Malta’s corporate tax regime might initially seem high, with a nominal rate of 35%. However, there’s a strategic advantage: 30% of taxes paid are refunded, effectively reducing the corporate tax rate to just 5%. This makes Malta one of the most tax-efficient jurisdictions in the EU and globally.
But wait—there’s more.
As of 2020, Maltese legislation introduced an even more streamlined option. Foreign companies can now establish a subsidiary in Malta and opt for fiscal unit group taxation, allowing them to pay a straightforward 5% corporate tax rate—without the need for refunds.
This provides a simple, hassle-free structure with a substantial cash flow advantage, and to top it off, dividends are taxed at 0%.
The simplest options for relocating are:
Incorporate a new entity in Malta, while closing down the business in your original country.
Establish a Maltese subsidiary under a foreign parent company, allowing you to operate in Malta while maintaining the parent structure.
However, the second option may not always be feasible, especially if you need to retain your company’s trading history or have existing contracts that need to remain intact.
In such cases, there are alternative approaches:
Registering a Permanent Establishment (PE) in Malta allows you to continue operating under your existing structure while establishing a physical presence in Malta.
Transferring your main corporate residence to Malta might be the right solution if you want to bring your company under Maltese jurisdiction without starting entirely from scratch.
Setting up a Fiscal Unit is another attractive option for foreign companies migrating to Malta. This allows for group taxation, providing the benefits of Malta’s 5% effective corporate tax rate without the need for complex refund procedures.
Each of these options has its advantages, and the best choice will depend on your company’s structure, goals, and existing commitments. It’s certainly worth exploring these alternatives to find the most efficient and beneficial route for your business.
Malta Limited Companies (LTD): The Ideal Structure for Global Operations
Malta Ltd companies are the preferred choice for businesses seeking a flexible, efficient structure. With the added benefit of Malta's favorable tax environment, they offer a solid foundation for both local and international operations.Set up your company in as little as 3 days!
The effective corporate tax ratE is just 5%, with 0% tax on dividends and no tax on capital gains, making it one of the most tax-efficient jurisdictions in the EU.
TIN & Tax Residence Certificate available in 2 days
The liability of shareholders is limited, meaning their personal assets are protected, and they are only liable for the amount they have invested in the company.
EU, EEA or Swiss corporate account
For international trading
Malta is the only EU Member State that implements the full imputation tax system, allowing shareholders to claim refunds on the tax paid by the company. The amount of the refund varies depending on the source of the dividend distribution, potentially enabling shareholders to reduce their effective tax rate to 10%, 5%, or even have the income exempted from tax. Additionally, Malta offers tax exemptions and benefits for certain categories of employees.
EU, EEA or Swiss business account, debit or credit card, IBAN
No Tax in Malta by Malta LP
No need to file financial statements
Audit is not required
Both individuals & legal entities may be partners
No restrictions or tax on offshore payments
Flexible Structure. Global Opportunity.
While Malta Limited Liability Companies (Ltd.) are the go-to choice for running businesses locally and internationally, Malta Limited Partnerships (LPs) offer a more flexible alternative with lighter regulatory obligations.
A Malta LP can elect to be treated as a tax-transparent vehicle—a powerful planning tool, especially when the partners or beneficiaries are non-residents. If recognized as such by foreign tax authorities, the Malta LP is not taxed on its income in Malta. Instead, partners are only taxed in their country of residence and only when profits, capital gains, or property are distributed.
This structure enables smart cross-border planning with efficiency and control.
Tax Transparency, Total Efficiency
When structured as a tax-transparent vehicle, a Malta LP enjoys a major advantage: no Maltese tax is triggered—even if income is remitted into Malta. Instead, all income is taxed solely at the level of each individual partner, according to their country of residence. The LP itself is never taxed on its earnings.
This makes the Malta LP a powerful, compliant, and efficient solution for international entrepreneurs seeking flexibility without added tax friction.Malta’s company law offers the option for foreign businesses to establish branches or permanent establishments in Malta without the need to create a new company or relocate an existing one. This provides enhanced flexibility in corporate structuring, allowing you to expand without the complexities of full incorporation. An overseas company is defined as any “body corporate constituted or incorporated outside Malta.”
Simple Setup – No Re-incorporation Needed. A branch or permanent establishment in Malta is not a re-incorporation of your business. The only requirements are having a place of business in Malta and appointing a local resident authorized to represent the company. This allows for a straightforward and flexible expansion without the need for a new company structure.
Quick and Easy PE Registration”
Registering a Permanent Establishment (PE) in Malta is a simple, straightforward process that can be completed within just a few days, once all the required documents are received.
Corporate tax rate 5%
Pay 5%, no hassle with tax refund
Use Malta co. for foreign trade
One tax return filed for your group
Huge cash flow advantage
Only include Malta investment
Different group options
Corporate Migration Made Easy – Transfer Your Business to Malta Without Liquidation
Corporate migration allows you to move your business portfolio, trading agreements, and assets to Malta without the need to liquidate your existing company. By registering your overseas company in Malta or transferring its official location, along with setting up an EU bank account, you can achieve full tax compliance and operational efficiency.
