Expanding your business into Malta offers a strategic advantage in the Mediterranean region. With its robust economy, favorable tax regime, and strategic location, Malta provides a conducive environment for international enterprises seeking growth and regional influence.
Malta, an archipelago in the central Mediterranean, is a member of the European Union and the Eurozone. It boasts a population of approximately 514,000 people and utilizes the Euro (EUR) as its official currency. The country's GDP stands at around €14 billion, reflecting a resilient and diversified economy.
553 Thousand
Population
Euro
Currency
20.96 Billion
Global Domestic Product
Malta’s strategic location at the crossroads of Europe, North Africa, and the Middle East makes it an ideal hub for international trade and business operations. The country boasts a competitive corporate tax system, with a standard rate of 35% that can be effectively reduced to 5% through various tax incentives and refund schemes, enhancing its appeal to foreign investors. Malta's business-friendly environment is further supported by a stable political climate, a transparent legal system, and robust infrastructure. Additionally, its highly educated, multilingual workforce, with a significant portion proficient in English, ensures seamless communication and efficient business operations, making Malta a prime destination for global expansion.
Malta's employment framework is governed by the Employment and Industrial Relations Act (EIRA), ensuring fair labor practices and employee rights. The standard workweek is capped at 40 hours, with specific regulations varying across industries.
At EOR Partners, we provide comprehensive Employer of Record (EOR) solutions tailored to support your business expansion in Malta. Our services encompass payroll management, ensuring accurate and timely salary disbursements in full compliance with local tax laws. We offer extensive HR support, including employee onboarding, contract administration, and guidance on labor regulations to help your business stay compliant. Additionally, we specialize in navigating the complexities of Maltese employment laws, mitigating risks, and ensuring that your operations run smoothly. With EOR Partners, you can focus on growing your business while we handle the intricacies of employment and compliance.
Employees in Malta benefit from a comprehensive welfare system that includes statutory entitlements such as paid annual leave, sick leave, and public holidays. They also have access to generous maternity and paternity leave provisions, ensuring support for working parents. The country’s healthcare system, funded through employer and employee contributions, provides universal coverage, ensuring that employees can access quality medical care. These benefits, combined with Malta’s commitment to fair labor practices, make it an attractive destination for both employers and employees, fostering a productive and satisfied workforce.
Employees are entitled to sick leave, with compensation provided through the Social Security system. The standard benefit is two weeks of paid sick leave per year, with additional entitlements based on collective agreements.
| Taxable Base | Tax Liability | Excess of Taxable Base | Tax Rate |
|---|---|---|---|
| 0 - 9,100 | 0 | 0 | 0% |
| 9,101 - 14,500 | 0 | Amount over 9,100 | 15% |
| 14,501 - 19,500 | 810 | Amount over 14,500 | 25% |
| 19,501 - 60,000 | 2,085 | Amount over 19,500 | 25% |
| Over 60,000 | 8,725 | Amount over 60,000 | 35% |
*All figures based on local currency
