Table of Contents What You Need to Know About Social Security for Assignments to Malta A1 Certificate for Malta: Step-by-Step to Your International Certificate Overview of the Maltese Social Security System Assignment to Malta: Practical Implementation for Employees and Employers Problem Cases and Solutions for an Assignment to Malta Frequently Asked Questions What You Need to Know About Social Security for Assignments to Malta I still remember my first call with the German pension authority when I was about to be sent to Malta. A1 certificate? Never heard of it! was my spontaneous reply. Three phone calls and two new grey hairs later, I realized: Social security for international assignments is even more complicated than Maltese bus schedules—and that’s saying something. When assigned to Malta, you’re dealing with two social security systems: the German one (or your home country’s) and the Maltese. Which one applies isn’t random; it’s determined by EU regulations that are more precise than a Swiss watch. EU Coordination vs. Maltese System: Key Differences EU Social Security Coordination (Regulation 883/2004—don’t worry, you don’t need to remember the number) states that during a temporary posting you remain insured in your home country. That means: German health insurance, German pension contributions, German unemployment insurance—even if you’re splitting your office days between Valletta and Sliema. The Maltese Social Security System, on the other hand, comes into effect if you move your workplace permanently. Here, you’ll pay into the Maltese system and receive benefits accordingly. Currently, contributions are 10% of gross salary (employee) plus 10% (employer). My tip: EU coordination is your friend for short-term assignments. Over longer stays, the Maltese system can be attractive from a tax perspective—but comes with less social protection. Which System Applies? The 183-Day Rule Explained The magic threshold is 183 days within a 12-month period. If you stay less, the A1 certificate typically applies and you remain in the German system. If you exceed this, Malta becomes your social security center—like it or not. But be careful: the 183-day rule isn’t as simple as it seems. It’s not just about how long you’re physically present, but also about the center of your life interests. If you sell your house in Germany, send your kids to school in Malta, and change your primary residence, you can become liable for social security in Malta even after only 150 days. Length of Stay Social Security System Required Documents Up to 183 days Home Country (A1 certificate) A1 Certificate, EHIC Over 183 days Malta (Social Security) ID Malta, Employment License Center of Life in Malta Malta (regardless of days) Residence Permit, Social Security Number A1 Certificate for Malta: Step-by-Step to Your International Certificate The A1 certificate is your golden ticket for a social-security-free adventure in Malta. Without it, you’ll be charged double—your German contributions keep running, and Malta wants its cut too. I experienced this myself: €3,200 due in back payments for just six months. Since then, I apply for the A1 as soon as I even think about Malta. How to Apply for the A1 Certificate: The Documents You Need The application goes through your German social security provider—usually the German Pension Insurance, or the relevant benefits provider for civil servants. You’ll need: A1 certificate application form (available online) Employment contract or assignment letter with detailed job description Proof of intended duration of stay (project plan, rental contract) Confirmation from your employer stating this is a temporary assignment If self-employed: Contract confirmation and proof of health insurance The forms are available in German and English. My advice: use the English version. Maltese authorities do speak English in theory, but the German official language has been known to overwhelm even the best EU bureaucrats. Processing Time and Costs for the A1 Certificate In Germany, the A1 certificate doesn’t cost anything—except your nerves. Officially it takes 2–4 weeks, but in practice budget for 6–8 weeks. Especially in summer, when half of Germany seems to be posted to Malta, applications pile up. The trick: submit your application at least 8 weeks before departure. If it goes faster, great. If not, you’ve built in a buffer. I’ve seen colleagues spend their first two weeks in a Malta hotel because the A1 was missing and the employer wouldn’t let them start work without it. Insider tip: The A1 certificate can be issued retroactively if the application is filed within 6 months. This carries a risk though—Malta can demand social security contributions in the meantime. Avoiding Common Mistakes in the A1 Application Mistake number one: vague descriptions of your job. Project work isn’t enough. You have to be specific about what you’re doing, where you’re working, and why this is a temporary assignment. Setting up a branch office sounds permanent and will be rejected. Mistake number two: entering the wrong duration. If you apply for 6 months but stay 8, you’re left unprotected. Always err on the side of caution—an A1 certificate can be granted for up to 24 months. Mistake number three: forgetting about other countries. If your Malta project includes trips to Sicily or Gozo, this must be stated. Otherwise, the A1 only covers Malta—not the neighboring islands. Correction option: A1 certificates can be changed retroactively Extension: Extensions for up to 12 months possible (in special cases up to 24 months) Multiple Assignments: One A1 certificate can cover several stays in Malta if they