How to Set Up a Company in Malta as a Foreigner (2026)

Malta's unusual tax system

Malta is the outlier in the EU: the highest headline CT rate (35%) combined with the lowest effective rate for non-residents (~5%).

How the refund system works:

A Malta company pays 35% CT on its profits. When the company distributes a dividend, the non-resident shareholder can claim a refund of 6/7 of the Malta CT paid. The timing: the shareholder files a refund claim after receiving the dividend. The Malta tax authority pays the refund.

• Example:
• Profit: €100,000
• Malta CT at 35%: €35,000
• Profit after tax: €65,000
• Shareholder receives €65,000 dividend
• Shareholder claims 6/7 refund: €35,000 × 6/7 = €30,000
• Net Malta CT borne: €35,000 - €30,000 = €5,000
• Effective rate: 5%

• Conditions for the 6/7 refund:
• The dividend must be paid from a "distributable account" (most trading income)
• The recipient must be non-resident (or a Malta company in certain circumstances)
• A formal refund claim must be filed after distribution

The 5/7 refund applies to passive income and royalties (effective rate ~10%); full refund (7/7) applies to income with double taxation relief claimed.

Processing time for refunds: This is the main practical complaint — refunds historically took 12–24 months to be paid. Malta has improved processing but it remains slower than simply paying a low tax rate upfront.

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What Malta is strong for

• Gaming / iGaming: Malta Gaming Authority (MGA) licence is the EU gold standard for online gambling; many globally operating iGaming companies are Malta-based
• Financial services: Malta Financial Services Authority (MFSA) regulated; good for fund management, asset management, insurance
• IP holding: Malta IP regime; 80% deduction available (effective rate 7%); less popular than Cyprus but available
• Crypto / blockchain: Malta was an early mover ("Blockchain Island") though some regulatory uncertainty since
• Shipping: Malta has an extensive double tax treaty network and shipping income can be exempt from Malta tax

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Step 1: Formation

Structure: Private Company Limited by Shares — "Ltd" in Malta

• Requirements:
• Minimum share capital: €1,165 (for a private company limited by shares); €46,600 for a public company
• Minimum 25% of share capital paid up at formation: €291.25 minimum paid
• At least 1 director (no nationality/residency restriction)
• Company secretary: must be a natural person ordinarily resident in Malta
• Registered office: physical address in Malta

Registration: Filed with the Malta Business Registry (MBR — businessregistry.com.mt)

Timeline: 5–10 business days

Government fee: €245 for private company with minimum share capital

Via a Maltese corporate service provider: €800–2,000 for formation including secretary services

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Real cost (Year 1)

Plus: budget for the delay in receiving tax refunds (cash flow impact of 35% CT before refund)