Malta offers various residence programmes for high-net-worth individuals (HNWIs), including the Global Residence Programme and the Nomad Residence Permit.
Foreign income that is not remitted to Malta is not taxed.
No wealth tax, no inheritance tax, and an exemption for foreign capital gains provided these are not remitted to Malta.
Holding structures and family offices can be run onshore in a legally robust and tax-efficient manner.
Malta Ltd companies are deemed tax resident in Malta by virtue of incorporation, but the 35% corporation tax is partly refunded to foreign shareholders.
Foreign shareholders can apply for a 6/7 tax refund, which can reduce the effective tax burden to 5% or less.
No withholding tax on dividends, interest or royalties paid to non-residents.
If strategic decisions are made from another country, this can result in the company being taxed there as a domestic business.
Banks require evidence of economic substance as well as a clear commercial rationale.
Malta is a small EU island state in the central Mediterranean and has been a member of the European Union since 2004. Like most European countries, Malta uses the euro and has around 574,000 inhabitants. The country offers access to the international banking system as well as a highly attractive tax refund system for foreign shareholders. Through this special mechanism, qualifying international companies can achieve an effective tax burden of just 5% while operating within a fully EU-compliant structure.
The Malta Limited Liability Company (Malta Ltd) is incorporated under the Companies Act, Chapter 386, and is frequently used for holding companies, IP structures and international trading companies. The country has a strong legal reputation, more than 70 double taxation treaties, and a well-developed professional services sector. Malta is particularly suitable for foreign entrepreneurs who want to combine an EU presence with a low effective tax burden.
The Malta Ltd is a private company under the Companies Act, Chapter 386 of the Laws of Malta. It is regarded as one of the most tax-efficient EU structures for non-resident entrepreneurs, particularly in the areas of intellectual property, group financing or international trade. Although the statutory corporation tax rate is 35%, the system allows, for most trading profits distributed to non-resident shareholders, a 6/7 tax refund, which can reduce the effective tax burden to around 5%. For holding companies that qualify for the so-called participation exemption, in some cases no tax may be due at all.
Malta has more than 70 double taxation treaties, including with most European states. As a rule, no withholding tax is levied on dividends, interest and royalties distributed to non-residents, which makes profit distributions particularly attractive. The legal system is based on a blend of civil law and common law and is fully integrated into EU regulations as well as international AML/CFT standards.
Incorporation is relatively quick, usually within 5 to 7 working days. Opening a bank account, however, usually takes longer than incorporating the company, and you should expect strict KYC procedures and detailed compliance checks. Malta was on the FATF grey list from 2021 to 2022 and was removed again in June 2022. Even so, some banks continue to treat Maltese structures with increased caution.
From a compliance perspective, proper bookkeeping, in most cases audited annual financial statements, and appropriate economic substance in line with the business activity are required.
We support you in structuring Malta companies in a legally robust and efficient way. Contact us for tailored advice.
At least one director for a private company.
A company secretary is required.
Shareholders may be foreign individuals or companies.
Yes, in most cases incorporation can be completed entirely remotely. For opening a bank account, however, additional checks, video calls or—depending on the bank—an in-person appointment may be required.
Sometimes, yes—provided there is genuine business activity and the relevant documentation can be submitted. For purely formal or substance-less structures, the authorities may refuse registration or request further evidence.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| Malta | 5% |
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from EUR 2,500 |
| USA | 21-0% |
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from EUR 1,900 |
| Singapore | 0% |
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from EUR 2,950 |
| Hong Kong | 0% |
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from EUR 1,900 |
| Cyprus | 15% |
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from EUR 1,900 |
| Ireland | 12,5% |
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from EUR 1,950 |
| Trust | 0% |
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income— in certain cases even when profits are not distributed.
Depending on your personal situation, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be happy to review your case and advise you accordingly.
