Table of Contents Why Malta Is So Attractive for International Assignments Legal Foundations: What You Need to Know A1 Certificate Malta: Your Key to a Legal Assignment Employment Law Malta: Applicable Rules for Assigned Employees Tax Aspects of Malta Assignments: Avoiding Double Taxation Assigning Employees to Malta: Step-by-Step Guide Costs and Effort: What a Malta Assignment Really Costs The 8 Most Common Mistakes with Malta Assignments (and How to Avoid Them) Malta Assignment Checklist: Everything at a Glance Frequently Asked Questions About Employee Assignments to Malta Are you considering sending an employee to Malta? Then you probably already know the advantages: EU membership, English-speaking environment, attractive tax rules, and a location that’s strategically perfect for both European and Mediterranean business. But—and I say this after three years’ experience with international assignments—between the initial idea and legal implementation, there are more pitfalls than you might expect. I’ve experienced firsthand how “just a quick six months in Malta” turned into a six-month paperwork marathon with German and Maltese authorities. A1 certificates that suddenly became invalid, employment contracts that didn’t meet Maltese standards, and tax advisory fees that blew the budget. That’s exactly why I’m writing this article: so you can learn from my mistakes and set up your assignment correctly from the start. We’ll take a look at the legal traps, how to handle social security properly, and which practical steps truly work. Why Malta Is So Attractive for International Assignments Over the past few years, Malta has become one of the most appealing locations for international staff assignments. The reasons are obvious, but there are also details not everyone is aware of. Malta’s Strategic Advantages for Companies As an EU member since 2004, Malta benefits from freedom of movement for workers—so, in theory, your employees can work there without a permit. In practice, its more complicated: you still need to adhere to certain reporting requirements and employment standards. What makes Malta especially interesting is its role as a bridge between Europe and North Africa. If your business operates in both regions, you can serve both markets from Malta. The time zone (UTC+1) fits European business perfectly, and proximity to North Africa brings cultural and logistical benefits. Tax Incentives for Assigning Companies Malta offers one of the lowest corporate tax rates in the EU (35% standard, but often effectively only 5-10% thanks to the refund system). There are special non-dom rules for assigned staff, particularly attractive for longer stays. But beware: these tax benefits only apply if the assignment is structured properly. A miscalculated length of stay or duties can quickly trigger tax obligations in both Germany and Malta. Practical Benefits for Assigned Employees Having English as an official language makes integration far easier than in other southern European countries. The education system follows British standards—a plus for employees with families. Living costs are lower than in major German cities, although theyve risen in recent years. Cost Area Malta vs. Germany Note Rent (2-room, central) -20% to -30% Highly location-dependent Restaurants -15% to -25% Tourist areas pricier Public transport -60% to -70% Free buses for residents Electricity/Utilities +10% to +20% High air conditioning costs Legal Foundations: What Assigning Companies Need to Know Before diving into the practical details, let’s set out the legal fundamentals. This is where the wheat gets separated from the chaff—and where most expensive mistakes happen. Assignment Law vs. Secondment: The Critical Difference The European Posting of Workers Directive (EU 2018/957) regulates which employment conditions apply for assigned workers. The key is distinguishing between a genuine assignment and a secondment to a local branch. Genuine assignment means your employee keeps their German contract, but works temporarily in Malta. The German company remains the employer but must comply with Maltese minimum standards on pay, working hours, and safety. Secondment to Maltese branch means your employee formally switches to a Maltese employer (even if it’s your own subsidiary). In that case, Maltese employment law applies in full. In most cases, I recommend genuine assignment, as its more flexible and legally straightforward—as long as you know the rules. EU Freedom of Movement: Limits and Registration Requirements In theory, any EU citizen can work in Malta. In practice, as the assigning company you still need to handle a few obstacles: Registration with Jobsplus Malta: At the latest, when the work begins A1 Certificate for social security (more on that shortly) Tax registration for longer stays Workplace compliance with Maltese standards The good news: with the right preparation, it’s all just paperwork. The bad news: skip a step, and it gets expensive fast. Which German Laws Still Apply For an assignment (not a secondment), important German legal areas remain in force: Employment contract law: Generally under German law Social security: In Germany, if an A1 certificate is in place Data protection: GDPR