The short answer
A tradesman working for himself in Malta has four things to keep on top of:
- VAT: registered under Article 10 or Article 11, depending on turnover and choice.
- Income tax: one tax return a year on the profit of the business.
- Social security (Class 2): paid three times a year, worked out on last year's profit.
- Provisional tax: income tax paid in advance, three times a year.
Below, each one is worked through using a real-looking example: Joe, a plumber.
Self-occupied or self-employed? They are not the same. In everyday speech, and in this article's title, anyone working for themselves is "self-employed". Maltese social security law draws a sharper line:
- Self-occupied: you earn your living from a trade, business, profession or vocation. A plumber, electrician or carpenter working for himself is self-occupied.
- Self-employed: in the legal sense, you are neither employed nor self-occupied, and your income comes from rents, investments or capital gains.
The two categories pay Class 2 contributions on different bases, so the label matters. Joe earns his living from plumbing, so he is self-occupied, and that is the term used for him below.
This article is for informational purposes only and is not tax advice. It was written for Year of Assessment (YOA) 2026, which covers income earned in 2025. Rates and thresholds change most years, so check your own position with an accountant.
Meet Joe, the plumber
Every figure below comes from this example. Numbers marked assumed are inputs; everything else is calculated from them.
| Work | Full-time plumber working for himself, no other job: self-occupied |
|---|---|
| Status | Single, born after 1962, no children |
| Year | Income earned in 2025, so YOA 2026 |
| Sales in 2025 (excluding VAT) | €58,000 assumed: €38,000 labour, €20,000 materials charged to customers |
| Provisional tax paid during 2025 | €2,200 assumed |
| Tax on 2024 income (YOA 2025) | €3,000 assumed, the base for his 2026 provisional tax |
| VAT | Article 10, because his sales are above €35,000 |
1. VAT: Article 10 or Article 11?
Every tradesman needs a VAT number. The question is which type.
| Feature | Article 11 (small undertaking) | Article 10 (full registration) |
|---|---|---|
| Who | Sales up to €35,000 a year | Above €35,000, or anyone who chooses it |
| Charge VAT on invoices? | No | Yes, 18% |
| Claim back VAT on materials, tools, van? | No | Yes |
| What you file | One annual declaration | A VAT return every quarter |
| Best for | Mostly household customers, low material costs | Business customers, or high material and equipment costs |
Since 1 January 2025 there is a single Article 11 threshold of €35,000 for goods and services. Once your sales pass it, you must move to Article 10.
Why it matters for a plumber. Under Article 11, a household customer pays 18% less, which helps you compete. But you can't reclaim the VAT on the boiler, pipes or van you buy, so that VAT becomes a cost. If materials are a big part of your bills, Article 10 can come out ahead even below the threshold.
Joe's VAT return
Joe is on Article 10, so he files quarterly. Returns and payment are due by the 15th of the second month after the quarter ends (for example, January to March is due 15 May).
A typical quarter (all figures excluding VAT):
| Line on the return | Value | VAT at 18% |
|---|---|---|
| Sales at the standard rate (labour and materials) | €14,500 | €2,610.00 |
| Purchases: materials and parts | €4,375 | €787.50 |
| Purchases: fuel, van servicing, water pipes | €1,000 | €180.00 |
| Input VAT he can claim | €967.50 | |
| VAT payable (€2,610.00 − €967.50) | €1,642.50 |
On the return form, a plumber mostly uses three areas: sales at 18% (value and VAT), purchases (split between ordinary purchases and capital goods such as a new van or a large tool), and the input VAT total. Other boxes, such as EU purchases or reverse-charge services, are only needed if you buy from suppliers abroad.
Your VAT number must be on every purchase receipt. When you buy materials, fuel or tools, the fiscal receipt or VAT invoice must show your own VAT number. Without it, you can't claim back the VAT on that purchase, even though you paid it. Give your VAT number at the counter every time; most suppliers can save it on your account.
2. Income tax
You are taxed on profit, not sales: what you invoiced, less the costs of earning it. The return for YOA 2026 (income earned in 2025) is due by 30 June 2026, with a profit and loss account attached.
What you can deduct
- Materials and parts used on jobs
- Van running costs: fuel, insurance, licence, servicing (business share only)
- Small tools, consumables and work clothing
- Phone, internet and software used for the business
- Insurance, accountancy fees and bank charges
- Wear and tear on bigger assets such as the van or expensive equipment, spread over their useful life instead of claimed all at once (capital allowances)
You can't deduct personal living costs, the private share of the van or phone, fines, the income tax itself, or your Class 2 social security contributions.
