Malta is a reputable financial hub in Europe.
Even though it has a headline corporate tax rate of 35% it can be structured for effective 5-10% corporate tax due to their refund system.
The refunds vary and trading income gets 6/7 refunded, passive income 5/7 and other passive income gets 2/3.
Malta is one of the most popular jurisdictions for holding companies, IP holding companies, investment, iGaming, forex, fintech and crypto related businesses.
Quick Facts
Corporate Tax Rate
35%
Local Director Required
Yes
Audit Required
Yes
Complexity
Moderate
Legal Information
Legal Information
Entity Type
Corporation
Company Form
Private Company Limited by Shares (Ltd.)
Liability
Shareholders' liability is limited to the unpaid value of their shares. Personal assets are protected unless there is personal wrongdoing.
Share Capital
Minimum share capital required is EUR 1,164.69 of which 20% must be paid up.
Company Name Rules
Must be unique and not similar to existing names. Must end with “Ltd.” or “Limited.” Cannot contain restricted or misleading terms (e.g., "bank" or "insurance" without approval).
Types of Shares Allowed
Ordinary, Preference, and Redeemable Shares.
Bearer Shares Allowed
No, bearer shares are not permitted.
Foreign Ownership Rules
100% foreign ownership is allowed.
Redomiciliation
Allowed
Shareholders
Minimum: 1 shareholder (natural or legal person). Shareholder details are publicly available on Malta business registry.
Directors
Minimum: 1 director (natural or legal person). Directors can be residents or non-residents. Details are publicly accessible.
Secretary
Registered Address
Malta Ltd companies must have a registered address in Malta.
Incorporation Timeline
KYC & Due Diligence
1-2 business daysComplete KYC checks and submit due diligence documents for shareholders and directors.
Company Name Approval
1-2 business daysSubmit proposed company name to the Malta Business Registry (MBR) for approval.
Preparation of Documents
2-3 business daysDraft the Memorandum and Articles of Association and other required incorporation documents.
Submission to Malta Business Registry (MBR)
2-3 business daysFile the incorporation documents with the MBR for approval.
Certificate of Incorporation Issued
2-3 business daysOnce approved, the MBR issues the Certificate of Incorporation.
Tax Identification Number (TIN) Registration
2-3 business daysRegister the company with the Malta Commissioner for Revenue to obtain a Tax Identification Number (TIN).
VAT Registration
10-20 business daysIf required, register for VAT. Processing time depends on business activity and risk assessment.
Bank Account Opening
10+ business daysOpen a corporate bank account. EMIs (e.g., Revolut, Wise) take around 10 days. Brick and mortar banks in Malta are almost impossible to open an account. You will need to consider other banking jurisdictions for banking.
Compliance & Operational Setup
OngoingAppoint accountants, ensure annual compliance, and start business operations.
Malta Corporate Taxation
Corporate Income Tax: 35%
Effective Tax Rate: 5%
Exemptions:
Malta offers significant incentives through its corporate tax refund system. A non-Maltese resident owner (corporate or individual) may receive a 6/7th refund of the Malta tax, paying an effective tax of 5%.
Dividends received from participating holdings are tax-exempt.
Taxed at 35% unless exempt under participation exemption.
No WHT on dividends distributed by Maltese companies.
Exempt for non-residents meeting certain conditions.
Special Regimes
Allows a deduction of 95% of qualifying IP income, effectively taxing such income at a reduced rate of as low as 1.75%
Anti-Avoidance Rules
Follows OECD guidelines with Master and Local File requirements.