applies identically EU-wide Employee protection: As per German standards At the same time, you must adhere to Maltese minimum standards regarding working hours, minimum wage, and safety. Sometimes, this leads to tricky legal questions—best clarified with a specialist lawyer ahead of time. A1 Certificate Malta: Your Key to a Legal Assignment The A1 certificate is the most important document for your Malta assignment. Without it, you risk back payments in both countries, fines, and in the worst case, criminal penalties. Here’s how to apply for it correctly—and what can go wrong. What Is the A1 Certificate and Why Do You Need It? The A1 certificate is an EU-wide document confirming which countrys social security system applies for your assigned employee. It prevents double payment of social security contributions. In practice: with a valid A1 certificate, your employee continues to pay German health, pension, unemployment, and care insurance. There are no extra social taxes in Malta. Without the A1 certificate, you’d have to pay in both countries—which gets very costly. How to Apply for the A1 Certificate: Step-by-Step Guide You apply to the German Liaison Office for Health Insurance Abroad (DVKA). It sounds complex, but with a systematic approach, it’s manageable: Download the application form: Get the current A1 form from the DVKA website Fill it out completely: All details for employee, company, and planned activity Collect supporting documents: Employment contract, assignment agreement, evidence of business activity Submit early: At least 4-6 weeks before assignment begins Plan for processing time: 2-4 weeks with complete documents Pro tip from the field: Better to submit a day too early than too late. DVKA is thorough but not quick. Incomplete applications can delay the process by weeks. Requirements for A1 Certificate for Malta Not every assignment automatically qualifies for an A1 certificate. The key requirements: Criterion Requirement Practice Tip Time limit Max 24 months Extension possible but complex Organizational link Employee remains attached to German employer Document reporting lines Business activity Assigning company must be active in Germany Provide proof of revenue & staff in Germany Type of work Must be within the company’s business activities Document project and objectives Common Problems When Applying for the A1 Certificate In my experience, most A1 applications fail because of avoidable mistakes: Unclear assignment period: “Initially six months, possibly longer” isn’t enough. You need an exact end date. Missing business justification: DVKA wants to know why this specific employee must go to Malta. Poor task description: “General support” is too vague. Describe concrete duties and projects. Doubts about intention to return: If it looks like the employee will move to Malta permanently, the application is denied. My advice: Invest time in a watertight application. Correcting it afterwards is much more nerve-wracking and expensive than thorough preparation. What Happens If the A1 Certificate Is Rejected or Issues Arise Later? If the A1 certificate is rejected or eligibility is challenged later, things get serious. Maltese authorities can retroactively claim social security contributions; the German health insurer may reclaim benefits. I’ve seen a company pay €18,000 in back charges because the A1 certificate was declared invalid. Why? The assigned employee became self-employed in Malta, violating assignment requirements. So my urgent advice: record the assignment comprehensively and stay in regular contact with your employee. If circumstances change, inform DVKA immediately. Employment Law Malta: Rules That Apply to Assigned Employees Even with a valid A1 certificate and a German employment contract, you must comply with certain Maltese labor standards. The Posting of Workers Directive ensures that local minimum conditions apply to assigned staff. Maltese Minimum Wage and Pay Standards In 2024, Malta introduced a legal minimum wage of €835 gross per month for full-time employment. That may sound low, but beware: higher industry-specific minimum wages often apply to assigned workers. Things get particularly tricky with supplements and benefits. Maltese law provides for various mandatory allowances: Cost of Living Allowance (COLA): Annual inflation adjustment Bonus payments: 13th and in some sectors even 14th monthly pay Overtime premiums: 150% of base wage from the 41st hour per week Sunday work: 200% of base wage Practice tip: Get a Maltese employment law expert to confirm the minimum standards for your specific sector. €200 spent on advice now can save four-figure back payments later. Working Hours and Leave Under Maltese Law Malta generally follows EU standards but with some quirks: Area Maltese Rule German Rule What Applies for Assignments Weekly hours 40 hours Variable, mostly 40 hours Maltese upper limit applies Annual leave At least 24 working days At least 24 working days Apply the more favorable regulation Sick leave Staggered pay continuation 6 weeks full pay continuation German rule is often better Dismissal Variable notice periods Depends on length of service German standards apply Health and Safety This is where it gets interesting: