Several important legislative changes were published over the course of January 2026. Below is an overview of the key updates across different areas.
On the 23rd of January 2026, the Tax Treatment of Highly Skilled Individuals Rules, 2026 were published, introducing a 15% tax rate on qualifying employment income (amounting to a minimum of €65,000 per annum) earned by highly skilled individuals working in specified regulated roles who are not domiciled in Malta. Once the application for the special tax status is approved, it applies for a period of five years, which may be extended twice, each time for an additional five years.
In addition to the bills mentioned in our previous legal update for December 2025, one bill is currently in progress. The Corporate Sustainability Reporting (Amendment) Bill (Bill No. 162 of 2026) aims to amend various laws relating to Corporate Sustainability Reporting.
At a European level, on the 20th of January 2026, the European Commission proposed a new cybersecurity package to further strengthen the EU’s cybersecurity resilience and capabilities in the face of growing cybersecurity threats. The package includes a proposal for a revised Cybersecurity Act, which enhances the security of the EU’s Information and Communication Technologies (ICT) supply chains. It ensures that products reaching EU citizens are cyber-secure by design through a simpler certification process. It also facilitates compliance with existing EU cybersecurity rules and reinforces the EU Agency for Cybersecurity (ENISA) in supporting Member States and the EU in managing cybersecurity threats.
In the financial regulation sphere, the European Securities and Markets Authority (“ESMA”) has launched the first selection procedure for the Consolidated Tape Provider (CTP) for Over-The-Counter (OTC) derivatives. Entities interested in applying are encouraged to register and submit their requests to participate in the selection procedure by 11 February 2026. The CTP will collect and disseminate data on OTC derivatives based on the proposals in ESMA’s Final Report on transparency for derivatives. The contract notice and procurement documents are available on the EU Funding & Tenders Portal. On the 6th January 2026, ESMA published its third report on marketing requirements and marketing communications under the Regulation on cross-border distribution of funds. The report includes statistics on notifications of cross-border marketing of funds. Drawing on input from National Competent Authorities, the report finds that national rules governing the marketing of funds have not undergone any significant changes since the publication of the second report in 2023.
Locally, the Capital Markets Rules underwent two rounds of updates in January 2026. Firstly, the Malta Financial Services Authority (“MFSA”) issued a Circular with reference to its initiative pertaining to Pillar III of its Capital Markets Strategy, namely that of strengthening the Sponsors’ Regime. Following the publication of the latest Feedback Statement on the proposed legislative framework and updates to Chapter [-] of the Capital Markets Rules in relation to this initiative, the MFSA noted that the legislative process to implement the relevant legislative instruments has been duly concluded. Further to this, on the 29th January 2026, the MFSA issued a Circular with reference to Chapter 8 of the Capital Markets Rules, specifically Section VI, which outlines the application procedures, requirements and continuing obligations of open-ended schemes authorised for admissibility to listing and which satisfy the definition of an Exchange Traded Fund (ETF). Having regard to developments in the local market, the MFSA amended the relevant chapter of the Capital Markets Rules to allow for a wider range of funds, other than ETFs, to be admitted to trading on a local regulated market. The latest version of the Capital Markets Rules is available here.
On the 7th January 2026, the Insolvency and Receivership Service within the Malta Business Registry published the Code of Ethics and Professional Conduct for Insolvency Practitioners. This Code defines the requirements of professional conduct for insolvency practitioners, with the purpose of safeguarding the standing of their profession, continuously updating it and to create a uniform set of rules of conduct, setting out their duties and obligations to meet the ethical standards expected of them.
In relation to taxation, the Malta Tax and Customs Authority (“MTCA”) announced that further to the previous Customs communications on the Carbon Border Adjustment Mechanism, CBAM entered full operation on the 1st January 2026. In line with this, the validation of CBAM authorisations for CBAM goods is enforced by Customs before Release for Free Circulation, including the monitoring of 50 tonnes threshold, while facilitating SME Importers of CBAM goods in alignment with Omnibus package. On another note, following months of intense negotiations, the comprehensive package for a “side by side” arrangement was announced on the 5th January by the Organisation for Economic Co-operation and Development.
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