Table of Contents Social Security in Malta: The Basics for Self-Employed Individuals Health Insurance in Malta: Mandatory or Optional for the Self-Employed? Pension Insurance in Malta: What International Self-Employed Professionals Need to Know Malta Social Security Contributions: Costs and Calculations EU Citizens vs. Third-Country Nationals: Social Security Differences Step-by-Step: Registering for Social Security in Malta Common Mistakes and How to Avoid Them Frequently Asked Questions When I moved to Malta two years ago, I naïvely thought: “EU country, no problem – social security will work much like it does in Germany.” Spoiler alert: It doesn’t. After three appointments at Jobsplus, two confusing forms in Maltese, and an afternoon waiting in line, I finally learned that Maltas social security system is just like the island itself – small, but complicated. Especially as a self-employed person, you face choices that will shape your financial future. Health insurance: optional or mandatory? Pension contributions: pay into Malta’s system or your home country’s? And what happens if you move back and forth between EU countries? In this article, Ill explain everything you need to know about social security in Malta. No bureaucratic jargon – just practical insights from someone who’s already dealt with the paperwork. You’ll not only learn what’s possible in theory, but also about the real-life pitfalls to watch out for. Social Security in Malta: The Basics for Self-Employed Individuals Malta’s social security system is built on three pillars that every international self-employed professional needs to understand. First is the state health insurance (part of the Department of Social Security), second is the state pension insurance, and third are the voluntary supplementary insurances. While this sounds complicated, there’s actually a straightforward logic: Malta wants every resident to have basic coverage but gives the self-employed more flexibility than employees. The Maltese Department of Social Security Your first stop is the Department of Social Security – or DSS for short. This is where everything comes together that, in Germany, would be spread across several agencies. This authority covers health insurance, pensions, unemployment benefits, and social assistance. As a self-employed person, you apply here for your Social Security Number – without it, nothing moves in Malta. One key point: Malta distinguishes between employed persons and self-employed persons. This category determines your rights and obligations. If you switch between the two statuses, you must report it immediately – otherwise, you could face serious penalties. Social Security Obligation: Who Must, Who Can? Here’s where it gets interesting: As an international self-employed professional in Malta, you are generally subject to social security if you make Malta your primary residence. In concrete terms, this means: Health Insurance: Access to Malta’s healthcare system via social security contributions or private insurance Pension Insurance: Contributions to Malta’s pension scheme (with exceptions for EU citizens) Occupational Accident Insurance: Automatically included if you pay social security contributions But – and here’s the beauty of Malta – as a self-employed person, you have much greater flexibility than employees. You can, for example, voluntarily pay higher contributions or opt out of certain benefits if you are covered elsewhere. EU Social Security Agreements: Your Safety Net As an EU citizen, the EU Social Security Agreement applies to you. This means that rights you’ve acquired in Germany, Austria, or any other EU country are preserved and taken into account when calculating your Maltese pension. This is handled via the Portable Document A1 (formerly E101), which you can apply for in your home country. What does this mean in practice? You don’t have to start from scratch but can build on your existing entitlements. However – and here’s the catch – you must actively decide in which country to pay your contributions. There’s no automatic process. Health Insurance in Malta: Mandatory or Optional for the Self-Employed? For me, Malta’s health insurance is the perfect example of the island’s pragmatic approach to EU law. In theory, as a self-employed person, you’re required to join the Maltese system. In practice, Malta accepts EU health insurance coverage, provided you can prove you’re properly insured. Understanding the Maltese Healthcare System Malta’s public health insurance operates on the benefits-in-kind principle: you pay social security contributions and in return get free treatment at government health facilities. Let’s be honest – the quality varies. Mater Dei Hospital in Msida is modern and well-equipped, but waiting times can be frustratingly long. Private health insurance is very common in Malta. Costs are reasonable: Comprehensive private insurance costs between €800 and €2,500 per