The Reduced 7.5% Tax Rate for Creative Professionals in Malta

Creative professionals in Malta can benefit from a reduced 7.5% tax rate on eligible artistic income (capped at €50,000), provided they apply by 2 April and meet specific criteria under Legal Notice 137 of 2025.

This measure is designed to support artists, performers, writers, producers, and other creative practitioners by providing a simplified and reduced tax framework on qualifying income. Below is a clear breakdown of how the scheme works, who qualifies, and what deadlines apply.

What Is the 7.5% Tax Rate?

Under the new rules, eligible individuals may opt to be taxed at a flat rate of 7.5% on the net income generated from qualifying artistic activities.

• The reduced rate applies to net income capped at €50,000

• The tax paid under this scheme is final

• No tax refunds, offsets, or credits can be claimed against this payment

• Income exceeding €50,000 must be declared in the annual tax return and will be taxed at the normal progressive income tax rates

  
  

This provides certainty and a lower effective tax burden for many professionals operating within the creative sector.

What Qualifies as Artistic Activities?

The reduced rate applies to income derived from a wide range of artistic and creative activities, including:

• Theatrical, stage, motion picture and television productions

• Exhibitions

• Paintings and sculptures

• Literary and musical works

• Intellectual property and royalties

• Project management related to artistic productions

Eligible NACE Codes

To qualify, your economic activity must fall under one of the following NACE Code Rev 2.1 classifications. Your NACE code can be found on the information sheet attached to your VAT certificate.

NACE Code	Description
58.11	Publishing of books
58.21	Publishing of video games
59.11	Motion picture, video and television programme production
59.12	Motion picture, video and television programme post-production
59.20	Sound recording and music publishing
90.11	Literary creation and musical composition
90.12	Visual arts creation
90.13	Other arts creation activities
90.20	Activities of the performing arts
90.31	Operation of arts facilities and sites
90.39	Other support activities for the arts and performing arts

If your activity does not fall under one of the above classifications, you may not qualify for the reduced rate.

Application Process and Deadline

Applications for the Reduced Rate of Tax for artists must first be submitted online through Arts Council Malta by completing the application form in the Open Calls section and uploading all required supporting documents, including the VAT Certificate, proof of NACE Rev 2.1 classification, and the Accountant’s Declaration. Once submitted, applicants will receive an automatic acknowledgement, and complete applications will be processed within 20 working days, after which a notification letter confirming eligibility will be issued.

The deadline to submit the request for Basic Year 2025 is Wednesday, 2nd April 2026 at noon. Following approval, applicants must submit the TA26 form through the myTax portal; forms submitted after 30th April 2026 will incur a 0.6% monthly interest.

MCP Accountancy Services can assist applicants throughout the entire process, including the submission of the application and completion of the TA26 form.