Step by step to form a limited and a company in Malta with legal certainty!
The formation of limited and other companies in Malta is attractive. Malta is a small island. Besides lots of sunshine, an impressive business-friendly environment, and lightning-fast incorporation, Malta Limited in particular promises low taxes. Perfectly constructed, you legally convert the 35 per cent corporate tax into 5 per cent. You don’t need an account in the Seychelles, Bahamas, or Cayman Islands for the lowest taxes in the EU.
Updated July 2023
Incorporating a Limited or Company in Malta – Quick Answer for Quick Readers
| 👍 | Schnelle Gründung | Gründung in 3 – 7 Tage Durch Treuhänder möglich Online Gründung |
| 👍 | Ab 0 Euro Eigenkapital | Self-employed 0 Euro Ltd. 1.164,69 Euro Plc. 46.587,47 Euro |
| 👍 | Steuerliche Vorteile | 10 % für Non-EU digitale Nomaden 5 % für Ltd. Einnahmen außerhalb Maltas steuerfrei Change Reserve Steuergutschriften für Investitionen |
| 👍 | Unternehmerfreundlich | Kaum Bürokratie Digitalisierte Verwaltung Blockchain + Gigabit Internet Stabiles Rechtsssystem Business First |
Lucrative tax laws for Digital Nomads ✅ Reside in Malta, operate a business in Malta and pay zero per cent tax. 💪 Register a business or set up a company digitally in a matter of days. 👍 Taxpayers from countries with a global income tax, such as US taxpayers, must disclose all their income to their government. 😭
Facts about setting up a company or relocating to Malta
Visitors from Movies, Hollywood, and blockbuster fans know the dreamy spots in Malta from
- The Boat
- The Da Vinci Code
- Games of Thrones
- Gladiator
- The Count of Monte Cristo
- or Troy.
In the mainstream, Malta is considered a country of tax avoidance, despite a corporate tax of 35 per cent.
Malta 35 per cent – Germany 15 per cent? That puts Malta at the bottom of the EU countries!!! Where is the tax avoidance, and how do companies and founders save tax in Malta?
Low entry barriers and business-friendly company law make Malta interesting for company formation and relocation of companies from abroad:
- Tax rates of 35, 25, 15 and legally 5 per cent, depending on the company’s form of incorporation
- Low incorporation costs for Ltd, Plc, partnership, and sole proprietorship companies
- The monthly minimum wage for 4 weeks is 770.92 euros for the year 2023 (192.73 euros weekly)
- Favourable pay-as-you-go social security contributions
- Second or side job exempt from social security contributions (no limit on maximum working hours)
- No 183-day residence rule
- Company domicile also from home office
- With Non-Dom status, foreign income remains tax-free (Residents without Domicile)
- No obligation to have a bank account in Malta
- Low costs for approval of a company or legal entity
- Company formation online without travel
- Malta signed the United Nations Standard of Excellence for Start-ups in 2021
- Malta is not on the EU and FATF country lists
You incorporate a company in Malta within a few days. Some legal forms require mandatory customer due diligence. Common company forms in Malta are Self-employed (sole proprietorship), Small businesses and Limited. By choosing the perfect company structure, you can reduce the tax to as little as 5 per cent after refunding the corporation tax (Refund). Please check in advance: Is a tax-neutral move within the EU or EEA possible? Risk of exit taxation.
Business goes global, taxes stay local
How to establish a subsidiary in Malta!
- Search for the perfect location
- Establish activities or just a representative office
- Matching the goals of your company with the company form
- Reserve company name
- Deposit minimum share capital if required
- Entry in the commercial register
- If required, apply for a trade license
- Tax Identification Number (TIN) for the company
- If required, apply for VAT No.
- Register employer identification numbers for employees (Jobsplus)
- Register Employment Training Corporation (ETC
Are the tax systems of the countries simply comparable?
