for tailored advice and support.

Contact us

📞 +356 2152 1025/6

✉️ info@brainston.mt

• If you are in a higher income tax bracket (25%–35%)
• If your rental property has minimal expenses
• If you prefer administrative simplicity

⚠️ Important: Once selected for a particular property in a year of assessment, this method must be applied for any other rented property during that year. However, you can switch methods from one year to the next.

• Rental profits are taxed at 35% at company level.
• Deductions allowed depending whether the trading is of a passive or trading nature, as explained above.
• Upon distribution, shareholders may claim a tax refund under Refundable Tax Credit System

This option may be beneficial where:

• The company incurs substantial deductible expenses.
• Losses are to be carried forward.
• The activity amounts to trading.

Where this option is exercised:

• Tax is charged at 15% on gross rental income.
• No deductions are allowed.
• The tax is final.
• The income does not form part of the company’s chargeable income for corporate tax purposes.
• No tax refunds apply because the tax is final.

This can be attractive where:

• If the company has high rental margins and very few deductible expenses.
• The company does not require loss utilisation.
• Simplicity is preferred.

⚠️ Important: Once selected for a particular property in a year of assessment, this method must be applied for any other rented property during that year. However, you can switch methods from one year to the next.

• 10% tax on gross rental income
• No deductions allowed
• Tax is final

This regime is separate from the 15% option and is designed to support social housing initiatives.

• 5% tax on gross rental income
• No deductions allowed
• Tax is final

The restoration must meet statutory conditions and planning requirements, and the regime must be properly elected.

• Short-term/Tourist Lets: Subject to 7% VAT (and the increased €1.50 per night Eco-Contribution as of 2026).
• Commercial Lets: Often subject to 18% VAT if the tenant is a taxable person using the premises for economic activity.

From 2025 onwards, eligibility has been expanded to include a broader range of economic activities under specific NACE Rev. 2.1 codes.

Eligible activities include:

• Performing Arts: Actors, dancers, musicians
• Artistic Creation: Painters, sculptors, writers
• Support & Production: Artistic directors, choreographers, curators, and those involved in motion picture or TV production.
• Intellectual Property: Royalties or licensing income from artistic works

• Threshold: Applies to the first €50,000 of net profits from qualifying activities
• Excess Profit: Any profits earned above the €50,000 threshold is added to your other income (if any) and taxed at the standard progressive rates of 0% to 35%
• Final Tax: The 7.5% is a final tax, meaning it cannot be offset against other income or used to claim refunds

• Previous Years (2022–2024):
  The 7.5% rate applied to gross income (total revenue before expenses)

• New Rules (Effective 2025):
  Following updates in Legal Notice 137 of 2025, the 7.5% rate is now explicitly applicable to a maximum net income of €50,000. This means the tax is calculated on your profit after deducting allowable business expenses as defined in Article 14 of the Income Tax Act.

Step 1: Certification by Arts Council Malta (ACM)

You must first obtain certification confirming that your activity qualifies.

Required documentation:

• VAT certificate
• Proof of NACE classification
• Signed accountant’s declaration

Step 2: Submission of Form TA26

Once the notification letter from ACM is received:

• Complete Form TA26
• Submit the form and payment by 30 April (Year of Assessment)

Important: Late submission may result in 0.6% interest charges or loss of eligibility for the reduced rate.

However, since it is a final tax with a capped threshold, it is essential to compare this option with the standard tax system based on your specific financial situation.

At Brainston Advisory, we assist creative professionals with obtaining the required certification, ensuring full tax compliance, and providing tailored advisory to optimise their tax position.

Get in touch with our team today:

📞 +356 2152 1025
📧 info@brainston.mt

• • 45% of qualifying expenditure for Maltese applicants
  • 65% for Gozitan applicants

Maximum Tax Credit (over any rolling 3-year period)

• • • 1. Employ no more than 50 full-time employees.
      2. Have an annual turnover or balance sheet total not exceeding €10 Million.
      3. Employ at least one person (full-time or part-time) at the date of application.

These measures are not yet in force.

At the time of writing, Malta Enterprise has not issued updated Incentive Guidelines or legal notices to formally implement them. Until that happens, all applications must follow the currently published Micro Invest rules.

1.Higher Tax Credit Rates & Increased Caps (Proposed)

The Budget proposed increasing the level of support available to micro enterprises, including:

2.Digital & Innovation Investment Focus (Proposed)

The Budget highlighted the Government’s intention to widen the scope of eligible digital expenditure. Proposed qualifying areas include:

• • • • Automation and smart production tools
      • Cybersecurity systems
      • Advanced business software
      • Cloud-based systems
      • Digital workflow platforms

These digital investments were proposed to qualify for enhanced tax credit rates, subject to final guidelines.

3.Workforce Incentives (Proposed)

Additional support was proposed for businesses investing in staff retention and development, including:

• • • • Enhanced wage support for long-serving employees
      • Targeted incentives for skills development in digital and technical roles

Final conditions, rates, and limits remain subject to official publication.

4.AI, Automation & Cybersecurity Credit (Proposed)

The Budget also referred to a specialised Investment Tax Credit aimed specifically at:

• • • • Artificial Intelligence (AI)
      • Automation systems
      • Cybersecurity infrastructure

This incentive was proposed at a rate of 60%, spread over a four-year period for qualifying investments.

All of the above measures remain Budget proposals only. They will only become effective once formally issued by Malta Enterprise through updated Incentive Guidelines or legal notices.

Brainston Advisory will publish an update as soon as the official documentation is released.

Not sure if you qualify?

Contact Brainston Advisory today for a free initial eligibility review and ensure you don’t miss the deadlines.

