Can a UK Company Hire in Malta After Brexit?

A UK company can legally employ someone who lives and works in Malta, as long as the employment is set up the Maltese way. That means a contract under the Employment and Industrial Relations Act (Cap. 452), income tax withheld through Malta’s Final Settlement System, Class 1 social security paid to the Malta Tax and Customs Administration (MTCA), and a Jobsplus engagement form filed within four working days of the start date.

Somebody has to be registered in Malta to do those things. The options are a Maltese subsidiary, direct registration of the UK company as an employer with MTCA, or an Employer of Record that employs the person through its own Maltese company. Each is lawful. They differ in cost, speed and the risk the UK company carries.

Brexit added no ban on UK businesses hiring in EU countries. The changes sit around the hire, mainly in immigration and social security, which the next section covers.

Maltese employment law will also feel different from the UK in places. After probation, which is six months by default, an indefinite contract can only be ended for good and sufficient cause, including genuine redundancy. Notice rises with service from one week to a maximum of 12 weeks, and unfair dismissal claims go to the Industrial Tribunal within four months. There is no statutory redundancy payment, but redundancies must follow last-in-first-out within the affected class of employees, and the dismissed employee has a one-year right to re-employment if the role comes back.

Brexit changed who needs a permit and which country’s social security applies. Before 2021, UK nationals could move to Malta and start work like any EU citizen. Now, UK nationals who are not covered by the Withdrawal Agreement are third-country nationals in Malta. To take up Maltese employment they need a work and residence authorisation, usually a Single Permit from Identità, or the Key Employee Initiative for senior roles paying at least €45,000 a year. The EU Blue Card is another route for highly qualified staff; check Identità for its current salary threshold.

Hiring a Maltese or EU national who already lives in Malta is unaffected. EU and EEA nationals need no permit. They register their residence with Identità, and the employer files the Jobsplus form.

• Single Permit: tied to one employer, €600 for a first application, €150 to renew
• Labour market test: the role is advertised for three weeks within the two months before applying, unless an exemption such as KEI applies
• From 1 March 2026, new applicants still abroad need a Pre-Departure Course certificate
• Tourism and hospitality roles also need the Skills Pass
• A non-EU employee cannot start work until the permit is authorised

Processing times for a standard Single Permit vary, and no official timeframe is published, so build slack into your start date. The Key Employee Initiative is faster, with Identità aiming to decide complete applications within five working days. Our guide to hiring non-EU workers in Malta explains each route.

An employee who works in Malta normally pays Maltese social security, even when the employer is British. The Protocol on Social Security Coordination in the UK–EU Trade and Cooperation Agreement keeps a single-legislation rule: a worker is covered by one country’s system at a time, and that is usually the country where they physically work. For a Malta-based employee, that means Class 1 contributions in Malta, at 10% from the employer and 10% from the employee, capped at €55.93 a week each in 2026 for those born in 1962 or later.

There is one exception for short assignments. A UK employee sent to work temporarily in Malta can stay in UK National Insurance for up to 24 months with a certificate of coverage. Unlike the rules between EU countries, that period cannot be extended. All EU member states, including Malta, opted in to this detached worker arrangement.

Detachment suits a project or a secondment with a clear end date. It does not suit someone hired to live in Malta permanently. For that person, Maltese social security applies from the first day, and the Department of Social Security’s coordination guidance is a useful reference.

UK payroll cannot handle a Malta-based employee because the tax and contributions are Maltese. HMRC’s PAYE system does not collect Maltese income tax or Class 1, and Maltese law needs an employer registered with MTCA, holding a PE number, filing an FS4 for each new starter, a monthly FS5 with payment by the end of the following month, and annual FS3 and FS7 returns by 15 February.

Running pay through the UK and hoping for the best creates several problems at once. The employee may be taxed in the wrong country, Maltese contributions go unpaid, and the employee misses out on Maltese entitlements such as statutory bonuses, COLA and the 2026 leave entitlement of 27 days for a 40-hour week. Maltese penalties for employment breaches were raised in 2025, with first-offence fines of €2,000 to €5,000.

There is also a corporate tax point. A UK company that employs someone directly in Malta may create a permanent establishment there, depending on what the employee does. That is a question for a tax adviser, but it is one reason many UK firms keep the employment inside a Maltese legal entity.

Calling the person a contractor does not solve it either. Malta applies an eight-point test, and a worker who meets five of the criteria is treated as an employee, whatever the contract says.

A UK company has three workable options for employing someone in Malta. The right one depends on how many people you plan to hire and how long you plan to stay.

The first is to set up a Maltese private limited company. You need authorised share capital of at least €1,164.69 with 20% paid up, a Malta Business Registry registration from €100 online, a director, a shareholder, a company secretary and a registered office in Malta. Incorporation itself can take 5 to 10 working days after due diligence. You then need an employer PE number, a Jobsplus account and a Maltese bank account, and the company must file audited financial statements every year. The time to first payroll is often estimated at several weeks to a few months, and our comparison of an EOR vs a Maltese company breaks down the steps.

The second is to register the UK company itself as an employer with MTCA and run a Maltese payroll without a local company. It avoids incorporation but leaves the UK company as the direct employer in Malta, with the permanent establishment question and all compliance responsibility.

The third is an Employer of Record. The EOR employs the person through its own Maltese company, runs FSS and Class 1, files Jobsplus forms and issues a Maltese contract, while your UK team manages the work.

Most UK companies hiring one or a handful of people in Malta choose an EOR because it is the fastest route with the least exposure. There is no company to form, no audit to commission and no bank account to wait for. The employee is on a compliant Maltese contract and payroll from the start, and the UK company’s own tax position stays simpler.

An EOR also handles the parts that trip up first-time employers: whether salary includes statutory bonuses and COLA, the probation rules, the Jobsplus deadlines, Maternity Leave Trust Fund claims and the notice rules when employment ends. If you later build a larger team, you can set up your own entity and move staff across.

• Contracts usually ready within hours
• EU nationals typically onboarded within 1 to 2 days once details are in
• Permit support for UK and other non-EU hires
• A flat fee from €499 per employee per month

With Employer of Record Malta, your hire is employed by our own Maltese company, registered with the Malta Business Registry. You can compare providers using our guide to choosing the best EOR provider in Malta, or talk to our team about a specific role.