Company formation for non-residents
We incorporate private limited companies with the Malta Business Registry. Malta applies a headline corporate tax rate of 35%, but a shareholder refund of 6/7ths brings the effective rate down to 5% on trading income. We prepare the memorandum and articles of association, arrange the share capital from EUR 1,165, appoint a company secretary and file with the registry. Malta is not an offshore jurisdiction: a statutory audit applies to every company regardless of turnover, and both banks and the tax authority look for genuine substance.
A quick overview of the corporate, tax and annual requirements that apply to non-resident owners in Malta.
The standard vehicle for international business. One shareholder and one director are enough, both may be non-residents, and foreign ownership can be 100%. A corporate body cannot act as director.
The exact figure is EUR 1,164.69. At the minimum it must be fully subscribed; above it, at least 20% is paid up on signing the memorandum. Funds are deposited with a bank in the name of the company in formation.
Must be a natural person - a company cannot hold the office. The secretary maintains the statutory registers and files the annual return. Without one, the registry will not accept the application.
The company pays 35%. Once dividends are distributed, the shareholder claims back 6/7ths of the tax paid on trading income, giving an effective rate of 5%. Passive interest and royalties attract a 5/7ths refund, or roughly 10%. VAT is 18%.
Every company needs a registered address on the island. A mailbox with nothing behind it is a liability: both the bank and the tax authority will ask where management decisions are actually taken.
A statutory audit applies regardless of turnover - there is no small company exemption. On top of that: an annual return to the registry, an income tax return, and quarterly VAT returns once registered.
The final cost depends on the package, the sector, the ownership structure and any additional work the project requires.
Information current as of July 2026.
From a straightforward incorporation with the Malta Business Registry through to a full package with annual maintenance, director services and a banking route mapped out.
Incorporation with the registry
Annual maintenance included
Director, documents and banking
For companies that need the business up and running in Malta: director services, a complete set of corporate documents and a banking route matched to the profile.
Important: we advise on the choice of bank or payment provider and prepare the application, but we cannot guarantee that an account will be opened. Maltese banks run enhanced due diligence on non-residents and expect evidence of genuine activity. The final decision always rests with the bank or EMI.
Malta suits businesses that need an EU entity with a low effective tax rate that banks and counterparties will still take seriously. Incorporation is remote, but the company has to be a working one: a statutory audit applies to every company, and the tax refund goes to the shareholder only after dividends are distributed.
Malta was the first EU member state to regulate online gaming. An MGA licence runs for 10 years and carries weight with banks, payment providers and commercial partners. Incorporating a Malta company is the first step before any licence application.
English is an official language, and the entire corporate and tax framework operates in it. The company gets an EU VAT number and trades with European clients under standard EU rules.
The 6/7ths refund on trading income brings the effective rate to 5%, the lowest in the EU. Full access to the single market and the free movement of goods, services and capital.
The Maltese flag is the largest ship registry in Europe. Holding a vessel through a Malta company opens access to the VAT treatment available to commercial yachts and to a streamlined registration procedure.
The company pays 35% and the shareholder claims back 6/7ths once dividends are distributed. The mechanism is written into law, has been running for over twenty years and was cleared by the European Commission. It is not an incentive or a special regime - it is ordinary tax law.
An official language alongside Maltese. The articles, the accounts, correspondence with the registry and the tax authority all run in English. No sworn translations, no in-country legalisation of documents.
Malta appears on no EU or OECD blacklist or grey list. Counterparties and banks treat the company as an ordinary European business. The trade-off: a statutory audit for everyone and real substance requirements.
Dividends, interest and royalties leave Malta without any withholding, whatever the recipient's country. Backed by more than 70 double taxation treaties.
We incorporate remotely, under power of attorney. You supply a basic set of documents and we prepare and file the rest. Below: what we need from your side, and what the jurisdiction expects.
All documents are accepted in English - no sworn translation required. Foreign corporate documents must be apostilled. There is no need to travel to Malta: everything is signed under power of attorney.
No restrictions on nationality or residence, and ownership can be 100% foreign. One shareholder and one director are enough, and the same person can hold both roles. Only a natural person can be appointed director - a corporate body cannot.
Mandatory, and appointed on incorporation. Must be a natural person. The secretary keeps the statutory registers and prepares and files the annual return. Without one, the registry will not accept the application. We cover this requirement in-house.
