Starting a business in
🇲🇹Malta
Checked November 4, 2026 · How we score
Corporate tax
35%
Top income tax
35%
Setup from
$2,500
all-in, first year
Time to form
14 days
can be done remotely
Taxes in Malta
| Corporate income tax | 35% 35% statutory rate; on distribution shareholders claim refunds (6/7 for trading income, 5/7 for passive income, 2/3 for participation-holding income), giving effective rates of about 5%–10%. An optional 15% final-tax route was introduced in 2025. Pillar Two applies to large groups. |
|---|---|
| Personal income tax (top) | 35% Progressive 0%–35% (35% above about EUR 60,000 for single residents). Non-domiciled residents are taxed only on Maltese-source income and foreign income remitted to Malta; foreign capital gains are not taxed even if remitted. |
| Tax system | Remittance basis (taxed when brought in) |
| Capital gains tax | 8%Final 8% withholding on property transfers (5% if held 5+ years in some cases, 12% for property bought before 2004). Gains on shares are generally exempt for non-residents and for non-doms on foreign-held assets. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 18% |
| Social security | Class 1 employee and employer each pay 10% of basic weekly wage (capped). Self-employed Class 2: 15% of net income (capped). |
Forming a company in Malta
| Usual entity | Private limited company (Ltd) |
|---|---|
| Minimum capital | $270 |
| Setup cost (all-in) | $2,500–$5,500 |
| Annual running cost | $3,500–$8,000 |
| Time to incorporate | 14 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | Yes |
| Business banking for non-residents | Hard |
Residency and visas
Nomad Residence Permit needs about EUR 3,500 gross monthly income. The Malta Permanent Residence Programme requires a property and several fees. Citizenship-by-investment routes have been restricted after a 2025 EU Court of Justice ruling; verify current status before relying on them.
| Digital nomad visa | Nomad Residence Permit, $4,000/month income |
|---|---|
| Golden visa | Yes |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Full imputation + shareholder tax refund
Company pays 35%, then shareholders reclaim 6/7 on dividends from trading profits, leaving about 5% net.
Non-dom (resident, non-domiciled)
Foreign income is taxed only when remitted to Malta and foreign capital gains are not taxed at all.
Nomad Residence Permit
Permit for non-EU remote workers earning EUR 3,500/month that includes a 1-year residency.
Global Residence Programme
Flat 15% tax on remitted foreign income (minimum EUR 15,000) for qualifying non-EU residents who buy or rent property.
Pros and cons
Why founders pick Malta
- ~5% effective tax on trading profits via refunds
- English is an official language and system is common-law influenced
- Tax-free foreign capital gains for non-doms
- Full EU access with mature gaming and crypto licensing
Watch out for
- 35% must be paid first and refunded later – cash-flow and compliance heavy
- Mandatory annual audit for all companies
- Company secretary and local address required; costs are high
- Banking is slow; was on FATF grey list until 2022
- Often labelled a tax haven by NGOs, with Pillar Two scrutiny
Best for: Trading and holding companies using the refund system · Gaming and crypto businesses · Non-doms wanting an English-speaking EU base
Malta: common questions
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.
Can a foreigner start a company in Malta remotely?
Yes, via a corporate service provider. Registration with the Malta Business Registry takes about 1–2 weeks; you need a Maltese registered address, a company secretary, and KYC documents. A local bank account can take 4–8 weeks.
Does Malta require audited accounts?
Yes. All Maltese companies must file audited financial statements annually, which adds roughly EUR 1,500–3,000 for a small company.
What is the Malta Nomad Residence Permit?
A 1-year renewable permit for non-EU remote workers earning at least EUR 3,500 gross per month. It does not by itself set the tax treatment; residency and non-dom rules decide your personal tax.
Sources
Compare Malta
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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.