Contact us

📞 +356 2152 1025/6

✉️ info@brainston.mt

Once registered, employers must:

• Apply the correct FSS tax treatment for each employee
• Calculate payroll tax and Social Security Contributions (SSC)
• Deduct and pay the relevant tax and SSC amounts
• Submit the required statutory forms within the prescribed timeframes
• Complete annual reconciliations to confirm all figures are aligned

• • Class 1: For employees, contributions are deducted monthly from their gross emoluments by their employers. Employers are required to remit these contributions to the Malta Tax and Customs Administration (MTCA) each month.
  • Class 2: For self-occupied individuals (earns income from a trade, business, profession, vocation or other economic activity), contributions are paid quarterly directly to the Commissioner for Revenue (April, August and December) on the net annual income from the prior year.

https://mtca.gov.mt/personal-tax/fss/social-security-contribution-rates/social-security-contribution-rates

1)    A patent or patents whether issued or applied for (including where the issue of the patent is still pending) and extensions of patent protection.

In the case of a patent which has been applied for and is pending, in the event that the application is eventually rejected, such patent shall cease to constitute qualifying IP from the beginning.

or

2)   Any of the following:

• assets in respect of which protection rights are granted in terms of national, European or international legislation, including those relating to plants and genetic material and plant or crop protection products and orphan drug designations; or
• utility models; or
• software protected by copyright under national or international legislation;

or

3)    In respect of a small entity*, other intellectual property assets as are non-obvious, useful, novel and having features similar to those of patents, to the satisfaction of the Malta Enterprise, which shall determine this through a transparent certification process in terms of guidelines issued by the Malta Enterprise.

*Small entities -> Group total turnover not exceeding €50m and stand-alone gross revenue from all its intellectual property assets not exceeding €7.5m.

Important note: Marketing-related intellectual property assets including brands, trademarks and trade-names shall not constitute qualifying IP.

1)    The following activities shall be carried out wholly or in part by the beneficiary, solely or together with any other person or persons or in terms of cost sharing arrangements with other persons, whether these are resident in Malta or otherwise:

• the research,
• planning,
• processing,
• experimenting,
• testing,
• devising,
• designing,
• development,
• similar activity leading to the creation, development, improvement or protection of the qualifying IP, including among others: functions carried out in the course and as part of the above-mentioned activities which are performed by employees of other enterprises, which employees are acting under the specific directions of the beneficiary in a manner equivalent to that of employees of such beneficiary; functions carried out through a permanent establishment (including a branch) situated in a jurisdiction other than the jurisdiction of residence of the beneficiary, where such permanent establishment derives income which is subject to tax in the jurisdiction of residence of the beneficiary;

2)    the beneficiary shall be the owner of the qualifying IP or the holder of an exclusive license in respect of the qualifying IP. Where the beneficiary creates, develops, improves or protects the qualifying IP together with any other person or persons or in terms of cost sharing arrangements with other persons, the beneficiary must own or share in the ownership of the qualifying IP or be the holder of an exclusive license in respect thereof in order to satisfy this condition;

3)    the qualifying IP is granted legal protection in at least one jurisdiction;

4)    the beneficiary maintains sufficient substance in terms of physical presence, personnel, assets or other relevant indicators, as is commensurate with the type and extent of activity being carried out in the relevant jurisdiction in respect of the qualifying IP;

5)    where the beneficiary is a body of persons, such beneficiary is specifically empowered to receive such income; and

6)    the beneficiary requests the Patent Box Regime deduction in computing his income or gains in the tax return.

Important note: Where a benefit under these rules has been claimed in respect of a patent that is still pending, and the application in respect of such patent is eventually rejected, any such benefit claimed shall be reversed by making the appropriate adjustment in the year in which it is ascertained that the particular patent is not being issued.

• expenditure incurred directly by the beneficiary for, or in the creation, development, improvement or protection of, the qualifying IP;
• expenditure incurred by the beneficiary for activities related to the creation, development, improvement and protection of the qualifying IP subcontracted to persons which are not related to the beneficiary; and
• other expenditure which has been incurred for the acquisition, creation, development, improvement or protection of the qualifying IP, which does not fall within paragraphs (a) and (b), can be allowed up to a limit. Excluding expenditure consisting of interest payments, building costs, acquisition costs or any costs that could not be directly linked to a specific qualifying IP.

Expenditure for general and speculative research and development which cannot be included in the qualifying IP expenditure of a specific qualifying IP asset can be divided pro-rata across all the qualifying IP assets to the extent that they are incurred for the creation, development, improvement or protection of such qualifying IP.

• all expenditure actually incurred by the beneficiary and constituting qualifying IP expenditure and any other expenditure incurred by any other person which would constitute qualifying IP expenditure had it been incurred by the beneficiary, and
• acquisition costs and expenditure for out sourcing activities made to related parties.

Important Note: The qualifying IP Expenditure cannot exceed the Total IP Expenditure.

• Income and gains in terms of articles 4 or 5 of the Income tax Act and which is derived from the use, enjoyment and employment of the qualifying IP;
• Royalty or similar income whether this is embedded in the consideration for the sale of goods and, or services or otherwise;
• Advances and similar income derived from the qualifying IP;
• Any sum paid for the grant of a licence or similar empowerment to exercise rights under qualifying IP;
• Compensation for infringements in respect of qualifying IP whether such compensation is granted through judicial means or otherwise;
• Gains on disposal of qualifying IP and such other similar or related income as is derived from the qualifying IP.

The qualified income or gain is calculated after deducting such expenditure, whether of a capital nature or otherwise, as is deductible from income derived from the qualifying IP.

The determination of the above-mentioned income or gains shall be made on the basis of a Transfer Pricing method which is appropriate for this purpose in terms of the OECD’s Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations.

Follow the link for more information on Company Tax Treatment in Malta