Malta offers a number of residence schemes to foreigners wishing to relocate in order to combine a Mediterranean lifestyle, lots of sunshine and a tax-friendly environment in a location close to the rest of Europe, Africa and the Middle East.
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The EU social security coordination rules encompass a set of regulations that allow social security institutions to determine the applicable legislation for individuals in a cross-border situation involving two or more countries. Once determined, the country responsible for social security coverage issues a Portable Document A1, certifying its competence in this regard.
Our aim is to simplify the administrative workload for employers and self-employed persons to encourage them to fulfil their social security obligations. For the purpose of using this Self-Assessment Tool, an ‘employed person’ refers to a person who has not yet passed the 65th birthday and who is engaged in insurable employment. On the other hand, a ‘self-employed person’ refers to a person who has not yet passed the 65th birthday and is working in one’s own business or professional practice for the purpose of earning a profit.
This Self-Assessment Tool helps individuals to find out whether as an employer or a self-employed person, they are obliged to pay social security contributions in Malta for their employees, or for themselves, when working in a cross-border situation between two (or more) EU countries.
The Self-Assessment Tool asks a number of questions to assess one’s cross-border situation individually. Upon the provision of the required information, individuals will be provided with indicative guidelines on their social security obligations, and whether these can be payable in Malta.
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What is Social Security
The Social Security Act (Cap. 318.) of the Laws of Malta, provides for two basic schemes, namely the Contributory Scheme and the Non-Contributory Scheme. The basic requirement for entitlement under the Contributory Scheme is that specific contribution conditions are met. In the Non-Contributory Scheme, the basic requirement is that the conditions of the means-test are met.
Registration under the Social Security Act
Historically, your social security number is a number registered under the Social Security Act (Cap. 318.) through which you pay social security contributions. The social security contributions paid will entitle you for the social security benefits provided under the Social Security Act (Cap. 318.), subject to the entitlement conditions which exist for each type of benefit. Read more.
How do benefits work and how can I qualify?
The contributory scheme in Malta is a system where an employee or self-employed person pays a weekly contribution as laid down by the Social Security Act (Cap. 318.). The social security contributions paid during the period in which a person is gainfully active is used to finance contingencies that may arise such as sickness, unemployment or retirement as required.
The Non-Contributory Scheme, which originally was meant to cater for persons below the ‘poverty line’ has over a period of years evolved into a comprehensive scheme with a number of provisions that are intertwined in such a way that one type of benefit supplements another. This has made possible the allocation of more than one benefit at the same time thus providing simultaneous coverage in those cases where more than one contingency is present.
How to find more help
To find out if you, or a family member, might be eligible for a benefit or higher benefit, kindly see the information on this page. You can use your e-ID account to apply online for benefits, check the status of an application or manage the benefits you already receive. All from anywhere!
Create your e-ID account to access online applications
Any Maltese citizen or eResidence document holder who is over 14 years of age, may sign up for a free and secure e-ID account to have access to personalised tools through Social Security online services, whether you receive benefits or not. Create an e-ID account.
Non-Maltese citizens who do not possess an e-ID account
Non-Maltese citizens who do not possess an e-ID account and therefore cannot submit an online application, may visit one of Servizz.gov hubs to request a service. It is important to present all documentation related to your case.
Contact the department
Department of Social Security
38, Ordnance Street
Valletta VLT 1021Servizz.gov Freephone 153 (ext. 11)
International Calls
+356 21255153 (This is not a freephone number)
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The general basis of personal taxation in Malta is that if, you are domiciled and ordinarily resident in Malta you should declare all your income (including that of your spouse and dependent children) from whatever source. If you are either not domiciled or not ordinarily resident in Malta you should declare all income accruing to you in Malta or derived from Malta (including that of your spouse and dependent children), as well as any income which was remitted to Malta.
In Malta the taxation of an individual's income is progressive; i.e. the higher an individual's income, the higher the tax paid. Payment of personal tax is mainly effected either through the Provisional Tax system, the FSS (Final Settlement System) or by means of the Self-Assessment. In the case of the Provisional Tax, the tax due for a particular year is collected during the same period in which income is earned. It applies mostly to persons whose sources of income include trade, business, profession or vocation. The FSS (Final Settlement System) which mainly caters for employees and pensioners is designed to produce accurate tax deductions from emoluments. This methodology ensures that the correct amount of tax is deducted from gross emoluments as they are received, thus reducing the incidence of large refunds or tax claims. Any tax due not collected by these two systems is to be paid by the tax-settlement due date i.e the 30th June of the year following the year in which income was earned by means of the Self-Assessment.
Entities which are subject to company tax are those falling under the definition of a company provided for under article 2 of the Income Tax Act.
According to our income tax legislation, Maltese companies are subject to corporate tax at the rate of 35% on their worldwide income and capital gains. Foreign companies, incorporated outside Malta carrying out business activities in Malta are liable to tax on income arising in Malta.
When companies are taxed at the standard rate of 35%, following the distribution of dividends, shareholders are entitled to a refund of part or of all the tax paid by the company. The purpose of this imputation system is to eliminate any double taxation that might arise on the distribution of such dividends. Thus company profits will only be subject to tax at corporate level.