EWS helps you to hire an international workforce quickly and compliantly, without setting up a legal entity locally. If you’d like to get in touch about our employer of record solution in Malta, click here
Country Introduction – Malta
Capital – Valleta
Currency – Euro €
Population – 444,335 estimated as of November 2022
GDP – $15 Billion as of 2022
Languages – Maltese & English
Major Religions – Roman Catholic
Malta is an island country located in the central Mediterranean Sea. A small but strategically important group of islands, the archipelago has through its long and turbulent history played a vital role in the struggles of a succession of powers for domination of the Mediterranean and in the interplay between emerging Europe and the older Culturesof Africa and the Middle East. It was admitted to the European Union (EU) in 2004. A European atmosphere predominates in Malta because of close association with the Continent, particularly with southern Europe.
Malta has one of the most advantageous business legislations and taxations in Europe. Specifically, the low set up cost, favourable tax rates, tax incentives and human resource effectiveness. Apart from that, it has a low effective corporate tax. Hence, the benefits of setting up a business in Malta attract more foreign investors to start a business.
Additionally, other considerations why this country magnets numerous business opportunities are:
Low Incorporation and Maintenance Costs: The minimum share capital to open a company in Malta is €1.165, 20% of which should be paid up, with a total of €245 to be deposited. Registry fees are also low, making Malta a very attractive jurisdiction within which to do business.
Visa-Free Zone: as a member state of the Schengen Area, there are no travel restrictions between Malta and the remaining countries that befall the Zone
Contract of Employment
An Employment Contract in Malta must be legalised in a written document, stating the main information of both the employer and the employee. Additional details should also be included such as: remuneration and overtime, working hours, place of work, role, scope of work and benefits. The following are the major types of contracts materialized in Malta:
1. Indefinite, Open-ended Contract: If no other arrangement has been agreed, the contract is deemed to be indefinite. Either party can terminate the contract, but must abide by contracted terms of notice, severance agreements and any collective agreements.
2. Fixed-term Contract: This can be renewed up to a maximum of 4 years. If either party terminates before time, they must pay the other a sum equal to half the wages the employee would have earned for the remainder of the agreement.
Probation Period
Probationary period is usually 6 months unless a shorter period is agreed upon between the employer and employee. For roles set for the upper management, a year of probation can also be possible.
Termination
Indefinite term contracts may only be terminated by the employer with good and sufficient cause or by mutual agreement. Fixed term contracts require a compensation payment to be terminated. The compensation is set at 50% of the salary due for the remaining period of the contract. The notice period for termination is calculated on the employee’s continuous length of service, as seen in the table below:
| Period of continuous employment | Minimum notice |
| Not more than one month | No notice |
| More than 1 month up to 6 months | 1 week |
| 6 months up to 2 years | 2 weeks |
| More than 2 years up to 4 years | 4 weeks |
Longer periods may be agreed by the employer and employee in the case of technical or managerial posts. However, the established notice period cannot be extended.
Working Hours
The normal working hours are 40 per week. The working hours cannot exceed an average of 48 hours over a 17-week reference period.
Overtime
Contracts will generally include a clause specifying that a certain amount of money will be paid in respect of a certain number of hours worked over the normal weekly amount, which cannot exceed an average of 48 hours.
Annual Leave
The minimum entitlement to the employees is 26 days.
Sick leave
The employee is entitled to ten (10) days of sick leave at full pay per year. The first 3 days of any claim for sick leave are paid by the employer. In occasions of sickness, the employee needs to present a medical certificate from a recognized medical institution or a doctor to the employer.
Maternity and Paternity Leave
A pregnant employee is entitled to a maternity leave for an uninterrupted period of 18 weeks. The first 14 weeks are paid by the employer but the weeks beyond this will no longer be covered. The remaining 4 weeks are optional and unpaid by the employer.
The employee must notify her employer in writing of the date when she intends to avail herself of such entitlement at least four weeks before its commencement, in so far as is reasonably practicable. The employee is obliged to avail herself of 6 weeks of the total entitlement immediately after the date of confinement. Another 4 weeks are to be taken immediately before the expected date of confinement, unless agreed otherwise between the employer and the employee. The remaining balance of entitlement to be availed of, in whole or in part may be taken, either immediately before or immediately after the periods, as the employee may decide.
On termination of maternity leave, the employee has the right to resume work in the post formerly occupied on the commencement of the maternity leave and if such post is no longer available, to a related post.
VAT / GST:
The standard VAT rate for goods and services in Malta is 18%.
Income Tax
Income tax ranges from 0% up to 35%.
