Company Formation & Entity Setup in Malta

Private and public limited company incorporation, Malta Business Registry filing, and post-formation compliance setup including refund-system or FITWI regime election.

Malta Reviewed September 2026

Currency

EUR

Legal forms

Private limited company · Public limited company

Minimum share capital

Registration body

Malta Business Registry (MBR)

Formation timeline

As little as 2–5 business days

Corporate tax rate

35% nominal · ~5% effective for trading income via 6/7 shareholder refund · 15% flat under FITWI (no refund, since 2025)

Talk to a Malta formation expert

How company formation works in Malta

Malta taxes resident companies at a flat 35% on worldwide profit — the highest nominal corporate rate in the EU. The mechanism that makes this headline figure misleading on its own is the full imputation and refund system: once a company distributes dividends after paying the 35% tax, shareholders can claim a refund of 6/7ths of that tax for trading income (5/7ths for passive interest and royalties, 2/3rds for certain other categories), bringing the effective combined rate down to approximately 5% for most operating businesses. Since 2025, companies may instead elect the Final Income Tax Without Imputation (FITWI) regime — a flat 15% rate with no refund mechanism — a simpler alternative for companies that prefer not to navigate the refund claim process.

Discuss your Malta market-entry structure

Matched to your business objective

Private limited company

Liability

Limited to company assets

Min. capital

The standard vehicle for an operating subsidiary of a foreign company — the default choice for most market-entry engagements in Malta.

Public limited company

Liability

Limited to company assets

Min. capital

Used for larger operations, more formal governance needs, or entities seeking to raise capital publicly.

Branch

Liability

None separate — the foreign parent company bears full liability

Min. capital

None — no separate capital requirement

Useful for testing the Malta market before committing to a subsidiary, or for keeping a single legal entity across borders. Creates a taxable presence — profits are generally taxed in Malta.

Representative office

Liability

N/A — not a registered legal entity in most cases

Min. capital

None

For market research and liaison activity only — cannot sign contracts, invoice, or trade locally in most jurisdictions.

Get a structure recommendation

What it takes to register, and how long

Formation runs through the Malta Business Registry (MBR), typically taking As little as 2–5 business days.

Three distinct refund fractions — — 6/7ths for trading income, 5/7ths for passive interest and royalties, 2/3rds for certain other income categories — applying the wrong fraction is a common and costly filing error
Increased substance scrutiny — for 2026 — Maltese authorities now require demonstrable evidence that commercial decisions are made in Malta, not just registered there, before processing refund claims
FITWI as an alternative regime — — companies can elect a flat 15% rate with no refund mechanism since 2025, trading a higher headline rate for filing simplicity
Tightened CFC and transfer pricing rules — , requiring more rigorous documentation of intercompany transactions at market value

Plan your formation timeline

Frequently asked questions

How does Malta's tax refund system actually work?

A Maltese company pays the standard 35% corporate tax on its profits. Once dividends are distributed, shareholders can claim a refund — typically 6/7ths of the tax paid for trading income — bringing the combined effective rate down to roughly 5%. The system has operated for decades and is fully compliant with EU and OECD standards, but requires correct documentation of the dividend distribution and refund claim.

What is the FITWI regime and when should a company choose it?

Final Income Tax Without Imputation, available since 2025, lets a company pay a flat 15% rate with no refund mechanism at all. It suits companies that prefer filing simplicity over the lower effective rate, or whose shareholder structure makes the refund process more complex than the FITWI alternative.

What does Malta mean by "substance" for refund purposes?

Maltese tax authorities require evidence that genuine commercial decisions — board meetings, management activity, operational direction — actually take place in Malta, not merely that the company is registered there. Companies unable to demonstrate this risk having their refund claims denied, reverting effectively to the full 35% rate.

Are Maltese social security contributions percentage-based?

No. Unlike most EU markets, Malta calculates social security contributions as a fixed weekly amount — up to approximately €50 per week for 2026 — matched equally by employer and employee, rather than as a percentage of salary. This makes employer cost predictable regardless of an employee's actual compensation level.

Talk to a Malta formation expert

Companies attracted to Malta's effective 5% rate without understanding the refund mechanism's documentation requirements, or without genuine local substance, risk having refund claims denied — turning an expected 5% effective rate into the full 35% nominal rate. The refund system rewards companies that treat substance and documentation as part of the tax strategy, not as an afterthought.

Talk to an expert Explore our Company Formation service