Malta might be best known for its turquoise waters and medieval architecture but behind the postcard views is a business-friendly island that’s quietly attracting entrepreneurs from around the world.
Whether you’re a freelancer looking to go legit or a startup founder seeking low tax rates in the EU, Malta might just be your perfect launchpad.
Why Set Up a Business in Malta?
1. Low Corporate Tax (Effectively 5%)
Malta has one of the most attractive tax systems in Europe. Although the standard corporate tax rate is 35%, foreign shareholders can receive up to a 6/7 refund, bringing the effective tax rate down to just 5% in many cases.
2. EU Membership & Global Access
As a full EU member, Malta offers passporting rightsm eaning you can easily offer products or services across the entire EU.
3. English-Speaking & Business-Friendly
English is one of Malta’s official languages, and all legal and corporate documents are in English. The setup process is relatively smooth, especially with a local agent.
4. Strategic Location
Located between Europe and North Africa, Malta is ideal for businesses looking to bridge EU, Middle Eastern, and African markets.
🛠️ How to Set Up a Business in Malta
Step 1: Choose Your Business Type
Most foreign entrepreneurs opt for a Private Limited Liability Company (Ltd)—flexible, recognized across the EU, and offering liability protection.
Step 2: Reserve a Company Name
Submit your desired business name to the Malta Business Registry (MBR) to ensure it’s unique and approved.
Step 3: Register the Company
You’ll need:
- Memorandum & Articles of Association
- Details of shareholders and directors
- A local registered office address
- Minimum share capital (€1,165; only 20% needs to be paid upfront)
Step 4: Get a Tax ID & VAT Number
After registration, apply for a Tax Identification Number (TIN) and VAT number (if applicable). Malta’s VAT rate is 18%.
Step 5: Open a Business Bank Account
You’ll need this to deposit the share capital and conduct your business. Banks may request detailed compliance documentation, especially for foreign shareholders.
Step 6: Apply for Licenses (If Needed)
Some sectors like gaming, finance, and healthcare require special licenses. Make sure you’re in the clear before launching.
💡 Bonus: Startup & Digital Nomad Perks
Malta also offers:
- A Nomad Residence Permit for remote workers
- Startup incentives for tech and innovation companies
- Attractive schemes for highly qualified foreign professionals
Final Thoughts:
Malta offers the rare combo of low taxes, EU benefits, English-speaking ease, and Mediterranean lifestyle. If you’re planning to launch a business in Europe in 2025, this little island deserves a big spot on your radar.
