5 Years of Experience in Malta: What Has Worked—and What Hasn’t—for International Entrepreneurs – A Long-Term Review

Malta Business Setup – What Really Worked

Lets start with the positives, since there are genuinely quite a few. My first big surprise: setting up a business in Malta is significantly simpler than in Germany or Austria. But that’s only true if you know where the traps are.

Starting a Company in Malta – The Real Time Investment

Good news first: you can theoretically set up a Maltese Limited Company (the equivalent of a German GmbH) in 7-10 working days. In reality, it took me three weeks—and that wasn’t Malta’s fault, but rather my own German thoroughness.

Here are the steps you actually need:

1. Company Name Reservation: 2-3 days, costs €40
2. Memorandum and Articles of Association: 1 day with a lawyer (Cost: €800–1,200)
3. Share Capital Deposit: Minimum €1,165, instant
4. Company Registration: 5-7 days, fee €245
5. Applying for Tax Number: 3-5 days, free

What positively surprised me: you don’t need a Maltese director. As an EU citizen, you can run your entire company yourself. That saves money (local directors charge €3,000–5,000 per year), and a lot of headaches.

The catch? Bookkeeping. More on that in a moment.

Malta’s Tax Advantages for Entrepreneurs – 2025 Reality Check

This is where it gets interesting—because it’s the main reason most people move to Malta. The famous “6/7 refund rule” actually works—but it’s more complicated than any YouTube guru claims.

In a nutshell: as a Maltese company, you initially pay 35% corporate tax. If, as a shareholder, you’re not a Malta resident, you get 6/7 of the paid tax refunded. Effectively, you only pay 5% corporate tax.

Sounds fantastic, right? It is—but only under certain conditions:

• You must not be tax resident in Malta
• The business activity must meet genuine substance requirements
• You need professional bookkeeping (cost: €200–400 monthly)
• The refund takes 6–12 months

My five-year reality check: for online businesses with profits over €100,000 per year, this system is brilliant. Below that, overhead costs eat up most of your savings.

Banking in Malta – Where It Falters and What Works

Banking was my biggest headache in the first two years. Maltese banks are extremely cautious with new business clients, especially online businesses without a physical presence.

My experiences with the major banks:

My tip after five years of trial and error: Start with N26 Business or Revolut Business for daily transactions, and also get a traditional account with Sparkasse Bank Malta. They understand Germans, speak German, and are much more relaxed than the other banks.

What does this mean for you? Count on at least 2–3 months for opening an account and bring at least €10,000 as initial capital. Most banks won’t take you seriously for less.

The Hidden Costs After 5 Years of Malta Business

Now for the uncomfortable part. While everyone talks about tax advantages, nobody mentions the real costs you’ll face in Malta. After five years, I can break down every cent—and you should really know this upfront.

Living Costs for Entrepreneurs – My Actual Numbers

Forget the articles about “cheap cost of living in Malta.” Those are for backpackers in hostel beds, not entrepreneurs living a reasonable lifestyle.

Here are my actual monthly expenses as a solo entrepreneur:

Inflation in Malta has been brutal. What was “affordable” in 2019 is now more expensive than Munich or Vienna. Especially painful: groceries and rent. A decent apartment in a good location now easily costs €1,500–2,500 a month.

My reality check: budget at least €3,000 a month for living expenses if you want a reasonably comfortable lifestyle. Anything less means flat-sharing and pasta with tomato sauce.

Office Costs and Infrastructure – What Nobody Tells You

Home office in Malta only works to a point. Apartments are small, noisy, and unlivable in summer without air conditioning. So you’ll need a proper office—and that costs.

My office evolution over five years:

1. Year 1–2: Coworking space in Valletta (€300/month) – too noisy, unreliable Wi-Fi
2. Year 3: Own mini-office in Sliema (€600/month) – too small, no client area
3. Year 4–5: Professional office with meeting room (€1,200/month) – finally good

On top of that:

• Business-grade internet: €80–120/month (regular internet too slow for video calls)
• Air-conditioning: €200–300 per month from June to September
• Office equipment: €2,000–3,000 upfront
• Backup internet via 5G: €50/month (Malta loses power more often than you think)

Bottom line: count on at least €1,500 a month for professional office infrastructure. Less is only doable if you work exclusively online and never receive clients.

Tax Consulting and Compliance – The Real Cost Factor

This is the biggest shock: professional tax consulting isn’t optional in Malta—it’s mandatory. The laws are complex, change frequently, and mistakes are costly.

My annual compliance costs:

€11,500 a year just for tax consulting and compliance. Thats almost €1,000 per month. On a €100,000 annual profit, that’s already 11.5% of your earnings—before you’ve paid a cent in taxes.

Why so expensive? Malta imposes specialized reporting requirements for foreign entrepreneurs, substance requirements need to be fully documented, and you need someone familiar with both Maltese and German/Austrian tax law.

My tip: budget at least €10,000 a year for high-quality consulting. Anything less and you’re heading straight for expensive problems with the authorities.

Malta as a Business Location – What Surprised Me

After five years, there are things that positively surprised me, and others I never anticipated. Let me share key insights you won’t find in any “Malta Business Guide.”

Networking and Malta’s Business Community

This was the first positive shock: Malta has an incredibly active international business community. Much more than I ever expected.

