½ûÂþÌìÌÃ

Menu
½ûÂþÌìÌÃ

Self employed person in Malta

Post new topic

Rico29

Hello there

As I am planning to relocate to Malta in early February 2014, I have one clarification concerning the self employment status and the taxes linked to it.

Should I pay the 15% income tax rate plus the social insurance of 27€ a week or are there other taxes?

Thanks a million
Rico

mantonas

Hello Rico,

From what I know and from my own experience as a SE in Malta too, your only contributions will be tax and social security. On you 1st year in Malta as a SE, you will pay a NI fix rate of €27.86 per week, which meeds to be paid every end of April, August and December. Basically, you will need to count how many Mondays are on each period and multiply by €27.86.
From the 2nd year on, your NI rates will be calculated depending on your status (single, married, parent, etc) and your earnings. You can check the rates .

Now, in regards to income tax, you won't need to pay any tax on your first here in Malta too. In my case, they told me not to worry about this year's tax and that I would need to fill a tax form on the beginning of next year which would work my tax rates for the following tax years. They also told me they would do a calculation of how much were my earnings for this current year and I would have to pay some sort of provisional rate. For the following year tax rates, you can check it .

I still need to contact the tax office anyway to make sure everything is fine for this year and to avoid any misunderstanding.

Well, I hope the above info may help you Rico but when you come to Malta, you can always get in touch with the SS and Tax offices and I am sure they will be able to clarify any doubts you may have.

Best of luck! ;)

Antonio

Kolac

"Rates for Class Two Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year."

wot dos that mean exactly ?
preceding year before malta might mean zero (as how would they know what u were paid before), so by that u would pay nothing in ur first year...
if preceding year is ur first year in malta, then it would also mean that u would pay nothing in ur first year for social security... but in ur second year based on ur first year earnings level...

i was told for provisional tax that u get ur rates according to wot u earned 2 years prior... so in ur first year u shouldnt pay any provisional tax, but u square it up in year 2 when u fill in your tax declaration etc (and then hand over wot u owe for ur first year in tax)... then following on from this, provisional tax should only kick-in during the third year...

however, one does get told various things for the same question...

Articles to help you in your expat project in Malta

  • The tax system in Malta
    The tax system in Malta

    Whether you have decided to work or retire in Malta, taxation will probably be one of your main ...

  • How to drive in Malta
    How to drive in Malta

    Malta is a relatively small island measuring only 27km long and 14,5km wide, so it seems on paper to be very ...

  • Accidents and emergencies in Malta
    Accidents and emergencies in Malta

    A stay abroad is usually associated with great memories. However, it could happen that an accident or emergency ...

  • Resident and work permit for Malta
    Resident and work permit for Malta

    Getting a resident card and a work permit in Malta is an essential step for any expat. Living in Malta does ...

  • Finding work in Gozo
    Finding work in Gozo

    If you are planning to live in Malta, why not settle and work in Gozo? Although it is quieter than the main island ...

  • Accommodation in Malta
    Accommodation in Malta

    As an expat in Malta, one of the first steps is to find accommodation. Malta has a quickly and continuously ...

  • Phones and internet in Malta
    Phones and internet in Malta

    Despite being a small archipelago, Malta hosts a very advanced telecommunications network. If you are ...

  • Finding work in Malta
    Finding work in Malta

    Malta is world famous for its postcard-worthy beaches and beautiful landscapes. Indeed, this tiny island nation ...

All of Malta's guide articles