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Malta Country Guide 2022

Malta

Malta is the smallest EU member state, made up of three islands; is has a Mediterranean climate, lots of beautiful beaches and a mostly English-speaking population. Malta has some of the lowest taxes in Europe, and the cost of living is very affordable; the community is friendly and diverse, and the economy is booming.

Due to its small size, Malta can get quite crowded, and it does have a limited calendar of cultural activities. The public transportation is also not yet up to par with the rest or Europe, and it can be difficult to lease property due to low tenant protection.

  • Capital: Valletta
  • Spoken Languages: Maltese, English
  • Currency: Euro (EUR)
  • Minimum monthly wage: EUR 792.30 (Gross)

Entry Visa

Citizens of EU/EFTA Member States and Switzerland can enter Malta with an identity card or a valid passport; other foreign citizens may enter with a valid Schengen visa.

Work Permit / Residence Permit

Citizens of EU/EFTA Member States and Switzerland can live and work without a work or residence permit in Malta. However, they will still need to register their stay with the Department for Citizenship and Expatriate Affairs in Malta within three months of their arrival.

Other foreign nationals must obtain a Single Permit (Employment License and Residence Permit) for work, and a National Long-stay “D” visa to enter the country. Application for the single permit is done by the employer; they must provide proof that they could not find a qualified Maltese or EU/EAA national for the position, and also purchase private health care insurance for the employee for the duration of the employment contract. This permit covers only the specified employer and is not transferable.

Once the permit is received, the individual may apply for the D visa to enter Malta and complete the process to obtain an e-Resident card at the Department of Citizenship and Expatriate Affairs Office (DCEA).

Social Security Registration

The application for a Social Security Number can be done online.

Working Hours

A standard working week in Malta is 8 hours/day, or 40 hours/week; overtime may not exceed an average of 48 hours/week.

Public Holidays

  • 01 January (New Year’s Day)
  • 10 February (Feast of St Paul’s Shipwreck)
  • 19 March (Feast of St Joseph)
  • 31 March (Freedom Day)
  • Good Friday (Not a standard date, usually March/April)
  • 01 May (Worker’s Day)
  • 07 June (Sette Giugno)
  • 29 June (Feast of St Peter and St Paul)
  • 15 August (Feast of the Assumption)
  • 08 September (Victory Day)
  • 21 September (Independence Day)
  • 08 December (Immaculate Conception)
  • 13 December (Republic Day)
  • 25 December (Christmas Day)

Vacation Allowance

Employees in Malta on full time employment of 40 hours a week are entitled to at least the equivalent in hours of four weeks and thirty-two hours (192 hours) of vacation leave per year. For part-time workers, the leave entitlement is calculated on a pro rata basis dependent on the number of hours worked. It is possible to carry forward up to 50% of unused leave until the next year, as long as there is an agreement with the employer.

Sick Leave

The amount of sick leave an employee in Malta is entitled to is dependent largely on the industry sector and the relevant Wage Regulation Order (WRO). For sectors not covered by WRO, the employee is entitled to at least two working weeks of paid sick leave per calendar year, calculated in hours; for other sectors, the duration is determined by the WRO.

Maternity / Paternity leave

  • Maternity: 18 weeks: 4 weeks before expected date of birth, 6 weeks after birth  – this is compulsory. The remaining 8 weeks can be taken  either whole or in part, either before or after the birth. The first 14 weeks are paid in full wages by the employer; the remaining 4 weeks are covered by the Maternity Leave Benefit Fund.
  • Paternity: 1 day is the employment sector is not covered by a Wage Regulation Order.; otherwise, number of days is dependent on the WRO.

Termination & Severance

After termination of employment, there is no legal severance pay or redundancy compensation; however, in some circumstances, it is possible for an employee to receive 50 – 100% of their wages in lieu of working during the notice period.

Notice Period

The minimum notice for both employer and employee is 15 days. However, this my be extended by the employment contract.

Duration of employmentDuration of employment
1 Month – 6 Months1 Week
6 Months – 2 Years2 Weeks
2 Years – 4 Years4 Weeks
4 Years – 7 Years8 Weeks
7 Years +Additional 1 Week per extra year of service, up to 12 Weeks.

Social Security

Employee social security contributions are deducted automatically from the wage, while employer contributions are paid by the employers themselves  – this is done weekly.

The contribution amounts depend on the employee’s weekly wage and date of birth; some contributions are a fixed sum, others a percentage of the whole or part of the weekly wage. There are two types of contribution – maternity, paid for only by the employer, and everything else.

Weekly Wage (EUR)Employer (EUR or %)Employee (EUR or %)Maternity (EUR or %, Employer only)
0.10 – 182.8318.28 EUR18.28 EUR or 10% *0.55 EUR
Persons born up to 31st December 1961
182.84 – 378.9810%10%0.30%
378.99 +37.90 EUR37.90 EUR1.14 EUR
Persons born from 1st January 1962 upwards
182.84 – 499.7310%10%0.30%
499.74 +49.97 EUR49.97 EUR1.50 EUR

* If the employee chooses to pay a percentage of the weekly wage rather than a fixed sum, they are entitled to pro rata contributory benefits.

Pension

Pension in Malta is covered by social security contributions, and foreigners paying social security in Malta are also eligible; the amount received is dependent on the maximum average contributions paid, ranging from 15 weeks/year for a reduced pension to 50 weeks/year for a full pension.

Taxation

The Maltese fiscal year runs from January 1 to December 31.

Tax Rates

The following progressive rates apply for 2022.

Taxable Income (EUR)Rate (%)Deduction (EUR)
0 – 9,1000%0
9,101 – 14,50015%1,365
14,501 -19,50025%2,815
19,505 – 60,00025%2,725
60,001 +35%8,725

Tax is calculated by the formula (Taxable Income * Rate) – Deduction. The deduction amounts are slightly higher for married couples who file joint taxes, and individuals with children.

Tax Returns

The annual income tax return must be filed until 30 June the following year; this can be done online.

Double Taxation

Malta has tax treaties with multiple other countries, which can reduce payable tax on certain incomes. It is also possible to obtain tax relief in either Malta or the individual’s home country to avoid double taxation on the same income.

Health Insurance

Free healthcare in Malta is available to all Maltese citizens and members of the EU with a European Health Insurance Card. Foreigners working in Malta must obtain private health insurance; this is usually paid for by the employer.

Cost of Living

Free healthcare in Malta is available to all Maltese citizens and members of the EU with a European Health Insurance Card. Foreigners working in Malta must obtain private health insurance; this is usually paid for by the employer.


How We Can Help

We provide a full set of services in Malta allowing corporate clients, recruitment agencies and professional contractors to operate in an optimal manner while ensuring that all local employment obligations are taken care of.

Access Financial offers the following solution in Malta:

  • Self-Employed Solution

If you would like to discuss how Access Financial can help in Malta, please contact us.

Disclaimer

WE HAVE PREPARED THIS AS A GUIDE ONLY; IT DOES NOT FORM PART OF AN OFFER. PLEASE REQUEST ILLUSTRATIONS BASED ON YOUR SPECIFIC CASE FROM ONE OF OUR SOLUTION MANAGERS.