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Malta Business Formation

Register a Company in Malta EU Company in English

Malta offers English-language company law, low minimum capital, no notary and a refund system that can bring tax on distributed trading profits to about 5%. But US owners face NCTI and Form 5471, and banks check newcomers closely.

In short

Most businesses use a private limited company (Ltd) with minimum share capital of €1,164.69, of which at least 20% must be paid up. You need at least 1 director, a company secretary who is an individual, and a registered office in Malta; no notary is required, and online registration with the Malta Business Registry starts at €100. Companies pay 35% tax, but shareholders can claim a refund of 6/7 of the tax on distributed trading profits — about 5% net — within 14 days of a valid claim. Since tax year 2025 companies can instead opt for a final 15% tax with no refunds. There is no withholding tax on dividends to non-residents. VAT is 18%; every business registers, with a small-business exemption up to €35,000. US owners usually file Form 5471, and Malta's low net rate can trigger NCTI (formerly GILTI). A company does not give you residence.

Malta company: key facts

Last verified 28 September 2026
Usual company typePrivate limited company (Ltd): minimum capital €1,164.69, at least 20% paid up; 1 director, a company secretary (an individual) and a registered office in Malta; no notary# Source: Registering a business in Malta: guide (Mondaq, 2026 update) · The role of the Company Secretary under Maltese Law (BDO Malta) · MBR: Registration and fee structure
Registration feeFrom €100 when filed online with the Malta Business Registry (capital up to €1,500); typically a few working days# Source: MBR: Registration and fee structure · Registering a business in Malta: guide (Mondaq, 2026 update)
Corporate tax35%, but shareholders can claim a 6/7 refund of the tax on distributed trading profits — about 5% net; 5/7 for passive interest and royalties (about 10%)# Source: Malta Tax Highlights 2026 (Deloitte) · Malta Tax System (KPMG Malta)
Optional 15% taxSince tax year 2025 a company can opt for a final 15% tax with no shareholder refunds (5-year lock-in)# Source: Final Income Tax Without Imputation Regulations 2025 (Deloitte Malta)
Refund timingDue within 14 days of a complete claim, once the company has paid its tax and filed its return# Source: Corporate Taxation: Doing business in Malta (Forvis Mazars)
Dividend withholdingNone on dividends, interest or royalties paid to non-residents# Source: Malta Tax Highlights 2026 (Deloitte)
VAT18% standard (12%, 7%, 5% reduced)# Source: Malta Tax Highlights 2026 (Deloitte) · PwC Tax Summaries: Malta — other taxes
VAT registrationSmall-business exemption up to €35,000 turnover since 2025, but every business still registers for VAT# Source: Updates to the VAT effective 1 January 2025 (PwC Malta)
AuditSince 2025 the smallest private companies can file a review report instead of an audit, or neither, depending on size# Source: Malta audit exemption rules (KPMG Malta, Aug 2025)
Beneficial ownersRegistered with the business registry; since July 2025 only people with a legitimate interest can see the register# Source: Malta implements first phase of AMLD6 (Mondaq, Sep 2025)
Annual returnFiled within 42 days of the company's return date each year (fee from €100)# Source: Malta Limited Liability Company: Management and Administration (Zedra)
Start-Up ResidenceFor non-EU founders backed by Malta Enterprise: at least €25,000 paid-up capital, 3-year permit renewable for 5 years, €750 fee per applicant# Source: Malta Start-Up Residence Programme (Forvis Mazars)
US tax treatyThe US–Malta income tax treaty has applied since 1 January 2011; the saving clause keeps US taxation of citizens# Source: IRS: Malta tax treaty documents
US anti-deferral taxGILTI became NCTI for tax years from 2026; a Malta company's low net tax after refunds can be taxed in the US each year — get US advice# Source: US international tax provisions in OBBBA (EisnerAmper)
US company reportingUS owners usually file Form 5471 each year ($10,000 penalty if missed); a Malta Ltd can elect to be disregarded, then Form 8858# Source: Instructions for Form 5471 (IRS) · 26 CFR 301.7701-2(b)(8) (Cornell LII) · About Form 8858 (IRS)

Download these facts (CSV)

Not American?

