Debt Collection Agency in Malta - No Win, No Fee
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Why Choose Debitura for Debt Collection in Malta
Debt collection in Malta, handled by a licensed local partner
Debitura connects you with Etika Consulting, a collection partner based in Stabio, Switzerland, licensed since 2016 through Inkasso Suisse and a member of Inkasso Suisse and ASECAP. Etika Consulting carries out the regulated collection work in Malta; Debitura is the platform you use to submit, track and manage your claim.
- No Cure No Pay: you pay only when the debt is recovered.
- Fast setup: submit your claim and supporting documents in a few clicks.
- Live tracking: follow every step of your case on one dashboard.
- Vetted partner: Etika Consulting is licensed and performance-tracked by Debitura.
Start recovering your claims in Malta in minutes
- Submit your claim: Upload your unpaid invoice through the Debitura dashboard, the REST API, or a plug-and-play ERP integration such as Xero or QuickBooks. Add supporting documents in a few clicks, with no paperwork and no setup fees.
- Local collection begins: Your case is assigned to Etika Consulting, who starts amicable contact with the debtor on your behalf. If court action is ever needed later, you choose from fixed-price legal quotes before anything proceeds, so nothing is spent without your consent.
- Track and get paid: Follow every update in real time on your dashboard, from the first reminder to the final payment, with a notification at each milestone. Recovered funds are remitted to you as soon as they clear, and you only pay on success.
Transparent, success-based pricing
With Debitura you only pay when we succeed. Pre-legal collection is No Cure, No Pay: a success fee deducted from recovered amounts, invoiced locally by your partner. Fees depend on the debtor's country, not yours.
- Debtors in Europe (EU, Iceland, Liechtenstein, Norway, the UK and Switzerland): success fees from 6% depending on claim size.
- Debtors in the rest of the world: success fees from 7.5% depending on claim size.
- Older claims: a surcharge applies for claims 12–24 months overdue and for claims older than 24 months.
- Legal action is optional: you approve fixed-price quotes before any legal spend.
See the pricing page for the full fee schedule, or get an instant estimate when you upload a claim.
How does debt collection work in Malta?
Debt collection in Malta starts with an amicable phase run by Etika Consulting, Debitura's licensed local partner: reminders, a formal payment demand and negotiation toward full payment or a written instalment plan. Most undisputed claims settle at this stage. If the debtor still does not pay, moving to court or enforcement is a separate step you approve, never automatic.
The four steps from unpaid invoice to recovered cash
- Step 1 - Amicable collection: reminders, a formal payment demand and negotiation, handled locally by a licensed local partner. Most undisputed claims are resolved in this phase, without going to court.
- Step 2 - Enforceable title: if the debtor still does not pay, your partner assesses the legal route to obtain an enforceable title and you approve a fixed-price quote before anything proceeds.
- Step 3 - Enforcement: with a legal title, the competent enforcement authority can attach wages, bank funds and other assets until the claim is recovered.
- Step 4 - Insolvency: if the debtor turns out to be insolvent, your proof of claim is filed and any distributions are monitored on your behalf.
Every step is tracked in your dashboard, and nothing escalates without your approval. The full legal detail for Malta - timelines, costs, courts and enforcement - follows in the guide below.
Debt collection in Malta - the complete 2026 guide
This guide covers how to collect a commercial debt in Malta: the amicable phase, obtaining an enforceable title, enforcement, insolvency, fees and interest, and cross-border options. It is written for creditors, finance teams and counsel dealing with a Maltese debtor.
On this page:
Why you can trust this guide
At Debitura, we uphold the highest standards of impartiality and precision to bring you comprehensive guides on international debt collection. Our editorial team boasts over a decade of specialized experience in this domain.
Questions or feedback? Email us at contact@debitura.com , we update this guide based on your input.
Debitura By the Numbers:
- 10+ years focused on international debt collection
- 100+ local attorneys in our partner network
- $100M+ recovered for clients in the last 18 months
- 4.9/5 average rating from 621 reviews
Expert-led, locally validated
Written by Lars Holdgaard, Founder of Debitura (+10 years in global B2B debt recovery). Every page is reviewed by top local attorneys to ensure legal accuracy and practical steps you can use.
