Introduction to Self-Employment in Malta
Malta offers a straightforward legal framework for individuals wishing to operate as freelancers or self-employed persons. In the Maltese administrative system, a freelancer is typically registered as a "Sole Trader." This status means the individual and the business are legally viewed as the same entity. For the years 2025 and 2026, the process remains digitized through the Business First portal, though requirements vary significantly based on your nationality.
Legal Structures and Definitions
Foreigners moving to Malta for freelance work must choose between two primary legal structures:
- Sole Trader: The simplest form. You operate under your own name or a registered trade name. You are personally liable for all business debts.
- Limited Liability Company (LLC): A separate legal entity. This is more complex to set up and is usually reserved for higher-turnover businesses due to audit requirements.
Most independent professionals choose the Sole Trader path due to lower administrative costs. Registration with Business First is the primary step for all applicants.
Residency and Work Authorizations
Your right to work as a freelancer depends on your citizenship:
- EU/EEA/Swiss Nationals: Have the right to reside and work in Malta. They must apply for a registration certificate (Residence Card) if staying longer than three months.
- Third-Country Nationals (TCNs): Generally require a specific work permit. Self-employment for TCNs is subject to high criteria, often requiring an investment of at least 100,000 EUR ($105,000 USD, Jan 2026) in capital expenditure.
- Nomad Residence Permit: Designed for remote workers whose clients are outside Malta. This permit does not allow you to provide services to local Maltese companies.
Registration Process: Step-by-Step
To legally operate as a freelancer in Malta, you must complete the following steps in order:
1. Jobsplus Engagement Form
You must inform Jobsplus (Malta's employment agency) of the start of your self-employment. This is done by submitting an "Engagement Form." There is no fee for this submission.
2. Tax Registration
You must register with the Commissioner for Tax and Customs (CFR). Once registered, you will be assigned a tax identification number. Self-employed individuals are taxed at progressive rates ranging from 0% to 35%.
3. VAT Registration
Even if you expect low turnover, you must register for a VAT number. There are two main types:
- Article 11 (Exempt): For those with a turnover below 30,000 EUR ($31,500 USD, Jan 2026) per year. You do not charge VAT but cannot claim it back on expenses.
- Article 10 (Standard): For those exceeding the threshold. You must charge VAT (usually 18%) and can recover VAT on business-related purchases.
Social Security and Contributions
Self-employed individuals in Malta are responsible for their own Social Security contributions, known as "Class Two" contributions. These are paid three times a year: in April, August, and December.
The rate is approximately 15% of the previous year's earnings, though minimum weekly rates apply. For 2026, the minimum weekly contribution for most starts at roughly 35 EUR ($36.75 USD, Jan 2026).
Payment of these contributions entitles the freelancer to state healthcare, sickness benefits, and a contributory pension. For more information, visit the official Social Security Portal.
Summary of Compliance
Maintaining a freelance status in Malta requires annual filing of a tax return (Self-Assessment) and periodic VAT returns (quarterly or annually depending on your status). It is highly recommended to consult a local accountant to ensure compliance with the specific tax treatments of your profession.