year, depending on age and level of cover. Options for International Self-Employed Professionals Basically, you have three options: Maltese Social Security + Private Supplementary Insurance: The standard approach for long-term residents Keeping German/EU Health Insurance: Possible if you can prove your insurance is valid in Malta International Private Health Insurance: The flexible, albeit expensive, solution Maltese Health Insurance: Benefits & Limitations What do you get for your social security contributions? The basic coverage is solid: Service Covered by State Waiting Times/Limitations GP Visits ✓ Free of charge Appointments often 2-3 weeks in advance Emergency Treatment ✓ Free of charge Long waiting times for non-critical cases Specialists ✓ By referral Waiting times 1-6 months Medication Partially (prescription fee) Not all medications available Dental Treatment Emergencies only Private co-pay typically required German Health Insurance in Malta: What Works? Many German self-employed people ask: Can I simply keep my German health insurance? The answer is complicated. Statutory-insured persons lose their entitlement when they move residence to Malta and work there self-employed. Privately-insured individuals can often keep their insurance but must check whether coverage applies in Malta. My tip: Contact your German health insurance provider before moving. Many insurers offer special policies for expats and residents abroad, often cheaper than taking out entirely new insurance in Malta. Private Health Insurance in Malta: The Popular Alternative The vast majority of international self-employed people I know opt for a combination: minimal Maltese social security plus comprehensive private health insurance. Why? Maltese private providers are competitive and often offer better service than the state system. Popular providers include Mapfre Middlesea, Elmo Insurance, and GasanMamo. Comprehensive coverage for a 35-year-old self-employed person costs around €1,200–1,800 per year, including international travel. What does this mean for you? Budget at least €1,500–2,000 per year for health insurance if you want optimal coverage in Malta. That’s less than in Germany or Switzerland, but more than in many other EU countries. Pension Insurance in Malta: What International Self-Employed Professionals Need to Know It’s with pension insurance that Malta’s pragmatic approach to EU law really stands out. Malta’s pension system is more generous than its reputation, but you need to know the rules. As an international self-employed professional, you have options not everyone is aware of – and they can make a difference of thousands of euros in your future pension. The Maltese Three-Pillar Pension System Malta fundamentally reformed its pension system in 2006, introducing a three-pillar model: First Pillar: State basic pension – for all who have paid contributions for at least 10 years Second Pillar: Earnings-related pension – depends on your total contributions Third Pillar: Voluntary private and company pension plans What makes this attractive for the self-employed? You can voluntarily pay higher contributions, increasing your later pension. Contribution rates are also lower than in Germany or Austria. Pension Contribution Rates in Malta: What Do You Actually Pay? As a self-employed person, you pay a total social security contribution of 15% on your income in Malta, most of which goes towards pension insurance. Here’s the calculation basis (2024 figures – always check DSS for the latest): Annual Income Contribution Rate Annual Contribution Cap Up to €25,000 15% €3,750 €25,001 – €60,000 15% €9,000 Over €60,000 15% (capped) €9,000 Interesting: There’s a contribution ceiling at about €60,000. If you earn more, you still only pay a maximum of €9,000 a year in social security. This makes Malta attractive for high-earning self-employed professionals. EU Pension Entitlements: How Does Aggregation Work? This really gets interesting. Thanks to EU Regulation 883/2004, your pension entitlements from different EU countries are aggregated. In practice, this means: Your German pension contributions remain valid Your Maltese contributions are added Upon retirement, each country pays you a proportional amount For example: You’ve worked 20 years in Germany and 10 years in Malta. Germany pays 2/3 of the pension based on your German contributions, Malta pays 1/3 based on your Maltese contributions. Both countries take your total 30 years of EU employment into account. Voluntary Top-up Pension Contributions: Is It Worth It? Malta allows self-employed people to voluntarily pay higher contributions. You can pay in up to 50% extra and receive correspondingly higher pension entitlements. This is particularly interesting if you plan to stay in Malta long-term. Example: If you voluntarily contribute €4,500 per year instead of €3,000, your future Maltese pension increases accordingly. With a projected 20-year retirement