Here's a practical guide to starting and managing a freelance business in Malta, covering setup options, tax obligations, and financial management.

*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.

How to Register as a Freelancer in Malta

Becoming a freelancer in Malta is straightforward, thanks to the minimal paperwork required. Follow these steps:

1. Register with JobPlus:

• Obtain a self-employment engagement form from the JobPlus website.

• Submit the form to the address listed to formalize your registration.

2. Get a Social Security Number (EP):

• Required for social security and tax registration.

• The application form is available at the Commissioner for Revenue website under the small business section.

3. Obtain a VAT Number (if applicable):

• If your income exceeds €30,000 (threshold for services), you must register for VAT at the Office of the Commissioner for Revenue.

4. National Insurance (NI):

• Self-employed individuals must pay their own national insurance contributions.

5. Set Up Bookkeeping:

• Accurate record-keeping is vital for tax filings and expense tracking. Consider software tools or professional accounting services to manage this efficiently.

Tax Obligations for Freelancers in Malta

Taxation for freelancers in Malta is simple, based on net profits (income minus expenses):

• Income Tax:

• Net profits are taxed using individual tax rates.

• Self-employed individuals registered at JobPlus enjoy a 15% tax rate up to €12,000.

• Tax filings are due six months after the end of the tax year.

• Social Security:

• Freelancers must contribute 15% of the previous year’s income.

• A minimum contribution applies for the first year of business.

• VAT (if applicable):

• The VAT threshold for services is €30,000 annually.

• Standard VAT rate: 18%.

• Reduced VAT rates: 7% or 5% for specific industries.

• Online VAT registration is available through the Commissioner of Revenue.

Creating and Managing Invoices

Freelancers in Malta must issue VAT-compliant invoices for business transactions. Each invoice should include:

1. VAT number (if registered).

2. Client and freelancer details.

3. Description of services or goods.

4. VAT rate and amount (if applicable).

Steps to Start Freelancing in Malta

1. Register with JobPlus:

• Obtain and submit the self-employment form to formalize your status.

2. Secure National Insurance (NI):

• Ensure contributions for social security.

3. Register for VAT (if needed):

• Visit the Office of the Commissioner for Revenue website to complete this process.

4. Set Up Bookkeeping and Financial Management:

• Accurate financial records will maximize tax benefits and help track business performance.

5. Promote Your Services:

• Create a marketing strategy and network within Malta’s active business community.