🇨🇾Cyprus vs Malta🇲🇹
Checked November 4, 2026 · How we score
| Metric | Cyprus | Malta |
|---|---|---|
| Corporate tax | 15% | 35% |
| Top personal tax | 35% | 35% |
| Capital gains tax | 20% | 8% |
| VAT | 19% | 18% |
| Usual entity | Private company limited by shares (Ltd) | Private limited company (Ltd) |
| Setup cost | $1,800–$4,000 | $2,500–$5,500 |
| Yearly cost | $4,000–$9,000 | $3,500–$8,000 |
| Time to form | 14 days | 14 days |
| Remote setup | Yes | Yes |
| Banking difficulty | 4/5 | 4/5 |
| Digital nomad visa | Yes | Yes |
| Our score | 5.9/10 | 5.1/10 |
Choose Cyprus if…
- →Holding and IP companies using the IP box
- →Founders who want a non-dom EU base
- →Shipping and trading groups
Choose Malta if…
- →Trading and holding companies using the refund system
- →Gaming and crypto businesses
- →Non-doms wanting an English-speaking EU base
Questions people ask
Is Cyprus or Malta better for a new company?
Cyprus has the lower overall tax burden (15% corporate, 35% top personal). Cyprus is also easier and cheaper to set up and run. Overall, Cyprus scores 5.9/10 on our index vs 5.1/10.
What is the corporate tax rate in Cyprus in 2026?
15% from 1 January 2026, up from 12.5%. Qualifying IP profit can be taxed at an effective 2.5% under the IP box, and dividend income is generally exempt.
Is Cyprus still tax-friendly for non-doms?
Yes. Non-domiciled residents pay no defence contribution on dividends, interest or rental income for up to 17 years, and the 2026 reform allows further extensions in return for a lump sum. Personal income tax of up to 35% still applies to employment income.
How does Malta's 5% effective tax work?
A Maltese company pays 35% tax on profits. When it pays a dividend, shareholders claim a refund of 6/7 of the tax paid on trading profits, leaving about 5%. The refund takes several weeks to process and requires proper substance and filings.
Is Malta a tax haven?
It is an EU member with a 35% statutory rate, but the refund system, ownership flexibility and low effective rate lead many commentators to list it as a corporate tax haven. It is not on the EU blacklist but has attracted OECD and EU scrutiny.
More comparisons
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.