Maltese occupational safety standards apply in full to assigned employees. In detail: Occupational Health and Safety Authority (OHSA) Compliance: Workplaces must meet Maltese H&S standards Health checks: Required locally for certain jobs Safety training: As per Maltese rules Accident insurance: Often needed in Malta, in addition to German cover I strongly advise clarifying these points with the local client or partner beforehand. Nothing’s more embarrassing than your employee being denied entry on day one for missing safety training. Special Cases: Executives and Specialists Special rules may apply for assigned managers and experts. Malta has programs for highly qualified staff that offer extended rights. Be aware of the distinction between assignment under labor law and privileged residence permits. The latter can bring tax advantages but does not negate the need to meet Maltese employment standards. Tax Aspects of Malta Assignments: Avoiding Double Taxation The tax pitfalls of a Malta assignment can blow your budget if you don’t plan ahead. German and Maltese tax law differ greatly—sometimes, with lucrative optimization opportunities. When Does Tax Liability in Malta Arise? Malta goes by the principle of tax residency. What matters is where your employees “habitual abode” is located. The guidelines are simpler than you might think: Stay of less than 183 days: Generally no Maltese tax liability Stay of more than 183 days: Full Maltese tax liability on worldwide income Non-dom status exception: Only income earned in Malta is taxable The 183-day rule sounds simple, but has its quirks. Business trips to Germany count, as do weekend trips to Sicily. I recommend that your employee keep a meticulous log of all days spent in each country. Double Taxation Agreement Germany-Malta The DTA (double taxation agreement) regulates which country can tax in cases of double taxation. For assigned employees, special rules apply: Scenario Right to Tax Requirement Short assignment (under 183 days) Germany German employer pays salary Long assignment (over 183 days) Malta Main activity carried out in Malta Frontier worker rule Complex Regular returns to Germany Important note: The DTA does not automatically protect against double taxation. You must actively provide the required documentation and submit applications where needed. Tax Optimization for Malta Assignments Malta offers legal structuring options—but only with professional advice: Non-dom status: Only Maltese income is taxed for qualified persons 15% rate for executives: Special tax rates for high-net-worth individuals Refund system: Can massively lower the effective corporate tax Holding structures: Interesting for international corporate groups But beware: these approaches only work if everything is structured and planned properly. Mistakes can undo them all, with back taxes and fines as a bonus. Practical Tax Compliance for Assigning Companies As the assigning company, you have various tax obligations not to forget: Wage tax reporting in Germany: Still necessary for the assigned employee Reporting to Maltese tax authorities: For longer stays Assignment documentation: For future audits Reimbursement claims: For excess taxes paid My tip: Hire a tax advisor who knows both German and Maltese law from day one. The cost is far lower than the risk of mishandling things. Typical Cost Traps and How to Avoid Them The costliest mistakes in Malta assignments happen in the tax area: Missed deadlines: Malta’s tax returns have different due dates from Germany’s Wrong categorization: Assignment vs. secondment makes a huge difference for taxes Incomplete documentation: Days in Malta, work evidence, travel costs Ignoring social security: Tax and social security treatment must match A real-life example: A mid-sized company sent a development manager to Malta for ten months with no tax advice. Result: €15,000 in back payments to Malta, €8,000 more in advisory fees, and six months of hassle with two tax authorities. Assigning Employees to Malta: Step-by-Step Guide Now let’s get specific. I’ll walk you through the entire process of a Malta assignment—from your first idea right through to successful completion. This guide draws on real experience and covers all pitfalls I’ve seen in recent years. Phase 1: Preparation and Planning (8-12 weeks before assignment) Weeks 1-2: Make the key decisions Define assignment purpose: Concrete project, time frame, success criteria Select employee: Suitability, qualifications, family factors Set legal structure: Assignment vs. secondment vs. new hire Set budget: Salary, allowances, travel, compliance costs Weeks 3-4: Lay the legal groundwork Get legal advice: Specialist in international labor law Engage a tax advisor: Double taxation, optimization options Check insurance cover: Health, accident, liability Draft assignment agreement: Supplement to contract Weeks 5-8: Submit official applications Apply for A1 certificate: At DVKA with complete documents Lodge advance tax queries: With German and Maltese authorities Check workplace compliance: Maltese safety standards Prepare registrations: Jobsplus Malta, Commissioner for Revenue Phase 2: Immediate Preparation (4-6 weeks before assignment) Administrative