If you're self-employed in Malta, tax season isn't just one season. It's a year-round responsibility. Between income tax, VAT, social security contributions, and provisional tax payments, there's always something due.
This guide breaks down everything you need to know for 2026 — no jargon, no fluff.
How Self-Employed Tax Works in Malta
When you're self-employed, you're responsible for declaring and paying your own taxes. Unlike employees, where your employer deducts tax at source, you need to handle it yourself — or have an accountant do it for you.
There are three main obligations:
- Income tax — paid on your net profit
- VAT — depending on your registration (Article 10 or Article 11)
- Social security contributions (SSC) — paid to the government based on your income
Income Tax Rates for 2026
Malta uses a progressive tax system. The more you earn, the higher the rate. For single individuals, the bands are:
- €0 – €9,100: 0%
- €9,101 – €14,500: 15%
- €14,501 – €19,500: 25%
- €19,501 – €60,000: 25%
- Over €60,000: 35%
Married couples and parents have slightly different bands with more favourable rates. The 2026 budget introduced expanded parental tax bands — if you have children under 18 (or under 23 if still in education), you may qualify for reduced rates.
Provisional Tax
Self-employed individuals pay income tax through the Provisional Tax (PT) system. This means you pay tax in advance, based on the previous year's income, in three instalments:
- 30 April — first instalment
- 31 August — second instalment
- 21 December — third instalment
If your income changes significantly from year to year, you can request an adjustment. But the default is based on last year's assessment.
VAT: Article 10 vs Article 11
Your VAT obligations depend on how you're registered:
Article 11 (VAT-exempt): If your annual turnover is below €35,000, you can register under Article 11. You don't charge VAT on your services, but you also can't reclaim VAT on your expenses. You file an annual VAT declaration, usually due by mid-February (or late March if filed online).
Article 10 (VAT-registered): If your turnover exceeds €35,000, or you choose to register voluntarily, you're under Article 10. You charge 18% VAT on your services, file quarterly VAT returns, and can reclaim VAT on business expenses.
Social Security Contributions
Self-employed individuals pay Class 2 SSC, calculated at 15% of your net income from the previous year. There's a minimum and maximum weekly contribution — for 2026, the maximum is approximately €84 per week for those born after 1 January 1962.
SSC is typically paid every four months (three times per year), aligned with the provisional tax payment schedule.
Key Deadlines for 2026
| Deadline | What's Due |
|---|---|
| 15 February (22 March online) | Article 11 annual VAT declaration |
| 30 April | PT first instalment + Class 2 SSC |
| 30 June | Income tax return (manual) |
| 31 July | Income tax return (online) |
| 31 August | PT second instalment + Class 2 SSC |
| 15th of month after quarter end | Article 10 quarterly VAT returns |
| 21 December | PT third instalment + Class 2 SSC |
Deductions You Shouldn't Miss
Self-employed professionals can deduct legitimate business expenses from their taxable income. Common deductions include:
- Office rent or home office costs
- Vehicle expenses (if used for business)
- Professional subscriptions and memberships
- Equipment and technology
- Marketing and advertising costs
- Professional development and training
- Accounting and legal fees
- Insurance premiums
Keep proper records and receipts for everything. The tax authorities can request documentation going back several years.
Micro Invest Scheme
The MicroInvest scheme offers a tax credit of up to €65,000 (€80,000 in Gozo) for qualifying investments. This covers investments in technology, equipment, and other business improvements. The credit is calculated at 60% of qualifying expenditure over a four-year period.
If you're investing in your business, this is one of the most valuable incentives available in Malta.
Part-Time Self-Employment
If you're employed full-time but earn self-employed income on the side, you may qualify for the 10% flat tax rate on self-employed earnings up to €12,000 per year. You'll need to register with Jobsplus and file a TA22 form by 30 April.
The Bottom Line
Being self-employed in Malta comes with real tax obligations — but also real opportunities to reduce what you owe through proper planning, deductions, and schemes like MicroInvest.
The key is staying on top of deadlines and keeping clean records throughout the year, not just at filing time.
Michael Cutajar, CPA — Founder of Accora.