Quick answer — Malta Ltd at a glance. A Malta private limited company needs share capital of at least €1,164.69, of which 20% must be paid up, and is usually registered within a few working days once KYC is complete. Companies pay 35% corporate tax, but shareholders can usually reclaim 6/7 of the tax paid on trading profits, bringing the effective rate close to 5%. Every company must have its accounts audited, and substance is expected.
Malta has one of the highest headline corporate tax rates in the EU and, for many international founders, one of the lowest effective rates. The difference comes from its full imputation system: the company pays 35%, and when it distributes a dividend, the shareholder can claim back most of that tax. For trading income, the standard refund is six-sevenths of the tax paid, leaving an effective rate of about 5%.
This makes Malta attractive to founders who want an EU company, an English-speaking legal system, a deep pool of corporate service providers and a low overall tax burden. It also makes Malta more complex and more expensive than lean jurisdictions such as Estonia or Bulgaria. You pay 35% upfront, wait for a refund, pay for an audit every year and need professional support throughout.
Malta is a poor fit for very small companies, because the audit and provider fees eat into the refund advantage. It also does not work for founders who stay fully resident in a high-tax country and manage the company from there. It is not designed for locally employed workers or settled expats.
Still comparing EU options? Start with our guide to the best EU country to start a company.
The refund is not a reduced rate. The company pays tax at 35%; the shareholder then claims a refund after a dividend is paid out of taxed profits. The size of the refund depends on the type of income:
Refunds are claimed through the tax return process and are by law payable within 14 days of a valid claim. Many founders use a two-company structure: a Malta trading company and a Malta holding company that owns it and receives both the dividend and the refund, keeping cash inside the group.
If you want a common-law EU company with a single, lower headline rate instead, compare the Cyprus company with non-dom shareholders. For an English-speaking alternative with a 12.5% trading rate, see the Irish Ltd for an English-speaking EU setup.
A company incorporated in Malta is resident and domiciled in Malta under Maltese law. That makes registration straightforward, but the refund system only delivers its result if no other country successfully claims the company or its profits.
If you are tax resident in another country and run the Malta company entirely from there, that country can argue the company is managed and controlled on its territory, or that it has a permanent establishment there. Under most tax treaties, the place of effective management decides which country wins. To keep the company firmly Maltese:
If you move to Malta, you can become tax resident without becoming domiciled there. Malta-resident non-doms are taxed on Malta-source income and on foreign income only when it is remitted to Malta; foreign capital gains are not taxed even if remitted. Non-doms with at least €35,000 of foreign income pay a minimum annual tax of €5,000. Dividends from your own Malta company are Malta-source, so they are taxed in Malta, with credit for the tax the company paid.
As an EU member, Malta applies CFC rules, and so does your country of residence if you live elsewhere. Some countries look at the effective rate after refunds rather than the 35% headline when deciding whether a company is low-taxed. Check this before relying on the refund.
A Malta Ltd typically costs €2,000–5,000 to set up and €5,000–12,000 a year to run, mainly because of the audit and corporate service provider fees.
Amounts are indicative; confirm current fees with the Malta Business Registry and your provider.
If you live outside Malta, your country of residence may then tax the dividend and the refund; if you are a Malta-resident non-dom, the result in Malta is broadly the same. Factor in the cash-flow gap: the company pays the tax first and the refund follows after the dividend and the claim.
Plan for one to two weeks to incorporate once due diligence is complete, and several weeks more for bank onboarding.
Maltese banks are cautious with new companies owned by non-residents and expect a clear business plan, detailed KYC and evidence of real activity, often including a link to Malta. Many founders combine a Maltese bank account with an EU payment institution for daily operations, or begin with a payment institution while the bank application is processed.
The Malta Business Bank Comparison Guide sets out which banks and payment institutions accept new companies, what they ask for and what they cost — get it when you start your Malta setup with Heavnn.
The headline rate is 35%, but shareholders can usually reclaim 6/7 of the tax paid on distributed trading profits, giving an effective rate of about 5%. Passive interest and royalties usually qualify for a 5/7 refund, an effective rate of about 10%.
A private limited company needs authorised and issued share capital of at least €1,164.69, of which at least 20% must be paid up on incorporation.
No. Non-residents can own 100% of a Malta Ltd. To keep the company's management in Malta and protect its tax position, appoint Malta-resident directors and hold board meetings in Malta.
The law requires the tax authorities to pay a valid refund claim within 14 days. In practice, the company must first pay its tax and distribute a dividend, so plan for a cash-flow gap of several months between earning profit and receiving the refund.
Yes. All Malta companies must have their annual financial statements audited by a Maltese auditor, regardless of size.
Malta's refund system rewards founders who plan the cash flow and the substance upfront. Heavnn models both before you incorporate.
Start your Malta company with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
