company in malta taxes

All you need to know about establishing a lucrative business in the Maltese Islands

Establishing a corporation within the jurisdiction of the Maltese Islands is a really fascinating concept. In addition to being an excellent site for commerce, many tourists dream about visiting or even moving to Malta because of the laid back lifestyle, sandy beaches, friendly locals all around, pleasant climate all year round, and stunning landscape wherever you go. We’ve compiled a list of the best advantages that come with opening a business in Maltese jurisdiction that aren’t all about the region’s natural beauty or rich cultural heritage.

1. Malta has the lowest corporate tax rates effective in all of the EU.

In comparison to the remainder of the companies that make up the EU, the rate of corp tax of 35% seems to be extraordinarily high and uncompetitive. Nevertheless, by simply transferring all earnings to a subsidiary company based in another nation, this corporation tax may be reduced to as low as 5% to 7%. The Seychelles, Gibraltar and Cyprus are often considered the ideal nations for such an objective.

Malta offers a number of tax advantages that may lower a firm’s taxable liability, including tax credits accessible and full imputation when investors get dividends.

2. Paying Taxes in a Reasonable Way

It may be known that the Maltese islands do have relatively high-income rates of tax and if one was to accept a high wage they would have to come across huge levels of stress through taxes. The secret is to just take out what you need, which in turn reduces the rate of tax since rates of income tax are based on a series of bands. Those who earn more over a certain threshold in a given year are only required to pay greater percentages of income tax. The following are the tax brackets in effect by the time it illustrated and publicated:


Malta Single Tax Rates
From (EUROS) To (EUROS) Rate Subtract (EUROS)
€0 €9100 0% €0
€9101 €14500 15% €1365
€14501 €19500 25% €2815
€19501 €60000 25% €2725
€60001 And Over 35% €8725


The first €8,500 of a wage of €14,400 annually is not taxed, therefore the complete sum is not taxed at a rate of 15% as some may imagine. Rather, the tax rate is roughly 6-7%.

3. Lower the minimum wage.

The minimum wage in the Maltese islands is €777.10 a month, however, most workers are happy with a pay of between one and two thousand every month for the typical employment. Setting aside money to save on salary expenditures may definitely enable your firm so it can be more lucrative.

4. It’s really easy to start up a company in Malta.

Malta is one of the least expensive nations in the world to start a business. This is because just a little bit of startup capital is needed to get a firm off the ground. Even better, just 20% of this capital is required to be held in a business bank account, resulting in a lower initial outlay of cash. At WeFormOnline, company formation in Malta is even easier, thanks to our specialised services.

5. There is a lack of social security

Both the employer and the employee are responsible for contributing to social security, with both contributing 10% of their respective salaries. Because it is so cheap, the cost of recruiting new personnel is not much increased.

6. A reduction in the expenditures that must be met

Maltese law is particularly lenient when it comes to claiming back company expenses. For example, corporate travel expenses are seldom questioned, allowing people who enjoy travelling while working to recoup a significant portion of their expenses.


Additionally, there are a number of personal reasons why starting up a business in Malta is a great choice for anyone from anywhere around the world.

7. With a low crime rate, you may feel secure in your own home.

The island has a relatively low crime rate, and in the time I’ve been here, I’ve heard of just a few crimes. Even in the middle of the night, I feel completely at ease in this city.

8. Take pleasure in a pleasant atmosphere.

300 days of the year see the sunshine here, and the weather is generally pleasant throughout the year. During the winter months, the island sees a good amount of rain, however, it is concentrated and only lasts for a few hours at a time.

9. There is less of a linguistic barrier

As a result of the widespread use of English in Malta, it is recognized as an official language alongside Maltese. In spite of the fact that some of Malta’s elderly residents are illiterate in English, the country’s official documents and signage are all available in English.

10. There should be more entrepreneurs who share their views.

Entrepreneurs from all over the globe have been drawn to Malta by the island’s simplicity of starting a business. Finding business advice and developing social connections are both made easier by this method.




Can a foreigner start a business in malta?

Anyone can start up a company on the Maltese islands very easily. The government also provides many incentives for these ventures.  

Is it difficult to start a company in Malta?

There are many small businesses in Malta. There are just a few procedures that need to be taken to start a company in Malta, and there are typically no specific licences or licences that need to be obtained.

What business sectors are significant enough to get into in Malta?

In recent years, industries including Finance, iGaming, and Information Technology have seen rapid expansion. Thus, Malta’s status as a hotbed for innovative business concepts, entrepreneurs, and artistic endeavours has been enhanced. Investing in commercial real estate in the areas we’ve identified below is a smart move.


If you would like to know more about starting a new business or looking for guidance, our advisers will be happy to assist you. Please email: [email protected]

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