Joe's tax computation (YOA 2026)
| Item | € |
|---|---|
| Sales (excluding VAT) | 58,000 |
| Less: materials and parts | (17,500) |
| Less: van running costs | (4,200) |
| Less: small tools and consumables | (1,300) |
| Less: phone, internet, software | (700) |
| Less: accountancy fees | (1,500) |
| Less: insurance | (600) |
| Less: bank charges | (200) |
| Less: wear and tear on van (€20,000 × 20%) | (4,000) |
| Net profit = chargeable income | 28,000 |
Expense figures are assumed for the example.
How the tax rates work
Malta taxes income in bands: each slice is taxed at its own rate, so earning more never makes your earlier income dearer. The YOA 2026 bands are:
| Chargeable income (€) | Single | Married | Parent |
|---|---|---|---|
| 0% band | 0 – 12,000 | 0 – 15,000 | 0 – 13,000 |
| 15% band | 12,001 – 16,000 | 15,001 – 23,000 | 13,001 – 17,500 |
| 25% band | 16,001 – 60,000 | 23,001 – 60,000 | 17,501 – 60,000 |
| 35% band | above 60,000 | above 60,000 | above 60,000 |
Joe is single, so on €28,000:
| Slice | Rate | Tax (€) |
|---|---|---|
| First €12,000 | 0% | 0 |
| Next €4,000 (12,001 – 16,000) | 15% | 600 |
| Remaining €12,000 (16,001 – 28,000) | 25% | 3,000 |
| Total tax | 3,600 | |
| Less: provisional tax paid during 2025 | (2,200) | |
| Balance to pay by 30 June 2026 | 1,400 |
Side income: TA22 and TA24
Two simpler options exist for income outside a full-time trade. Both are filed on their own form by 30 April of the following year (30 April 2026 for 2025 income), and the income then stays off your main return.
- TA22: part-time self-employment. If plumbing is a side job alongside employment, qualifying profits can be taxed at a flat 10% on the first €12,000. Anything above €12,000 goes on the normal return.
- TA24: rental income. Rent from property can be taxed at a final 15% on the gross rent, with no deductions. The alternative is to declare it on the normal return, deduct expenses and pay at your normal rates.
3. Social security (Class 2)
Self-occupied people pay Class 2 social security contributions instead of the Class 1 an employer deducts from wages. Three rules cover most tradesmen:
- The rate is 15% of your net profit, within a weekly minimum and maximum.
- It is based on last year's profit. What you pay in 2026 is worked out on your 2025 profit.
- It is paid in three instalments: by 30 April, 31 August and 21 December.
The catch is in rule 2. The April 2026 payment is based on 2025 profit, but the 2025 tax return isn't due until June 2026. So your 2025 accounts need to be ready, or at least reliably estimated, by April. If the final profit differs, the contributions are adjusted later.
The 2026 limits (born on or after 1 January 1962)
| Prior-year net profit | What you pay |
|---|---|
| €910 – €12,543.72 | Minimum: €36.18 a week |
| €12,543.73 – €29,083.35 | 15% of net profit |
| €29,083.36 and above | Maximum: €83.89 a week |
Joe's 2026 contributions
Joe's 2025 net profit was €28,000, which falls in the 15% band.
- Annual contribution: €28,000 × 15% = €4,200
- Weekly equivalent: €4,200 ÷ 52 = €80.77
Each instalment covers the weeks in its four-month period:
| Due date | Weeks covered | Amount |
|---|---|---|
| 30 April 2026 | 17 (January – April) | €1,373.08 |
| 31 August 2026 | 18 (May – August) | €1,453.85 |
| 21 December 2026 | 17 (September – December) | €1,373.07 |
| Total | 52 | €4,200.00 |
Class 2 contributions are not deductible for income tax. Joe pays income tax on his full €28,000 profit and Class 2 on top of it, so both need budgeting for.
4. Provisional tax
Provisional tax is income tax paid in advance, during the year you earn the income. Nobody deducts tax from a tradesman's income the way an employer does, so this spreads the bill instead of leaving it all for the tax return.
- When: three instalments, by 30 April (20%), 31 August (30%) and 21 December (50%).
- How much: based on the tax for the year two years earlier, as shown on that year's tax return. This figure is called the PT benchmark.
- New businesses: with no earlier return, provisional tax normally starts once there is one.