Contributing local experts:
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Debt collection in Malta - quick answers
What is the limitation period for debt claims in Malta?
Malta's Civil Code (Cap. 16) sets several prescription periods depending on the type of debt. Most ordinary commercial debts prescribe after 5 years (art. 2156(f)), while a general residual period of 30 years applies where no shorter period is set (art. 2143). Some debts prescribe sooner: 2 years for professionals, shipbuilders and contractors, and for non-criminal damages claims (arts. 2149, 2153); 18 months for retail goods and tradesmen's bills (art. 2148); and 1 year for wages, innkeepers' and carriers' claims, and teachers' fees (art. 2147).
| Type of claim | Prescription period | Civil Code article |
|---|---|---|
| General/residual claims | 30 years | art. 2143 |
| Ordinary commercial debts | 5 years | art. 2156(f) |
| Professionals, shipbuilders, contractors; non-criminal damages | 2 years | arts. 2149, 2153 |
| Retail goods and tradesmen's bills | 18 months | art. 2148 |
| Wages, innkeepers, carriers, teachers | 1 year | art. 2147 |
Prescription is interrupted, wiping out the elapsed period and starting it again, by a judicial demand served on the debtor, by the debtor's acknowledgment of the debt, or by a part-payment. It is suspended, meaning the clock pauses, for minors and interdicted persons, for conditional rights, during pre-litigation settlement talks on damages claims, and while a consumer ADR case is pending under the Consumer Affairs Act (Civil Code arts. 2122-2136).
Which court handles a debt claim in Malta?
The court depends on the amount claimed. The Small Claims Tribunal hears money claims up to EUR 5,000, excluding immovable-property and ejectment claims regardless of value (Small Claims Tribunal Act, Cap. 380, art. 3(2)). The Court of Magistrates, Malta or Gozo, hears claims up to EUR 15,000 (Code of Organization and Civil Procedure, Cap. 12, art. 47). Claims above that value go to the Civil Court, First Hall, which has a dedicated Commercial Section for company matters. In Gozo, the Magistrates Court also sits with a "superior" jurisdiction equal to the Civil Court, First Hall, for Gozo and Comino residents.
What interest can I charge on a late payment in Malta?
For business-to-business and business-to-government transactions, Maltese law sets statutory interest at the ECB main refinancing reference rate plus at least 8 percentage points, running from the statutory fallback due date where the contract sets none (Commercial Code, Cap. 13, arts. 26A-26C). This regime has applied since 1 March 2012 and does not cover consumer transactions.
Is there a fast route to collect an undisputed debt in Malta?
Yes. For an uncontested, liquid and due debt of up to EUR 25,000 against a debtor present in Malta, a judicial letter under article 166A of the Code of Organization and Civil Procedure (Cap. 12) is a national fast-track. If the debtor does not oppose it, the letter becomes a directly enforceable executive title without a full judgment. This is a domestic procedure, separate from the EU European Payment Order.
How much does it cost to collect a debt in Malta?
Costs depend on the route chosen. Small Claims Tribunal costs for the winning party are generally limited to actual expenses incurred, and a claim can be filed without a lawyer. Ordinary litigation before the Court of Magistrates or the Civil Court follows the statutory advocates' and legal procurators' Tariff set out in the Code of Organization and Civil Procedure (Cap. 12). The judicial letter procedure under article 166A requires an advocate to draft and sign the letter, but avoids the cost of a full trial where the debt is not contested.
Is debt collection as an industry regulated in Malta?
No dedicated debt-collection-agency licensing or conduct regime was identified in official sources at the Malta Financial Services Authority or the Malta Competition and Consumer Affairs Authority. Collection activity in Malta instead runs through the general civil procedure and enforcement rules described in this guide.
Who does what in Malta debt collection?
Four types of actors handle a Maltese debt claim as it moves from an unpaid invoice to a recovered sum.
Small Claims Tribunal, Court of Magistrates and Civil Court
These are the venues that turn a disputed or unpaid claim into an enforceable title. The Small Claims Tribunal (Cap. 380) hears money claims up to EUR 5,000; its adjudicators are warranted advocates appointed for 5-year terms, and costs for the winning party are generally limited to actual expenses incurred. The Court of Magistrates, Malta or Gozo, hears claims up to EUR 15,000 (Cap. 12, art. 47). The Civil Court, First Hall, hears larger claims and holds a dedicated Commercial Section for company matters; in Gozo, the Magistrates Court also exercises a "superior" jurisdiction equal to the Civil Court, First Hall.
