Guide · Malta 2026
Tax & Employment Guide 2026
Income tax brackets, social security, COLA, minimum wage, vacation days, new leave rights and nomad permit. Everything you need to know — no jargon.
COLA 2026
€4.66
per week
Min wage (18+)
€229
per week
Vacation days
27
per year (40hr week)
Max income tax
35%
above €60,000
Income Tax Brackets 2026
Select your tax status to see your brackets.
New for 2026: Parents with children under 18 (or 23 if in full-time education) now qualify for expanded parent brackets. Update your FS4 form with your employer. Single/widowed/divorced carers of a disabled child earning under €3,400 may opt for married rates.
Social Security 2026 — Plain English
Think of it as a shared piggy bank. Every week you put money in, and your employer puts in the same amount. It funds your future — pension, sick pay, maternity leave. Deducted automatically, you never file anything.
You pay 10% of weekly wages — but there's a cap based on birth year:
Born before 1962
€49/week max
10% up to €490/week, then flat €49. Employer matches.
Born 1962 or later
€56/week max
10% up to €559/week, then flat €56. Employer matches.
Example: Born 1985, earning €800/week? You pay €56/week — not €80. The cap protects higher earners. Below minimum wage (€229.44/week): flat €23/week (adults 18+).
COLA & Minimum Wage 2026
COLA 2026
€4.66/week
€242.32/year · All full-time employees · Part-time proportional
Min Wage 2026
€229.44/wk
Adults 18+ · Age 17: €222.66 · Under 17: €219.82
Some sectors have higher minimums through Wage Regulation Orders (WRO). If your sector has a WRO, those rates take precedence over national minimum wage.
Vacation & New Leave Rights
Annual Leave
27 days
Per year (40hr week)
192 hrs standard + 24 hrs for public holidays falling on weekends. Part-time proportional.
Maternity Leave
18 weeks
Full paid maternity
First 14 weeks full pay from employer. Remaining 4 weeks at social security rate.
NEW · LN 274/2025
7 days
Miscarriage Leave
Both parents. Before week 22 of pregnancy. Medical certificate required.
NEW · LN 275/2025
7 days
Child Bereavement
Both parents. Loss of child under 18. Can be postponed up to 2 weeks.
Nomad Residence Permit — Tax Rules
Flat Tax Rate
10%
On qualifying foreign-sourced income
First Year
0%
12-month tax exemption from permit date
Who qualifies: Remote employees working for a foreign employer not established in Malta, and self-employed freelancers providing services to foreign clients with income sourced from outside Malta.
Social security: Foreign employers remain outside Malta's social security system, provided they are not resident or operating through a fixed place of business in Malta.
Social security: Foreign employers remain outside Malta's social security system, provided they are not resident or operating through a fixed place of business in Malta.
Quick Reference
COLA weekly€4.66
Govt bonus/year€512.52
Min wage (18+)€229.44/wk
Annual leave27 days
Maternity leave18 weeks
SS rate10% (employee)
SS cap (1962+)€56/week
Nomad flat tax10%
Tax Status Comparison
The tax-free threshold by status:
Single → €12,000
Married → €15,000
Parent → €13,000
Married +1 → €17,500
Married +2 → €22,500
Parent +1 → €14,500
Parent +2 → €18,500
Make sure your employer has the correct status on your FS4 form — it directly affects your weekly take-home pay.
Single → €12,000
Married → €15,000
Parent → €13,000
Married +1 → €17,500
Married +2 → €22,500
Parent +1 → €14,500
Parent +2 → €18,500
Make sure your employer has the correct status on your FS4 form — it directly affects your weekly take-home pay.
Calculate your net salary
Tax, SSC, COLA and take-home — all in one tool.
Salary Calculator
Managing payroll in Malta?
Employment contracts, SSC, payslips — all compliant.
HR & Payroll
Need accounting?
Tax returns, VAT, bookkeeping in Malta — sorted.
