Malta - Limited/Other jurisdictions

The Republic of Malta is located in the central part of the Mediterranean. It occupies a group of islands with a territory of 316 square kilometers. The largest of them are the islands of Malta, Gozo and Comino. The country is widely known for its wonderful warm climate.  

In 1530, the king of Spain gave Malta his knights for use. Established at the time, the organization, known as the Order of Malta, is still active today. One and a half century, Malta was part of the British Empire, in 1964, gained independence. Malta has been a member of the EU since 2004.
The corporate tax rate in Malta is 35%, but the law provides for the return of a very large part of the tax. After the submission of the annual report to the fiscal authorities, payment of tax to the budget and the decision on the distribution of profits, shareholders of the company receive a return (Tax refund) in the amount of 6/7 of the amount paid. The actual tax rate in the end is only 5%. Tax refund is carried out within 2 months. 
  • Basic information
    about jurisdiction

    Area – 316 кв. км
    Population – 420.000
    Government – republic
    Capital – Valetta
    Official language – english, maltese
    Official currency – Euro (EUR)
    Time zone – GMT + 1
  • Company type

    Private Limited Liability Company
  • Directors of the company

    Number: at least one
    Status: natural or legal persons
    Residents: in practice, one of the directors is a resident of Malta, the rest can be residents of any country
    Details about directors: only in the register of enterprises of Malta
    Nominee directors: allowed

  • Shareholders of the company

    Quantity: at least one (local licensed Trustee); at least two (in all other cases)
    Status: natural or legal persons
    Residents: the resident of Malta is appointed in practice
    Information about shareholders: only in the register enterprises of Malta
    Nominee shareholders: allowed

  • Secretary Company

    Number: at least one
    Status: individuals only
    Residents: the resident of Malta is used in practice
    Details of the secretary:   only in the Malta Register of Enterprises
    Nominee Secretary: allowed

  • Authorized capital of the company

    Standard declared capital - 1165 EUR; At least 20% must be paid before registering a company.
  • Company name

    Must end with the word “Limited” or the abbreviation “Ltd”. Registration of titles containing the words "Bank", "Insurance", "Trust", etc., is allowed only with the presence of the appropriate licenses.
  • Information about the real owner of the company

    Information about the real owner is submitted only to the registered agent and is confidential.
  • Annual Return

    An annual report is submitted every 12 months after registration.
  • Financial Statement

    A financial statement certified by an auditor (Financial Statement) is submitted annually, not later than 9 months after the end of the financial period (01.01.-31.12.). The tax return is filed with the Malta tax service.
  • Taxation

    Standard income tax in Malta - 35%. As a result of Tax Refund, the actual tax rate is about 5%. Income tax on dividends and capital gains may be exempted from taxation.
  • Double tax treaties

    Treaties have been concluded with more than 40 countries, including all EU countries.
  • The term of registration of a new company

    8 - 10 business days; The term of receipt of the full package of documents is 6-7 weeks.
  • Acceptance of third-party companies for service FIVECONSULT

    Only in consultation with the previous service agent in Malta.
  • A set of constituent documents of the company

    All the necessary documents for the work, including an apostilled set of documents and a general power of attorney.
  • "Ready-made" companies

    We are ready to register a company for your order in this jurisdiction.
  • FIVECONSULT comment:
    Malta’s tax system is one of the most liberal in the EU. Along with the actual corporate tax rate of 5%, income received as capital gains or dividends is exempt from taxes in full. To obtain an exemption for these types of income (Participation Exemption), a Maltese company must own at least 10% of the capital in a foreign company. In turn, the foreign company itself must meet at least one of the following criteria:
    a) must be a resident (or be registered) in one of the EU countries;
    b) be taxable in the country of registration at a rate of at least 15%;
    c) do not have more than 50% of your income from passive (portfolio) investments or Royalties.

    In Malta there is no tax on the repatriation of dividends, interest and Royalties no matter what country they are paid to. Losses from previous years can be deducted from profits of the next periods without time limits.

    Maltese companies are subject to EU Parent/Subsidiary Directive и EU Interest and Royalties Directive.