When you think of Malta, you might picture sun-drenched coastlines, historic cities, and a slower pace of life. Yet, there is another side to this Mediterranean gem that deserves just as much attention: it's quietly become one of the most attractive and strategic places in Europe to set up a business; using a Malta company.
For a number of years, Malta flew a little under the radar when it came to business – not because it lacks in advantages, but because it's quietly confident about what it has to offer. In fact, if you're looking for a jurisdiction that blends EU credibility with tax efficiency, global access, and a solid legal framework, Malta should be firmly on your radar.
Let's start with location. Nestled at the crossroads of Europe, North Africa, and the Middle East, Malta is in a prime position for businesses that have their eyes on international markets. Combine that with English as an official language, a highly educated multilingual workforce, and excellent transport links, and you've already got the makings of a strategic business hub.
But what really makes Malta stand out is its blend of tax incentives and regulatory credibility. Unlike jurisdictions that offer low or no tax but raise eyebrows when it comes to transparency, Malta takes a balanced approach.
Yes, the headline corporate tax rate is 35% but that's only part of the story. Malta operates a full imputation system, where tax paid by the company is credited to the shareholders upon distribution of dividends. Through a 6/7ths tax refund, international shareholders often enjoy an effective tax rate as low as 5% in many cases, so this kind of legitimate and EU-compliant tax efficiency is a serious draw.
Other refund options exist depending on the type of income involved (e.g. 5/7ths or 2/3rds), offering genuine tax efficiency that is fully EU-compliant and transparent.
Add to that a network of over 70 double tax treaties, full access to the European Single Market, and a well-established legal system rooted in both civil and common law traditions, and you start to see why so many international businesses have made Malta their base in Europe.
But, it's not just about income. Malta also offers:
- No withholding tax on outbound dividends, interest, or royalties
- No capital gains tax on shares in Maltese companies held by non-residents
- No wealth tax, inheritance tax, or annual property tax
In short: it's a clean, structured system that benefits from the weight of EU regulation without the bureaucracy and red tape you might find elsewhere.
Incorporating a Malta company is refreshingly straightforward, too. The process is digitised, the requirements are reasonable, and with a professional corporate services provider like ourselves, you can go from concept to incorporation quickly and efficiently.
The most common Malta company is a Private Limited Liability Company (Ltd), which can be incorporated with a minimum share capital of just €1,165, of which only 20% needs to be paid up. A Malta company can have a single shareholder and director, that can be a non-resident – ideal for international clients and corporate groups.
Once the Memorandum and Articles of Association for your Malta company are signed and submitted (electronically), you're looking at incorporation in a matter of days, provided all KYC and AML documentation is in order.
Malta's compliance standards are robust and that's a good thing. It gives credibility. Annual accounts need to be filed and audited, and a Malta company must maintain a registered office and company secretary in Malta. But for those seeking long-term stability and trust, this is where Malta shines. It's substance over shelf company.
Another plus? The business ecosystem is well-developed. Whether you need help with structuring, tax planning, accounting, payroll, compliance or governance, Malta has a wealth of experienced providers who specialise in supporting international entrepreneurs and corporate groups. And for industries like financial services, tech, gaming, aviation, and maritime – Malta isn't just supportive; it's thriving.
At Sentient International, we've seen first-hand how Malta's appeal extends beyond corporate structures – particularly in industries where international structuring and asset protection are key. Malta is becoming a strategic jurisdiction for:
- Yachting – Malta's yacht registration is one of the largest in the world, thanks to its EU flag, tonnage tax regime, and competitive VAT leasing solutions. Whether for private or commercial use, Malta offers a flexible, respected base for yacht ownership.
- Aviation – With a modern Aircraft Registration Act and membership in EASA, Malta has carved out a niche in private and commercial aviation structuring, particularly with fractional ownership and financing arrangements.
- Real estate and property investment – Property continues to be a strong sector, both locally and internationally. Malta's structures are often used in broader European or global real estate strategies – offering asset protection, flexibility, and tax efficiency.
- Technology and digital innovation – Tech companies benefit from Malta's IP-friendly tax environment and growing ecosystem. From fintech to blockchain and software development, Malta is positioning itself as a digital gateway into the EU.
- Family offices and wealth structuring – Whether it's managing succession planning, holding personal assets, or consolidating interests across borders, Malta provides a stable, recognised framework that appeals to UHNW families and private clients.
It's also a jurisdiction that takes regulation seriously. The Malta Financial Services Authority (MFSA) and the Malta Business Registry (MBR) are known for being thorough but fair, giving investors and founders confidence that they're operating in a stable, well-regulated environment. GDPR compliance, audited annual accounts, director responsibilities – none of it is box-ticking. It's about building sustainable, credible businesses with substance.
Of course, Malta isn't just about where your company is based. For clients looking to relocate, Malta's residence and citizenship options offer even more to think about.
The Malta Permanent Residence Programme (MPRP) is a popular choice for non-EU nationals seeking long-term residence within the EU. It offers permanent residency rights through a mix of property investment or rental, a government contribution, and financial thresholds — ideal for those who want a foothold in Europe without the pressure of relocating full-time.
For clients more focused on tax optimisation, the Global Residence Programme (GRP) presents an attractive option. It provides a residence certificate and access to a flat 15% tax rate on foreign income remitted to Malta, with no tax on worldwide income or capital gains that remain offshore. It's a practical fit for those seeking residency without full relocation, particularly in combination with asset structuring.
And for those looking to go one step further, Malta's Citizenship by Naturalisation for Exceptional Services by Direct Investment offers a route to full EU citizenship, subject to a rigorous due diligence process, a significant investment, and genuine ties to the island. It's a longer-term commitment, but for high-net-worth individuals seeking global mobility and the benefits of an EU passport, it's a compelling proposition.
For business owners, entrepreneurs, and global families, the Island provides not just a base for their Malta company – but a potential second home, a gateway to Europe, and a contingency plan for future generations.
Where perception, regulation, and credibility carry as much weight as tax efficiency, Malta offers a compelling package. It's not the cheapest, and it doesn't pretend to be. But it is respected, EU-aligned, investor-friendly, and flexible enough to support the needs of modern businesses and international clients.
Of course, navigating a new jurisdiction can be tricky without the right local knowledge. This is where working with experienced professionals like ourselves, really comes into its own. From company formation and structuring to ongoing compliance and tax optimisation, having a trusted partner in Malta can make all the difference between ticking the boxes and building something with real impact.
If you're considering structuring assets, launching a business, or expanding into Europe, Malta is worth more than just a look.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