Court executive officers
Court executive officers (Cap. 12, art. 67) are Malta's functional equivalent of bailiffs or marshals. They serve judicial acts, warrants and orders, and execute post-judgment instruments: warrants of seizure of movable, immovable or going-concern property, judicial sale by auction, executive garnishee orders, ejectment and expulsion warrants, and vessel or aircraft arrest warrants.
Advocates
Advocates draft and file the judicial letter or lawsuit, represent creditors in the Court of Magistrates and Civil Court, and act as adjudicators in the Small Claims Tribunal. Their fees for ordinary litigation follow the statutory Tariff set out in Cap. 12.
No dedicated debt-collection regulator
No dedicated licensing or conduct regime for debt-collection agencies was identified in official sources at the Malta Financial Services Authority or the Malta Competition and Consumer Affairs Authority. Etika Consulting, Debitura's partner for Malta, is licensed and regulated via Inkasso Suisse and is a member of Inkasso Suisse and ASECAP.
Which laws and courts apply to debt collection in Malta?
Court system
Malta's civil courts form a tiered structure. The Small Claims Tribunal (Cap. 380) hears money claims up to EUR 5,000, with immovable-property and ejectment claims excluded regardless of value. The Court of Magistrates, Malta and the Court of Magistrates, Gozo hear claims up to EUR 15,000 (Cap. 12, art. 47). Above that threshold, the Civil Court, First Hall, has jurisdiction, with a dedicated Commercial Section for company matters. The Gozo Magistrates Court also holds a "superior" jurisdiction, equal to the Civil Court, First Hall, for residents of Gozo and Comino. Decisions of any of these courts can be challenged before the Court of Appeal, though a Small Claims Tribunal decision may be appealed only on the specific statutory grounds set out in the Small Claims Tribunal Act.
Key legislation
- Code of Organization and Civil Procedure (Cap. 12): governs civil litigation, the judicial letter fast-track (art. 166A), precautionary warrants and garnishee orders, court executive officers and enforcement, and the advocates' Tariff.
- Civil Code (Cap. 16): sets prescription periods (arts. 2122-2156) and the ranking of privileges and hypothecs among creditors (arts. 2088-2095).
- Commercial Code (Cap. 13): sets statutory late-payment interest for B2B and B2G debts (arts. 26A-26G) and governs trader bankruptcy (arts. 477-540).
- Companies Act (Cap. 386): governs company winding-up, including deemed inability to pay debts (art. 214).
- Small Claims Tribunal Act (Cap. 380): sets up the Tribunal and its EUR 5,000 jurisdiction.
Consumer protection
No dedicated debt-collection-agency licensing or conduct regime was identified in official sources at the Malta Financial Services Authority or the Malta Competition and Consumer Affairs Authority (MCCAA). Consumer debts fall outside Malta's statutory late-payment interest regime under the Commercial Code, which applies only to B2B and B2G transactions.
Step 1 - How does amicable (pre-legal) debt collection work in Malta?
Amicable collection in Malta is a non-judicial process handled by Etika Consulting, Debitura's licensed local partner. It combines reminders, a formal payment demand and negotiation, aimed at full payment or a written instalment agreement, without involving a court.
A typical amicable timeline
| Stage | Typical timing | Action |
|---|---|---|
| Day 0 | Case opened | Debtor identified, claim verified, first reminder sent |
| Day 7-14 | Follow-up | Formal payment demand issued, contact attempted by phone and email |
| Day 14-30 | Negotiation | Instalment agreement offered where appropriate |
| Day 30-90 | Review | If unresolved, the case is reviewed for escalation to a judicial letter or court action |
When to escalate
Escalation to a judicial letter or a lawsuit is a separate step, approved by you before it happens; it is never automatic. Signs that a claim needs escalation include a debtor who stops responding, repeated missed instalments, or an outright denial of the debt. Straightforward, undisputed claims are usually resolved without ever reaching this stage.
