Recruit
Doing Business in Malta
-
Drew Donnelly
- Published
- June 8, 2026
- 5 ★ on G2
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Malta Economy Overview
Currency
Euro (EUR)
Working hours
40 hours/week
Public/bank holidays
14 public holidays
Capital
Valletta
Languages
Maltese & English
Population
~519,000
Minimum hourly salary
€5.16
Tax year
1st Jan – 31st Dec
Date format
DD/MM/YYYY
Misclassification penalties
Penalties include fines and back payments; amounts vary by case severity, ensuring workers are properly classified (employee vs. contractor) under Maltese law.
Fun fact
Malta is one of the smallest countries in the world by area and population.
Known for its friendly culture, pristine beaches, and historic architecture, Malta attracts thousands of visitors to its shores, from holiday goers to international investors. Global businesses are interested in the island country for its strong economy and tax-friendly climate, making expansion simpler and straightforward.
Strategically located in the Mediterranean, Malta’s economy is supported by the tourism, financial services, and manufacturing sectors. In addition to the financial security offered by Malta, business incentives encourage foreign investment through tax credits and grants.
When doing business in Malta, hiring a qualified workforce is a necessary step towards successful expansion. But following Malta’s labor laws and business regulations can be challenging without legal advice and expertise. In Malta, foreign businesses can partner with an Employer of Record (EOR) to hire employees without a legal entity or work with an international recruitment agency to connect to top talent.
Discover your options for expansion and why you should choose Malta to establish your business and grow your workforce.
Overview of Malta's Economy
Malta’s economy is strong and resilient, having grown more than 80% over the last decade. Financial growth is attributed to Malta’s exports, that reached $8.21 billion in 2023. The country’s largest export consists of machinery, with major global export partners including Germany, Italy, Japan, and Spain.
In 2023, Malta’s GDP was $22.34 billion, and according to Statista, the economy is expected to grow consecutively over the next five years.
Category | Details |
|---|---|
GDP Growth Rate | Estimated 4%–5% annually (strong post-pandemic recovery) |
Major Industries | Tourism, financial services, information and communication technology (ICT), maritime services, manufacturing (pharmaceuticals, electronics) |
Top Exports | Pharmaceuticals, electronics, machinery, food products, maritime services |
Labor Force | Approximately 260,000 workers |
Unemployment Rate | Low, around 2.8%–3% (one of the lowest in the EU) |
Emerging Sectors | iGaming, blockchain, fintech, renewable energy |
Business Incentives | Tax credits, investment aid for SMEs, R&D incentives, favorable corporate tax system (effective rates can be as low as 5% for certain structures) |
Malta’s largest economic contributor and investment sector is tourism, which garnered €3.3 billion in 2024. However, the economy is described as diverse because it is supported by technology, international trade, and high domestic demand.
Along with a robust and diversified economy, Malta attracts significant annual foreign investment, with €13 billion in investments generated in 2024.
Taxes
Employer Tax: 10%
Social Security
10%
Employee Tax: 10%
Social Security
10%
Income tax
Malta uses a progressive income tax system, where rates increase with income levels. Taxpayers fall into different categories—single, married, or parent—each with slightly varied thresholds, but rates generally range from 0% to 35%.
Single Resident Taxpayers (or married couples opting for a separate computation)
Gross Income (EUR)
0 – €15,000
€15,000 – €23,000
€123001 – €60,000
More than €60,001
Tax Rate
0%
15%
25%
35%
Income Tax for Married Resident Taxpayers
Gross Income (EUR)
0 – €17,500
€17,501 – €26,500
€26,501 – €60,000
More than €60,001
Tax Rate
0%
15%
25%
35%
Income Tax for Parent Taxpayers
Gross Income (EUR)
0 – €22,500
€22,501 – €32,000
€32,001 – €60,000
More than €60,001
Tax Rate
0%
15%
25%
35%
Business Regulation in Malta
When doing business in Malta, it is important to consider the local business regulations to maintain compliance. Malta combines common and civil law with policies aimed at encouraging foreign investment. As an EU member, Malta has integrated much of the European Union’s regulatory framework, including the adoption of the euro as the common currency.
To effectively expand your business in Malta, learn about its registration requirements, taxes, and incentives discussed below:
Business Registration Procedures
Business registration in Malta is straightforward and can be completed in a matter of days. All businesses must register with the Malta Business Registry (MBR) and obtain the relevant licenses based on the business structure and its operations. Entities in Malta must register for VAT and receive a tax identification number, or TIN, to establish themselves in the country.
Tax Policies
International businesses domiciled in Malta must register and pay tax on their global income. The corporate income tax is 35%, but according to Malta’s business and investment laws, income from eligible investments may be subject to tax exemptions. The sale of goods and services in Malta is subject to VAT of 18%.
Investment Incentives
The Mediterranean country focuses on attracting foreign investment through its business grants and tax exemptions for qualifying companies. Sectors that qualify for tax credits and exemptions include manufacturing, healthcare, aviation, education, maritime, and logistics.
Malta provides early start-up grants for entrepreneurs and new businesses with programs such as Business START. Businesses conducting research and development, pharmaceutical, manufacturing, and IT services may qualify for tax relief in Malta.
Malta offers the Support for Initial Investment Projects scheme, in which qualifying businesses receive loan guarantees, tax credits, and cash grants. Multiple schemes and qualifying investment incentives are available for eligible foreign businesses in Malta.
Benefits of Doing Business in Malta
If you need convincing to expand your business in Malta, learn of the following benefits of doing business in the Mediterranean:
- Strategically located: Malta’s location in the heart of the Mediterranean Sea makes it an important point for transportation, trade, and travel.