Canadians, Australians, Brits and other non-EU citizens: the same rules apply

Malta company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register a Malta company exactly as described here. Only a few points differ:

  • Canada
  • Australia
  • New Zealand
  • United Kingdom
  • Japan
  • South Korea
  • + other visa-free countries
Living in MaltaA company does not give you residence. Non-EU founders need a permit — for example the Start-Up Residence Programme, a work permit or another residence route.
Home-country taxUS citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't taxed this way on a foreign company's profits.
Social securityThere is no US–Malta Social Security agreement, so self-employed Americans may owe contributions in both countries.
Documents from abroadNeed an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table

At a Glance

Malta Company Formation in Numbers

€1,165Minimum share capital (20% paid up)
35%Corporate tax rate before refunds
~5%Net tax on distributed trading profits after the 6/7 refund
18%Standard VAT rate

Why Malta

Why Americans Register Companies in Malta

Malta is an EU and euro-area country where company law, the registry and the courts work in English. A private limited company can be set up without a notary, with low capital and a single director, and there is no withholding tax on dividends paid abroad. The refund system makes Malta attractive for trading and holding companies.

The trade-offs: refunds only reach shareholders after the company has paid 35% and filed its return, banks are cautious with new non-resident clients, and the low net tax often does not help US owners because of NCTI and Subpart F.

Business Structures

Which Entity Type Is Right for You?

Most Common

Private Limited Company

Ltd

The usual choice. At least 1 director (no residency rule; corporate directors allowed) and a company secretary who is an individual — a sole director cannot also be secretary unless the company is a private exempt company.

Min. capital
€1,164.69 (20% paid up)
Formation
Online filing, no notary
Larger Businesses

Public Limited Company

plc

For larger companies or those raising capital from the public. At least 2 directors.

Min. capital
€46,587.47 (25% paid up)
Holdings

Holding Company

Usually an Ltd

Dividends and gains from participating holdings can be exempt: generally at least 5% of the shares (or an investment of at least €1,164,000 held for 183 days), plus one of three anti-abuse tests.

Corporate Tax

Malta's Full Imputation System — The 6/7 Refund Explained

A Malta company pays 35% on its profits. When it pays a dividend, the tax is credited to the shareholder (full imputation), and the shareholder can claim a refund of part of the company's tax. The refund is due within 14 days of a complete claim, once the company has paid its tax and filed its return. Refunds are available to resident and non-resident shareholders.

Type of profitRefundApproximate net tax
Trading profits6/7about 5%
Passive interest and royalties5/7about 10%
Profits where double tax relief was claimed2/3depends on the foreign tax paid
Participating holdings (if the exemption is not used)Full refund0%

Rates in 2026. Source: KPMG Malta: the Malta tax system · Deloitte: Malta highlights 2026

New since 2025 — an optional 15% final tax

Since tax year 2025 a company can opt for a final 15% tax with no shareholder refunds (5-year lock-in). EU global minimum tax rules (Pillar Two) are deferred in Malta to the end of 2029 and only affect groups with revenue of €750 million or more.

US citizens & Green Card holdersUS tax obligations for Malta company owners

US citizens and Green Card holders are taxed on worldwide income. GILTI became NCTI for tax years from 2026; a Malta company's low net tax after refunds can be taxed in the US each year — get US advice. Passive income taxed at about 10% after refunds can also fall under Subpart F. US owners usually file Form 5471 each year ($10,000 penalty if missed); a Malta Ltd can elect to be disregarded, then Form 8858. The US–Malta income tax treaty has applied since 2011.

Step by Step

How to Register a Company in Malta

  1. Plan the US side first

    Decide with a US adviser whether the company should be taxed as a corporation or elect to be disregarded, and how NCTI will apply.

  2. Prepare the memorandum and articles

    In English, with directors, company secretary, shareholders and registered office. Beneficial owners holding more than 25% or control must be declared.

