The Freelancer's Tax Guide for Malta (2026)

Tax is the part of freelancing in Malta that causes the most anxiety, usually because nobody explains it simply. In reality, a self-employed person in Malta deals with just three things: income tax, provisional tax and social security. Here is how each works in 2026, what you can deduct, and the dates to put in your calendar.

The three things you owe

As a sole trader you are taxed on your profit (income minus allowable expenses), not your turnover. On that profit you pay income tax and Class 2 social security, and you pay your income tax in advance through the provisional tax system. VAT is separate and is not a tax on you; you simply collect and remit it.

Income tax: the 2026 rates

Malta taxes residents on a progressive scale up to 35%. The single rates for 2026 are:

Chargeable income	Rate
EUR 0 to 12,000	0%
12,001 to 16,000	15%
16,001 to 60,000	25%
Over 60,000	35%

Married and parent computations have wider zero-rate bands, and Budget 2026 introduced new, more generous family rates for couples and parents with qualifying children. If you are married or a parent, check which computation gives you the lower bill. The 35% top rate only applies to income above EUR 60,000 in every case.

Provisional tax: paying income tax in advance

Because tax is not deducted at source for the self-employed, you pay it ahead through provisional tax (PT), in three instalments based on your last self-assessment:

• 20% by 30 April;
• 30% by 31 August;
• 50% by 21 December.

Any balance is settled when you file your annual return. In your first year you have no PT history, so you may settle on assessment instead, then move onto the PT cycle.

Class 2 social security

Self-employed people pay Class 2 contributions, broadly 15% of the previous year's net profit, between a weekly minimum and maximum that is revised each year. These are paid to the tax authority in the same April, August and December windows as provisional tax, which makes budgeting easier, and they count toward your state pension.

What you can deduct

You are taxed on profit, so legitimate business expenses reduce your tax. Common deductible costs for freelancers include:

• Equipment, software and subscriptions used for work;
• A reasonable share of phone, internet and home-office costs;
• Professional fees, training and business insurance;
• Travel and materials directly related to jobs.

Keep every receipt; records must be retained for at least six years.

Your tax calendar

• 30 April: first PT instalment plus social security;
• 30 June: annual income tax return for the previous year;
• 31 August: second PT instalment plus social security;
• 21 December: third PT instalment plus social security.

Good records make tax painless

Almost all freelancer tax stress comes from scrambling for figures at deadline. If your invoices and income are already organised, your return is mostly done. invoices.mt keeps a tidy, searchable record of everything you have billed and what has been paid, so you or your accountant can see your income for the year in seconds and file with confidence. Start free. Remember that VAT is separate; see our VAT registration guide.