Malta has reinforced its strategy to position itself as a premier hub for family offices and private wealth management with the introduction of a new preferential tax regime under Legal Notice 250 of 2025, titled “The Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules, 2025”. These rules which came into force retroactively on 1 January 2025, aim to attract and retain highly skilled professionals in senior roles across the private wealth and financial services ecosystem.
Under the new rules, eligible individuals may opt for a reduced 15% flat tax rate on qualifying employment income of up to €7,000,000 annually. Any income above this threshold is taxed at the standard 35% tax rate. This incentive is available for an initial five-year period, with the possibility of two further five-year extensions, allowing professionals to benefit for up to 15 consecutive years. All benefits under the regime, however, will cease after 31 December 2040.
To qualify, professionals must meet strict eligibility criteria, including:
- earning a minimum annual basic salary of €65,000 (a threshold that will increase by €10,000 every five years);
- holding relevant professional qualifications or substantial experience; and
- having their first employment in Malta fall within a recognised family-office or treasury-related role.
Beneficiaries must also be non-domiciled, maintain suitable accommodation, hold private medical insurance, and derive their income from duties carried out in or connected to Malta.
The regime applies to senior management and specialist roles such as chief executive officers, heads of back office, risk and compliance officers, portfolio managers, senior traders, and similar positions. Only individuals employed within family offices, undertakings providing back-office services to family offices, or treasury management structures, and recognised by the Malta Financial Services Authority (“MFSA”), are eligible.
The MFSA serves as the competent authority responsible for reviewing applications, which may be submitted between 1 January 2025 and 31 December 2034. Applicants must provide evidence of their qualifications, experience, and compliance with all conditions. Once approved, beneficiaries receive a formal determination granting access to the reduced tax rate.
The measure is widely seen as a strategic step to strengthen Malta’s competitiveness, attract global financial expertise, and further enhance the country’s reputation in the family-office and private-wealth sector.