Indeed, depreciation or the basis of taxation are interpreted differently. An OECD standard has become established in international accounting for comparing tax systems.
What are the EU and FATF country lists?
The Financial Action Task Force (FATF) lists countries that have strategic deficiencies in their systems for combating money laundering and terrorist financing. They pose significant risks to the international financial system and are considered high-risk states. The FATF was founded in 1989 and is an international organisation of the OECD. It produces the most important list of countries that promote money laundering and terrorism. It may differ from the EU list of countries. Why? One cannot help thinking that the EU does not look very closely at its member states. As the Cum-Ex and the EU corruption affair showed: a little corruption and looking the other way at money laundering can be seen by entrepreneurs as a competitive advantage.
Permanent guests on the FATF country list:
Besides North Korea, Yemen and Iran, there is Barbados, Gibraltar, Jamaica, Jordan, the Cayman Islands, Morocco, Trinidad, and Tobago and the United Arab Emirates. Anecdote: The fraud german financial services provider and DAX company Wirecard placed most of its assets in the FATF country Philippines.
What legal forms for founders are possible in Malta?
Branch Office – The parent company is liable for the branch office.
The Maltese Branch Office is a favourable option for companies doing business in Malta as opposed to incorporation.
European Company (SE) – Shareholders are liable for shares
The Societas Europaea operates in several EU countries and flexibly takes advantage of national legal systems. It is often chosen for cross-border mergers with companies in other Member States or for merging parts of companies. The European Company (SE) is regulated by the Malta Financial Services Authority (MFSA).
Foundation
The Maltese Foundation is a trust. In addition to the founder and his assets, it requires a board of trustees.
General Partnership – The partner companies have joint and unlimited liability
A Maltese General Partnership is a partnership. It is a separate legal entity from its partners and may own property.
Limited Liability Company (LLC) – Private or public limited liability company.
The Maltese LLC is governed by the Companies Act 1995. Based on UK company law, the LLC is supervised by the Financial Services Authority and the Malta Companies Registry.
Limited Partnership (Ltd.) — General Partner with Unlimited Liability
A Maltese Limited Partnership (LP) consists of one or more General Partners (GP) and one or more Limited Partners (LP). The General Partner has unlimited liability for the debts of the company and maybe a holding company. The limited partner is liable for his contribution. A private LLC bears the suffix “Limited” or “Ltd.” at the end of its company name.
Public Limited Company (Plc) – liability limited to contribution
A Maltese Plc (public limited company) is a company with limited liability. The liability of shareholders is limited to the share capital. Since Chapter 138, a Company Secretary is required. The Plc is regulated by the Malta Financial Services Authority (MFSA). Public Limited Partnership (PLP) – unlimited joint and several liability PLP is a partnership.
Partnership en commandite – Limited partners are liable for their contribution, and general partner(s) are jointly and severally liable.
A Maltese partnership en commandite (the limited partnership) is a limited liability company. It consists of at least one general partner (GP) with unlimited liability and one or more limited partners (LP) with limited liability.
Self Employed – sole proprietorship with unlimited liability
A self-employed person is a freelancer, digital nomad or sole trader.
Malta also has SICAV for investment funds and trusts as trust companies. The state distinguishes between micro companies with up to 9 employees, small companies with up to 49 employees, and medium companies with up to 249 employees.
In addition, there are large companies. For some types of companies, a company secretary or company administrator is required (company secretary). His or her administrative duties include keeping registers and records and filing returns and other documents. This includes the register of shareholders and the register of debentures.