are connected Overview of the Maltese Social Security System If you do switch to the Maltese system—whether by choice or not—you should know what you’re signing up for. The Maltese Social Security system is more efficient than its reputation, but considerably leaner than what you may know from Germany. I like to call it basic coverage plus personal responsibility. Social Security in Malta: Contributions and Benefits for EU Citizens Maltese social security contributions are a dream come true for anyone used to German deductions. As an employee, you pay 10% of your gross salary; your employer pays another 10%. Self-employed workers pay 15% of their income. In return you receive: Health insurance: Basic coverage via the Maltese public health system Unemployment insurance: Up to €156 per week for 6 months Pension insurance: Basic pension after 10 years of contributions Disability insurance: Up to €777 per month if unable to work Family benefits: Child allowance of €8.66 per week, per child To put it diplomatically: the benefits are limited. Maltese child benefit gets you about two cappuccinos in Valletta. The unemployment insurance will let you share a flat in Sliema, but won’t get you family housing in St. Julian’s. Malta Social Security Registration: The Enrollment Process Enrollment is handled by the Department of Social Security in Evans Building, Valletta. You’ll need: ID Malta (apply at Identity Malta) Employment License (for non-EU nationals) Employment contract or proof of self-employment Birth certificate (official translation into English or Maltese) Proof of address in Malta The process takes 2–4 weeks and is surprisingly digitalized. You’ll receive a Social Security Number that you’ll need for everything—from your tax return to your library card. Hang on to that number: replacement cards cost €23 and take another 2 weeks to issue. Practical tip: Go to the Department of Social Security at 8 a.m. After 10, queues form that will test the limits of Maltese patience. Health Insurance in Malta: What the EHIC Covers (and What It Doesnt) The European Health Insurance Card (EHIC) works seamlessly in Malta—for emergencies and basic care. Go to Mater Dei Hospital or a government health center, show your card, get treatment. Cost: zero. However, the EHIC only covers what Maltese citizens can get for free. Private doctors, dentists (except for emergencies), physiotherapy, and specialist care are at your expense. A dental visit in St. Julian’s can easily cost €150–€300. That’s why many Germans purchase private supplemental insurance for €50–€150 a month, which includes private doctors. This is especially worthwhile if you regularly need specialists—it can take months to get an appointment in the state system. Service EHIC/Public Private Cost General practitioner Free €50–€80 Emergency Free – Dentist Emergencies only €150–€300 Specialist Long wait times €100–€200 Physiotherapy Limited €40–€60 per session Assignment to Malta: Practical Implementation for Employees and Employers Theory is nice, but then there’s Malta in practice. Once the paperwork is done, the real adventure begins: What’s a Malta assignment like in everyday working life? Spoiler: it’s different than planned, but usually better than feared. Employer’s Checklist: Steps to Take Before Assigning Staff As an employer, you bear the main responsibility for a compliant deployment. Here’s the ultimate checklist: Apply for A1 certificate (6–8 weeks before assignment) Employment law check: Which labor law applies? (Usually Germany with A1 certificate) Clarify tax treatment: German payroll tax versus Malta Set rules for travel expenses: Who pays flights, hotels, rental cars? Review health insurance: Is the EHIC enough, or does the employee need extra coverage? Observe data protection: GDPR applies in Malta too, but there are local specifics The biggest pitfall is tax treatment. Even with an A1 certificate, Malta can demand taxes if you exceed certain thresholds. For salaries above €75,000 a year, things get tricky. Legal certainty: Have the assignment checked by a lawyer or tax advisor with Malta expertise. The cost of a consultation is lower than any potential back payments. As an Employee in Malta: Your Rights and Obligations As a posted worker, you get the best of both worlds—German social security and Maltese labor law. That means: Your rights: You keep your German health insurance Pension entitlements continue as usual Minimum wage in Malta (€760/month) applies, but your German salary stands EU workplace safety standards apply Paid leave according to Maltese law (at least 24 days) Your obligations: Always carry your A1 certificate Observe Maltese working hours (max. 48 hours/week) If sick, notify both the German and Maltese employer Fulfill tax reporting duties in both countries One important note: The Maltese siesta is real. Many shops close between 1 p.m. and 4 p.m. Plan your office visits accordingly—there’s nothing more frustrating than standing in front of locked doors when you’re finally ready to pick up your Social Security Number. Taxes When Assigned to Malta: What You Need to Know Taxes are the trickiest part of an assignment to Malta. The basic rule: Germany remains your tax residence as long as you hold the A1 certificate and spend less than 183 days in Malta. But Malta can still demand taxes: Situation German tax Maltese tax Short assignment (<183 days) Full tax liability Usually none Longer assignment (>183 days) Limited tax liability Full tax liability High income (>€75,000) Full tax liability Possible additional tax The good news: The double taxation agreement between Germany and Malta prevents you from