tasks Arrange housing/accommodation: Short- or long-term rental, utilities Sort mobility: Rental car, public transport, bike hire Open a bank account: Recommended for longer stays Activate health insurance: EHIC card, private top-up cover Preparing the employee Cultural briefing: Business customs, holidays, taboos Language courses: Maltese basics, brush up business English Family integration: Schooling, childcare, partner’s job Tax awareness: Track days of stay, keep receipts Phase 3: Start of Assignment (first 4 weeks) First week: Arrival and registration Arrive and settle in: Move in, get bearings Official registrations: Residence permit (for longer stays), tax number Set up workplace: IT, access, safety training Make first contacts: Team, clients, local partners Weeks 2-4: Integration and work start Start project work: Define tasks, milestones Establish regular check-ins: With Germany and local team Monitor compliance: Working hours, Maltese standards Begin documentation: Days present, duties, expenses Phase 4: Ongoing Support During Assignment Monthly tasks Record days present: For tax and social security purposes Monitor working hours: Stick to Maltese limits Assess project progress: Success, need for adjustments Review employee satisfaction: Work-life balance, family integration Quarterly reviews Extend A1 certificate: If needed and possible Review tax position: Advance payments, optimizations Update insurances: New risks, changed circumstances Start return planning: If assignment end is in sight Phase 5: Return and Follow-Up Last weeks before return Plan project wrap-up: Handover, documentation, knowledge transfer Prepare de-registrations: Maltese authorities, landlord, utilities Start tax processing: Gather certificates, claims Plan reintegration: Job in Germany, smooth return After return Complete all de-registrations: Malta Revenue, Jobsplus, landlord Tax returns: In both countries, use DTA provisions Document experiences: For future assignments Lessons learned: What worked, what would you change? Costs and Effort: What a Malta Assignment Really Costs The true costs of a Malta assignment go far beyond salary. Here’s a breakdown—from the obvious to the hidden items that can blow your budget. Direct Personnel Costs Base salary is just the start. For a fair and attractive assignment, you need to factor in extras: Cost Item Monthly (€) One-Off (€) Note Base salary (example) 4,500 – Keep at German level Foreign assignment allowance 500-1,000 – 10-20% of base common Housing allowance 800-1,500 – Depends on location & standard Extra insurances 150-300 – International health, liability Home trips – 200-400 Per trip, 6-8x per year Relocation costs – 2,000-5,000 Depending on volume Realistic calculation: Budget at least a 40-60% markup on the German base salary for a 12-month Malta assignment. Compliance and Consulting Costs Legal and tax security also costs money—but far less than the consequences of mistakes: Legal advice: €2,000-5,000 initial, €500-1,000 ongoing Tax advice: €1,500-3,000 per assigned employee, per year A1 certificate: No direct cost, but time investment Maltese registrations: €300-800 depending on complexity Ongoing compliance: €200-500/month for documentation and filings Hidden Costs Often Overlooked This is where the biggest savings—but also the nastiest surprises—lie: Productivity loss: First 2-3 months lower performance due to settling in Double infrastructure: Workplace in both Germany and Malta Travel management costs: Frequent business trips between locations Currency risks: Matter for longer stays Team communication: Extra tools and processes for remote work Emergency repatriation: Budget for sudden returns Cost Comparison: Assignment vs. Alternatives Before deciding on an assignment, review the alternatives: Option Annual Cost (€) Advantages Disadvantages Assign existing employee 80,000-120,000 Trust, know-how, fast High costs, complexity Hire locally in Malta 35,000-60,000 Lower costs, local expertise Longer search, culture gap Freelancer/Contractor 50,000-80,000 Flexibility, no compliance work Less control, tax risk Business trips instead of assignment 20,000-40,000 Minimal bureaucracy Inefficient for longer need Calculating the ROI of a Malta Assignment An assignment has to make financial sense. Work out your real return on investment: Direct costs: Add up all the above Opportunity cost: What could the employee achieve in Germany? Expected benefit: New markets, projects, partnerships Risk factors: Likelihood and possible cost of problems Practical rule of thumb: A Malta assignment pays off from an expected project value of €300,000-500,000 or for strategic targets where ROI is hard to measure. Budgeting and Cost Control Always include a buffer—things rarely go exactly to plan in Malta assignments: Planning phase: +20% buffer for advisory costs Ongoing costs: +15% for unforeseeable spending Emergency reserve: €5,000-10,000 for early return or legal issues Track costs monthly and record every expense carefully. It helps for tax—and for planning your next assignment. The 8 Most Common Mistakes with Malta Assignments (and How to Avoid Them) After three years of experience with international assignments, I’ve made—and seen—almost