More information and register a business or trade:
BUSINESS 1ST OFFICE
2nd Floor, Cobalt House
Notabile Road
Mrieħel Industrial Estate
Mrieħel, B’Kara,
BKR3000
Winter opening hours (September-June):
Monday, Tuesday, Thursday 8:00 am – 4:00 pm
Wednesday 8:00 am – 7:00 pm
Friday 8:00 am – 1:00 pm
Summer opening hours (July):
Monday, Tuesday, Thursday, and Friday 8:00 am – 1:00 pm
Wednesday 8:00 am – 7:00 pm
Opening hours summer (August):
Monday to Friday 8:00 am – 1:00 pm
E-Mail: [email protected]
Internet: businessfirst.com.mt/
customers service: 0356 144
Monday to Friday 8:00 am – 4:00 pm
Some types of companies require an annual general meeting
The LLC holds an annual general meeting every year. With a unanimous resolution of the company, this can be held anywhere in the world. Malta allows digital general meetings.World of Malta Insider Tip: Convert Corporation to Partnership
You can convert your Maltese corporation into a partnership by means of a partnership agreement. This usually eliminates the need for auditing, but does not exempt you from bookkeeping.
Statistics: The most common types of companies in Malta, 2022
- 76,659 sole proprietorships, freelancers, and partnerships
- 54,255 Ltd. and Plc.
- 5,269 non-profit companies, foundations and state-owned enterprises
Thus, 56.3 per cent are sole proprietorships and partnerships. 39.8 per cent chose the legal form Ltd. and Plc. In 2022, 1.2 per cent more companies were established and registered compared to the previous year. The 10,293 filings are the lowest in five years. Company deregistrations and liquidations were also at their lowest level at 6,595.
Source NSO Malta
When do 0 percent, 5 percent and 35 percent taxes apply?
Taxes in Malta: Extract from Malta’s Individual, Corporate and Other taxes
Malta’s Individual, Corporate and Other taxes
| Unternehmensform | Steuersatz | Programm |
|---|---|---|
| Non-EU Digitale Nomaden | 10 % | Nomad Residence Permit |
| Ltd. mit Holding Struktur | 5 % | Holding-Modell |
| Self employed | 15-35 % | Staffel-Steuersatz |
| Umsatzsteuer (VAT) | 18 % | Verbrauchssteuer innerhalb Maltas reduzierte Sätze von 7 % und 5 % auf Medizinprodukte, Elektrizität und förderfähige Artikel |
| Erbschafts-, Nachlass- und Schenkungssteuern | 0 % | |
| Stempelsteuer ab 200.000 Euro Immobilien und Gesellschaftsanteile | 3,5 % 2 % Gozo | Auf Malta Immobilien und Anteilen an maltesischen Gesellschaften nach Tod |
June 2023
What does a Non-Dom status mean?
Non-Doms are foreigners in countries like Malta, UK, Ireland or Cyprus. Malta offers tax privileges. Non-Dom status allows the “Remittance Basis of Taxation”, which taxes foreign income only when it is received (remitted) or consumed in the country of residence.
Avoid these top 11 tax traps
Don’t rely on unsubstantiated claims from the media about your simple company formation or domicile transfer to Malta. The former pirate island strictly enforces compliance with its laws. Ten relevant tax types and business transactions in Malta are (in alphabetical order):
- Provisions of tax rebates and discounts
- Compliance with accounting and reporting requirements
- Inheritance and gift taxes
- Capital gains taxes on dividends and capital gains
- Penalties for non-compliance with tax regulations
- Social security contributions
- Taxes on the employment of employees
- Taxes on rentals and leases
- Taxes related to contracting and transactions
- Sales tax in connection with cross-border trade (reverse charge)
You are not a certified expert in international tax law? Then let licensed service providers advise you before you take the first step! Qualified lawyers (Lawyers), auditors and tax consultants (Tax consultants), accountants (Accountants) as well as registered corporate services providers offer you partly a free initial consultation. Not sure after the initial consultation? Then get a second opinion or get open-ended advice for a fee.
Adhere to the 183-day rule, and nothing can happen. Does this apply in every country?