period, this can mean an extra €30,000–50,000. Pension Age: Malta vs. Germany The standard retirement age is 65. Germany is pushing the retirement age to 67. Two years earlier retirement – for an average pensioner, thats a significant difference. What’s more, Malta is more generous with early retirement. Beginning at 61, you can retire early with deductions if you’ve paid at least 35 years’ contributions. The deductions are less severe than in Germany. So what does this mean for you? If you’re still 15–20 years from retirement, a move to Malta could pay off. But always get a specialist tax adviser to run the numbers for your situation. Malta Social Security Contributions: Costs and Calculations Let’s talk numbers – the part that really stings if you don’t plan ahead. When I got my first Maltese social security bill, I was surprised: Malta is cheaper than Germany, but more expensive than many digital nomad hotspots. The good news: you know exactly what you’re getting into in advance. Contribution Rates in Malta: The Overview As a self-employed person in Malta, you’ll pay a flat 15% contribution on your net income. This covers all social security benefits: health, pension, unemployment, and accident insurance. Simpler than Germanys system of different contribution rates for each branch of insurance. The 15% breaks down as follows: Pension Insurance: approx. 10% Health Insurance: approx. 3% Other Benefits (unemployment, accident insurance): approx. 2% Base of Calculation: What Counts as Social Security Income? This is where it gets tricky. Malta calculates your social security on net income after deducting business expenses. That’s a plus, but there are pitfalls: Accepted Business Expenses: Office costs (including pro-rata home office) Hardware and software Travel expenses Training courses Legal and tax advice Non-accepted Expenses: Private health insurance Private pension plans Living expenses Exaggerated business meals Practical Calculation Examples Let’s run some real numbers. Here are three typical self-employment profiles: Scenario Gross Income Business Expenses Net Income Social Security (15%) Freelancer €40,000 €8,000 €32,000 €4,800 Consultant €80,000 €15,000 €65,000 €9,000 (capped) Online Business €120,000 €30,000 €90,000 €9,000 (capped) Important: The income ceiling for social security is around €60,000 net. Above that, you pay a maximum of €9,000 per year – regardless of how much you earn. Minimum Contributions and Special Cases Malta also has minimum contributions, payable even if your income is low. As a self-employed person, you must pay at least as much as if you were earning the national minimum wage. That’s currently around €1,200 per year in social security contributions. If you run a seasonal business: Contributions can be spread throughout the year, but minimums must still be met. If you earn nothing in a given year, you can apply for a contribution holiday – but you’ll lose corresponding pension entitlements. Comparison with Other EU Countries How does Malta stack up in comparison? Here’s an overview of the overall tax and social security burden for the self-employed: Country Social Security Top Income Tax Rate Total Burden Malta 15% 35% 50% Germany ~25% 42% 67% Austria ~28% 55% 83% Portugal 21.4% 48% 69.4% So Malta is cheaper on the social security front than the DACH region. Combined with tax advantages, this can mean significant savings for self-employed professionals. Payment and Deadlines You pay your social security quarterly – always by the 15th of the month after each quarter ends: 15th April, 15th July, 15th October, and 15th January. Late payment means interest charges and could result in being struck off the social security register. My tip: Set up a standing order. The DSS won’t remind you of due payments automatically, and fixing missed payments is complicated and expensive. What does this mean for you? Plan to set aside 15–20% of your net income for social security. That’s less than in Germany, but still a significant expense you need to factor in. EU Citizens vs. Third-Country Nationals: Social Security Differences This is where Malta’s EU membership really comes into play. As an EU citizen, you enjoy rights and options most third-country nationals can only dream of. But – and this is important – you also have obligations you shouldn’t ignore. Here are the key differences that will affect your planning. EU Citizens: Freedom of Movement, Responsibility Included As an EU citizen, you benefit from Regulation 883/2004. In concrete terms, this means: Immediate access to Maltese social security with no waiting periods Portability of entitlements from other EU countries System coordination – no double insurance required Equal treatment with Maltese citizens But be warned: EU rights do not equal EU convenience. You have to actively decide where to be insured. It’s not automatic and can get tricky if you’re active in several EU countries. The A1 Form: Your