Companies - Malta Residency

Setting up a Company in Malta

Setting up a Malta company is a quick and easy process. The setting up of Malta company is a straight forward procedure which normally takes less than a week. Both individuals and body corporates can be the directors and shareholders of Malta companies.

Malta companies are taxed at 35% on their net profits. However, upon a distribution of dividends from a Malta company, a refund of tax paid by the Malta company becomes available at shareholder level depending on the activity of the company. This system of taxation applies to all tax subjects whether local or foreign. Malta’s tax regime has been approved by the institutions of the European Union.

The amount of Malta tax refunds is set at 6/7th of the Malta tax paid by the Malta company. Thus the Malta company would be subject to taxation at 35%, but shareholders would be entitled to claim back 6/7 of this tax back. In such a scenario, the effective tax liability is of 5% [6/7*35 = 5]. E.g. If gross profits amount to £100,000, the company would pay £35,000 in tax, but the shareholder would typically be entitled to claim back £30,000 in tax refunds. 

Certain conditions and exceptions apply.