The short answer
To register as self-employed in Malta you need two things before your first invoice: a VAT number from the Malta Tax and Customs Administration (MTCA), and a self-employment registration with Jobsplus. After that, the real decisions start: VAT registration under Article 10 or Article 11, what you pay in social security from week one, and when the taxman will first knock.
These are the questions I'm asked most by people about to start: plumbers, electricians, hairdressers, freelance designers, consultants, etc. This guide answers them in the order they come up.
Please note: this article is for informational purposes only and is not tax advice. It was written in October 2026 using the rates in force for 2026. Income you earn in 2026 is taxed in year of assessment 2027. Rates and thresholds change, especially after the Budget, so check your own case with an accountant before acting on it.
One word on terms. Most people say "self-employed". The Social Security Act draws a line: a person who earns from their own work or trade is self-occupied, while a self-employed person in the Act's sense lives off income such as rent, dividends or interest. This guide is about the first: people who trade. I'll use "self-employed" because that is what everyone types into Google, but where social security is concerned, you are self-occupied.
Before you register: two questions to answer first
1. Full-time or part-time?
If self-employment is your only work, you register as full-time self-employed. If you already have a full-time job and do work on the side (an employed electrician who does weekend jobs, a teacher who gives private lessons), you register as part-time self-employed.
The difference is not just a box on a form. Part-time self-employment can qualify for a reduced 10% final tax on the first €12,000 of profit, declared on the TA22 form by 30 April. The same option is open to pensioners and to full-time students and apprentices. And if you already pay Class 1 social security through your job, you generally don't pay Class 2 on top for the part-time work. Full-time self-employment is taxed at the normal progressive rates through your annual tax return.
2. Sole trader or limited company?
This guide is for sole traders: you and the business are the same person, the profit is taxed as your income, and you are personally liable for its debts. Most people start this way because it is quick, cheap and simple.
A limited company makes sense later, usually once profits are high enough that the company tax system works in your favour, or once you take on bigger contracts and want to separate your personal assets. I'll cover when to make that switch, with numbers, in a separate guide.
How to register, step by step
- Decide your VAT article. Before you fill in anything, decide whether you will register under Article 10 or Article 11 (next section). This is the one choice that is awkward to undo: once you are under Article 10, you generally cannot move to Article 11 within a stipulated time period. Moving from Article 11 to Article 10, however, is straightforward.
- Register for VAT with the MTCA. The VAT registration gives your business a VAT number and links your trading activity to the MTCA, which is also who collects your income tax and your social security contributions.
- Register as self-employed with Jobsplus. Log in to your Jobsplus dashboard, open the Self-Employment tab and fill in the self-employed engagement form. It asks for your VAT number, which is why step 2 comes first. If you have two separate activities, say farming and hawking, each one needs its own form. In some cases, this step can be done together with your VAT registration.
- Check whether your activity needs a licence or permit. Food, transport, construction, health and some regulated trades need one before you start. A freelance designer usually needs nothing more; a food truck needs a lot more. Check before you spend money.
- Open a separate bank account and set up your books. It is not a legal requirement for a sole trader, but mixing business and personal money is the single biggest cause of messy accounts I see. Keep every purchase invoice, and make sure each one shows your VAT number, otherwise you cannot claim the VAT back.
- Get a PE number when you hire your first employee. You don't need one to start. You need it from the day someone joins your payroll.
Article 10 or Article 11: which one should you pick?
Pick Article 11 if your turnover will stay under €35,000 a year and your customers are mostly private individuals. Pick Article 10 if you will go over €35,000, if your customers are VAT-registered businesses, or if you will spend a lot on equipment and stock at the start.
| Feature | Article 11 (small undertaking) | Article 10 (full VAT registration) |
|---|---|---|
| Turnover limit | Up to €35,000 a year | No limit |
| Charge VAT on your sales? | No | Yes, usually 18% |
| Claim back VAT on your purchases? | No | Yes |
| Returns | One declaration a year | A VAT return every quarter |
| Best for | Small trades selling to the public | Bigger turnover, business clients, high start-up costs |
Why it matters for a new starter. Take an electrician who spends €12,000 on tools, equipment and materials in his first month. Under Article 10, he can claim back about €1,830 of VAT on those purchases (the VAT inside €12,000 at 18%: €12,000 × 18 ÷ 118). Under Article 11, that VAT is simply a cost. On the other hand, if his customers are households, Article 10 means adding 18% to every quote, and that can lose him jobs.
