Malta

Company Formation in Malta

Malta

Formation Time

5–7 business days

Min. Capital

€1,165 (20% paid up)

Corporate Tax

5% effective

Foreign Ownership

100%

Overview

Malta has emerged as one of Europe's most attractive jurisdictions for company formation, particularly for its effective 5% corporate tax rate through its unique imputation system. While the headline rate is 35%, shareholders can claim a 6/7ths refund on distributed profits, resulting in an effective 5% tax rate. As an EU and Eurozone member, Malta offers full single market access, a robust English-speaking legal system based on both civil and common law, and has become the EU's leading hub for iGaming, fintech, and blockchain regulation.

5% effective tax

EU & Eurozone

iGaming hub

English-speaking

Why Choose Malta

Effective 5% corporate tax through refund system

EU and Eurozone member — single market access

Leading EU hub for iGaming and fintech licensing

English-speaking with bilingual legal system

76 double tax treaties

No withholding tax on outbound dividends (with planning)

Participation exemption on dividends from qualifying subsidiaries

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Private Limited Company	100%	1	€1,165 (20% paid up = €233)	35% headline; 5% effective after shareholder refund	Holding, trading, iGaming, fintech
Holding Company	100%	1	€1,165	0% participation exemption on qualifying dividends and capital gains	International holding structures

Step-by-Step Formation Process

Name Reservation

1 day

Check and reserve company name with Malta Business Registry.

Document Preparation

2–3 days

Prepare Memorandum and Articles, shareholder agreements, and board resolutions.

Registration Filing

1–2 days

File with Malta Business Registry (MBR) via their online eServices portal.

Tax Registration

1–2 weeks

Bank Account

3–6 weeks

Open a corporate bank account with a Maltese or international bank.

Costs & Fees

Government / License Fee	EUR 500+
Our Service Fee	USD 3,500+
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

Malta's banking sector has been cautious in recent years due to de-risking. Traditional bank account opening can take 4-8 weeks. EMIs like Revolut and Wise offer faster alternatives.

Account Opening Time

3–8 weeks (traditional); 1–2 weeks (EMI)

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Bank of VallettaHSBC MaltaAPS BankRevolut BusinessWise Business

Tax Overview

Corporate Tax

35% headline; 5% effective (6/7ths refund to shareholders)

Personal Income Tax

15–35%

VAT / Sales Tax

18%

Capital Gains Tax

0% on qualifying participating holdings

Withholding Tax

0% with proper structuring

Double Tax Treaties

76 countries

The 6/7ths refund applies to trading income. Passive royalty income qualifies for 5/7ths refund (effective 10%). The participation exemption applies to qualifying holdings (typically 10%+ stake).

Visa & Residency

Nomad Residence Permit

1 year, renewable

For remote workers earning €2,700+/month

Global Residence Programme

Indefinite

15% flat tax rate for non-domiciled EU/EEA/Swiss nationals

MRVP (Residency)

Permanent

Investment-based residency programme

Family visa: AvailableProcessing: 4–12 weeks

Frequently Asked Questions

How does Malta's 5% effective tax work?

Malta charges 35% corporate tax at company level. When profits are distributed as dividends, shareholders can claim a 6/7ths refund from the Maltese tax authorities, resulting in an effective 5% rate (35% × 1/7 = 5%). The refund is typically processed within 14 days.

Is Malta suitable for holding companies?

Yes. Malta's participation exemption means 0% tax on dividends and capital gains from qualifying subsidiaries (generally 10%+ shareholding in an EU or treaty country). This makes Malta one of Europe's most efficient holding company jurisdictions.