Why start amicably
An amicable approach is faster and cheaper than going to court, and it preserves the business relationship where the creditor wants to keep working with the debtor. A documented amicable phase, showing reminders and a formal demand were sent, also strengthens the case if it later needs to escalate to a judicial letter or a lawsuit.
Step 2 - How do you obtain an enforceable title in Malta?
Malta gives creditors two main routes to an enforceable title: a national fast-track for uncontested debts, and ordinary litigation for disputed or higher-value claims.
The judicial letter fast-track
For an uncontested, liquid and due debt of up to EUR 25,000 against a debtor present in Malta, a judicial letter under article 166A of the Code of Organization and Civil Procedure (Cap. 12) lets an advocate file a signed, sworn letter stating the claim without opening a full lawsuit. If the debtor does not object, the letter becomes a directly enforceable executive title, without a judgment. This is a domestic Maltese procedure, distinct from the EU European Payment Order.
Precautionary garnishee orders and other warrants
Before judgment, a creditor can apply for a precautionary garnishee order or another precautionary warrant, including description, seizure, seizure of a going concern, impediment of departure, arrest of vessels or aircraft, or a prohibitory injunction (Cap. 12, art. 829). These carry the same legal effect as the post-judgment executive garnishee order (arts. 375-383), subject to a carve-out protecting a bank's own guarantee payments (arts. 830, 849).
Ordinary proceedings
Disputed claims, or claims above the judicial-letter and Small Claims Tribunal thresholds, go through ordinary litigation. Claims up to EUR 15,000 are heard by the Court of Magistrates, Malta or Gozo (Cap. 12, art. 47); larger claims, and any claim involving immovable property, go to the Civil Court, First Hall, which has a dedicated Commercial Section for company matters. A resulting judgment is the enforceable title that opens the way to the enforcement measures covered in Step 3.
If the debtor objects
If the debtor opposes a judicial letter, the case moves into full litigation instead. A Small Claims Tribunal decision can be appealed only to the Court of Appeal on specific statutory grounds; ordinary judgments follow the normal appeal route from the court that issued them. Choosing the right route at the outset, judicial letter, Small Claims Tribunal, or ordinary proceedings, avoids losing time to a claim filed in the wrong venue.
Costs
Ordinary litigation costs follow the statutory advocates' and legal procurators' Tariff set out in Cap. 12. Small Claims Tribunal costs for the winning party are generally limited to actual expenses incurred.
Step 3 - How does debt enforcement work in Malta?
Once a judgment or an unopposed judicial letter becomes an enforceable title, a creditor in Malta enforces it through court executive officers, not through the courts directly.
Court executive officers
Court executive officers (Cap. 12, art. 67) serve and execute judicial acts, warrants and orders. They are Malta's functional equivalent of bailiffs or marshals, and they carry out every post-judgment enforcement measure described below.
Enforcement instruments
- Warrants of seizure: of movable property, immovable property, or a going concern.
- Judicial sale by auction: of seized assets, to satisfy the debt from the proceeds.
- Executive garnishee order: attaches funds held by a third party, such as a bank or an employer, on behalf of the debtor.
- Ejectment and expulsion warrants: used to recover possession of property.
- Vessel and aircraft arrest warrants: used where the debtor's assets include a ship or aircraft.
Precautionary versus executive measures
The same instruments, including the garnishee order, can also issue before judgment as precautionary warrants (Cap. 12, art. 829), giving a creditor an early hold on assets while the case is being decided. Once judgment is obtained, the precautionary warrant converts into, or is followed by, the equivalent post-judgment executive measure.
Process
Enforcement starts once the enforceable title is in hand: the creditor instructs a court executive officer, who identifies the debtor's assets and serves the relevant warrant. Seized assets are sold by judicial auction where needed, and the proceeds are applied to the debt in the order set by the Civil Code's priority rules.
Timing and asset identification
Before a court executive officer can seize anything, the creditor needs to know where the debtor's assets are. A precautionary warrant obtained earlier, described in Step 2, often makes this easier because it already identifies or freezes specific assets. Where no precautionary measure was taken, the court executive officer's own investigation into the debtor's assets adds time to the enforcement process.
Step 4 - How do insolvency procedures affect debt recovery in Malta?
