Setting up and managing a payroll in Malta
The European island nation of Malta’s convenient location in the Mediterranean Sea, educated population, and diverse economy make it a popular place to do business.
If you are planning an expansion into Malta, an important step will be hiring and paying employees locally. While this is a good way to access local talent and ensure you have a well-prepared workforce, it can be difficult to follow the nation’s combination of local and EU laws, its multiple languages, and unique administrative processes.
At Horizons, we specialize in helping organizations of all kinds expand internationally, including into Malta. We will handle your payroll setup and ongoing management, whether or not you already have a registered in the country, simplifying the entire process and ensuring you are up and running in days, not weeks or months.
Why choose the Horizons payroll solution?
If you have an entity
Have you already registered an entity in Malta? Our payroll experts can take care of all of your payroll setup and management, helping you employ a workforce in Malta in compliance with local employment laws and managing your ongoing HR, contracts, and more.
This service is ideal for larger organizations and those who have already registered a presence in Malta but are looking to streamline their expansion.
If you don’t have an entity
If you have not already officially registered an entity in Malta, then you can outsource your payroll setup and management to Horizons, making use of our established Malta subsidiary to act as employer of record.
This option is well suited to organizations looking for a quick, low-risk, and flexible route into Maltese hiring and expansion.
Hire borderless talent with Horizons
Malta payroll guide
What are the tax and withholding rules in Malta?
Both employers and employees in Malta generally need to contribute equal amounts to the country’s social security schemes. The amount can vary, but is usually around 10% of salary.
The income tax rate in Malta ranges from 0% to 35%, depending on income level and whether a person is single or married.
The corporate tax rate for most businesses in Malta is 35%.
Contractual rights and termination regulations
Employees in Malta are generally entitled to notice periods prior to termination. The required minimum notice period varies based on the employee’s length of service, ranging from one week to eight weeks of notice.
How to establish a payroll in Malta
Any organization trying to establish a payroll and hire staff in Malta will generally need to establish a legal entity in the country and follow the country’s unique administrative procedures. However, this process can take longer than expected, as you will need to closely follow Malta’s unique and often confusing business laws.
Alternatively, Horizons can simplify your entire employment and payroll process, helping you get up and running in Malta in a matter of days. Our employer or record service means that you can even benefit from our solutions if you don’t have a registered entity in Malta, using our Malta subsidiary as employer of record for your workforce.
Manage payroll in Malta
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.