Qualifying Employment in Aviation

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

1. The beneficiary should be bound by a legal contract of employment carrying a minimum amount of emoluments of € 45,000 (excluding fringe benefits) not exceeding €5,000,000;
2. Employment shall be with a company that is licensed and/or recognised by the Transport authorities.
3. 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;
4. 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;
5. 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, commencing from the first year of assessment in which that person is first liable to tax in Malta.

By virtue of Legal Notice 104 of 2022, the beneficiary, irrespective of whether has already availed himself of the benefit or not, shall be eligible to two extensions of five years each. The eligibility under such regime shall in no case exceed a consecutive period of 15 years.

This regime shall remain applicable until 31st December 2025. It is anticipated that updated rules will come into effect as from 1st January 2026.

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.