When a Maltese debtor cannot pay, two separate regimes apply depending on whether the debtor is a company or an individual trader.
Company winding-up
The Companies Act (Cap. 386, art. 214) sets out the grounds for winding up a company, including a deemed inability to pay debts where an executive title against the company remains unsatisfied 24 weeks after enforcement, or where the court is satisfied the company cannot meet contingent or prospective liabilities. Other grounds include dissolution by extraordinary resolution and a 24-month suspension of business. The court appoints an insolvency practitioner, an advocate, accountant, auditor or other fit-and-proper person with no conflicting involvement in the company over the preceding 4 years.
Personal and trader bankruptcy
Bankruptcy for individual traders sits in the Commercial Code (Cap. 13, arts. 477-540) and applies to "traders" broadly defined. The same 24-week executive-title test that applies to companies also triggers deemed bankruptcy for a trader. The Civil Court appoints a curator to administer the estate. A rehabilitated trader can obtain a discharge from pre-bankruptcy debts, provided there was no fraud.
Creditor priority
Creditor ranking in a Maltese winding-up follows the Civil Code's privileges and hypothecs, ranked by registration date (arts. 2088-2095), with special statutory priority given to VAT claims, capped employee wages, and social-security contributions under other Maltese statutes. Unsecured creditors rank pari passu behind these preferred claims.
What this means for creditors
Filing a proof of claim promptly, and registering any hypothec or privilege you hold, protects your ranking in the distribution. Because the 24-week executive-title test triggers deemed insolvency in both regimes, holding an enforceable title, whether from a judicial letter or a judgment, is what puts a creditor in a position to invoke insolvency proceedings against a non-paying debtor.
How a winding-up or bankruptcy starts
Any creditor holding an unsatisfied executive title can petition the Civil Court once the 24-week non-payment test is met. If the court finds the statutory grounds are made out, it appoints the insolvency practitioner or curator described above, who takes over the debtor's affairs, identifies assets, and realizes them for distribution to creditors in the order set by the priority rules.
Fees, interest and who pays what in Malta
- Our fee: No Cure No Pay. Debitura only charges when your claim is recovered (see pricing).
- Court and enforcement fees: apply only if the case escalates to a judicial letter, a lawsuit or enforcement.
- Statutory late-payment interest: for B2B and B2G debts, Maltese law sets interest at the ECB main refinancing reference rate plus at least 8 percentage points (Commercial Code, Cap. 13, arts. 26A-26C), in force since 1 March 2012.
- Small Claims Tribunal costs: for the winning party, generally limited to actual expenses incurred.
- Ordinary litigation costs: follow the statutory advocates' and legal procurators' Tariff set out in Cap. 12.
- Who keeps what: the recovered principal is yours; statutory interest and recoverable costs follow the rules above.
These figures come from Maltese statute, not from Debitura, and apply only where a case needs to move beyond the amicable phase. On straightforward, undisputed claims most of these costs never arise, and the statutory interest above accrues automatically once a payment is late, without needing to be agreed in the contract.
Cross-border debt collection in Malta
Malta applies EU rules that simplify collecting a debt from a Maltese debtor when the creditor is based elsewhere in the EU, or vice versa.
Enforcing another EU judgment in Malta
Under the Brussels I recast Regulation (EU) 1215/2012, a judgment from another EU member state is enforceable in Malta without needing a declaration of enforceability (exequatur), abolished by article 39 of the Regulation.
European Small Claims Procedure
The European Small Claims Procedure (EC 861/2007) is available for qualifying cross-border claims and is processed in Malta through the Small Claims Tribunal.
European Payment Order
The European Payment Order (EC 1896/2006) is an EU-wide procedure for uncontested cross-border monetary claims and applies in Malta as in other participating member states.
What this means for a foreign creditor
A creditor based elsewhere in the EU does not need to start a fresh Maltese lawsuit to enforce a judgment already obtained at home, and has the option of the European Small Claims Procedure or the European Payment Order instead of Malta's domestic routes, where the claim qualifies. Which route is faster depends on whether the debt is contested and where the debtor's assets are located.
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Frequently Asked Questions
Explore our most common FAQs below, or reach out directly at contact@debitura.com if you need help with a specific case.
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