Malta is growing in popularity with international contractors and recruiters due to some major projects in Telecommunications, Oil & Gas and IT. We organise business visas, work permits, local payroll and tax compliance for freelancers, recruitment agents and international companies providing services in Malta. Additionally Malta has a fascinating culture, relaxed lifestyle, great food and a wide range of regional travelling options. If you are thinking of doing an expat assignment in Malta – you’ve come to the right place!
Foreign contractors will need support to work in Malta as the Work Permit and Taxation Systems for contracting are quite complex. It is important to use experienced local providers for Immigration, Payroll and Taxation to be sure of compliance and reliability. We have partners that will be able to assist you with: Contractors Tax and Work Visas for Freelancers to ensure that you comply with local regulations and maximize your net income.
Our assessed and qualified suppliers will ensure tax and work permit compliance but also that you’re retaining the highest possible net % return on your gross billing as is legally possible. Our services in Malta include:
Tax, Payroll and Employment Solutions for Contractors
Sponsored Work Permits and Business Visas for Contract / Freelance Workers
Self-Employed / Personal Companies
Expatriate Tax specialists
Insurance (Private Health / Travel / Professional Indemnity)
Bank Account Opening
Insurance (Private Health / Travel / Professional Indemnity)
You can reach all our solutions for Malta from these pages.
Recruiter Case Study:
A London based recruitment consultant had located the perfect candidate for his client, the Malta office of a German investment bank. However the candidate was a foreign national who needed a Work Permit. They needed a local entity to sponsor the work permit, run the local payroll and make sure the contractor was fully compliant. A colleague referred the agency to www.contractortaxation.com and our local partner was able to step into the breach to arrange a Malta Business Visa before the end of the week and then process the Malta Work Permit with the consultant already onsite for training. This meant the assignment was able to start on time and recruiter went on to place 3 more consultants into the project.
One of the most consistently challenging aspects of contracting in Malta is complying with the country’s tax system. Whether you’re a contractor or a permanent employee, you have to pay tax on all of your earnings whilst you’re in the country. As well as paying tax in Malta, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge. Do you get double taxation in Malta? It will depend on your nationality and the nature of your assignment in Malta. Getting to grips with the basics of income tax in Malta and understanding your options helps you work out the best way to organise your affairs.
Paying Income Tax in Malta through Your Employer
If you’re working in Malta under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Malta for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Malta, but contractors may not be offered this service because of their short stay with each employer.
Working Out Income Tax in Malta Yourself
Anybody who can’t pay their tax in Malta through PAYE is left with the prospect of filing a tax return and doing everything themselves. Do you know much about Maltese Tax Law? Does Malta have a tax treaty with your home country? You will need to find out or find someone who can help! Not only does this eat into your free time, it’s also exceptionally difficult to get the most out of the system. The rules change frequently, so if you’re new to it you may be working on out-dated research and end up paying too much. Income tax in Malta can be anything from 0 to 35 percent, and you need to be sure you are placed in the correct tax brackets.
Using an Umbrella Company for Income Tax in Malta
Contractors in Malta are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Maltese umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records). The companies are experts in Malta taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Maltese tax office or tax department directly including processing your tax refund if you are eligible.
How We Can Help You with Tax in Malta
We work with numerous umbrella companies in Malta, many of whom are experts in tax and immigration laws. If you have any questions about tax in Malta, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We also have a comprehensive knowledge of the different services they provide, and we can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Malta work permit. Our advice is 100 percent free, and it comes with no obligations. You will be paying taxes in Malta but without the overhead of directly dealing with the Maltese tax authorities. Get in touch with us today for some reliable advice on tax in Malta!
Immigration is one of the primary concerns for anybody hoping to start working in Malta. Permanent employees will find it easy to get their Malta work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer. The Maltese work permit is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Malta is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
What is a Maltese Umbrella Company?
Umbrella companies in Malta “employ” contractors, but don’t make any decisions about your workload, clients or anything to do with your day to day operation. They simply process your payments by billing and collecting money from your clients, calculating your taxes and sending you a net wage. This is equivalent to the PAYE (pay as you earn) system employed by many companies, and it makes handling your tax in Malta a lot simpler. The fact that they technically become your employer helps you get your working visa in Malta with minimal fuss.
How Can Umbrella Companies Help You Get a Malta Work Permit?
As your permanent employer, umbrella companies are able to sponsor you for your Malta work permit provided they’re on the register of approved sponsors. Many different companies offer this service, because it makes contracting in Malta infinitely simpler and saves you the hassle of continuous paperwork. Instead of changing your work permit every time you get a new contract, you can just work how you ordinarily would under the same permit. They protect you from the bureaucratic “rain” of legal compliance with the Maltese immigration authorities. They can even deal with the Maltese Embassy directly.
Through their service you may be able to use a business visa to get started quickly and then transition to a work visa in Malta. It depends on your specific Malta visa requirements. Be aware you may have to register for a residence permit in Malta.
Can Umbrella Companies Also Assist You with Malta Taxation?
Some umbrella companies are specialists in the Maltese tax system. They constantly stay up to date with the legislation and ensure that you get to keep the biggest proportion of your earnings possible. The PAYE system is ideal for most workers because you don’t have to complete any paperwork (aside from submitting your timesheets to the umbrella company) or worry about your taxes in any way (you’ll receive documentation for your records, though). You have a team of experts ensuring that you’re paid promptly and the various requirements for tax in Malta are met.
How We Help You with Contracting in Malta
We work closely with numerous umbrella companies in Malta and we have a thorough knowledge of the different services they provide – especially regarding immigration to Malta. If you’re a business analyst, IT project manager, software developer, tester, telecommunications contractor or an oil and gas worker, we can help you get sponsorship for your work permit and keep more of your earnings by setting you up with an umbrella company. We’ll also answer any questions you have about Maltese visas or the country’s tax law, and we’ll contact the experts directly to guarantee 100 percent accurate advice. This all comes at no charge whatsoever to you and you’re not obligated to take on the services of any company. We’re just here to make your move as stress-free as possible.
- Shell International Trading & Shipping / Global DBA Operations Lead
Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter.
- Charles River Development / Vice-President, Finance
I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.