GoLow effective burden
35 % nominal, but a 6/7 refund to shareholders not resident in Malta – effectively around 5 % on trading profits.
Company formation
Company Formation in Malta
Malta is an English-speaking EU location with common-law-influenced company law. Nominal corporate tax is 35 %; through the full-imputation system with a 6/7 refund to non-resident shareholders, the effective burden on trading profits drops to around 5 %. Substance and a clean structure are decisive for recognition. Legal status: 2026, without guarantee.
~5 % effective after refundLtd from ~€245 paid inEU + English
Key figures
Malta at a glance
~5 %
Effective tax after 6/7 refund
6/7
Tax refund to non-resident shareholders
1–2 weeks
Registration via the MBR
15 %
QDMTT – only groups ≥ €750 m revenue
Advantages
What speaks for Malta
English-speaking EU location
English is an official language, company law is common-law-influenced – contracts, authorities and banks in English.
Established structuring hub
Participation exemption for holdings, a mature service ecosystem, incl. iGaming, shipping and funds.
Tax comparison
Example: €100,000 profit
| Germany | Malta | |
|---|---|---|
| Corporate tax | ~30 % (effective) | 35 % nominal / ~5 % effective after refund |
| Tax on €100,000 profit | ~€30,000 | ~€5,000 (after 6/7 refund) |
| Special feature | Municipal trade tax | refund to shareholders, audit duty |
The refund flows to the shareholders (not the company) and requires a correct structure – usually with a holding. The 15 % QDMTT applies since 2025 only to groups from €750 m revenue.
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Liability | Typical use |
|---|---|---|---|
| Private Limited (Ltd) | €1,164.69 (20 % paid in, ~€245) | limited | Standard, trading, services |
| Public Limited (plc) | €46,587.47 (25 % paid in) | limited | Capital-market oriented firms |
| Holding Ltd | like Ltd | limited | Participations (participation exemption) |
| Branch | — | parent liable | Market entry |
Mandatory: registered office in Malta and an annual audit by licensed auditors – regardless of company size.
Process
How incorporation works
Plan the structure
Usually a trading Ltd plus a holding for the refund flow.
Name reservation + articles
Prepare the Memorandum & Articles of Association.
MBR registration
Registration with the Malta Business Registry.
Tax and VAT registration
Register with the Commissioner for Revenue, shareholder registration for the refund.
Bank account / EMI
Open an account with a bank or e-money institution.
Ongoing compliance
Accounting, annual audit, refund applications after distribution.
Registration takes about 1–2 weeks.
Costs
Costs (indicative)
MBR registration fee from ~€245 (capital-dependent), annual audit ~€1,000–2,000, higher with advice and registered office (indicative).
Taxes
Corporate taxes
| Item | Rate |
|---|---|
| Corporate tax (nominal) | 35 % |
| Effective burden after 6/7 refund (trading profits) | ~5 % |
| Refund on passive income/interest | 5/7 (effectively ~10 %) |
| Participation exemption (qualifying stakes) | tax-free |
| QDMTT (groups ≥ €750 m revenue) | 15 % (since 2025) |
| VAT, standard rate | 18 % |
The refund system is established as EU-compliant but remains under ongoing observation – structures should be reviewed regularly. Design is decisive for dividends to the holding and the payout of the refund.
Knowledge check
Worth remembering
Tap a card to reveal the answer. Content AI-assisted and editorially reviewed.
Nominal CIT in Malta?
Show answer
35 % – with the 6/7 refund effectively ~5 % for non-resident shareholders.
Minimum capital Ltd?
Show answer
€1,164.69, of which 20 % (~€245) paid in.
Is an audit mandatory?
Show answer
Yes, annually – regardless of size.
Location in numbers
Malta in numbers
| Metric | Value |
|---|---|
| Effective tax on trading profits | ~5 % (after 6/7 refund) |
| Official languages | Maltese and English |
| Population | ~560,000 |
| Sector focus | iGaming (MGA), funds, shipping, IT |
Latest developments
Latest developments (as of July 2026)
- QDMTT of 15 % since 2025 for groups from €750 m revenue – SME structures stay on the refund system.
- Refund system unchanged in force; watch EU-level discussions on imputation systems.
- Increased substance and compliance requirements at banks and service providers.
FAQ
Frequently asked questions about Malta
How does the refund system work?
The company pays 35 % CIT; after distribution, non-resident shareholders receive 6/7 back – effectively around 5 % remains.
Does that also apply to large groups?
From €750 m group revenue, the 15 % minimum tax (QDMTT) applies since 2025; below that, the refund system remains.
How long does formation take?
About 1–2 weeks via the Malta Business Registry.
What is required on the ground?
A registered office in Malta and an annual audit; real substance counts for tax recognition.
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Sources & disclaimer
Sources
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
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