Most Important Document If you move to Malta as an EU citizen but still work with clients in Germany, you’ll need the A1 form (formerly E101). It certifies where you’re insured. Without it, German clients could theoretically categorize you as a disguised employee. You apply for the A1 form at the relevant authority in your home country. In Germany, that’s either the Deutsche Rentenversicherung or your health insurance provider. Processing takes 2–6 weeks, so plan accordingly. Third-Country Nationals: More Hurdles, Less Flexibility As a third-country national (non-EU citizen), your situation is more complex. You have, in principle, the same social security rights in Malta, but: No automatic recognition of rights from your home country Potential double insurance in Malta and your home country Possible waiting periods for some benefits Proof of residency required for entitlements The main problem: Many third-countries have no social security agreement with Malta. This means your pension rights from your home country may not be credited. Double Taxation vs. Social Security Agreements A common mistake: double tax treaties and social security agreements are not the same. Malta has many tax treaties, but only a few social security agreements. Countries with Social Security Agreements: All EU countries (automatic) Switzerland United Kingdom (post-Brexit, special rules apply) Canada Australia No Social Security Agreement: USA Singapore Dubai/UAE Most Asian and African countries Practical Impact on Your Plans What does this actually mean for you? As an EU citizen: You can switch flexibly between EU countries Your pension entitlements are protected You must actively coordinate your social insurance arrangements For temporary stays, you can often remain insured in your home country As a third-country national: You should plan for Malta as a long-term solution Going back to your home country can cost you pension rights You often need international health insurance as a backup This choice should be made with careful long-term consideration Brexit: The British in Malta British nationals are now a special case post-Brexit. Those who lived in Malta before 31 December 2020 largely retain their EU rights. New British residents are treated as third-country nationals, with some transitional arrangements. If you’re British and planning to move to Malta: check with the Department of Social Security for current regulations. These are still subject to change. What does it mean for you? Your nationality largely determines your options in Malta. As an EU citizen, you have much more flexibility – but also more paperwork to coordinate. As a third-country national, you need to plan more strategically and see Malta as a long-term move. Step-by-Step: Registering for Social Security in Malta Let’s get practical. Ill walk you through the entire registration process – from preparing in your home country to receiving your first social security contribution notice in Malta. If you follow these steps, you’ll save yourself at least two extra trips to the authorities and several weeks of waiting. Preparation While Still in Your Home Country The most important tip: Get all your paperwork in order before moving. Some documents are hard or impossible to obtain once you’re already in Malta. You’ll need these documents: Certified translation of your birth certificate into English European Health Insurance Card (if you’re an EU citizen) A1 form from your current social security authority Proof of previous social security periods (in Germany: pension insurance statement) Apostille for all documents you wish to use in Malta You get the apostille in Germany from your state’s Ministry of Justice or regional government. Allow 1–4 weeks, and about €25 per document. Retroactively obtaining it from Malta is much more complicated. Step 1: Apply for Your Maltese ID Card You cant do anything without a Maltese ID card (Identity Malta ID). This is your first stop after arriving in Malta. Where: Identity Malta Office in Gwardamangia or Gozo Opening hours: Monday–Friday 8:00–15:00, Saturday 8:00–12:00 Appointment: Schedule online at identitymalta.com or walk-in Processing time: 2–3 weeks to issue Required documents: Original passport Biometric passport photo Proof of Maltese address (lease or utility bill) Fee: €25 Insider tip: Book your appointment online at least a week ahead. Walk-ins usually mean hours of waiting. Step 2: Register with the Department of Social Security With your ID card, head to the Department of Social Security. The main office is at Evans Building, Merchant Street, Valletta. Opening hours: Monday–Friday 8:00–16:00 Appointment: Not strictly required, but advised Duration: 1–2 hours on site, processing 2–4 weeks Documents to bring: Maltese ID card Passport Proof of self-employment (business registration, trade register extract) SSA7 form (Self-Employed Declaration) – fill out on-site or download ahead of time Proof