- EU member: Malta is a member of the EU, which provides access to the European market and improves economic growth and progress. As an EU member, Malta has access to opportunities for funding and protects the country against economic instability.
- English-speaking workforce: The workforce in Malta is bilingual, with more than 80% of its population speaking English. Hiring employees in the country that are proficient in English eases communication. English is the main language spoken in the tourism, education, and general business environments.
Downsides of Doing Business in Malta
Before expanding your business and labor force in Malta, consider the following potential challenges and how to overcome them:
- Small market: Malta is a relatively small island, which means that local businesses will be restricted to a smaller domestic market. Fortunately, Malta’s EU membership offers access to a broader market, and the island country offers incentives aimed at increasing foreign investment.
- Limited talent pool: It may be more challenging to find technically skilled workers in Malta because the talent pool is much smaller than in other European countries. Working with a professional recruitment agency will help you find local and talented employees.
International Expansion Into Malta
When it’s time to expand internationally into Malta, businesses can set up a subsidiary or partner with services such as an EOR, PEO, or global recruitment agency, as discussed below:
Malta Employer of Record (EOR)
An EOR in Malta focuses on maintaining compliance with local labor laws to protect client companies from harsh legal penalties. The EOR acts as the legal employer of staff and provides employee benefits administration, tax withholding, payroll, drafting of employment contracts, and onboarding. You do not need a legal entity in Malta to hire the services of an EOR.
Furthermore, EORs manage employment contract termination and assist with workplace conflict.
Recruitment Agencies
The services provided by a recruitment agency in Malta connect employers with potential job candidates for temporary and permanent positions. The recruiter can match highly skilled individuals to specific positions while performing background checks, interviews, and onboarding on behalf of your business.
Malta Professional Employer Organization (PEO)
A Malta PEO provides a co-employment relationship because it assists client companies with payroll, benefits administration, and taxes while maintaining compliance.
The professional PEO is an HR service provider that outsources services to companies that do not have a dedicated or experienced HR team. In Malta, you do not require a legal entity to hire a PEO.
Subsidiary Incorporation
To incorporate in Malta, businesses must follow these registration steps:
- Choose the appropriate business structure, such as a sole proprietorship, branch, partnership, or LLC.
- Select a distinct business name and register it with the Commercial Register in Malta.
- Documents such as Articles of Association or a Memorandum of Incorporation must be prepared and submitted.
- Companies must open a Maltese bank account and deposit the minimum required share capital.
- Obtain business-appropriate licenses or permits based on your industry and operations.
- Register for tax and obtain a TIN.
- Pay the registration fee to complete the process.
Branch Registration
Registering a branch in Malta is quick and easy owing to the country’s foreign investment laws and business-friendly policies. To register a branch office, all international entities must register with the Malta Business Registry (MBR) in the same month of opening the branch.
Documents for submission include certified copies of the parent company’s Certificate of Incorporation, Articles of Association, or Memorandum of Incorporation.
Staffing Agency
When you hire a staffing agency in Malta, your business can access suitable workers for contract and permanent positions. The staffing agency can post job advertisements, interview potential employees, and significantly reduce the time it takes to find suitable candidates for vacancies.
Business Opportunities in Malta
Malta’s strategic Mediterranean location, EU membership, and pro-business environment make it a hub for diverse industries. With strong economic sectors and government incentives, Malta presents several attractive opportunities for investors and entrepreneurs.
Tourism is the leading sector in Malta, contributing significantly to GDP with year-on-year growth and a significant recovery after the COVID-19 pandemic. Attracting thousands of visitors annually, investors have the chance to expand in an economically stable and innovative sector that is expected to increase in value in the future.
Additional industries that should be considered for Maltese investment include financial services, aviation, IT, manufacturing, and maritime.
Business Opportunity | Reason for Opportunity |
|---|---|
Tourism and Hospitality | With its rich cultural heritage, Mediterranean climate, and historic sites, Malta continues to attract tourists year-round. Opportunities exist in boutique hotels, eco-tourism, and cultural experiences. |
Financial Services | Malta is an established financial hub with favorable tax regimes, making it attractive for banking, insurance, and investment firms looking to access the EU market. |
iGaming | As one of Europe’s leading iGaming jurisdictions, Malta provides a regulated environment for online gaming, betting, and related technology services. |
Maritime Services | With one of the world’s largest ship registries, Malta is a key player in maritime services, including ship registration, repair, and logistics support across the Mediterranean. |
Pharmaceuticals and Life Sciences | Malta’s strong manufacturing base and EU alignment make it ideal for pharmaceutical production, biotech research, and life sciences innovation. |
From tourism to maritime services and pharmaceuticals, Malta offers diverse opportunities for investors aiming to tap into stable and high-growth industries. Explore these sectors to leverage Malta’s business-friendly landscape.
Expand into Malta, with Remote People
Expanding your business internationally into Malta means accessing investment incentives, such as tax credits, grants, and tax exemptions. The island country may have a small population, but as a member of the EU, along with its favorable location, businesses will have the opportunity to reach broader markets with ease of trade and transit.
Malta has adopted a pro-business environment helping companies set up an entity or expand in the country, more efficiently. But to ensure that you comply with local regulations and labor laws, it’s important to align with an expert Maltese EOR or international recruitment agency.
For seamless market entry and access to Malta’s top talent, Remote People assists with international talent acquisition. The professional global recruitment agency connects client companies to potential job candidates who best fit the job requirements and company culture.
For cost-effective and time-saving solutions when expanding your workforce in Malta, reach out to the team at Remote People.
