Question 1

How is self-employed income taxed in Malta?

Accepted Answer

Self-employed (self-occupied) persons in Malta pay income tax on their net profit — gross revenue minus expenses incurred wholly and exclusively for the business — at the same progressive rates as employees (0%, 15%, 25%, 35% in 2026). On top of that they pay Class 2 social security contributions of 15% of the previous year's net income.

Question 2

What expenses can I deduct as self-employed in Malta?

Accepted Answer

Expenses incurred wholly and exclusively in the production of the income are deductible: business rent, materials and stock, professional fees, business insurance, employee wages, marketing, and a proportional share of mixed-use costs. Capital expenditure is claimed through capital allowances rather than as a direct expense.

Question 3

What is provisional tax in Malta and when is it due?

Accepted Answer

Provisional tax (PT) is the prepayment of your income tax during the year, based on your last self-assessment. It is paid in three instalments: 20% by 30 April, 30% by 31 August and 50% by 21 December. Any remaining balance is settled with the tax return.

Question 4

Do self-employed persons pay both income tax and SSC in Malta?

Accepted Answer

Yes. Income tax is charged on net profit at progressive rates, while Class 2 SSC is a separate 15% contribution (minimum €36.18/week, maximum €83.89/week in 2026 for those born after 1962) paid in April, August and December. This calculator shows both together as your total burden.

Question 5

Is the 10% part-time rate available to self-employed people in Malta?

Accepted Answer

If your self-employment is part-time alongside a full-time job, pension or studies, you can opt for the 10% final tax on the first €12,000 of part-time self-employment income (form TA22) instead of progressive rates — provided you are registered with Jobsplus and employ no more than 2 people.

Self-Employed Tax Calculator

Malta Self-Employment Tax Guide 2026