Can I be self-employed in Malta?
- EU, EEA and Swiss citizens: yes. You can register as self-employed in the same way as Maltese citizens.
- Non-EU citizens: you need a permit that allows self-employment. This is not easy to get. Ask Identità or a licensed adviser before you start.
You can be full-time self-employed, or part-time self-employed next to a normal job.
Step by step
- Get your ID and tax number. Your e-Residence card number is also your tax number. See Residence Cards.
- Register with Jobsplus as self-employed. Fill in the Jobsplus self-employment form (full-time or part-time) and email it to Jobsplus.
- Register for VAT. Apply online with the Malta Tax and Customs Administration (MTCA). Choose Article 10 or Article 11 (see below).
- Open a bank account for your business. Keep business and personal money separate.
- Start invoicing. Give your clients a VAT invoice or fiscal receipt for every sale.
- Pay your social security (Class 2) and tax. See the guides below.
- Keep your records. Keep all invoices and receipts for at least 10 years.
Some jobs also need a licence or permit, for example food, building or financial services. Business First, the government's business help desk, can tell you if you need one.
VAT - Article 10 or Article 11?
| Article 11 (small business) | Article 10 (standard) | |
|---|---|---|
| Who | Turnover up to €35,000 a year | Turnover above €35,000, or you choose it |
| Charge VAT to clients? | No | Yes, usually 18% |
| Claim back VAT you pay? | No | Yes |
| VAT number | No "MT" in front | Starts with "MT" |
| Returns | One declaration a year | A VAT return every 3 months |
Most new freelancers with local clients start with Article 11. If you work for businesses in other EU countries, or buy services from abroad, you may also need an Article 12 registration. Ask an accountant.
Tax and social security
- Income tax: you pay tax on your profit (income minus business costs), at the normal rates. Part-time self-employed people may be able to pay a flat 15% on the first €12,000 of profit. Read Income Tax for Self-Employed and Businesses.
- Social security: you pay Class 2 contributions, based on your profit. Read Social Security for the Self-Employed.
- When to pay: tax and social security are paid in three parts during the year. Read Payment Dates for VAT, Tax and Social Security.
Good to know
Self-employed or employee? If you work full-time for one client, at their office, with their tools and their hours, Malta may see you as an employee, not self-employed. Jobsplus checks this with a set of rules. Read more in Income Tax for Self-Employed and Businesses.
A local accountant usually costs a few hundred euro a year for a simple sole trader. It is often worth it in your first year.