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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.
 
Inflation in Malta

The annual inflation rate in Malta edged down to 2.1% in November 2024 from 2.4% in the previous month, returning to three-year lows. Prices moderated for food and non-alcoholic beverages (3.4% vs. 4% in October), housing and utilities (1.1% vs. 1.3%), health (2.8% vs. 2.9%), and restaurants and hotels (2.5% vs. 2.9%). Additionally, costs tumbled for clothing and footwear (-1.8% vs. 0.4%) and furnishings, household equipment, and routine household maintenance (-0.9% vs. 0.3%).

Meanwhile, prices rose at a faster pace for recreation and culture (1.4% vs. 0.4%), while deflation eased for communication (-4.5% vs. -4.9%). On a monthly basis, consumer prices fell by 3.2% in November 2024, marking the third consecutive month of deflation and the sharpest fall in this sequence, following a 1% drop in each of the previous two months.

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
 
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.
 
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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