🇲🇹 Tax Overview — Malta
Corporate tax, VAT/GST, and key tax information for businesses operating in Malta.
Tax Treatment by Structure
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.
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.