The tax law in Malta does not have a 183-day rule. Therefore, the length of stay known by the OECD-MA is not a problem in Malta. Check the rules of the host country, after which length of stay they trigger a tax liability there. Relevant is the “counting period”:
- Calendar year
- Tax year
- last 12 months
- Arrival and departure days
- Vacation days
Well-connected tax authorities have access to flight data, mobile phone providers, stored IP addresses and booking data of hotels and tourism authorities.
Anonymity through fiduciary managers in Malta or -shareholders! Is this possible in Europe?
- Usually, shareholders are published in the transparency register which can be viewed by the public.
- Your bank expects that you do not hide any shareholding (reportable in case of money laundering suspicion).
- Through the international exchange of information (OECD CRS), your tax office obtains knowledge of trusts, foundations and fiduciary holdings.
- Lawyers and tax advisors as trustees risk breaking the law by assisting in a cover-up.
Refuse to make a statement as a defendant to the tax office! This is not advisable.
Taxpayers cannot refuse to testify to every tax office without consequences. Tax law is based on the
- (increased) obligation to cooperate,
- Cooperation between taxpayers and tax authorities,
- reversal of the burden of proof.
Your tax return or declaration will stand up to official scrutiny. Refusal to provide information typically leads to an estimation of the expected average income. Your company is an out-performer and average yields seem favourable? In addition, you may be subject to late payment penalties and fines for tax evasion.
Banking secrecy protects you from the critical eye of the tax authorities! Too much trust?
- In many countries, banking secrecy expires upon death.
- Many reasons allow the tax office to access bank accounts.
- Death obliges the banks to report the account balance in many countries.
Thanks to a letterbox company, a trustee disguises the owner! Officially unthinkable in Malta.
Letterbox companies, as in 1209 North Orange Street in Wilmington (Delaware), with over 200,000 companies, is impossible in Malta. By the way, American president Joe Biden was a senator of the US tax haven Delaware from 1973 to 2009. With a limited company domicile in Malta combined with a holding company concept, you legally pay 5 per cent tax. To do this, you create substance in Malta, i.e. a sustainable establishment of an operationally active permanent establishment. A Registered Office alone is not enough, The Ltd. is owned by partners from abroad (Non-Dom Status) or a Holding. As the owner, you can be the director for all holding companies and the limited company. The director is similar to the function of the GmbH managing director.
The tax office must recognize the tax-advantaged company in Malta because of the freedom of establishment! Really?
That is different in the countries. For example, the German Foreign Tax Act addition taxation is possible at your home tax office. In order for your tax office to recognize the tax benefits in European Union countries with corporate tax below 25 per cent, you must prove the following in Malta, according to a ruling of the European Court of Justice:
- A business set up in a commercial manner
- A head office
- Active income
A home office can be recognized as a business operation for Self employed and small companies. Similar rules apply in many EU countries, as well as non-member states.
A nominee director is cheap, disguises, and increases profit! As long as it works.
A Fiduciary Director, sometimes used as a straw man for disguise, with a variety of other officer or director positions, will most likely not be recognized. Fiduciary directors or nominee directors identify the tax authorities in the commercial registers. A “breakfast director” with no powers appears favourable. However, both parties assume a high risk of liability.
Not pursuing a business purpose, but inventing one for Limited! Why does this not work?
A legally valid Malta Limited derives most of its income from its chosen business purpose. This includes income from:
- Production,
- trade,
- services,
- from the raising and lending of capital,
- as well as income from profit distributions of corporations.
If applicable, the tax authorities expect business operations to be set up in a commercial manner. Without sufficient asset income, there is a risk of abuse of the tax system.
The corporate income tax is always 5 per cent! Really?
The corporate income tax in Malta is 35 per cent. Foreign shareholders are refunded up to 6/7 of the tax by the Maltese tax office. Holding models are suitable for this refund. Without a legally sound structure, the corporate tax can be 10 per cent or 35 per cent. The inflow to a country of residence such as Germany leads to income tax there.