Married resident taxpayers
| Taxable income (EUR) | Rate (%) | Deduct (EUR) | |
| From | To | ||
| 0 | 12,700 | 0 | 0 |
| 12,701 | 21,200 | 15 | 1,905 |
| 21,201 | 28,700 | 25 | 4,025 |
| 28,701 | 60,000 | 25 | 3,905 |
| 60,001 | and above | 35 | 9,905 |
Single resident taxpayers (or married couples opting for a separate computation)
| Taxable income (EUR) | Rate (%) | Deduct (EUR) | |
| From | To | ||
| 0 | 9,100 | 0 | 0 |
| 9,101 | 14,500 | 15 | 1,365 |
| 14,501 | 19,500 | 25 | 2,815 |
| 19,501 | 60,000 | 25 | 2,725 |
| 60,001 | and above | 35 | 8,725 |
Parent rates
| Taxable income (EUR) | Rate (%) | Deduct (EUR) | |
| From | To | ||
| 0 | 10,500 | 0 | 0 |
| 10,501 | 15,800 | 15 | 1,575 |
| 15,801 | 21,200 | 25 | 3,155 |
| 21,201 | 60,000 | 25 | 3,050 |
| 60,001 | and above | 35 | 9,050 |
Employer/Employee Contributions
Employer Payroll Contribution:
10% Social Security. A flat rate of 48.05 EUR is added for annual income over 24,986 EUR.
Employee Payroll Contribution:
10% Social Security. A flat rate of 48.05 EUR is added for annual income over 24,986 EUR.
Public Holidays
There are 14 holiday days in total.
9 Public Holidays and 5 National Holidays annually.
January 1 – New Year’s Day
February 10 – Feast of St. Paul’s Shipwreck
March 19 – Feast of St. Joseph
March 31 – Freedom Day
April 15 – Good Friday
May 1 – Worker’s Day
June 7 – Sette Giugno
June 29 – Feast of St. Peter and St. Paul
August 15 – Feast of the Assumption
September 8 – Feast of Our Lady of Victories
September 21 – Independence Day
December 8 – Feast of the Immaculate Conception
December 13 – Republic Day
December 25 – Christmas Day
Severance Pay
There is no legal severance pay or redundancy compensation other than the compensation in lieu of notice relating to redundancies.
Work and Residence Permits (Expatriates)
National Long-Stay Visa, or D Visa: The D visa allows foreign nationals to stay in Malta for more than three months. This is the visa foreign employees will need to live and work in Malta for an extended period. Individuals who are traveling to Malta to study will need a D visa as well.
In addition to a long-stay visa, foreign employees will need a work permit. In Malta, this permit is known as an employment license. It is the employer’s responsibility to apply for an employment license on behalf of any foreign workers. The employer should submit the relevant documents to the Employment and Training Corporation in Malta and pay any applicable fees.
Upon approval of both applications, the employee may travel to Malta and begin working.
The requirements for a Maltese employment license include:
– Completed application form
– Applicant’s CV
– Applicant’s visa if already in Malta
– Cover letter from the applicant’s employer
– One passport photo
– References and testimonials of the applicant’s qualifications
– Medical certificate
– Vacancy report demonstrating that the company searched for qualified Maltese nationals to fill the position
The $100K Visa Shock: Why Global Hiring Just Replaced the H-1B
How to Set Up Payroll For Hpc And Ai Teams
Contracting Machine Learning Talent Abroad
Everything on Hiring Foreign Phds In German Tech Labs
Cross-Border Ip Protection In R&D Teams
How To Classify Freelancers In Tech Innovation
How Eor Helps Tech Firms Legally Hire In Germany
Dual Contract Structure For International Researchers
Data Protection Obligations For Remote Tech Staff
Germany Research Visa Vs Skilled Worker Visa
Everything on Nis2 Directive Compliance For Eu Tech Workers
Global Mobility For Deep Tech Startups In Germany
Payroll For EU Embedded Systems Developers
Relocation Support For Semiconductor Experts on EU
The Absolute Way to Hire Ai Engineers In Germany
How to Manage Benefits For German Tech Hires
Germany’S Blue Card Process For Engineers
Everything on Germany R&D Employment Compliance
Remote Hiring Of Cybersecurity Analysts In Eu
Visa Pathways For Quantum Computing Researchers
Onboarding Robotics Specialists Across EU Borders
Workforce Planning In Ai-Driven Logistics And Infrastructure
Visa Processing For High-Tech Infrastructure Staff
Managing Global Mobility In Sustainable City Projects
Cross-Border Team Management In Saudi Data Centers
Hiring Skilled Labor For Green Hydrogen Facilities
Digital Twin Technology Hiring Trends In Saudi Construction
Employer Obligations In Public-Private Energy Initiatives
Navigating Local Labor Laws For Solar Energy Teams
Talent Acquisition In The Saudi Mining Sector
Eor Solutions For Ai Engineers In Mega Projects
Regulatory Challenges In Hiring For Giga Construction Projects
Contractor Compliance In Smart City Developments
Classification Of Engineering Consultants In Vision 2030 Projects
How To Manage Workforce For Neom-Based Tech Projects
Eor For Multinational Mining Firms Operating In Saudi Arabia
Employer Of Record For Wind Energy Projects In The Gulf
Relocation Logistics For International Clean Energy Experts
Hiring Strategies For Large-Scale Construction Projects In Ksa
How To Onboard Digital Infrastructure Experts In Saudi Arabia
Payroll Setup For Renewable Energy Workers In Ksa
Strategic Relocation To Riyadh Or Doha: A Guide for Global Employers
Work Visa Processing In Qatar And Saudi Arabia
Qatar Nationalization Policy And Foreign Firms
Cost Of Setting Up A Business In Qatar: A Guide for Global Employers
Saudi Labor Court And Dispute Handling for Global Employers
Cross-Border Payroll For Ksa And Qatar Teams
End Of Service Benefits Saudi Arabia: A Guide for Global Employers
How To Manage Expat Benefits In Qatar for Global Employers
Expanding Into New Markets: Vendor Risks You Should Flag
A Guide to Cross-Border Equity Vesting for Tech Startups
Employer Branding for Multinational Teams: What Works Now
What Global C-Level Leaders Miss About Digital Nomad Visas
Succession Planning for Distributed Teams: A Practical Guide
Relocation Budgeting For Global Tech Firms
Latam Hiring Strategy: What Global Companies Should Know
Risk Of Permanent Establishment Explained
Managing Intellectual Property In Remote Work
Benefits Benchmarking Globally for Global Companies
How to Benchmark Compensation Across 100+ Countries in 2025
Checklist: Preparing HRIS for Fast International Scalability
Biometric Data in Global Payroll: Legal Boundaries Explained
8 Regulatory Updates Impacting Global HR in 2025
What are Hidden Costs of In-House Payroll?