of Maltese address A1 form (if you have one) Step 3: Filling Out the SSA7 Form Correctly The SSA7 form determines your contribution amount. Here, you specify your expected annual income and your occupation. Key points: Estimate your income realistically: Too low = back payments, too high = advance payments without interest Precise job description: Affects possible supplementary insurance options later Start date: Date of your first invoice in Malta, not your moving day Submit the completed form in person. You’ll get a receipt – keep it for possible inquiries. Step 4: Receive Your Social Security Number After 2–4 weeks, you’ll receive your Maltese Social Security Number by post. This eight-digit number is required for all further official dealings, tax returns, and doctor’s appointments. You’ll also get your first contribution notice with the amount you need to pay each quarter. Step 5: Set Up Your Payment Methods Malta accepts social security contributions by bank transfer, standing order, or cash. I strongly recommend the standing order – it avoids late fees and charges. DSS bank details: Bank of Valletta IBAN: MT84VALL22013000000040027035721 BIC: VALLMTMT Reference: Your Social Security Number Step 6: Apply for Your Health Insurance Card Once you have your social security number, you can apply for your Maltese health insurance card at the same DSS office or online. The card arrives by post after 1–2 weeks and entitles you to free treatment at public health facilities. Timeline and Costs Overview Step Duration Cost Required for next step Apply for ID card 2–3 weeks €25 Social security registration DSS registration 2–4 weeks Free Health insurance card Health insurance card 1–2 weeks Free Doctor visits All up, plan for 6–8 weeks to complete the process. During this time, your European Health Insurance Card will cover emergencies. So what does this mean for you? Treat registration as your first priority after moving. With good preparation, it’s less complicated than you imagine – but without it, you’ll find yourself hitting dead ends. Common Mistakes and How to Avoid Them After two years in Malta and countless conversations with fellow self-employed professionals, I’ve seen all the typical pitfalls. Some only cost time and nerves; others can cost real money. But most can be avoided if you know what to look out for. Here are the seven most common mistakes – and how you can sidestep them. Mistake 1: Registering Too Late for Social Security The classic beginner’s mistake: You move to Malta, start working immediately, but only register for social security months later. That could get very expensive. The rule: You must register within 30 days of starting self-employment. If not, you face penalties and back payments with interest. How to avoid it: Register with the DSS as soon as you have your Maltese ID card – even if you don’t have clients yet. You can backdate your business start if necessary. Real life example: Marco, an Italian web designer, only registered after six months. Result: €1,200 back payment plus 8% interest per year. He could’ve saved that. Mistake 2: Choosing the Wrong Country for EU Social Security As an EU citizen, you must decide where to be insured. Many make the decision carelessly, or aren’t even aware they need to actively choose. The golden rule: You’re insured where your main place of residence and primary work location are. There are exceptions for temporary stays and cross-border activities. Problems arise if: You live in Malta but mainly serve German clients You commute between Malta and Germany You’re only temporarily in Malta (less than a year) How to avoid it: Before you move, apply for the A1 form from your German social security authority. This clarifies where you’re covered and helps you avoid double insurance or contribution gaps. Mistake 3: Poor Documentation of Business Expenses Malta calculates your social security based on net income after business expenses. Many people keep poor records, or none at all. Typical documentation mistakes: Receipts not in English or Maltese Mixing personal and business expenses No clear breakdown for home office costs No explanation for unusual expenses How to get it right: Use proper bookkeeping from the start. Collect all receipts, translate foreign invoices into English, and document business purpose. A simple spreadsheet often suffices. Mistake 4: Missing the Contribution Ceiling Many don’t realize Malta has a contribution cap. Beyond around €60,000 net income, you pay a maximum of €9,000 in social security per year – regardless of how much you earn above that. The mistake: High-income self-employed folks plan with 15% of their total, and overestimate their social security outlay. How to turn it to your advantage: If your income is above the ceiling, your effective social security rate drops significantly. With €100,000 net, you’re paying just 9% instead of 15%. Mistake 5: Underestimating Health Insurance