Warehouse on the European mainland!If the delivery of goods via Malta is too expensive.
If you make deliveries from another country, this may trigger a tax liability in the country of the delivery warehouse.
Declare residence in Malta for appearance’s sake! Who likes to play poker?
The German Tennis-Star Boris Becker’s tax evasion was uncovered by an eager tax official. He collected newspaper articles about the tennis star in Germany. Thus, it could be counted on the fingers how often Boris Becker was in Germany. The tax concession for the bogus foreign residence in Monaco ceased retroactively. In many EU countries, the refund of corporate income tax is taxable. Relocating the residence with the family to Malta is an essential prerequisite for a secure, tax-free refund. The personal and economic relations to the previous state of residence are weighted higher than those to the other state.
Do you want more information about double taxation agreements (DTAs)?
Whart are the double taxation agreements (DTAs) means?
The purpose of these DTAs is to avoid double taxation and prevent tax evasion. Despite these agreements, it is not always possible to clarify every conceivable case in advance, with the result that proceedings are repeatedly brought before the tax courts.
Rather, the overall picture of the circumstances must always be appreciated.
The OECD and United Nations (UN) develop model agreements as a basis for negotiation between countries in order to harmonize the respective legal systems. The countries of the EU usually use the OECD Model Convention (OECD-MA).
In simplified terms, DTA takes into account the principles of international tax law.
Source country and territoriality principle: withholding tax if the income was earned in the country.
World income principle: tax liability of world income in the country of residence.
Country of residence principle: tax liability in case of habitual residence or domicile, place of management of the company.
If there are conscious or unconscious gaps in the DTA, there is no taxation in the two countries. If necessary, fallback clauses apply, which allow subsidiary taxation by the state at the place of residence or company management. These can be found in the OECD Commentary (OECD-MK). If there is no DTA between two states, then the respective guidelines of the domestic law apply and income can be taxed twice. And things get really complicated for you when a double taxation agreement overlaps with EU regulations.
Conclusion on common cases in DTA:
The DTA protects you from double taxation or reduces it. Usually, in existing DTAs, the tax authorities in Germany credit the taxes paid on foreign-earned income.
What can be or is regulated in a DTA?
- Accrual date
- Administrative assistance, exchange of information
- Affiliated companies
- Alimony payments
- Arm’s length principles
- Artists, athletes
- Arbitration
- Capital gains
- Commercial profits
- Compensation after termination
- Contractual relationship
- Credit method, exemption method
- de minimis limit
- Development aid clause
- Dividends
- Employee leasing
- Equal treatment
- Exempt income, progression provision
- Exemption certificate
- Flight and ship personnel
- Insurance tax
- Inventor’s remuneration
- Partial retirement, block model
- Permanent establishment
- Professional driver
- Progression proviso
- Mutual agreement procedure
- Residence
- Reversion clause
- Royalties
- Severance taxation
- Social security
- Stock options, stock compensation models
- Temporary employment
- Visiting professors, teachers, students, trainees
How many double taxation agreements (DTAs) does Malta have?
The Commissioner for Revenue announces double taxation agreements for 78 countries in 2023. In comparison, Germany has concluded just under 140 DTAs.
Are transactions with or by employees of the EU, UN or NATO included in the DTA?
No, the remuneration of Germany’s own civil servants and other employees is not subject to national tax in the EU member states. Simplified privilege protocol applies to EU, NATO and UN employees.
World of Malta Insider Tip: Before you start – Consultation is extremely important
Except for free initial consultations offered, professional advice costs money. However, keep in mind that in many areas in Germany, consulting in advance is useful and sometimes desired. Some investment grants for your business are available if the project has not yet been started. In Germany, this applies, for example, to start-ups, grants for website creation, investment grants, energy consulting and construction projects. Do not risk an expensive, perhaps instructive experience by foregoing professional advice. This includes due diligence and reference of references at the holding model. A wrong assumption or erroneous assessment can cause your project to fail.
