Malta tax guide
Class 2 Social Security in Malta: A Plain-English Guide for the Self-Employed
If you're self-occupied in Malta, income tax is only half the story. The other half is Class 2 social security contributions (SSC), the self-employed equivalent of the National Insurance a salaried employee pays. It funds your state pension and benefits, and it's entirely separate from your income tax bill.
The good news is that it is refreshingly predictable. Class 2 is worked out from a single figure (last year's net profit) and paid in three fixed instalments. Here is exactly how it works, who is exempt, and what you'll owe.
What Class 2 social security actually is
Class 2 is the weekly social security contribution paid by people who are self-occupied, that is, working for themselves rather than for an employer. It's the self-employed counterpart to the Class 1 contributions deducted from an employee's payslip, and it builds your entitlement to the Maltese state pension and contributory benefits.
It's administered by the Malta Tax and Customs Administration (MTCA). Crucially, it's calculated on your net profit, not your turnover, so your deductible business expenses reduce the base it's charged on, just as they do for income tax.
How much you pay: 15% of last year's net profit, within limits
The headline rate is 15% of your annual net profit, but not the profit you're earning right now. Class 2 for the current year is based on your previous year's net profit. And that 15% is clamped between a weekly minimum and a weekly maximum, which is where the SA / SB / SC bands come in.
The figures below apply to those born on or after 1 January 1962 (the standard cohort for working-age freelancers today).
| Band | Previous-year net profit | Weekly Class 2 contribution |
|---|---|---|
| No liability | Under €910 | €0 (you are not treated as self-occupied) |
| SA (minimum) | €910 – €12,543.72 | €36.18 per week |
| SB (the 15% band) | €12,543.73 – €29,083.35 | 15% of net profit ÷ 52 |
| SC (maximum) | €29,083.36 and above | €83.89 per week (≈ €4,362 a year) |
So if your net profit falls in the middle band (SB), you genuinely pay 15% spread across the year. Below that, you pay the flat SA minimum of €36.18 a week; above it, you're capped at the SC maximum of €83.89 a week no matter how well the year went.
Under €910, and the separate low-income certificate
These are two different rules and they are easy to run together. If your previous year's net profit was €910 or less, you are simply not self-occupied for Class 2 purposes and owe nothing. That is a definition in the Social Security Act, not a relief you claim: it applies automatically and there is nothing to apply for.
The thing you do apply for is different. A self-employed person who is not self-occupied, and whose yearly means fall under the limits set in the Act, can ask the Director for a certificate of low income valid for twelve months. It has its own figures, which are higher than the €910 line, and it is granted on application rather than automatically. The Department of Social Security also states that no credits are awarded for an exemption period, so it can affect what you build up towards a pension.
If you are near either line, check which one you are actually on with your accountant.
The three payment dates
Class 2 is paid in three instalments across the year, and they land on the same three dates as provisional income tax, so you don't have to keep two calendars.
| Instalment | Due date |
|---|---|
| 1st | 30 April |
| 2nd | 31 August |
| 3rd | 21 December |
Miss a deadline and, from 1 January 2026, late Class 2 attracts interest at the ITMA rate, currently 0.6% per month. It isn't catastrophic, but it is avoidable. For how these dates sit alongside your income-tax instalments, see provisional tax in Malta.
The rule that catches people out: full-time job + side gig
This is the single most misunderstood point, so it's worth stating plainly. If you are employed full-time and do self-employed work on the side, you pay Class 1 only through your employment, and no Class 2 on the side activity.
In other words, your salaried job already covers your social security. The freelance income on top still counts for income tax (and that's exactly where the TA22 10% Flat Rate often comes in), but it doesn't generate a second, separate Class 2 bill. Many part-timers over-pay for years because nobody told them.
Your first year in business
Class 2 looks backwards at last year's profit, so what happens in your very first year of self-occupation, when there is no previous year to look at? The answer is simple: your first calendar year is charged at the SA minimum, €36.18 per week.
That keeps your first year affordable while the business finds its feet. From year two onward the calculation catches up with your actual net profit from the year before, so your own figures do the work.
A quick worked feel for the numbers
- Net profit last year of €8,000 → below the SA ceiling → €36.18/week (roughly €1,881 for the year).
- Net profit of €20,000 → squarely in SB → about €57.69/week (15% ÷ 52).
- Net profit of €40,000 → above the SC floor → capped at €83.89/week (≈ €4,362 for the year), no matter how much higher profit climbs.
- Full-time employed with €15,000 of freelance profit on the side → €0 Class 2 (Class 1 only).
Work out your Class 2
- Per week
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- Per year
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Enter a figure to see the weekly and annual contribution.
Computed by the same engine the Settlano app uses, on 2026 rates, verified 13 Jul 2026. Class 2 is charged on the PRIOR year's net in the ordinary case.
Common questions
Is Class 2 the same as National Insurance in Malta?
Effectively, yes. Class 2 is the social security contribution for the self-employed (self-occupied), while Class 1 is what employees pay through their payslip. They both fund your state pension and contributory benefits, and both are administered by the MTCA.
Do I pay Class 2 if I have a full-time job and freelance on the side?
No. If you're employed full-time, your Class 1 contributions cover you, and you pay no Class 2 on the side self-employed activity. You still declare that freelance income for income tax, but it doesn't generate a separate Class 2 bill.
How much is Class 2 in my first year of self-employment?
Your first calendar year of self-occupation is charged at the SA minimum of €36.18 per week, because there is no previous year's profit to calculate 15% from. From the second year, it's based on your actual prior-year net profit.
When is Class 2 due?
In three instalments: 30 April, 31 August and 21 December, the same dates as provisional income tax. From 2026, late payment attracts ITMA-rate interest, currently 0.6% per month, so the dates are worth diarising.
Settlano works all of this out from your own numbers, automatically, and reminds you before every deadline.
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