Malta company formation (2026): the 35% rate, 6/7 refund and real costs

Founders & Company Structures
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Forming a Malta private limited company means filing a memorandum and articles with the Malta Business Registry, putting in at least €1,165 of share capital (20% paid up), and appointing a director and a company secretary. The company pays 35% corporate tax, but shareholders can usually claim back 6/7ths of the tax on trading profits when a dividend is paid, which brings the combined rate to about 5%. Since 2025 there is also an optional flat 15% final tax with no refunds.

Last checked: October 2026

In short:

  • Malta’s registry fee for an online filing starts at €100 for authorised share capital up to €1,500, and the private limited minimum is €1,165 of authorised capital with at least 20% paid up.
  • The headline corporate rate is 35%, but the shareholder refund system (6/7ths for trading income) can bring the combined Malta tax on distributed trading profits to about 5%.
  • The banking side is the hard part: Maltese banks have a long record of slow or refused corporate onboarding, so plan your bank before you incorporate.

How the registration works

Companies are registered with the Malta Business Registry (MBR). The EU’s e-Justice portal says you can register in person at the MBR office in Żejtun or online, and that the online route is cheaper. Online filing goes through the MBR’s BAROS portal. The e-Justice portal lists what is typically needed: the memorandum and articles of association, identification documents, proof of the share capital deposit, and an eIDAS digital signature for online filing.

The basic structure of a private limited company, according to corporate services provider Zedra and law firm Ganado:

Requirement What it means in practice
Minimum share capital €1,165 authorised, at least 20% paid up (so about €233 deposited)
Directors At least one; no residence or nationality requirement (Ganado)
Company secretary Mandatory; no residence or nationality requirement (Ganado)
Registered office Must be in Malta
Shareholders Details of shareholders and officers are public through the registry (Zedra)
Timing Zedra says 24 hours to three working days once the registry has the correct documents
Accounts Audited accounts must be filed; Ganado says within 10 months of year end, or 18 months if 90% or more of activities are outside Malta

You need a bank to receive the paid-up capital before the registry accepts the filing, which matters later in this guide.

Registry fees

The MBR publishes its fee schedule for registration in electronic format through BAROS. The fee depends on authorised share capital, not paid-up capital:

Authorised share capital Online registration fee (MBR)
Up to €1,500 €100
€1,500 to €5,000 €210 plus €12 per €500 above €1,500
€5,000 to €10,000 €294 plus €17 per €1,000 above €5,000
€10,000 to €50,000 €379 plus €17 per €2,500 above €10,000
Over €2,500,000 €1,900 (cap)

Some provider guides (Ganado, PS Papilio) quote a minimum of €245. The MBR’s own published schedule for online filing starts at €100, so confirm the figure on the MBR page when you file.

Every year the company also files an annual return with a fee. Ganado and Malta firm PS Papilio both say the minimum is €100, rising with authorised capital.

We have not found an official source for professional fees (company secretary, registered office, accounting, audit). These are the bigger costs in practice. Get written quotes from two or three licensed corporate service providers, and ask specifically about the audit fee, because a Malta company needs audited accounts every year even if it is small.

Tax: the 35% rate and the refund system

Malta taxes companies at a flat 35%. Forvis Mazars Malta and PwC both confirm this rate. What makes Malta different is the refundable tax credit system. When the company pays a dividend, the shareholder can claim a refund of part of the tax the company paid. Forvis Mazars lists the main refund types:

Type of profit Shareholder refund Approx. combined Malta tax
Trading (active) profits 6/7ths of tax paid about 5%
Passive interest and royalties 5/7ths about 10%
Foreign passive income where double tax relief was claimed 2/3rds lower, depends on the foreign tax credit
Qualifying participation income (if the exemption is not used) 100% 0%

The 5% figure is arithmetic: 35% tax, less a refund of 6/7ths of 35% (30%), leaves 5%. The 10% figure works the same way: 35% less 5/7ths of 35% (25%).

Three practical points:

  • Timing. The company pays 35% first. The refund goes to the shareholder after a dividend. Forvis Mazars says refunds are paid within 14 days once the claim is valid, the tax is paid and the returns are filed.
  • Disclosure. PwC notes that refund claims need a beneficial ownership certificate that identifies all beneficiaries and ultimate beneficial owners.
  • Not everything qualifies for 6/7ths. PwC says the refund type depends on the nature of the income. Get advice on how your income will be classified before you rely on 5%.

Many groups put a holding company between the founder and the Maltese trading company. See our guide on holding companies for founders.

The new 15% final tax option

Malta added an alternative in 2025. Legal Notice 188 of 2025, the Final Income Tax Without Imputation Regulations (S.L. 123.217), was published on 2 September 2025. A company can elect to pay a flat 15% final tax on its chargeable income instead of the 35% rate plus refunds.

What KPMG Malta, BDO, PwC and the Malta Tax and Customs Administration (MTCA) say about it:

  • The 15% is final. It cannot be refunded, credited or offset.
  • The election lasts at least five consecutive years of assessment. If you leave, Forvis Mazars says you are locked out for another five years.
  • It does not apply to certain dividends or to income already taxed at a final rate.
  • It cannot produce less tax than the ordinary system would after refunds.
  • The MTCA said in March 2026 that the election is made in the income tax return itself, by the online filing deadline.

