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• FAQ

What Is the Corporation Tax Rate in Malta?

 
By Maltese income taxation legislation, companies resident in Malta are taxed at the standard rate of 35% on their worldwide income and capital gains. A refund is available to nonresident shareholders, which can reduce this taxation liability to between 0 and 10%.
 
Why Do Companies Incorporate in Malta?
 
Foreign investors set up a Maltese company to benefit from the effective corporate taxation on foreign income. The foreign tax rate in Malta is 35%, which you can drastically reduce by distributing all the profits to Maltese holding companies. We can assist you with much more than Malta’s tax rates. Our plans cover everything, from foreign source income to withholding taxes. Let us lend you a helping hand with the likes of allowable expenses, passive income, and tax exemption.
 
In February 2025, the annual rate of inflation, as measured by the Retail Price Index (RPI), rose to 1.9%, up from 1.4% in January - the highest level recorded since April 2024, the National Statistics Office said. The largest contributor to this increase was food - the most essential daily item. Other significant increases were recorded in personal and health-related goods, such as hygiene products. No category within the index registered a decrease - showing that the rising cost of living is impacting every aspect of life for Maltese and Gozitan families. Malta's Economy

The Maltese economy maintains its growth momentum on the back of strong domestic demand and export performance. Tourism arrivals to Malta continue to grow, while the strong employment and recovering real wages are supporting consumption. After achieving 5.0% GDP growth in 2024, the Maltese economy is set to continue expanding at 4.3% in 2025 and 2026. The government deficit is set to decline to 4.0% of GDP in 2024 and is expected to decrease further in 2025 and 2026, remaining above 3% over the forecast horizon. Read more about Maltas Economic Growth Outpaces EU with Revised 5 Percent GDP Forecast for 2024
 
How to Incorporate a Company in Malta?
 
Incorporating a company in Malta is a relatively straightforward process. First, you'll need to choose a company name and ensure its availability. Then, you'll need to draft the Articles of Association and submit them to the Malta Business Registry. This will include registering with the VAT Department and obtaining a tax identification number. It's essential to have a local agent to assist with navigating legal requirements and submitting necessary documentation.
 
How Long Does It Take to Incorporate a Company in Malta?
 
The process of incorporating a company in Malta is efficient, typically taking between 1 to 3 weeks. Factors such as the complexity of the company structure or delays in document processing can affect the timeline, but overall, it is a quick and efficient process compared to many other jurisdictions.
 
How Do You Check if the Company is Registered in Malta?
 
To check if a company is registered in Malta, you can visit the official Malta Business Registry website and search for the company’s name or registration number. The registry provides up-to-date information on the company’s legal status, directors, and business activity. It is a transparent way to verify the legitimacy of a company.
 
Why Are So Many Companies in Malta?
 
Many companies choose Malta for its strategic location in the heart of the Mediterranean, its attractive tax regime, and its reputation as a business-friendly jurisdiction. Malta has become a hub for industries such as online gaming, fintech, and blockchain technology due to its regulatory framework and ease of doing business. The country’s EU membership also ensures companies have access to a large market, with trade benefits across Europe and beyond.
 
Business Infrastructure in Malta
 
Although Malta is deemed to be a small island, it is equipped with infrastructure that maintains high standards for anyone wanting to expand with a business venture or startup idea. There are many business opportunities to explore within the Maltese market, including IT infrastructure, business support services, or opportunities for HR specialists.
 
In recent years, the economic climate in Malta has probably been declared by many experts as a stable business sector with significant credit ratings. As explained by prestigious economists, the Maltese business environment is volatile enough to get impacted by global crises, such as the Covid-19 pandemic, yet stable enough to reconstruct and adjust favorably due to a smaller structured economy.
 
Ideally, this may potentially be regarded as a safe economic climate for entrepreneurs to expand to; with great tax advantages and many governmental incentives, this particularly regularized business sector may be an exemplary environment to pursue an opportunity.
 
The Significance of Business Incorporations
 
Several entrepreneurs and imminent business owners may not realize the importance of incorporating a business through professional business formation processes to improve the credibility and authenticity of any particular company. Aside from credibility, business incorporation comes with many benefits, such as asset protection from creditors, tax advantages, and brand protection.
 
A professionally incorporated business has the interest of developing a more established brand reputation that may likely affect legitimacy and aid with building trust with potential customers.
 
While it may not be required for all businesses to seek to incorporate professional services, companies and startup ventures usually tend to benefit from the ease that comes with a service that handles the sometimes complex legal obligations and governmental documentation. IMEX Malta is specialized in document filing, malta company formation, tax advisory, tax consultancy in Malta and will assist you in all aspects of your journey.
 
Our qualified accountant (Member of the Institute of Financial Services Practitioners in Malta) will help you in all aspects of your Malta Privat Limited Company, Malta Holding Company or Public Limited Company formation process, as our services do not stop at registering the company in Malta on your behalf. We will provide you all information regarding corporate tax and incorporate in Malta under maltese companies act.
 

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