A minimum of EUR 1,164.69. At that figure the capital must be fully subscribed; above it, at least 20% is paid up on signing the memorandum. Funds are deposited with a bank in the name of the company in formation, the bank issues confirmation, and this goes to the registry with the rest of the file.
An address on the island is mandatory and is stated in the memorandum. A mailbox with nothing behind it will not hold: the tax authority and the bank will both ask where management decisions are actually taken. A durable structure needs real signs of presence, including board meetings held in Malta.
A statutory audit applies to every company regardless of turnover - there is no small company exemption. Accounts are prepared under international standards. On top of that, an annual return goes to the registry and an income tax return to the tax authority. VAT registration kicks in above EUR 35,000 for goods and EUR 20,000 for services.
The headline rate is high, but the real burden is set by the shareholder refund. Below: how the mechanism works, what gets filed each year, and which obligations cannot be missed.
The headline rate on all company profits. It is the company that pays it, not the shareholder. The refund comes afterwards.
Once dividends are distributed, the shareholder claims back 6/7ths of the tax paid on trading income. Passive interest and royalties attract a smaller refund, giving an effective rate of around 10%.
An annual return to the registry, an income tax return and audited financial statements. The tax return is due within nine months of the financial year end.
Dividends, interest and royalties leave Malta without any withholding. It makes no difference where the recipient sits or whether a tax treaty is in place.
The company pays 35%, the shareholder claims back 6/7ths once dividends are distributed. Net burden: 5%.
Passive interest and royalties attract a smaller refund - 5/7ths, or an effective rate of around 10%.
The standard rate is 18%. Registration applies above EUR 35,000 for goods and EUR 20,000 for services.
Every company is audited, whatever the turnover. There is no small company exemption.
Keep proper books and prepare financial statements
Undergo a statutory audit regardless of turnover
File an annual return with the registry
File an income tax return within nine months of the year end
File quarterly VAT returns once registered
Maintain the register of beneficial owners holding 25% or more
Hold an annual general meeting
The refund goes to the shareholder, not to the company. Dividends have to be distributed and the full 35% paid before any claim can be made. In practice the money comes back several months later, and that cash flow gap needs to be built into the plan.
Information current as of July 2026.
Maltese banks are conservative with non-residents, and a traditional account takes weeks. What works in practice is running two tracks at once: an EMI for day-to-day payments and a bank for the operating account. The requirement is the same either way - a documented source of funds and genuine activity.
For euro settlements and trading inside the EU. We match the provider to the company profile. Banks include Bank of Valletta, APS Bank, BNF Bank and Lombard Bank. EMIs include Moneybase, Wamo, 3S Money and Revolut Business.
Payment gateways with European acquiring, for trading and digital services. MGA licence holders and businesses in complex or non-standard sectors are not onboarded automatically: a licence does not replace the bank's own compliance.
We build the company profile before anything is submitted. The bank screens beneficial owners against KYC and AML standards, asks for a bank reference letter and expects proof of where the capital came from. Without real signs of presence in Malta, the odds drop sharply.
We assess the activity, the payment geography and what the banks will expect, before any application goes out.
Filing with the registry is quick. What takes the time is compliance and the share capital. End to end: from 10 days.
Malta delivers the lowest effective rate in the EU, but it asks for discipline and a real maintenance budget. Below: the honest drawbacks, and the jurisdictions that answer them.
The company pays the full 35% in cash first, and only once dividends are distributed can the shareholder file for the refund. The money comes back months later. For a business running on thin working capital, that hurts.
There is no small company exemption. Even on nil turnover the audit still has to be carried out and paid for. In Cyprus and the UK, smaller companies are let off.
Audit, company secretary, registered office and bookkeeping add up to several thousand euros a year. Malta is not for a business turning over tens of thousands.
Maltese banks are conservative with non-residents and will ask for a bank reference letter, a business plan and evidence of presence. A company with no real activity behind it will not get an account.
When you want an EU jurisdiction without the refund cycle. The rate is paid up front and stays paid, small companies are exempt from audit, and maintenance costs less.
When reputation and access to the EU market matter more than the lowest rate. A clean 12.5%, no refund and no cash flow gap, and a strong banking profile.
When the business is pointed at Asia rather than Europe. Territorial basis of taxation, start-up exemptions, and one of the strongest banking hubs in the world.