Why Companies are Thinking Differently About Relocation
Is Your Global Mobility Program Outgrowing Spreadsheets?
Remote Work Visas: A Growing Trend in Global Mobility
Hiring in Europe Post-Brexit: What You Need to Know
Tips for Managing Multi-Time Zone Teams Successfully
Relocation Packages: What Top Talent Expects in 2025
Banking and Payroll Challenges in Saudi Arabia Markets
The Legal Risks of Misclassifying Global Workers
Why Scalability Should Drive Your Global HR Strategy
How EWS Streamlines Global Mobility for Tech Talent
Lithuania – Employer of Record
Kosovo – Employer of Record
Finland – Employer of Record
Namibia – Employer of Record
Nepal – Employer of Record
Spain – Employer of Record
Latvia – Employer of Record
Ireland – Employer of Record
Cyprus – Employer of Record
Czech Republic – Employer of Record
Italy – Employer of Record
Indonesia – Employer of Record
South Africa – Employer of Record
Tunisia – Employer of Record
Bosnia – Employer of Record
Moldova – Employer of Record
Five Tips For Improving Employee Engagement
Netherlands – Employer of Record
Germany – Employer of Record
France – Employer of Record
Portugal – Employer of Record
Bulgaria – Employer of Record
Austria – Employer of Record
Hungary – Employer of Record
Slovenia – Employer of Record
INCLUSIVITY IN THE TEAM MAKES EVERYONE WIN
Thailand – Employer of Record
Sri Lanka – Employer of Record
The Significance of an Employer of Record
Greece – Employer of Record
Mexico – Employer of Record
4 Reasons to Outsource Your Payroll
Five Recruitment Trends 2023
Malaysia – Employer of Record
Skill-Based Hiring and Benefits
Malta – Employer of Record
How To Practice Inclusive Recruitment
Israel – Employer of Record
Macedonia – Employer of Record
Jordan – Employer of Record
Macau – Employer of Record
Peru – Employer of Record
The Importance of Employer Branding
Bahrain – Employer of Record
South Korea – Employer of Record
Recruiting during a recession
Philippines – Employer of Record
USA – Employer of Record
Japan – Employer of Record
How To Setup A Business in 2023
Norway – Employer of Record
Managing Overseas Projects In 2023
Reason Of Expanding Your Workforce Globally
Croatia – Employer of Record
Colombia – Employer of Record
5 Ways To Speed Up Your Hiring Process
Egypt – Employer of Record
3 Ways To Streamline An Interview Process
Russia – Employer of Record
Saudi Arabia – Employer of Record
Hong Kong – Employer of Record
An Effective Hybrid Work Model
Turkey – Employer of Record
UAE – Employer of Record
Pakistan – Employer of Record
7 Things to Consider Before Accepting a Job
Kazakhstan – Employer of Record
3 Reasons to Encourage Employees to Generate Employer Brand Content
Denmark – Employer of Record
Sweden – Employer of Record
Bangladesh – Employer of Record
Kuwait – Employer of Record
How To Hire In The Age Of Hybrid Working
Australia – Employer of Record
Oman – Employer of Record
Qatar – Employer of Record
Ukraine – Employer of Record
Diversity – A Vital Hiring Strategy
Owning Every Moment of Your Hiring Experience
Serbia – Employer of Record
Maldives – Employer of Record
India – Employer of Record
Argentina – Employer of Record
Uzbekistan – Employer of Record
Belarus – Employer of Record
Brazil – Employer of Record
Chile – Employer of Record
Armenia – Employer of Record
3 Steps To Company Formation In The UK & Abroad
Romania – Employer of Record
Canada – Employer of Record
Morocco – Employer of Record