Self-Employed Person (SEP) in Malta

Malta, with its business-friendly atmosphere and low tax rates, is identified as an attractive country to register as a self-employed person.

So let’s take a look at the legal aspects and benefits of registering as a self-employed person in Malta, as well as the main steps you need to take to complete the process.

If we talk about the features of the ” self-employed”  in Malta, then we can start with the fact that a self-employed person in Malta is an individual who decides to develop his entrepreneurial activity in a personal legal form.

This status allows doing business at the local and international level, enjoying certain tax and administrative benefits.

Regarding the registration of a self-employed person in Malta

Before registering as a self-employed person in Malta, it is important to consider certain requirements. In particular, the person must be a resident of Malta, have a stable income, and a defined type of activity.

Self-employed status offers benefits such as flexibility in business management, low administrative responsibilities, and certain tax benefits.

To register as a self-employed person, you just need to go to the government website Malta ( https://cfr.gov.mt/en/Pages/Home.aspx ), where everything is quite clear.

Firstly, you will need to choose what you want to apply for, namely ‘Sole traders holding a valid Maltese ID’ or ‘Legal representatives of a company’.

You will then need to fill in your basic (contact) information such as your address and phone number to continue.

Next, you will need to indicate what service your business will provide. You will be asked about your salary for tax purposes, whether you will be working full-time or part-time as a self-employed person if this is your only form of income and other such questions.

After filling out the online form, you first receive an e-mail with a VAT number, and after that, you receive an official certificate with a VAT number by post. The process of online registration of a self-employed person can take about 10-15 minutes.

Regarding the tax aspects for the self-employed person in Malta

Features of the tax regime for a self-employed person include taxation on the basis of income. It is important to understand the tax rates and explore the possibilities of receiving tax benefits.

Malta offers some advantages for the self-employed, such as reduced rates of income tax and the possibility of taking advantage of tax credits.

A self-employed person must arrange their own social security, unlike someone who has an employer who withholds income tax and social security from wages on their behalf. For self-employed persons, the annual income tax rate is 15%.

As for income tax, if you earn less than €9,100, no tax will be deducted. From €9,101 to €14,500 the tax rate is 15%, from €14,501 to €19,500 the tax rate is 25%. From €19,501 to €60,000 your tax rate is 25% and from €60,001 and above your tax rate is 35%.

Foreigners intending to register as self-employed persons in Malta should take into account some differences and peculiarities. This includes residency requirements, membership in the Maltese legal system, and work permit opportunities.

The status of a self-employed person opens wide opportunities for business development in Malta.

Due to the stable economy and favorable business climate, many self-employed people choose Malta to conduct their business. In particular, this applies to the fields of tourism, information technology, and financial services.

When registering a self-employed person, especially by foreigners, it is important to consider key legal and strategic aspects.

Among them are interaction with local tax authorities, compliance with the rules of foreign investors, and elimination of possible legal risks.

Therefore, registering a self-employed person in Malta is an important step for those who want to do business in one of the most attractive countries in Europe.

Knowing the legal aspects, and tax benefits, and studying the requirements are key to successfully registering and further developing your business in Malta.

Understanding these aspects helps to maximize benefits and avoid possible difficulties associated with entrepreneurial activity.