Why two years earlier? The provisional tax Joe pays during 2026 is an advance on his 2026 income (YOA 2027). The benchmark is the tax on his 2024 income (YOA 2025), the return he filed in June 2025. His 2025 return (YOA 2026) is not used for 2026 provisional tax, even if he files it early.
If that return was never filed. The tax authorities estimate the benchmark instead. Filing the missing return before the start of the month before an instalment (1 March, 1 July or 1 November) replaces the estimate, back-dated to the first instalment of the year.
Joe's 2026 provisional tax
Benchmark: tax on 2024 income (YOA 2025) = €3,000 assumed.
| Due date | Workings | Amount |
|---|---|---|
| 30 April 2026 | 20% × €3,000 | €600 |
| 31 August 2026 | 30% × €3,000 | €900 |
| 21 December 2026 | 50% × €3,000 | €1,500 |
| Total paid in 2026 | €3,000 |
What this means for a growing business. Provisional tax is only an advance. If Joe's 2026 profit matches 2025, his actual tax will be about €3,600, so roughly €600 more will be due with his YOA 2027 return in June 2027. A growing business always pays part of its tax a year late, so set that balance aside. If profit is falling, you can apply to reduce provisional tax rather than overpay on an older, higher figure.
Joe's 2026 at a glance
Every deadline in one place. VAT dates assume calendar quarters; yours may differ.
| Date | What | Joe pays |
|---|---|---|
| 15 February | VAT return, October – December 2025 | VAT for the quarter |
| 30 April | Provisional tax, 1st instalment | €600 |
| 30 April | Class 2, 1st instalment | €1,373.08 |
| 30 April | TA22 / TA24, if you have part-time or rental income | 10% / 15% |
| 15 May | VAT return, January – March | VAT for the quarter |
| 30 June | Tax return YOA 2026, plus balance of tax | €1,400 |
| 15 August | VAT return, April – June | VAT for the quarter |
| 31 August | Provisional tax, 2nd instalment | €900 |
| 31 August | Class 2, 2nd instalment | €1,453.85 |
| 15 November | VAT return, July – September | VAT for the quarter |
| 21 December | Provisional tax, 3rd instalment | €1,500 |
| 21 December | Class 2, 3rd instalment | €1,373.07 |
Provisional tax and Class 2 fall on the same three dates. For Joe that is €1,973.08 in April (€600 + €1,373.08), €2,353.85 in August (€900 + €1,453.85) and €2,873.07 in December (€1,500 + €1,373.07), before any VAT. Setting aside a fixed amount every month avoids the squeeze.
Common mistakes tradesmen make
- Treating the VAT as income. The 18% on your invoices belongs to the tax authorities. Keep it apart from your own money.
- Staying on Article 11 after passing €35,000. You must move to Article 10, and VAT you should have charged can still be claimed from you.
- Not keeping receipts for materials. No receipt means no deduction for income tax, and a receipt without your VAT number means no VAT claim.
- Leaving the year's accounts until June. Class 2 in April is based on last year's profit, so the numbers are needed earlier than most people think.
- Mixing the van and phone with personal use. Only the business share is deductible. Keep a simple log if the van is used for both.
- Ignoring provisional tax notices. Unpaid instalments attract interest, and they don't disappear. They come back with the tax return.
Frequently asked questions
Do I have to register for VAT as a self-employed tradesman in Malta?
Yes. Every self-employed person carrying on an economic activity needs a VAT number. Below €35,000 a year you can register under Article 11 and not charge VAT; above it you must register under Article 10.
How much social security does a self-occupied person pay in Malta?
In 2026, 15% of the previous year's net profit, with a minimum of €36.18 a week and a maximum of €83.89 a week for people born from 1962 onwards. It is paid in three instalments, by 30 April, 31 August and 21 December.
How is provisional tax calculated in Malta?
It is 20%, 30% and 50% of the tax for the year two years earlier (the "PT benchmark"), paid by 30 April, 31 August and 21 December. Provisional tax paid in 2026, for example, is based on the tax on 2024 income (YOA 2025).
When is the self-employed tax return due?
The return for YOA 2026, covering income earned in 2025, is due by 30 June 2026. Any balance of tax is due at the same time.
Can I pay less tax if plumbing is only a side job?
Possibly. Qualifying part-time self-employment can be taxed at a flat 10% on the first €12,000 of profit, declared on form TA22 by 30 April of the following year.
Important. This article is for informational purposes only and does not constitute tax, legal or financial advice. It was written for YOA 2026 (income earned in 2025), using rates and thresholds published at the time of writing. The example is illustrative and every situation is different, so speak to a warranted accountant before acting on it.