Moving to Malta – Income tax and National Insurance rate 2021

Malta offers skilled workers good career opportunities, especially in the fields of finance, iGaming, game development and IT. The growing market has a high demand for qualified personnel, and there are a lot of vacancies. If you are a member of a EU state you can make use of your right of free movement and settlement within the EU and relocate to Malta without needing to obtain a visa or permit in advance.

Overview of Malta’s income tax rates

When you live and work in Malta you will have to pay income tax. The table below gives you an indication of the applicable income tax rates in Malta for 2021.

2021 Rates

Single Rate

Married Rate

Parent Rate

0%

0 – 9,100

0 – 12,700

0 – 10,500

15%

9,101 – 14,500

12,701 – 21,200

10,501 – 15,800

25%

14,501 – 60,000

21,201 – 60,000

15,801 – 60,000

35%

60,001 +

60,001 +

60,001 +

National Insurance

The National Insurance in Malta are combined health insurance and state pension contributions. If you are in employment your employer will deduct the national insurance contributions directly from your salary. Your employer and you will each pay half of the contributions. The rate of the contributions varies depending on the amount of your income, but it is capped at around €72.86 for self-employed and €48.57 x 2 (for employer and employee) per month. The national insurance rate for self-occupied and self-employed persons varies and is capped at a weekly rate of around €30.

National Insurance and income tax are the only deductions of your salary. Of course, you have the option of private health insurance, which will give you preferential health care. The national health care system is similar to that of the United Kingdom. Basic treatment and emergencies are free, but there are often long waiting lists for special treatments. The income tax and social security deductions in Malta are relatively low compared to some other European countries, such as Germany. However, if the deductions seem to be higher than in other countries, and you are not sure if it is worth relocating to Malta, you should also consider the cost of living, which can be lower than in other countries.

If you are interested in moving to Malta, you can contact the office of Dr. Werner & Partner for information about our relocation package. You can also find more information about moving to Malta in our blog.