Accounting
Context
What the Numbers Mean in Practice
Effective Tax Rate vs Marginal Rate
Malta's 35% top rate sounds high but very few people pay it on their whole salary. The rates are progressive — you only pay 35% on the income above €60,000. A single person earning €40,000 gross pays an effective rate of around 18–20%. Use the Salary Calculator to see your exact position.
FS4 Form — Why It Matters
Your employer calculates your weekly tax deduction based on the status declared on your FS4 form. If you got married, had a child, or changed status and haven't updated your FS4, you may be overpaying tax every week. It's a one-page form — update it immediately and reclaim the difference at year-end.
Government Bonus — Easy to Miss
The government bonus of €512.52/year is paid in two instalments — June and December. It's separate from COLA and applies to all full-time employees. Many people don't realise it's there until they see it on their payslip. It's not a bonus in the traditional sense — it's a mandatory payment every employer must make.
Nomad Permit — The 0% First Year
The Malta Nomad Residence Permit gives remote workers a 12-month tax exemption from the permit issue date — then 10% flat rate on qualifying foreign-sourced income. This makes Malta one of the most tax-efficient EU bases for remote workers. The key condition: your employer must be a foreign company with no fixed presence in Malta.
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Frequently Asked Questions
What are Malta income tax rates for 2026?
Malta uses progressive rates. Single: 0% to €12,000 · 15% from €12,001 to €16,000 · 25% from €16,001 to €60,000 · 35% above €60,000. Married status raises the 0% threshold to €15,000. Parent status to €13,000. Adding dependents widens the bands further. New for 2026: parents with children under 18 (or 23 if studying) benefit from further expanded brackets — update your FS4 form with your employer.
What is the Malta COLA increase for 2026?
The Cost of Living Adjustment (COLA) for 2026 is €4.66 per week for full-time employees — €242.32 per year. Part-time workers receive a proportional amount based on their contracted hours. The government bonus is a separate €512.52 per year paid in two instalments (June and December).
What is the minimum wage in Malta for 2026?
Adults 18 and over: €229.44 per week. Age 17: €222.66 per week. Under 17: €219.82 per week. Some sectors have higher minimums through Wage Regulation Orders (WRO) — if your sector has a WRO, those rates take precedence over the national minimum.
How many vacation days are employees entitled to in Malta?
Full-time employees on a 40-hour week are entitled to 27 days per year — 192 hours of standard annual leave plus 24 hours for public holidays falling on weekends. Part-time entitlements are proportional to hours worked.
What are Malta social security rates for 2026?
Both employees and employers pay 10% of weekly wages. For those born before 1962: cap of €49 per week (10% on earnings up to €490/week). Born 1962 or later: cap of €56 per week (10% on earnings up to €559/week). Earners below the minimum wage pay a flat €23/week. Students working under the Student-Worker Scheme pay 10% with lower minimum rates.
What new leave rights were introduced in Malta?
Two new entitlements introduced by Legal Notices 274 and 275 of 2025: 7 days miscarriage leave for both parents (applies before week 22 of pregnancy, medical certificate required), and 7 days child bereavement leave for the loss of a child under 18 (both parents, can be postponed up to 2 weeks). Both are available proportionally to part-time workers.
How is the Malta Nomad Residence Permit taxed?
Nomad permit holders pay a flat 10% on qualifying foreign-sourced income. However, there is a 12-month tax exemption from the permit issue date — meaning 0% for the first year. Foreign employers of nomad permit holders remain outside Malta's social security system, provided they are not resident or operating through a fixed place of business in Malta.
What is the FS4 form and why does it matter?
The FS4 is the form you give your employer declaring your tax status (single, married, parent) and any adjustments. Your employer uses it to calculate weekly tax deductions. If your status changed — marriage, child, divorce — and you haven't updated your FS4, you may be overpaying or underpaying tax every week. Update it immediately and any overpayment is reclaimed at the annual tax return.