Working in Malta — How much income tax do I have to pay?

When think­ing about relo­cat­ing to anoth­er coun­try and tak­ing up a job there, one ques­tion that peo­ple will usu­al­ly ask is how much the income tax and oth­er deduc­tions from the salary are, and how much the cost of liv­ing is. Mal­ta offers an inter­est­ing tax­a­tion on income tax, and espe­cial­ly high earn­ers can ben­e­fit from this.

The main indus­tries in Mal­ta are the finance and iGam­ing indus­try. These two sec­tors con­tribute most to the GDP, and many skilled work­ers from all across the world are com­ing to Mal­ta for work. More and more com­pa­nies are estab­lish­ing their busi­ness in Mal­ta, cre­at­ing a dynam­ic indus­try with a high demand for qual­i­fied work­ers.

When work­ing in Mal­ta you will have to pay income tax and nation­al insur­ance con­tri­bu­tions. The income tax depends on how much you earn. The income tax rates for 2015 are as fol­lows:

Sin­gle Rates

 Sub­tract €

0€ 8,5000%0
8,501€ 14,50015%1,275
14,501€ 60,00025%2,725
60,001and over35%8,725

 

Espe­cial­ly high earn­ers can ben­e­fit from this tax­a­tion, as income between €14,500 and €60,000 is taxed with only 25%. Cal­cu­la­tor for income tax.

The nation­al insur­ance con­tri­bu­tions are either 10% or a week­ly rate of €41,83. This includes health insur­ance and state pen­sion con­tri­bu­tions. It is also pos­si­ble to take out addi­tion­al pri­vate health insur­ance, that gives pri­or­i­ty and spe­cial treat­ments in hos­pi­tals.

The cost of liv­ing is rea­son­able, con­sid­er­ing many goods have to be import­ed. Rent depends on where you live, and pop­u­lar local­i­ties, such as Sliema or St. Julians, are con­sid­er­ably more expen­sive than oth­er places. It is pos­si­ble to find good accom­mo­da­tion from between €300 and €700. Flat shar­ing is also pop­u­lar among for­eign work­ers, giv­ing you more flex­i­bil­i­ty and less con­trac­tu­al oblig­a­tions.

A relo­ca­tion to Mal­ta for busi­ness or per­son­al rea­sons can be an inter­est­ing and reward­ing oppor­tu­ni­ty, not because of the attrac­tive work oppor­tu­ni­ties, but also because the Mal­tese islands have a lot more to offer than just work. A rich his­to­ry and influ­ences from many cul­tures have cre­at­ed a unique peo­ple and plen­ty of inter­est­ing sights. Not to men­tion the love­ly weath­er in sum­mer and the pris­tine waters…

About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT ‑Advanced Diplo­ma in Inter­na­tion­al Tax.

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