Residence options are available with specific tax benefits
Foreign income is generally not taxed unless brought into Malta
No wealth tax, inheritance tax, or tax on foreign capital gains (if not remitted)
A Malta company can benefit from the 6/7 refund system, reducing the effective tax rate by 5%
No withholding tax on dividends, interest or royalties
If the company is managed from another country, it may be taxed there. We review this in our free initial consultation
Banks require clear business activity and proper documentation
Malta is a small EU island state in the central Mediterranean, an EU member since 2004, using the euro and home to about 574,000 inhabitants. It offers access to the international banking system and a highly attractive tax refund system for foreign shareholders, allowing qualifying companies to achieve an effective tax burden of just 5% within a fully EU-compliant structure.
The Malta Limited Liability Company (Malta Ltd), incorporated under the Companies Act (Chapter 386), is used for holding companies, IP structures, and international trading. Malta has a strong legal reputation, over 70 double taxation treaties, and a developed professional services sector.
Although the statutory corporate tax rate is 35%, most trading profits distributed to non-resident shareholders benefit from a 6/7 tax refund, meaning that for every €7 of tax paid, €6 is refunded, leaving just €1 in tax, reducing the effective rate to around 5%. Holding companies qualifying for the participation exemption may owe no tax at all. Generally, no withholding tax applies to dividends, interest, or royalties paid to non-residents. The legal system blends civil and common law and is fully integrated with EU and AML/CFT standards.
Incorporation takes about 5–7 working days, but bank account opening is slower with strict KYC. Malta was on the FATF grey list from 2021 to 2022 (removed in June 2022), though some banks remain cautious. Compliance requires proper bookkeeping, audited annual financial statements (in most cases), and appropriate economic substance.
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% |
|
|
|
|
from EUR 2,500 |
| USA | 21-0% |
|
|
|
|
from EUR 1,900 |
| Singapore | 0% |
|
|
|
|
from EUR 2,950 |
| Hong Kong | 0% |
|
|
|
|
from EUR 1,900 |
| Cyprus | 15% |
|
|
|
|
from EUR 1,900 |
| Ireland | 12,5% |
|
|
|
|
from EUR 1,950 |
| Trust | 0% |
|
|
|
|
from EUR 4,900 |
| England | 25-19% |
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|
|
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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.
