28 Aug 2025
Malta Ltd - 5% Effective Tax Rate
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A Malta company offers important benefits, especially for international business:
- Competitive effective tax rate: Though Malta’s corporate tax rate is 35%, its full imputation and refund system allows non-resident shareholders to bring the effective tax rate down to as little as 5% on distributed profits
- EU membership: Malta companies have full access to the European Union market, and enjoy passporting rights for financial and other EU-regulated services
- No withholding tax: On dividends, interest, and royalties paid to non-residents, making profit repatriation straightforward
- Double taxation agreements: Malta maintains an extensive network of double taxation treaties, facilitating global operations and reducing tax exposure
- Favorable regime for holdings & IP: There are exemptions or refunds for income from qualifying holdings and intellectual property, including participation exemptions and reduced IP taxation
- Fast incorporation & flexible structures: Malta companies can be set up rapidly, with simple administrative procedures and options for tailored structures
- Robust legal & regulatory system: Malta’s English-based business law—supported by EU standards and strong financial regulation—ensures investor protection and transparency
These benefits make Malta a top choice for holding companies, trading entities, startups, and firms seeking cost-efficient access to both EU and global markets.