Learn about everything you need to register as a sole trader in Malta.
Known primarily for its outstanding public health system and its high quality of life, the Republic of Malta is more than a popular tourist destination for Europeans. Thanks to its favorable tax laws and streamlined sole trader registration, Malta’s an excellent launchpad for individuals looking to begin their freelancer careers.
Are you ready to step into the driver’s seat of your career? We’ll do everything we can to give you all the information you need, but you should be aware that the information here shouldn’t be used in place of legal counsel.
What is a sole trader in Malta?
A sole trader is a self-employed individual who runs the entirety of their business. Malta makes it especially easy to get your business up and running quickly. However, one word of caution: because you and the business are not separate legal entities, you can personally be held responsible for any liability the business takes on.
How do I become a sole trader?
Unlike many other countries, you won’t be required to register a business name since you’ll be required to do business under your actual name. However, you are required to notify the government that you’ll be operating a self-employed business by submitting a Self-Employed Engagement form on the JobsPlus website or by mail. You can also register through Malta’s e-services website.
You will be required to submit your identity card, a certificate of registration (or exemption) from the Department of Social Security, your personal address, your business address, and a description of your work.
You may need to acquire a license if you participate in any of the following trades: street hawkers, market hawkers, car booth sales, auctioneering, door-to-door sales, marketing agents, and precious metals and stones dealers.
What kind of taxes will I pay as a sole proprietor in Malta?
As a sole proprietor, you’ll be required to pay an income tax (not to exceed 35%) and a capital gains tax using a Tax Index of Financial Data. If you sell over €35,000 in goods or €24,000 in services, you will be required to register for VAT.
Receiving payments in Malta via Liquid.
Liquid supports payments to Malta and 175+ countries worldwide in USD and select foreign currencies, including EUR. Payments arrive in 2-5 business days via wire transfer, whether the invoice was sent to an existing client using Liquid or a client who is new to Liquid.
Invoices in Liquid are in USD by default but can also be sent in Euros and other select foreign currencies, allowing vendors to receive payment in their local currencies instead of USD. In addition, Work Orders / Project Proposals can also be agreed to in Euros and other select foreign currencies in Liquid.
Liquid charges clients who initiate payments $3 per US invoice paid and $8 per international invoice paid.
Liquid never charges Vendors to receive payments, even when Vendors are requesting payments from Clients who are not current users of Liquid.
Now you’re ready to start making money in Malta!
That’s everything you need to know to prepare yourself for the freelance lifestyle. Enjoy the benefits that come from setting your own hours and working at your own pace, and good luck!
Ready to invoice your United States-based clients? Try Liquid today.