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Tax Incentives for Foreign Shareholders
Malta operates a full imputation system where income tax paid by companies is fully credited to shareholders receiving dividends, eliminating double economic taxation. While the headline corporate tax rate is 35%, shareholders are entitled to refunds based on the source of income. This typically results in effective net tax rates of around 10%, 5%, or even 0%, making Malta highly attractive for international tax planning.
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Tax Incentives for Holding Companies
Dividends received from companies registered in Malta, as well as all profits derived from sales by their subsidiaries, are fully exempt from corporate tax as long as they are paid as dividends to shareholders. In certain cases, such income generated is not subject to tax obligations, meaning it does not need to be reported or taxed.
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European Union Member
Following its accession to the European Union in 2004, Malta introduced a range of new incentives. As a result, an increasing number of foreign individuals are registering companies in Malta. Foreign investors or entities with foreign tax residency rights can greatly benefit from Malta's tax regime. Additionally, Malta is one of the EU member states with the lowest tax rates for foreign shareholders.
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Highly Developed Financial Services Sector
Malta has established itself as a global center for financial services, including banking, insurance, and investment services. The country’s strong regulatory framework, combined with its political stability, makes it an attractive destination for financial institutions and investors seeking a secure and well-regulated environment for their operations.
Tax Info
Enter Dynamic Page- General CIT Rate
- 35
- CIT Return Due Date
- After nine months from the end of the accounting period, or by 31 March following the tax year (even though the Maltese tax authorities typically extend this deadline by one to two months for electronically submitted cases), whichever is later.
- CIT Payment Due Date
- The deadline for submitting tax returns (the electronic submission extension does not apply to tax filing) is also due.
- CIT Estimated Payment Due Date
- In general, temporary taxes are paid every four months: April 30, August 31, and December 21. However, there are also some exceptions, and the due date for tax payment may be postponed.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 0/15/0
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 0/0/0
- General VAT Rate
- 18
- General Capital Gain Tax Rate
- Regarding the tax rate on capital gains, please refer to the Malta Corporation Tax Summary.
- Composite Effective Average Tax Rate
- 28.80%
- Composite Effective Marginal Tax Rate
- -9.75%
Administrative Regions
- 01 - Attard
- 02 - Balzan
- 03 - Birgu
- 04 - Birkirkara
- 05 - Birżebbuġa
- 06 - Cospicua
- 07 - Dingli
- 08 - Fgura
- 09 - Floriana
- 10 - Fontana
- 11 - Gudja
- 12 - Gżira
- 13 - Għajnsielem
- 14 - Għarb
- 15 - Għargħur
- 16 - Għasri
- 17 - Għaxaq
- 18 - Ħamrun
- 19 - Iklin
- 20 - Senglea
- 21 - Kalkara
- 22 - Kerċem
- 23 - Kirkop
- 24 - Lija
- 25 - Luqa
- 26 - Marsa
- 27 - Marsaskala
- 28 - Marsaxlokk
- 29 - Mdina
- 30 - Mellieħa
- 31 - Mġarr
- 32 - Mosta
- 33 - Mqabba
- 34 - Msida
- 35 - Mtarfa
- 36 - Munxar
- 37 - Nadur
- 38 - Naxxar
- 39 - Paola
- 40 - Pembroke
- 41 - Pietà
- 42 - Qala
- 43 - Qormi
- 44 - Qrendi
- 45 - Victoria
- 46 - Rabat
- 48 - St. Julian's
- 49 - San Ġwann
- 50 - Saint Lawrence
- 51 - St. Paul's Bay
- 52 - Sannat
- 53 - Santa Luċija
- 54 - Santa Venera
- 55 - Siġġiewi
- 56 - Sliema
- 57 - Swieqi
- 58 - Ta' Xbiex
- 59 - Tarxien
- 60 - Valletta
- 61 - Xagħra
- 62 - Xewkija
- 63 - Xgħajra
- 64 - Żabbar
- 65 - Żebbuġ Gozo
- 66 - Żebbuġ Malta
- 67 - Żejtun
- 68 - Żurrieq
Belonging Jurisdiction
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MT - Malta
Republic of MaltaLearn MoreRepublic of Malta -
EEA - European Economic Area
European Economic AreaLearn MoreEuropean Economic Area -
EU - European Union
European UnionLearn MoreEuropean Union -
WORLD - Global
EarthLearn MoreEarth
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