every mistake. Here are the eight most costly pitfalls you must avoid. Mistake 1: Not Allowing Enough Time for Administrative Applications The problem: You want to start in April and apply for the A1 in March. DVKA needs 4-6 weeks to process, Maltese agencies want pre-registrations—and without valid paperwork, your employee can’t work legally. The consequences: Project delays, extra travel costs, stressed employees, legal uncertainty. How to avoid it: Allow at least 8-12 weeks’ lead time for all paperwork. Make a checklist with deadlines working backward from your start date. Mistake 2: Incorrect Categorization: Assignment vs. Secondment The problem: You treat Malta as an assignment when legally it’s a secondment—or vice versa. This determines social security, tax, and employment law. The consequences: Invalid A1, double social security, €10,000+ in back payments, legal risks. How to avoid it: Have a specialist check the legal setup in advance. €500 for advice can save thousands later. Mistake 3: Incomplete Tracking of Days Spent in Country The problem: Your employee doesn’t keep a precise diary of days in Malta. At audit, they can’t prove if it was over or under 183 days. The consequences: Tax liability in both countries, complex refund processes, extra advisory costs. How to avoid it: Digital tracking from day 1 (“TaxTracker” app or an Excel with photos of boarding passes works well). Mistake 4: Ignoring Maltese Employment Standards The problem: You assume a German contract covers everything and ignore Maltese minimum wage, hours or safety. The consequences: Labour inspection fines, minimum wage back pay, work accidents without sufficient insurance. How to avoid it: Make a compliance checklist for Maltese standards. Review regularly to ensure all requirements are met. Mistake 5: Underestimating Family Integration The problem: You plan for the employee but forget partner and kids. No school spots, the partner can’t get a job, the family’s unhappy. The consequences: Early return, demotivated staff, wasted investment, company reputation hit. How to avoid it: Include family from day one. Research schools, check partner job prospects, help with social contacts. Mistake 6: Unclear Return Conditions The problem: The assignment is “minimum six months, possibly longer”. Neither you nor the employee knows when or how return happens. The consequences: Legal uncertainty on the A1, tax issues, poor planning all round. How to avoid it: Define clear end criteria: project completion, date, milestones. Set up extension terms in advance. Mistake 7: Neglecting Malta’s Administrative Peculiarities The problem: You focus on German rules and underestimate Maltese quirks: Forms in Maltese, special office hours, lengthy approvals. The consequences: Delays, extra costs for translations, stress for your assignee. How to avoid it: Get a local advisor or partner in Malta. €1,000-2,000 here saves time and nerves. Mistake 8: Missing Performance and Risk Control The problem: After assignment starts, all’s “on autopilot”. You check neither project progress nor compliance, nor employee satisfaction. The consequences: Problems get noticed too late, small compliance slips become big legal risks, assignment ROI unclear. How to avoid it: Set up regular check-ins from the start: weekly on project progress, monthly for compliance, quarterly for strategic review. Bonus Tip: What to Do If Things Still Go Wrong? Even with the best prep, things can go wrong. Then fast, transparent action is key: Acknowledge the problem at once: Burying your head in the sand never helps Call in experts: Legal/tax advisors, even if it costs Proactively inform authorities: They’re usually helpful if you’re honest Record lessons learned: For next time I’ve seen a small error with the A1 certificate trigger months of talks with the authorities in Germany and Malta. But transparent communication and professional help minimized the fallout. Malta Assignment Checklist: Everything at a Glance This checklist is your guide to a successful Malta assignment. I’ve developed it across more than 20 real assignments and continuously improved it. 8-12 Weeks Before Assignment Key Decisions □ Assignment purpose and duration defined □ Employee selected and informed □ Legal structure (Assignment vs. Secondment) set □ Preliminary budget calculated □ Family integration checked External Advice □ Contacted an international employment law specialist □ Found a tax advisor with Malta experience □ Checked insurance cover (health, accident, liability) □ Identified a local partner/advisor in Malta 6-8 Weeks Before Assignment Administrative Applications □ A1 certificate applied for at DVKA □ Advance tax queries submitted (Germany and Malta) □ Checked workplace compliance for Malta □ Assignment agreement drafted Practical Preparations □ Accommodation arranged in Malta □ Planned mobility/transport □ Activated health insurance (EHIC + top-up) □ Prepared to open bank account (for longer stays) 2-4 Weeks Before Assignment Employee Preparation □ Cultural briefing delivered □ Business customs & local specifics explained □ Language courses arranged (if needed) □ Tax briefing (days present tracking, receipts) □ Emergency contacts and procedures defined Final