being taxed twice. Taxes paid in Malta are credited against your German tax bill. The bad news: You still have to file tax returns in both countries—in Malta on paper by June 30, in Germany digitally by July 31 (or by February 28 of the following year if you use a tax advisor). Problem Cases and Solutions for an Assignment to Malta Murphy’s Law is alive and well in Malta: whatever can go wrong, will go wrong. But don’t panic—most problems have a solution. Here are the most common pitfalls and how to avoid them. Assignment Runs Longer Than Planned: Switching Systems the Right Way The classic scenario: your 6-month project turns into a 12-month marathon. Suddenly you cross the 183-day threshold and have to switch to the Maltese system. It’s annoying—but not the end of the world. Step 1: Immediately inform your employer and the German Pension Insurance. Step 2: Apply to terminate your A1 certificate on the effective date. The transition has to be seamless, or you risk gaps in contributions. Step 3: Register with Maltese Social Security right away. You have 14 days after passing the 183-day threshold. Attention, health insurance: Transitioning between systems can create gaps in coverage. Consider a private health policy to cover the gap until your Maltese registration is complete. Multiple EU Countries Involved: Solving Complex Cases Modern projects cross borders. If your Malta assignment includes Sicily, Rome or Barcelona, things get more complicated. The A1 certificate is valid across the EU, but every country has its own notification requirements. Italy: Registration at the Questura within 8 days for stays over 90 days. Required even with an A1 certificate. Spain: NIE number (Número de Identificación de Extranjero) for stays over 3 months. No NIE means no bank account. France: Submit attestation de détachement to the CPAM (Caisse Primaire d’Assurance Maladie) before you start. My advice: set up a country matrix listing all notification requirements and deadlines. Apps like Notion or Airtable make it easier to keep track. Self-Employed and Freelancers: Special Rules for Malta If you’re self-employed or a freelancer in Malta, different rules apply. For the A1 certificate, go through your health insurer (if publicly insured) or directly to the pension provider (if privately insured). Special rules for the self-employed: Malta requires a Business License for commercial activities Freelancers may need a Professional License depending on their field VAT applies after €35,000 annual turnover Social security contributions: 15% of profits (minimum €55 per week) The Malta Business License costs between €245 and €2,500, depending on your sector. IT service providers pay €245, consulting companies €500, financial services up to €2,500. A tip for EU citizens: the EU Services Directive allows temporary services in Malta without a Maltese license, as long as you are active for less than 90 days per year. Perfect for short consulting gigs. Activity License Required Cost Processing Time IT Services Business License €245 2–4 weeks Consulting Business License €500 3–6 weeks Financial Consulting Professional License €2,500 8–12 weeks Temporary Services (<90 days) None (EU Directive) €0 – Frequently Asked Questions About Social Security for Assignments to Malta Do I have to join the Maltese social security system for a 3-month assignment to Malta? No, for assignments under 183 days you remain covered by the German social security system with the A1 certificate. Malta cannot demand social security contributions. What happens if my employer does not apply for the A1 certificate? You become liable for social security in both Germany and Malta. You can try to claim back Maltese contributions, but this takes 6–12 months and lots of paperwork. Can I extend the A1 certificate if my Malta project lasts longer? Yes, an extension for up to 12 months is possible, and up to 24 months in exceptional cases. You must apply for the extension before the current certificate expires. Does my German health insurance cover private doctors in Malta? Statutory health insurance (EHIC) only covers public health services. You’ll need supplementary insurance or pay out of pocket for private doctors. Do I have to pay taxes in Malta if I have an A1 certificate? Usually not for stays under 183 days. But for high incomes (over €75,000) or certain activities, Malta may still ask for tax. The double taxation agreement prevents double charges. How much does it cost to register with the Maltese social security system? The registration itself is free. But from day one you pay 10% of your gross salary plus 10% employer share. Additional administrative fees may apply (e.g. €23 for a new Social Security card). Can I work in Malta as a freelancer without a business license? Only temporarily under the EU Services Directive, for a maximum of 90 days per year. For longer or permanent activities, you’ll need a Maltese business or professional license. What happens to my German pension rights if I switch systems? Your German pension entitlements remain intact. If you transfer into the Maltese system, you accumulate Maltese pension rights as well. EU coordination means both are taken into account for your retirement. How long does processing an A1 certificate take? Officially 2–4 weeks, but in practice allow 6–8 weeks. During peak assignment periods (May to September) it may take longer. Do I have to register with the police in Malta? EU citizens do not have to register with the police, but for stays over 3 months you should apply for a Residence Card. This isn’t mandatory, but it makes many administrative processes and contracts easier.
