Qualifying Employment in Aviation

The tax regime allows individuals, who are not domiciled in Malta and employed within the Aviation Industry, can avail themselves of a flat tax rate of 15%.

There are a number of conditions which need to be satisfied in order for the said rate to apply:

The beneficiary should be bound by a legal contract of employment carrying a minimum amount of emoluments of € 45,000 (excluding fringe benefits);
The individual should be duly qualified or possess the required experience to conduct the eligible office (an eligible office includes senior and managerial roles within the company operating in the aviation industry) and does indeed conduct such activities to fulfil her/his position;
The individual should reside in an accommodation regarded as normal for a comparable family in Malta and should be in receipt of regular and stable resources to maintain himself and her/his family without recourse to the social assistance system;
The beneficiary should be in possession of a travel document as well as a sickness insurance cover.

The said favourable tax regime applies from the basis year 2016, limited to 5 consecutive year period to both EU/EEA nationals as well as non-EU/EEA nationals.

By virtue of Legal Notice 1 of 2017, a one-time extension has been granted in relation to such regime, irrespective of whether the beneficiary has already availed himself of the benefit or not.

The beneficiary shall be eligible, upon application, for a one-time extension of five years. The eligibility under such regime shall in no case exceed a consecutive period of 10 years.

Have a question, comment or want to know more? Our Tax team will be able to analyse your current tax position, assess if the said regime is the most favourable for you and help you apply for such an incentive.

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Personal taxation

Personal Taxation

For tax purposes, individuals are considered to be residents in Malta if they declare their intention to take a Maltese residency within 3 months of their arrival in Malta.