Cyprus vs Malta โ EU Island Comparison
Cyprus wins for most founders: lower IP Box rate (2.5% vs 7%), non-dom personal regime, no residency requirement, and lower compliance costs. Malta wins for iGaming, financial services, and shippin...
Side by side
| Factor | Cyprus Ltd | Malta Ltd |
|---|---|---|
| Effective CT | 12.5% | ~5% (after refund) |
| IP Box | 2.5% effective | 7% effective (different mechanism) |
| Non-dom regime | Yes โ 0% SDC on dividends | Limited |
| Refund mechanism | None (simple flat rate) | 6/7 refund (12โ24 months wait) |
| iGaming licence | No specific licence | MGA licence (EU gold standard) |
| Financial services | CySEC-regulated | MFSA-regulated |
| Treaty network | 60+ (lost Russia treaty 2023) | 70+ |
| Local company secretary | Cyprus-resident recommended | Malta-resident required |
| Year 1 cost | โฌ6,500โ13,900 | โฌ4,345โ10,445 |
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Key differences
Tax simplicity: Cyprus's 12.5% flat rate is straightforward โ no refund process, no timing issues. Malta's 5% effective rate requires distributing dividends and waiting for the refund.
IP Box comparison: Cyprus IP Box is 2.5% effective. Malta's IP deduction scheme provides a somewhat different mechanism โ effective rate approximately 7% for qualifying IP income. Cyprus wins for IP holding.
iGaming: Malta has no equivalent to MGA licensing in Cyprus. If you're in online gaming, Malta is non-negotiable.
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Choose Cyprus if: โ IP holding and licensing business โ You're relocating (non-dom regime โ 0% on dividends) โ Trading, consulting, or holding company โ You want simplicity over maximum rate reduction
Choose Malta if: โ iGaming or online gambling (MGA licence required) โ Financial services requiring MFSA regulation โ Shipping โ You can absorb the refund timing cash flow impact
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.