Malta

Why Choose Malta?

Malta, an EU member state, offers one of the most attractive tax regimes within the European Union. With a stable legal framework based on common law principles, an extensive network of double tax treaties, and an effective tax refund system, Malta is a preferred destination for holding companies, IP structures, and financial services.

Key Features of Malta

Key Advantages of Doing Business in Malta

• Effective tax rate as low as 5% via refund system
• No withholding tax on dividends, interest, or royalties paid to non-residents
• EU membership – access to European markets and legal stability
• Extensive DTT network (over 70 jurisdictions)
• Favorable IP regime – reduced taxation for intellectual property income
• Simple company structure – only 1 director, 1 shareholder, and 1 company secretary (no residency required)
• Nominee services allowed – confidentiality with full AML compliance

Tax System and Refund Mechanism

Example Calculation:
Profit: €100,000 → Tax Paid: €35,000 → Refund: €30,000 → Effective Tax: 5%

Refund Conditions:

• Shareholders must be non-residents of Malta
• Company must maintain proper accounting and tax compliance

Basic Company Requirements

Beneficial Ownership and Privacy

• UBO register is mandatory but not publicly accessible to the general public.
• Following the 2022 ECJ ruling, access is limited to competent authorities and AML-obliged entities.

Compliance and Reporting

• Annual financial statements and tax return are required.
• Audit is standard for most companies (based on turnover and size).
• Malta implements ATAD and DAC6, which means substance and cross-border reporting obligations.

Company Formation in Malta – Step by Step

1. Choose the type of entity (most common: Private Limited Company).
2. Reserve a company name and prepare incorporation documents.
3. Register with the Malta Business Registry.
4. Appoint directors, shareholders, and a company secretary.
5. Open a bank account and obtain a tax identification number.

Timeline: 5 – 10 business days
Standard formation cost: from €2,500 (excluding bank account and additional services)

When to Choose Malta?

• Holding structures – leveraging Malta’s double tax treaties
• IP and royalty structures – favorable taxation of IP income
• Fintech and iGaming companies – Malta is a leading EU licensing hub
• International trading operations – strong reputation and EU compliance

Main and Quick Facts