Non Domicilated Resident & Health Care & Self Sufficient

You CAN register for the employment system and tax system and prove you are employed prior to doing the self sufficiency. And then your employment papers is enough to prove you are self sufficient.

We did it that way, worked fine.

If you're not employed, I am not sure how you'll show NI contributions.

You would have to be employed or self employed to pay in to the system in order to have health cover through the Maltese system.
If you are either, then you can not apply for residence through the self sufficiency route using form 'J', you would have to use form 'A'

If you are self sufficient using form 'J' you will not be able, or liable, to pay in to the social security system.

Ray

Thanks for your replies.

I will be employed by my own company outside of Malta. I thought that I than still have to make social security contributions in Malta. But I don't see a reason why I shouldn't be self employed in Malta in order to do contributions.

Can I set this all up (self employement status, registering as a tax payer, registering for a social security number) before applying for a residency though the form 'A'?

in that case yes your company has to register with the local employment agencies and pay PAYE and NI. 

then you dont need to do self sufficiency.

Yes you can set up all the registrations and stuff before getting a ID card.

F0xgl0ve wrote:

Y
If you are self sufficient using form 'J' you will not be able, or liable, to pay in to the social security system.

Could you please elaborate more on this.

I thought everybody under 65 has to contribute to the social security system. At least one can pay voluntarily into the system.

If you are here using form 'A' as an employed or self employed person then you pay contributions.
If you are here using form 'J' 'Self Sufficiency then, no matter what age, you do not have to pay contributions and as far as I am aware there is no option to pay voluntary contributions.

When registering in Malta as self sufficient person you have to show that you have health insurance for Malta. This means they set certain requirements for you to meet to get the residence documentation / permit.

The fact that they do not check if you do pay Social Security contributions or not, does not mean that you do not have to pay, in my opinion.


Maltese laws still appliy to everybody after getting the residence documentation / permit. And the law says:

"insured person" means an employed person or a self-employed
person or a self-occupied person in terms of Part II of this Act;

"self-employed person" means a person who has not yet passed
his sixty-fifth birthday, is ordinarily resident in Malta, and is not an
employed person nor a self-occupied person;
"self-occupied" means a self-employed person who is engaged in
any activity through which earnings exceeding €910 per annum are
being derived;

10. (1) Every  self-employed  or  self-occupied  person,  unless
otherwise exempted under the provisions of this Act, shall pay a
contribution in accordance with the provisions of this Act.

http://justiceservices.gov.mt/DownloadDocument.aspx?app=lom&itemid=8794


Class 2 Social Security Contributions
Class Two Contributions are to be paid by all individuals who derive income of more than €910 from an economic activity and who are not employed.

The Social Security Act defines two categories of persons that are required to pay Class 2 Contributions as follows:

Self Occupied Persons - persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds €910 per annum.

Self Employed Persons - persons who receive income from rents, investments, capital gains or any other income.

Rates for Class Two Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

https://ird.gov.mt/services/sscrates.aspx#2016

MaltaGermany wrote:

<snip>
Class 2 Social Security Contributions
Class Two Contributions are to be paid by all individuals who derive income of more than €910 from an economic activity and who are not employed.

The Social Security Act defines two categories of persons that are required to pay Class 2 Contributions as follows:

Self Occupied Persons - persons who earn income from Trade, Business, Profession, Vocation or any other economic activity that exceeds €910 per annum.

Self Employed Persons - persons who receive income from rents, investments, capital gains or any other income.

Rates for Class Two Social Security Contributions are based on the annual net profit or income for the year preceding the contribution payment year.

https://ird.gov.mt/services/sscrates.aspx#2016

Yes, this was how I read it too - if you are self-sufficient there should be an option to pay into the system as everyone has to register for taxation purposes and make payments on amounts remitted.

I was planning to get go option J (self-sufficient), obtaining relevant health insurance first, then figuring it out from there. Looking at the gov info it must be feasible?

I read it more like that is an obligation and not an option.

Every  self-employed [...] shall pay...

Maybe you get private cover for a short time for the application and get a Insurance Number later and pay contributions and then drop the private one.

MaltaGermany wrote:

I read it more like that is an obligation and not an option.

Every  self-employed [...] shall pay...

Maybe you get private cover for a short time for the application and get a Insurance Number later and pay contributions and then drop the private one.

The paragraph you quoted states quite clearly that if your liability to pay social security contributions only takes effect if you earn more than €910.

If you have registered as self sufficient that usually means you are not earning so you would not be liable even though under 65 years old,

"self-employed person" means a person who has not yet passed
his sixty-fifth birthday, is ordinarily resident in Malta, and is not an
employed person nor a self-occupied person;
"self-occupied" means a self-employed person who is engaged in
any activity through which earnings exceeding €910 per annum are
being derived;"

Ray

it does not state that.

if you earn more than €910 then you are "self-occupied" (i.e. running a business as self-employed)

if you are not older than 65 and you are not employed nor self-occupied" then you are "self-employed" (i.e. a person who receives income from rents, investments, capital gains or any other income)

and then you have: Every  self-employed [...] shall pay...

Specific contribution conditions must be met in order to be entitled to the Contributory Scheme. Persons employed, self-employed or not in receipt of a salary (whose income does not come from economic activity but from other sources) pay contributions on a weekly basis in accordance to provisions of the Social Security Act. Any person between the age of 16 and retirement age is required to pay contributions. All cash benefits are administered by the Department of Social Security.

https://integration.gov.mt/en/SocialIssues/Pages/Social-Security.aspx

No problem!

Assuming you registered here as self sufficient and don't work here, or derive an income from here, then  go with what you think and ask the Authorities if they will let you make contributions.
If you have not registered for you eResidence card, then tell them you are going to be self sufficient but you want to pay contributions and get health cover and pension etc. through the state.

Let us know how you get on!

It would be a lot simpler to ask the 'Authorities' than ask people on this forum and then disbelieve them.

Good Luck

Ray

Great discussion & very helpful Malta Germany & Ray. Thanks!