KPMG Malta points to large groups affected by the OECD global minimum tax (Pillar Two) and companies that dislike the cash-flow drag of paying 35% and waiting for refunds. For a small founder company that qualifies for 6/7ths, 15% is three times the roughly 5% result of the refund route. It mainly buys simplicity.

Participation exemption

Malta exempts qualifying dividends and gains from participations in other companies. KPMG Malta sets out the main tests: a “participating holding” of at least 5% of the equity shares (or one of several alternatives). For dividends, the subsidiary must also be resident in the EU, or taxed at 15% or more, or earn no more than 50% of its income from passive interest or royalties; failing those, the holding must not be a portfolio investment and the subsidiary must have been taxed at 5% or more. Gains face no such conditions. PwC adds that it does not apply to entities in EU-listed non-cooperative jurisdictions without enough “significant people functions”. If the exemption is not used, the shareholder can claim a full refund on distribution (Forvis Mazars).

Personal tax: where the founder lives matters

The company structure only solves half the problem. The dividend lands with you, and your country of residence taxes it.

If you live in Malta as a resident but non-domiciled individual, PwC says you are taxed only on Malta-source income and foreign income remitted to Malta. Foreign capital gains are not taxed, even if remitted. There is a minimum annual tax of €5,000 if you had at least €35,000 of foreign income in the previous year and did not bring all of it into Malta. Malta’s personal rates run from 0% to 35%, with the top rate above €60,000 for single taxpayers. See our guides to Malta residency and the Malta Individual Tax Programme for routes in.

If you live elsewhere, your home country may tax the dividend and may treat the Maltese company as resident where it is managed. PwC says any company incorporated in Malta is resident and domiciled in Malta, but that does not stop another country claiming it too. If you run the company from your laptop in a high-tax country, that country may say it is managed there. Hold board meetings in Malta and have real decision-makers there if you want the Maltese position to stand.

Banking: be ready for friction

This is the part most formation pages skip. Malta was placed on the FATF grey list in June 2021 and removed on 15 June 2022 (IFC Review). The banking frictions predate that and outlasted it.

  • In 2019 the business lobby GRTU told the Prime Minister that foreign companies struggled to open accounts, with applications taking up to a year even for low-risk businesses (MaltaToday).
  • In 2021 the economy minister said the solution was “to have more corporate banks in Malta” (MaltaToday).
  • In January 2025 the Malta Bankers’ Association held a workshop on “Navigating the Risk-Based Approach: Opening Corporate Bank Accounts in Malta”, which shows the issue is still live.

Those reports are dated and results vary. Line up a bank or a licensed EU payment institution before you incorporate. Have a business plan, source-of-funds evidence and a clear reason for being in Malta ready. Our guide to why banks close nomads’ accounts explains what compliance teams look for.

Substance and VAT

Substance is not a formality. A Maltese company with no people, no office and decisions taken elsewhere is exactly what banks call a shell. Budget for a real local director or staff if your tax position depends on Malta management.

Malta’s standard VAT rate is 18%, with reduced rates of 5%, 7% and 12% (PwC). Small businesses can use a simplified registration under Article 11 of the VAT Act.

Who Malta suits

  • Founders who will live in Malta as non-domiciled residents and want an EU company with a low effective rate on distributed trading profits.
  • Groups that want an EU holding company with a participation exemption and a large treaty network (Forvis Mazars says more than 60 treaties are in force).
  • Founders who can afford annual audits, a company secretary and real local substance.

It suits less well: a solo freelancer living elsewhere, or anyone who needs a bank account quickly. A US LLC, a UK limited or a UAE company is often simpler for that. Compare them in our guide to where to incorporate.

Related guides: Malta residency (2026): nomad permit vs GRP vs MPRP compared · Malta’s new Individual Tax Programme starts 2027 with €35,000 minimum · Where to incorporate as a digital nomad: US LLC, UK, Estonia, UAE · Holding company for founders (2026): how it works and where to set one up · Why banks close digital nomads’ accounts, and which are safer bets

Quick answers

Q: What is the minimum share capital for a Malta company?
A private limited liability company needs at least €1,165 of authorised share capital, and at least 20% of it must be paid up at incorporation, which is about €233. A public company needs €46,589 with 25% paid up. You normally need a bank account to receive the paid-up capital before registration.

Q: Do Malta companies really pay only 5% tax?
Not at company level. The company pays 35%. When it pays a dividend from trading profits, the shareholder can usually claim a refund of 6/7ths of that tax, so the combined Malta tax is about 5%. Your home country may still tax the dividend, and passive income gets smaller refunds.

Q: Should a small company elect the new 15% final tax in Malta?
Usually not if it qualifies for the 6/7ths refund, because 15% is higher than the roughly 5% result. The election, under Legal Notice 188 of 2025, suits groups facing the global minimum tax or wanting simpler cash flow. It binds you for at least five years of assessment, so model both routes first.

Sources

This is general information from the Nomad Forums team, not legal, tax or financial advice. Rules change; check the official source or a qualified adviser before acting.

Over to you: If you have formed a Malta company recently, which bank or payment institution onboarded you, and how long did it take? And has anyone elected the 15% final tax, or modelled it against the 6/7ths refund?

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