  3. Pay in the share capital

    At least 20% of the issued capital — €232.94 on the minimum — with proof of payment.

  4. File with the Malta Business Registry

    Online, from €100 for capital up to €1,500. Registration typically takes a few working days once documents are complete.

  5. Register for tax, VAT and social security

    Every business registers for VAT; the small-business exemption applies up to €35,000 turnover.

  6. Open a bank account

    Expect detailed know-your-customer checks — this is often the slowest step.

Want to live in Malta and run the company yourself? A company does not give you residence — non-EU founders can look at the Start-Up Residence Programme (at least €25,000 paid-up capital, backed by Malta Enterprise) or the other routes on our Malta page.

Costs & Fees

What Does It Cost to Register a Company in Malta?

Cost itemNotesAmount
Registration feeOnline with the Malta Business Registry, capital up to €1,500 (higher capital pays more)from €100
Paid-up capital20% of the minimum €1,164.69 issued capital€232.94
Annual return feeEach year, by capital bandfrom €100
Company secretary, registered office, accountingSet by providers; small companies may now avoid a full auditvaries

Official fees from the Malta Business Registry. Source: MBR: registration and fee structure

After Registration

Post-Registration Requirements

  • Annual return

    Filed within 42 days of the company's return date each year (fee from €100).

  • Changes of officers

    Changes of directors or the company secretary are notified to the registry within 14 days.

  • Beneficial owners

    Registered with the business registry; since July 2025 only people with a legitimate interest can see the register. Updates are due within 14 days.

  • Accounts and audit

    Since 2025 the smallest private companies can file a review report instead of an audit, or neither, depending on size.

  • Tax returns

    Filed with the Malta Tax and Customs Administration (MTCA), which replaced the Commissioner for Revenue in 2023.

  • Social security

    Self-employed people pay 15% of net income (€36.18–83.89 a week in 2026).

Expert Notes

What Americans Should Know Before Registering in Malta

  • The 5% rate is not the whole story

    The company pays 35% first, and the refund goes to the shareholder. For US owners, NCTI and Subpart F can tax the profits in the US each year.

  • US LLCs are not a shortcut

    There is no official Maltese guidance on classifying a US LLC; an LLC managed from Malta may be treated as Malta-resident. Get advice before using one.

  • Check-the-box is possible

    A Malta Ltd can elect to be disregarded or a partnership for US tax (Form 8832); only the plc is automatically a corporation.

  • Banking takes time

    Start the bank account early. HSBC Malta is being sold to CrediaBank, with completion expected at the end of 2026 or early 2027.

  • A company does not give you residence

    Plan your permit separately if you will live in Malta.

Registering a Malta company is right for you if…

  • You want an EU company with English-language law and low capital.
  • You understand the refund timing and have a US tax plan for NCTI and Form 5471.
  • You can wait for bank onboarding.
  • You have a separate plan for residence if you will live in Malta.

We work with Maltese corporate service providers, accountants and lawyers who form companies for non-EU founders and coordinate with US tax advisers.

FAQ

Frequently asked questions

What is Malta's effective corporate tax rate?

The company pays 35%, but shareholders can claim a 6/7 refund of the tax on distributed trading profits, so the net rate is about 5%. Since tax year 2025 a company can instead choose a final 15% tax with no refunds.

What is the most common company type for Americans in Malta?

The private limited company (Ltd), with minimum capital of €1,164.69, of which 20% must be paid up, at least 1 director and a company secretary who is an individual.

How long does it take to register a company in Malta?

Typically a few working days once the documents are complete; opening the bank account usually takes longer.

Does Malta have a tax treaty with the United States?

Yes. The US–Malta income tax treaty entered into force in November 2010 and has applied since 1 January 2011.

When is the shareholder tax refund paid?

Within 14 days of a complete claim, once the company has paid its tax and filed its tax return for the year.

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Written by US GO EU Team MaltaResearched from official Maltese sources · How we research and update

✓ Facts verified 28 September 2026

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