Malta

Company Formation in Malta

Malta

Formation Time

4–6 business days

Min. Capital

€1,165 (20% paid up = €233)

Corporate Tax

5% effective (after 6/7ths refund)

Foreign Ownership

100%

Overview

Malta is the premier Mediterranean financial hub and an elite EU corporate jurisdiction, famous for its unique Full Imputation corporate tax system that yields an effective 5% corporate tax rate on trading profits. As an EU member state and Eurozone participant, Malta provides seamless single-market access, an English-speaking commercial and legal system rooted in both Civil and British Common Law, and a leading global reputation for fintech, AI technology, crypto-asset (VFA/MiCA) licensing, and international shipping.

5% effective corporate tax

Full EU and Eurozone member

MFSA FinTech & MiCA framework

0% dividend withholding tax

76 tax treaties

Why Choose Malta

Effective 5% corporate tax rate achieved through Malta's 6/7ths shareholder tax refund system

Full European Union and Eurozone membership offering unrestricted passporting and single-market access

Europe's premier hub for regulated fintech ventures, digital assets, and payment institutions

Bilingual legal framework with English as an official language of business and legislation

76 bilateral double tax treaties preventing double taxation across all continents

Comprehensive Participation Exemption resulting in 0% tax on dividends and capital gains from foreign subsidiaries

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Private Limited Company (Ltd)	100%	1 director	€1,165 (minimum 20% deposited = €233)	35% headline corporate tax rate; 30% refunded upon dividend distribution (effective 5% net tax)	Trading, SaaS, consulting, digital services, fintech, software development
Maltese Holding Company	100%	1	€1,165	0% tax under Participation Exemption on qualifying dividends and equity gains	International holding structures, cross-border equity stakes, IP holding

Step-by-Step Formation Process

Name Reservation & Structure Approval

1 day

Reserve trade name with Malta Business Registry (MBR) and approve share structure.

Share Capital Deposit

1–2 days

Deposit minimum paid-up capital (€233 minimum) into a client escrow account.

MBR Electronic Registration

2–3 days

Submit Memorandum and Articles of Association to MBR online.

Tax & VAT Registration

1–2 weeks

Corporate Bank Account Opening

3–6 weeks

Open corporate multi-currency account with Maltese or European commercial bank.

Costs & Fees

Government / License Fee	EUR 500+
Our Service Fee	USD 3,500 – 5,500
Annual Renewal	USD 2,500+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

While traditional Maltese commercial banks (Bank of Valletta, HSBC Malta, APS Bank) maintain rigorous compliance procedures for international entities, European digital banks and EMIs (Wise, Revolut Business) provide faster alternatives for operational accounts.

Account Opening Time

2–4 weeks (Digital / EMI); 4–8 weeks (Traditional Maltese Bank)

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Bank of Valletta (BOV)HSBC Bank MaltaAPS BankRevolut BusinessWise Business3S Money

Tax Overview

Corporate Tax

35% headline corporate rate; 6/7ths refund on trading profits leaves effective 5% net tax; 5/7ths refund on passive interest/royalties (effective 10%)

Personal Income Tax

0–35% progressive rate

VAT / Sales Tax

18% standard VAT rate (reduced rates of 7% and 5% for tourism and essentials)

Capital Gains Tax

0% under Participation Exemption on qualifying equity disposals

Withholding Tax

0% withholding tax on outbound dividends paid to non-resident shareholders

Double Tax Treaties

76 countries

Tax refunds are paid directly to the shareholder by the Commissioner for Revenue typically within 14 to 30 days of filing the audited distribution return.

Visa & Residency

Malta Nomad Residence Permit

1 year, renewable up to 3 years

For digital nomads earning €2,700+ monthly from foreign remote work

Global Residence Programme

Indefinite residency

Special 15% flat tax rate on remitted foreign income for non-domiciled individuals

Malta Permanent Residence Programme (MPRP)

Permanent residence

Government contribution and property investment pathway

Family visa: AvailableProcessing: 4–12 weeks

Frequently Asked Questions

How does Malta's 5% effective corporate tax rate work?

Malta operates a Full Imputation tax system. The Maltese company pays 35% corporate tax on its annual taxable profits. When dividends are distributed to non-resident shareholders, the shareholder is legally entitled to a 6/7ths refund of the tax paid by the company on trading income (35% x 6/7 = 30%), leaving an effective net corporate tax rate of just 5%. The refund is issued by the Maltese tax authorities.

Is Malta suitable for international holding companies?

Yes. Malta's Participation Exemption provides 100% tax exemption on dividends and capital gains derived from qualifying holdings (generally a 5% or 10% equity holding in an EU or double-tax treaty jurisdiction). In addition, Malta levies 0% withholding tax on outbound dividends paid to foreign parent companies or individual investors.

How long does it take to receive the 6/7ths tax refund in Malta?

By Maltese law, once the audited tax return and shareholder refund claim are filed, the Commissioner for Revenue is required to pay the refund within 14 days, although in practice it can take between 2 to 4 weeks depending on the processing cycle.

Does a Maltese company require an annual statutory audit?

Yes. Under the Maltese Companies Act (Cap. 386), all companies registered in Malta, regardless of size or turnover, must have their annual financial statements audited by an accredited independent Maltese Certified Public Accountant (CPA).

What is Malta's regulatory framework for FinTech and Digital Assets?

Malta was one of the first EU jurisdictions to establish comprehensive statutory frameworks for digital innovation and FinTech under the Malta Financial Services Authority (MFSA), aligning fully with the EU MiCA (Markets in Crypto-Assets) regime and European financial passports.