Step by step set up partnership and sole proprietorship in 3 steps
- Application for self-employment at Jobsplus
- VAT-No. at Ministry for Finance
- Apply for a tax number at BusinessPlus
Step by step to set up a limited company in Malta in 7 steps
- Correspondence and appointment with Malta Business (Registrar)
- Registry (Commercial Register)
- Submit documents to Malta Business Registry
- Incorporation of the company through Malta Business Registry
- Digital Certificate of Incorporation
- Apply for tax number
- Register company seal
Step by step incorporation of a holding company in Malta in 6 steps
- Correspondence and appointment with Malta Business (Registrar)
- Drawing up and providing a partnership agreement
- Submit documents and forms to UK
- Submit documents to Malta Business Registry
- Incorporation of the company through Malta Business Registry
- Digital certificates of incorporation
Step by step Scottish Limited Partnership formation in 5 steps
- Correspondence and appointment with Malta Business (Registrar)
- Registry (Commercial Registry)
- Submit documents to Malta Business Registry
- Incorporation of the company through Malta Business Registry
- Digital certificates of incorporation
You will also reach 5% without Scottish Limited. Then there is a later tax refund up to 6/7 by the Maltese tax authorities. However, most companies want higher liquidity and use the complete Malta Holding Model.
Use a coworking space or business centre as an alternative to a home office
Unless your business model allows for a production facility or permanent headquarters with staff and space used exclusively by you, you can rent a coworking space in Malta cheaply by the hour, day or for longer periods. In our content about Digital Nomads in Malta we have described coworking space and conducted an interview with the Operations Manager of Businesslabs Malta.
- Low monthly costs
- Technically well-equipped workstations
- Flexible office space or workspace rental and expansion
- Postal address and secretarial services
- Synergy with other startups, founders, entrepreneurs, and freelancers
- Open 24/7
- Network events
Check these promotions
Malta’s government awards grants partly in conjunction with the European Union. These are granted for innovation and digital, regional development and cohesion, or space. You can get the funding as grants, loans and tax credits.
EU funding programs and funds financed from the EU budget and NextGenerationEU.
- Single Market, Innovation and Digital
- Cohesion and values
- Natural resources and environment
- Migration and border management
- Security and defence
- Neighborhood and World
Digital Europe (2021-2027)
These goals are pursued in 5 sub-areas:
- “Supercomputing”,
- Artificial Intelligence,
- cybersecurity and trust,
- advanced digital skills,
- broad use of digital technologies in business and society.
Microinvest – tax credits for small businesses and the self-employed.
Malta Enterprise Economic Development accompanies the Microinvest program for start-ups, family businesses, small businesses (Micro Enterprises) and solo self-employed (Self-Employment). Expenditures and investments are subsidized with a tax credit of up to 45 per cent.
- Businesses with 1 – 50 employed persons
- Total assets in the tax year and previous year, less than 10 million euros
- Increase in income costs by more than 3%
- Costs for services provided by third parties
- Furnishing, renovating and modernizing
- Investment costs for machines, technologies, apparatuses and instruments
- Systems for generating alternative energies
- Improving energy efficiency
- Costs for certifications
- Costs for acquiring commercial vehicles
- Tangible and intangible assets for digitization such as computer hardware and software.
The maximum amount of eligible tax credits limits Malta to 50,000 euros over three consecutive fiscal years. In Gozo, 70,000 euros is possible.
World of Malta Insider Tip: How to find the right law firm or service provider to form Ltd.
General statements are impossible. Essential is: The law firm should be a certified service provider, specialized tax advisor or auditor. There are many offers on the Internet, which only resell addresses of prospective customers or sell only a 08/15 White paper concept. Another tip: Think about the exit! Cooperation does not always run satisfactorily. In the contract, you regulate:
- With what notice period can you terminate?
- Can you change it beforehand against payment of a fee?