Coverage Many international self-employed people assume Maltese social security automatically provides comprehensive health coverage. That’s only partly true. Often overlooked: Long waits to see specialists (several months) Limited availability of some medications Dental treatment only for emergencies No coverage for private clinics The solution: Budget for private supplementary insurance from the outset. €1,200–1,800 per year for comprehensive private health insurance is a smart investment. Mistake 6: Ignoring Deadlines Malta is relaxed about many things, but not about on-time social security payments. Quarterly deadlines are strictly enforced. Deadlines: Q1 (Jan–Mar): Pay by 15 April Q2 (Apr–Jun): Pay by 15 July Q3 (Jul–Sep): Pay by 15 October Q4 (Oct–Dec): Pay by 15 January If late: 8% annual interest plus penalty fees. Several months late and you risk losing social security coverage. How to avoid it: Set up a standing order as soon as you receive your first contribution notice. Payment rates rarely change unexpectedly. Mistake 7: No Savings for Back Payments Everything is reconciled at year-end. If you earn more than you estimated, you’ll owe extra. Many get a nasty surprise. Common scenario: You estimate €30,000 annual income, pay €4,500 in social security. You actually earn €45,000. At year-end, you owe €2,250 in one go. How to plan ahead: Set aside 15–20% of your actual monthly income for social security. At the year-end, you’re in the clear – you may even get a refund. What’s the takeaway? Most mistakes stem from poor preparation or ignorance of Maltese quirks. With a little planning and disciplined record-keeping, you can avoid them all. Trust me – it’s far less stressful to get it right from the start than to pay for costly corrections later. Frequently Asked Questions Do I have to join Maltese social security straight away as an EU citizen? No, not automatically. As an EU citizen, you can temporarily remain insured in your home country if you apply for the A1 form. This only applies to short stays or special cross-border situations. If you transfer your main residence to Malta, you’ll usually have to switch to their social security system. Can I keep my German private health insurance in Malta? That depends on your insurance contract. Many German private insurers offer worldwide or EU-wide plans. But check that your cover meets Maltese regulations and whether you still need to pay Maltese social security contributions. How much are social security contributions for the self-employed in Malta? You pay 15% of your net income after business expenses. On €40,000 net income, that’s €6,000 per year. Above about €60,000, the contribution cap applies – you pay a maximum of €9,000 per year, no matter how much you earn above that. What happens to my German pension entitlements? Your German pension rights are fully preserved. Under the EU social security agreement, German and Maltese contribution periods are aggregated. You’ll receive a proportional pension from both countries – Germany pays based on your German contributions, Malta for your Maltese ones. Do I have to pay social security if all my clients are outside Malta? Yes, what matters is where you live and perform the work, not where your clients are. If you live and work in Malta, you’re liable for social security contributions – even if all your clients are in Germany, the US, or anywhere else. How long can I stay in Malta without becoming liable for social security? You can spend up to 90 days per half-year in Malta as a tourist. As soon as you register as a resident or stay longer, you become liable. If you start self-employment, you must register within 30 days. How much does additional private health insurance cost in Malta? A comprehensive private health insurance policy costs €800–2,500 per year, depending on age and level of cover. For a 35-year-old self-employed person seeking good coverage, budget around €1,200–1,800. That’s less than in Germany or Switzerland. Can I be exempted from compulsory Maltese social security? Generally, no. If you live in Malta and work self-employed, you’re obliged to contribute. Exceptions exist only for very special cases: diplomats or those subject to unique international treaties. Regular self-employed people aren’t eligible for exemption. What happens if I leave Malta again? As an EU citizen, you retain your Maltese pension entitlements. You can technically keep your Maltese health insurance when moving to another EU country – but this is usually not practical. If you move to a non-EU country, your Maltese entitlements may be frozen. How does pension aggregation work for time spent abroad? Malta aggregates all EU contribution periods. If you worked 20 years in Germany and 15 years in Malta, Malta considers the full 35 years for minimum qualifying periods. Benefit amounts are calculated only on your Maltese contributions. Germany pays its share based on your German contributions.