When income arises abroad and an EU footprint is not required. Territorial taxation, no mandatory audit, and maintenance at a fraction of the cost.
Every project is different - we tailor the solution to the specific task, jurisdiction and business model.
Malta Outsourced development, clients in Germany and the Netherlands. The company was in Estonia, but a major client asked for an invoice with an EU VAT number and an entity their finance team would not have to justify internally. Cyprus was on the table, but the numbers worked out better for Malta.
Solution Incorporated a Ltd and registered for VAT. Ran on an EMI for the first year, then opened with a local bank. The audit went into the budget from day one - the client had not known about it, and it was the one real surprise at the start.
The audit was news to me. There was none in Estonia, here it applies at any turnover. And you wait a long time for the refund - that money just sits with the state in the meantime. Had I known upfront I'd still have gone ahead, but I'd have planned it differently.
Malta The team built a platform for operators, held no licence and worked as a contractor. Clients started asking where the entity was. Curacao in the structure put the bigger partners off, and without a credible jurisdiction the contracts were not getting signed.
Solution Incorporated a Ltd in Malta as the first step towards an MGA licence application. The bank took a while: two rejections, the third provider said yes. Incorporation took less time than the account did.
We were told from the start that a licence doesn't get you an account, and they were right. Two banks turned us down with no explanation. But after the third one, partners stopped asking who we were and where we came from.
Malta The client ships industrial equipment from Asia to European buyers. The company was in Hong Kong, and European counterparties kept demanding prepayment and extra paperwork on every consignment. What was needed was an entity inside the Union, so that deliveries ran under standard EU VAT rules.
Solution Incorporated a Ltd, obtained the VAT number and opened an operating account. Deliveries into the EU now move within the Union, with no customs questions on each shipment. The first tax refund landed five months after the claim went in.
The point was to stop the questions from counterparties. With the Hong Kong company we got checked on every single shipment - now we're just an ordinary European supplier to them. The refund took a while, but that was expected, we'd been warned.
If your question is not covered here, send us the details and we will look at your situation directly.
Book a consultationThey are two figures in one mechanism. The company pays 35% on its profits. Once those profits are distributed as dividends, the shareholder files a claim and gets back 6/7ths of the tax paid on trading income, which brings the net burden to 5%. The mechanism is written into law, has been running for over twenty years and was cleared by the European Commission. What matters in practice: the 35% is paid in cash first, and the refund arrives later.
A private limited company, or Ltd. It is the standard vehicle for international business in Malta. One shareholder and one director are enough, and the same person can hold both roles. There are no restrictions on nationality or residence, and ownership can be 100% foreign. Only a natural person can be appointed director - a corporate body cannot.
EUR 1,164.69. At the minimum figure the capital must be fully subscribed; above it, at least 20% is paid up on signing the memorandum. The funds are deposited with a bank in the name of the company in formation, the bank issues confirmation, and this goes to the registry with the rest of the file. The capital stays in the company and can be used.
Yes - there is no need to travel to Malta. Everything is signed under power of attorney, and the corporate documentation runs in English, so no sworn translation is required. Foreign corporate documents must be apostilled. The one thing that may call for you in person is opening an account with certain banks.
Yes, and this is where Malta parts company with Cyprus and the UK. A statutory audit applies to every company regardless of turnover - there is no small company exemption. Even on nil turnover the accounts still have to be audited and the work paid for. The audit is the main annual cost and needs to be in the budget from year one.
Yes, and the appointment is made on incorporation - without one the registry will not accept the application. The secretary must be a natural person; a company cannot hold the office. They keep the statutory registers and prepare and file the annual return. We cover this requirement in-house.
Malta applies no withholding tax at all. Dividends, interest and royalties leave the country in full, whatever the recipient's jurisdiction and whether or not a tax treaty is in place. That is unusual: across most of the EU, withholding runs from 15% to 26%. Malta also has more than 70 double taxation treaties in force.
No, and we say so before any work begins. Maltese banks are conservative with non-residents: they ask for a bank reference letter, a business plan and evidence of genuine activity and presence. Rejections happen, sometimes with no reason given. We match the bank or EMI to the company profile, build the file and support the application, but the decision always rests with the bank. What works in practice is running two tracks: an EMI for day-to-day payments and a bank for the operating account.
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