Malta Company Formation: Effective 5% Corporate Tax via 6/7ths Refund System
Malta is a prominent commercial and financial bridge in the Mediterranean and a member of the European Union. Operating an authentic English-language legal framework based on British Common Law, Malta's Full Imputation corporate tax system provides non-resident shareholders with a statutory 6/7ths refund on corporate tax, bringing the effective corporate tax rate down from 35% to just 5%. Furthermore, Malta is the global capital for iGaming and virtual financial assets.
Step-by-Step Incorporation Process in Malta
Statutory timeline and regulatory milestones required by government authorities.
Reserve Company Name with MBR
Verify and reserve business name through the Malta Business Registry (MBR) portal.
Deposit Minimum Paid-Up Capital
Deposit minimum capital (€1,165, with 20% paid up = €233) into a designated corporate escrow account.
File Memorandum & Articles of Association
Submit constitutional documents signed by shareholders and appointed company secretary.
Issuance of Certificate of Registration
MBR issues the registration certificate upon verification of beneficial ownership (BO).
Tax & 6/7ths Refund Setup
Register with the International Tax Unit (ITU) and establish a two-tier trading/holding company structure to automate tax refunds.
Popular Corporate Structures in Malta
Choose the entity structure aligned with your commercial operations and taxation strategy.
Malta Private Limited Liability Company (Ltd)
International trade, consulting, software engineering, holding companies
- Effective 5% net tax rate
- English corporate documents
- Full EU directive benefits
MGA iGaming & Gambling License
Online casinos, sportsbooks, B2B gaming platform providers, lottery software
- Malta Gaming Authority global license
- Unmatched player trust
- European market legitimacy
Corporate & Personal Taxation in Malta
Corporate Income Tax Framework
Malta operates a Full Imputation System. A company initially pays 35% tax on its taxable profits. However, when dividends are distributed to non-resident shareholders, the shareholder is entitled to a 6/7ths refund of the tax paid by the company, reducing the effective Maltese tax rate to just 5%.
Personal Income & Capital Gains Tax
Under the Malta Non-Domiciled (Non-Dom) regime, individuals resident but not domiciled in Malta are taxed only on Maltese-source income and foreign income remitted to Malta. Foreign capital gains are 100% tax-free even if remitted.
- Companies Act 1995 (Chapter 386)
- Income Tax Management Act
- Gaming Act 2018 (Chapter 583)
- Virtual Financial Assets Act (VFA)
Corporate Banking & Payment Rails in Malta
Recommended banking partners, minimum deposits, and compliance requirements.
| Financial Institution | Institution Type | Avg. Approval Time | Min. Deposit | Remote Opening |
|---|---|---|---|---|
| Bank of Valletta (BOV) | Tier-1 Traditional | 3 - 6 Weeks | €5,000 | ⚠️ In-Person Required |
| HSBC Malta | Tier-1 Traditional | 3 - 6 Weeks | €10,000 | ⚠️ In-Person Required |
| Finductive | Digital / Fintech | 7 - 14 Days | €1,000 | ✅ 100% Remote |
| Revolut / Wise Business | Digital / Fintech | 2 - 5 Days | €0 | ✅ 100% Remote |
Malta Permanent Residence Programme (MPRP) & Nomad Residence Permit
Minimum Capital / Salary Threshold: €100,000+ government contribution or €3,500/month remote salary
Calculate Your Malta Setup Budget
Interactive fee calculator based on current official statutory pricing.
Global Company Formation Cost Estimator
Calculate accurate government fees, resident visas, office permits, and banking setup.
Frequently Asked Questions about Malta Formation
How does the Malta 5% effective corporate tax work?
The company pays 35% tax on profits, but upon dividend distribution, non-resident shareholders receive a statutory 6/7ths refund from the tax authority, yielding a net 5% tax cost.
Are corporate filings in Malta done in English?
Yes. English is an official language of Malta and all laws, court proceedings, and company registry filings are conducted in English.