Nestled in the Mediterranean Sea and located just below Italy and Sicily and just above the Northern African of Libya, the archipelago country of Malta is a nation famed for its breath-taking coastline and warm climate.
The island country is a prime location for history enthusiasts, diving enthusiasts and those who wish to soak up the culture. Not only that, but the country is a member of the European Union and uses the euro. Thus, there are many reasons why Malta can be a very attractive country for contractors and freelance professionals. But you are probably wondering what the country's most in-demand skills and most popular industries are in addition to the requirements for working as a contractor in Malta. Throughout this piece, we will answer these questions.
In-Demand Skills and Defining Industries:
Despite its small size, the country of Malta presents a range of job opportunities, particularly in the IT, I Gaming, Biotech and Pharmaceutical industries. According to MaltaJobs.com, the I Gaming industry accounts for 8% of the country's GDP and employs workers across various roles, from Marketing & Sales to Developers and IT professionals. The most in-demand skills for professionals in Malta are in sales, marketing, accounting, administration, auditing, pharmaceuticals, cloud technology software, and front-end development.
Permits and Visa Requirements:
If you are a citizen of another EU country, you will not be required to apply for a visa to work in Malta. However, you will be expected to obtain a residence permit.
However, the rules are different for non–EU citizens. One such permit that non-EU citizens can apply for is the Nomad Residence Permit. The permit was introduced In 2021 by the government of Malta. Contractors and freelance professionals can apply for this permit if they meet the relevant criteria. Once approved, the contractor must renew the permit yearly for a maximum of 3 years. For more information regarding the Nomad Residence Permit, visit the Residency Malta website.
If you are a non-EU citizen and want to explore what visa options are available or discuss the Nomad Residence Permit, please get in touch with us today!
Tax Considerations:
Malta's tax system differs from many of its European counterparts. Therefore, there are some considerations contractors must consider to comply with the country's tax laws. These include:
- Correctly file your taxes and complete a tax liability self-assessment.
- Follow the rules and regulations around tax residency. Take a look at our recent article on the 183-day rule, where we examine its relevance to contractors.
It is essential to note that the tax rates in Malta depend on one's annual income and range between 0 – 35%, irrespective of whether one is a Maltese resident. One must also note that a reduced tax rate of 10% applies to those whose income falls below 12,000 per annum under the part-time self-employment rate.
Social Security Contributions:
Contractors and freelance professionals must make the required contributions to their Social Security program based on their net income. However, EU citizens may not have to make these contributions if they pay for a program in their home country. For more information on Social Security contributions, please visit the official government website.
How do I get paid as an International Contractor In Malta?
There are a number of avenues that international contractors can choose from that best suit their needs. Some of these options include.
- Establishing a limited company.
- Working with an Umbrella company.
- Operating as a self-employed contractor.
It's important to note that contractors must weigh the relevant options according to their needs to determine the best one.
In Conclusion:
There are several considerations that need to be made by international contractors working in Malta, from taxation & payments to visas and permits. Contractors must comply with all regulatory and taxation laws to work within Malta. We understand that navigating a new tax system, invoicing clients, sorting out Social Security and applying for the relevant permits is often overwhelming and confusing. Our team at 3C Global are here to help with all your contractor queries, from different contractor engagement models to insurance to taxes and visa applications, just to name a few. If you are considering working as a contractor in Malta, contact our team today to get started!