Coordination □ A1 certificate received and checked □ Assignment agreement signed □ Travel finalized □ IT setup and access prepared First Week in Malta Arrival and Registration □ Moved in, utilities activated □ Registered with Jobsplus Malta □ Requested tax number (for longer stays) □ Workplace set up, safety training completed □ Opened bank account (if planned) Starting Work □ Made first contacts with local team □ Started project work □ Established regular check-ins with Germany □ Started tracking days present Ongoing Support (Monthly) Compliance Monitoring □ Days present recorded □ Working hours and Maltese standards reviewed □ Project progress assessed □ Employee satisfaction checked □ Expenses and budget tracked Quarterly Reviews □ Checked A1 certificate validity □ Evaluated tax situation □ Updated insurance cover □ Return planning (if foreseeable) Preparing for Return (4-6 Weeks Ahead) Project Wrap-Up □ Handover and knowledge transfer planned □ Documentation completed □ Local contacts for aftercare defined □ Success and lessons learned recorded Administrative Tasks □ De-registrations at Maltese authorities prepared □ Notified landlord and utilities □ Started tax settlement □ Organized return travel and relocation After Return Final Administration □ Full de-registration in Malta completed □ Prepared tax returns in both countries □ Used DTA for refunds □ Final statement of all costs □ Reintegration of employee in Germany Lessons Learned □ Documented experiences □ Evaluated assignment ROI □ Identified improvements for future assignments □ Maintained Malta contacts and partnerships Emergency Checklist In case something goes wrong: □ Have contact info for all advisors & authorities at hand □ Emergency budget for extra advice or early return □ Escalation plan for legal/tax issues □ Communications plan for crisis Pro tip: Make a digital version of this checklist—with due dates and responsibilities. Tools like Asana or Trello are great for tracking the project. Frequently Asked Questions About Employee Assignments to Malta How long does it take to get an A1 certificate for Malta? DVKA usually needs 2-4 weeks to process complete applications. Incomplete paperwork can extend this to 6-8 weeks. Allow at least 6 weeks’ lead time and make sure all required documents (employment contract, assignment agreement, business activity evidence) are submitted in full. Does my assigned employee have to pay tax in Malta? That depends on the duration of stay. For under 183 days per year, Maltese tax liability usually doesn’t arise. Over 183 days, Malta becomes the tax residence. The double tax treaty then determines which country gets the right to tax. It’s best to have a tax advisor review each individual case. What Maltese employment laws apply to German assignees? The EU Posting of Workers Directive requires compliance with Maltese minimum standards on pay (currently €835 per month), working time (max 40 hours/week), overtime premiums, and health & safety. German employment standards still apply, if they’re more favorable to the employee. Does my employee need a work permit for Malta? EU citizens do not need a work permit for Malta. Registration at Jobsplus Malta is still required. For stays over 90 days, you also need to apply for a residence registration card. Non-EU citizens need an appropriate work visa. What happens if the A1 certificate is rejected? If rejected, the employee must enter Malta’s social security, in addition to German payments. This can mean double contributions of €15,000-25,000 per year. Prompt resubmission with corrected documents or legal advice is essential. To avoid this, check the requirements beforehand in detail. What are the total costs for a 12-month Malta assignment? Expect a 40-60% premium on the German base salary. For a base salary of €60,000, total yearly costs will be €85,000-95,000. This includes foreign assignment allowances, housing, extra insurance, compliance costs, and home trips. One-off expenses (e.g. moving, consultancy) are extra. Can family members accompany an employee to Malta? Yes, EU citizens can bring family. Children can attend Maltese (English-language) schools; partners can work. Be aware of extra costs for private schools (€2,000-8,000 per year), a larger apartment, and possibly language courses. What’s the difference between assignment and secondment to Malta? With an assignment, the German employment contract remains in force; with secondment, the employee switches to a Maltese employer (including subsidiaries). Assignment allows German social security (A1 certificate); secondment leads to Maltese social security liability. There are major legal and tax differences. How do I monitor Maltese workplace standards? Create a monthly compliance checklist: record working hours (max 40/week), pay overtime correctly (150% after 41st hour), meet safety standards. The Maltese labor inspection may hold surprise checks. A local HR partner helps monitor ongoing compliance. Can a Malta assignment be extended? Yes, but with limits. A1 certificates can be extended to a maximum of 24 months. Longer stays count as a permanent transfer, triggering Maltese tax and social security. Plan extensions early and check the legal consequences.