- When will you receive your documents?
- How and when will the data be transferred to the new service provider?
- What does a signing fee include?
You can have these clauses checked by your lawyer before you sign them. In principle, law firms and service providers are to be preferred who do not put insurmountable obstacles in your way when you change. Those who convince with performance do not need gagging contracts with their clients.
Pros & cons of setting up a company in Malta
Tax benefits
Malta has a favourable tax policy and offers various incentives for companies. Double taxation agreements (DTAs) with 78 countries and the EU Parent-Subsidiary Directive apply as of 2023. Malta does not levy a withholding tax.
Infrastructure.
Infrastrukture
There is sufficient infrastructure, gigabit internet and blockchain.
Public transport
Free public transport for residents of Malta.
Economic growth
Malta has a stable economic growth of over 6 per cent over the last 10 years to 2022, taking into account the Covid-19 year 2020 of -8.61 per cent.
Source World of Economics Data Base
Labour costs
Wage costs are about 40 % – 60 % lower than in Germany. The weekly minimum wage for persons aged 18 and over is €192.73 for 40 hours of work per week.
Official language
Malta has English as an official language in addition to Maltese.
Qualified workforce
Especially in marketing, gaming and IT, the workforce in Malta is considered highly skilled.
Currency
Even in the near-digital banking world, companies often save on currency hedging costs as well as exchange fees by belonging to the euro.
Small Country
Malta is smaller than the area of Hamburg. The domestic market is limited to about 500,000 inhabitants. Malta’s plan, however, is to attract over 80,000 digital nomads and remote-workers plus family members.
Competition
There is a lot of competition in Malta’s “desired” industries such as construction, sports betting, gaming and gambling, which makes it difficult to find qualified employees.
School
Maltese is mostly spoken in Malta’s schools. Consistent English is only common in public schools.
Home ownership, properties and rent
Rents are high in relation to income. Home prices reach those of major German cities.
Dependence
Malta’s economy is dependent on tourism, construction, and gaming. As the first crypto and blockchain location in Europe, Malta could hardly gain any advantages.
Unemployment rate
Malta has had an extremely low unemployment rate of around 3 percent for many years. Pleasing for residents, bad when it comes to finding qualified workers. These are often hired from abroad.
World of Malta Insidertipp: Du bist unsicher – Dann als digitaler Nomade staatenlos und ungebunden sein
Dann besorgen Sie sich diesen Videokurs zur Steuerfreiheit bei Staatenlosigkeit. Geballtes Wissen in komprimierter Form wird Ihnen leicht verständlich vermittelt. Denn nicht für jeden Unternehmer ist die Limited oder Aktiengesellschaft die steuerlich günstigste Unternehmens-Form.
FAQs – You have questions? We give you the answers!!
Is a Malta Limited suitable for everyone?
No, not all companies are suitable for the Malta Limited. For example, property transactions are often taxed in the country of the property. Unless they move production to Malta, these companies are less likely to be suitable for Malta Limited.
What are the formation costs for Malta Limited and sole proprietorships?
If you (can) dispense with legal advice, the cost of setting up a sole proprietorship is zero euros. For a limited, you pay a minimum of 233 euros deposit (20 per cent). The costs for legal advice depend on the scope of the tasks assigned. If you do not want to do anything yourself, costs will be above 3,500 euros. Apply for VAT No. at the Ministry for Finance by e-mail or online, set up your business account, then the costs of setting up can drop below 2,000 euros.
How is the centre of life defined?
Among a variety of points are long-term residence, social and family ties, regular place of work or place of activity. A change of residence to Malta is a mandatory requirement to prove the centre of life and to save taxes.
Is a bank account with a Maltese bank required for incorporation?