If you cross €35,000 under Article 11, you have to move to Article 10. Don't wait for the year-end to notice: keep an eye on your turnover every month, because the switch is your responsibility, not the MTCA's.
What you pay as a self-employed person
There are three payments to plan for:
- Social security (Class 2) starts from your first week (unless you are part-time and already pay Class 1 through a job). It is normally 15% of the previous year's net profit, paid in arrears on 30 April, 31 August and 21 December. In your first year there is no previous year, so you start at the minimum weekly rate (€36.18 a week in 2026). Contributions build up for every Monday in the year. The current rates are on the MTCA's Class 2 rates page.
- Provisional tax is based on the tax on the return you submitted last year, which covers income from two years ago. In years one and two, you have no self-employed return to base it on, so you pay none.
- Your first tax bill arrives with your first return, due by 30 June of the following year, and is paid in full at that point. Any provisional tax paid for the basis year in question will be taken into account when determining the final amount yet to settle.
For a full worked example of how these add up for an established tradesman, read my compliance guide for the self-employed.
Five mistakes I see in the first year
- Spending the cash in year one. It is very important that for each transaction, you keep an estimated portion of the VAT due and the income tax due as money that you cannot spend. This will help limit cashflow problems when these funds actually become due.
- Receipts without your VAT number. Under Article 10, a supplier invoice or a receipt for materials without your VAT number on it is a VAT claim you lose. Give your VAT number every time you buy something for the business.
- Choosing Article 11 to avoid paperwork, then crossing €35,000. The switch to Article 10 is your responsibility. Crossing the limit and carrying on as before builds up VAT you should have charged, and that comes out of your own pocket.
- Mixing personal and business money. One account for everything turns a two-hour job at year-end into a two-week one, and makes it hard to prove your expenses.
- Leaving the books until the tax return is due. By June of the following year, nobody remembers what that €340 bank transfer in March was for.
Frequently asked questions
Can I register as self-employed while I'm still employed full-time?
Yes. You register as part-time self-employed with Jobsplus. Your profit from the side work can qualify for the 10% final tax on the first €12,000, declared on the TA22 form. You generally won't pay Class 2 either, because you already pay Class 1 through your job.
Do I need a VAT number if I earn under €35,000?
Yes. You still register for VAT, but under Article 11, which means you don't charge VAT and you file one declaration a year. Jobsplus also asks for your VAT number when you register.
Can I register as self-employed online in Malta?
Yes. VAT registration is done with the MTCA and the self-employment form is on your Jobsplus dashboard. Have your ID card and e-ID login ready.
Do I pay provisional tax in my first year?
No. Provisional tax is based on the tax on your last submitted return, and in your first year (and usually your second) there is no self-employed return to base it on. The catch is that once it starts, it can fall in the same year as a full tax bill, so set money aside from the start.
Do I need an accountant to start?
Not to register. You might want one for the VAT choice, your first tax return and to plan ahead for your social security and tax bills. Getting it right at the start is much cheaper than fixing it later.
Not sure what your first year will cost? Monthly bookkeeping for a sole trader starts from €150. Estimate your own fee in a minute. New client offers are available.
Important. This article is for informational purposes only and does not constitute tax, legal or financial advice. It was written in October 2026, using the rates and thresholds in force for 2026 (income earned in 2026 is taxed in year of assessment 2027). Every situation is different, so speak to a warranted accountant before acting on it.
Sources: Jobsplus: How can I register as self-employed? · MTCA: Class 2 rates, 2026 · PwC Malta: VAT updates effective 1 January 2025 (the €35,000 threshold)