Incorporate.ltd

🇲🇹 Corporate Tax in Malta

Headline rate: 35% headline / ~5% effective (after shareholder refund)

Private Limited Liability Company (Ltd)

Malta charges a 35% headline corporate tax rate on company profits. When the company distributes dividends to shareholders, non-resident shareholders can claim a refund of 6/7ths of the Malta tax paid (for trading income), resulting in a net effective tax rate of approximately 5%. For passive interest and royalty income, the refund is 5/7ths (effective rate ~10%). For passive income from a participating holding, 100% refund may apply (effective rate 0%). The refund is paid to the shareholder (not the company), so a proper holding structure — typically a non-Maltese parent company — is required. Malta has no withholding tax on outbound dividends, interest, or royalties, and applies the EU Parent-Subsidiary Directive and Interest and Royalties Directive.

Single-Member Private Limited Company (Ltd (single-member))

Taxed identically to multi-member private limited companies. The 35% headline rate applies at the company level, with the 6/7ths refund available to the sole shareholder on distribution of dividends. The shareholder must be structured appropriately (typically a non-Maltese holding entity) to claim the refund efficiently.

Key Facts

  • Double tax treaties: 76
  • Memberships: EU, WTO, Eurozone, UN, Commonwealth
  • Legal system: Civil law (with common law influences)
  • Fiscal year: Company chooses

This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.