No. However, the banking supervisory authorities impose high compliance requirements on domestic banks. Opening a corporate account often takes between two and six months. It may make sense to initially choose an online bank. Alternatively, banks outside Malta such as Revolut or Wise offer business accounts. Entrepreneurs who had a private account with a Maltese bank for a long time and later extended it to a business account had good experiences. It is helpful to have a company website and a LinkedIn profile.
How high are the taxes with a Malta Limited?
The corporate tax rate in Malta is 35%. With a holding company structure, you as a foreign shareholder will get back up to 6/7 of the corporate tax paid.
Are dividends from Malta Limited taxed?
In Malta, dividends and capital gains are tax-free.
How is a Malta Limited company formed?
A Malta Limited can be incorporated independently or with the assistance of a certified corporate service provider such as tax advisors or lawyers.
How does a company in Malta pay no corporate tax on a permanent basis?
Digital nomads are granted tax exemption under certain conditions. For other types of companies, tax experts believe the 0 per cent tax statement is a rumour. No country in the European Union is interested in resident companies paying tax anywhere. There is a risk of tax abuse and tax evasion after an audit. However, income earned outside Malta is tax-free if you do not remit or import it to Malta.
Can shareholders receive shareholder loans in Malta?
No, a tax-advantaged shareholder loan is not common for Maltese companies.
Does an international consulting company provide advice for countries outside Malta?
Internationally oriented law and tax firms in Malta do not necessarily advise relocation to other countries such as Ireland, Switzerland, Hungary, Georgia, Cyprus, or USA. International consulting often means that consulting companies specializing in Malta deal in detail with relocation and incorporation to Malta.
Is a Malta Limited an offshore company?
Malta Limited is a legal onshore company. In the EU member country Malta, founders and entrepreneurs, the double taxation treaty (DTA), enjoy the freedom of establishment, freedom of movement and EU Parent-Subsidiary Directive (Council Directive 2011/96/EU; 30.11.2011).
Does the Beckham Law apply in Malta?
No, the Beckham Law, which is well known in Spain, does not apply in Malta. Tax benefits are, in addition to EU funding, the MicroInvest program and the holding model.
Do you miss a question?
Get in touch with us. We are sure we have the right answer.
⛲ Credible sources on Limited and company formation in Malta with legal certainty:
Shaping Europe’s digital future
Towards the next technological transition: Commission presents EU strategy to lead on Web 4.0 and virtual worlds https://digital-strategy.ec.europa.eu/en
EU funding programes https://commission.europa.eu/funding-tenders/find-funding/eu-funding-programmes_en
LEĠIŻLAZZJONI MALTA. (2017, 18. Mai). https://legislation.mt/eli/ln/2017/144/eng/pdf
Microinvest – Tax Credits for Micro Enterprises and the Self-Employed. (o. D.-a). https://www.servizz.gov.mt/en/Pages/Economy_-Business-and-Trade/Business-and-Trade/Starting-a-Business/WEB891/default.aspx
Microinvest – Tax Credits for Micro Enterprises and the Self-Employed. (o. D.-b). https://www.servizz.gov.mt/en/Pages/Economy_-Business-and-Trade/Business-and-Trade/Starting-a-Business/WEB891/default.aspx
Migliore, S. (2023). Registered Business Units: 2022. NSO Malta. https://nso.gov.mt/registered-business-units-2022/
European Union funding, grants and subsidies https://european-union.europa.eu/live-work-study/funding-grants-subsidies_en
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Author Profile
Maximilian Wallenstein 🔥 His life shaped Dale Carnegie
Even as a sales manager for one of the largest UK insurance groups, Maximilian Wallenstein was passionate about finance topics and economics. As an honorary lecturer on tax law at the German Union, he is no stranger to German tax law. As a keynote speaker on the social security system, Maximilian Wallenstein appeared before financial services companies. His personal development was supported for several months by the Dale Carnegie Foundation. Maximilian not only irons his own shirts, but as a certified online copywriter, he also shares his financial knowledge as a guest author and ghostwriter for market-leading financial portals.