The key networks that helped me:

• Malta Business Network: Monthly events, very professional, €50 membership per year
• Digital Nomads Malta: WhatsApp group with 800+ members, active daily
• European Business Network Malta: Quarterly networking events, premium level
• Malta Blockchain Association: If you’re in tech

What surprised me: the quality of contacts. I regularly meet entrepreneurs in Malta with 7–8 digit revenues who have set up their EU headquarters here. The level of networking is way above what you experience in German coworking spaces.

Concrete benefits after five years:

• Secured 3 major cooperation partners
• Found a tax consultant via recommendation (30% cheaper than standard rates)
• Shared an office with another entrepreneur (halved office costs)
• Accessed EU-wide business contacts

The reason is simple: people who move to Malta and build a business here tend to be highly driven. It’s self-selecting.

Hiring Talent – The Reality Check

Here’s where things get tricky. Malta has a very low unemployment rate—but that doesn’t mean you’ll easily find good staff.

My hiring experience:

The reality: for specialized roles, you’ll often have to recruit expats or work with remote staff. Most locals work in traditional sectors (gaming, fintech) and are reluctant to switch jobs.

My biggest learning: build remote-first and use Malta as your EU hiring hub. A work permit in Malta is valid EU-wide, which streamlines many things.

EU Market Access from Malta

This was by far my biggest positive surprise: Malta is the perfect springboard into the EU market. Much better than I expected.

Why Malta is brilliant for EU business:

• Time zone: Central European Time, perfect for calls from London to Warsaw
• Languages: English is an official language, but many also speak Italian
• Banking: Full EU SEPA access, no issues
• Legal system: EU-compliant, but based on Common Law (UK-style)
• Flight connections: 2–3 hours to all key EU cities

For example: I can have a client call in Stockholm in the morning, talk to a supplier in Milan at noon, and be at a networking event in the evening. That’s simply not as smooth from Germany.

Bonus: Malta is neutral enough that neither German, French nor Italian clients feel “talked down to.” You’re the international partner, not just the German competitor.

The Biggest Problems and Pitfalls

Now for the bare truth. Malta has its sides that still get on my nerves after five years. Some of them almost made me move back to Germany.

Bureaucracy and Authorities – 5 Years’ Experience

Maltese bureaucracy is… unique. It combines the worst of British tradition and southern European laid-backness. The result is maddening.

My “greatest hits” over the past five years:

Case 1: Request for tax number change. Submitted March 2022, approved September 2022. Reason for the delay: “The responsible officer was on holiday.”

Case 2: Banking license for a fintech project. 18 months processing time, 47 follow-ups, ultimately rejected because of an error on page 234 out of 280.

Case 3: Company address change. Online application has been broken since 2019, in-person appointments only on Wednesdays between 9:00 and 11:30 a.m.

The offices you’ll need as a business owner:

My survival tip: always use a local lawyer or tax consultant to handle anything involving the authorities. Yes, it costs extra, but it’ll save you months and your sanity.

Annoying Infrastructure Problems

Malta is a small island with major infrastructure issues. After five years, I’ve seen it all.

The Internet Drama

Malta theoretically has good internet. In reality, it constantly drops out. Especially in summer, when everyone’s AC is running and the power grid is overloaded.

My internet outages in 2024:

• 17 complete blackouts of over 4 hours
• 43 minor interruptions (15–60 minutes)
• Longest outage: 2.5 days after an October storm

Solution: always have 5G backup internet (Epic/GO/Vodafone). Costs €50 extra a month but regularly saves key client calls.

Traffic and Transport

Malta has the worst public transport system I’ve ever experienced. And that’s no exaggeration.

• Buses arrive when they want (the apps are pure fiction)
• Rush hour gridlock 7–9 a.m. and 4–7 p.m. on nearly every road
• Parking in business areas costs €15–25 per day
• Uber exists, but is 3 times more expensive than in Germany

My solution by year 3: e-bike for short trips, rental car for important meetings, home office whenever possible.

Water and Power Issues

Summer is critical. The island’s infrastructure can hardly cope with the demand.

What regularly happens:

• Power outages during heatwaves (over 35°C/95°F)
• Water pressure drops on upper floors
• AC bans in office buildings during shortages
• Internet blackouts due to overloaded infrastructure

When Malta Business Doesn’t Work

After five years, I know exactly who Malta isn’t right for. If any of these points describe you, walk away:

You need physical products or warehousing

Malta is an island. Shipping takes ages and costs a fortune. Every single product must be imported by sea or air. Your margins will evaporate with physical goods.

Your business needs large teams on site

The talent pool is too small. For teams larger than 10–15 people, you simply won’t find enough qualified staff. Period.

You’re in a highly regulated industry

Pharma, medical tech, complex financial products: Maltese authorities are overwhelmed and slow. You’ll wait forever for licenses—if they ever come.

You have no patience for bureaucracy

If German bureaucracy already annoys you, you’ll hate Malta. Here, everything takes three times as long and is twice as complicated.

Your annual profit is under €200,000

Given the high overheads (tax consulting, living costs, office), Malta only makes sense above a certain profit level. Below that, you won’t save anything in the end.

My Verdict After 5 Years – Who Is Malta Really Worth It For?

5 years, 73 trips to government offices, €11,500 in annual compliance costs—and I’m still here. Time for an honest verdict.

Malta works brilliantly for you if:

• You run an online business with €200,000+ annual profit
• You’re patient with bureaucracy
• You need EU market access but don’t want to be based in Germany
• You work remotely or with small teams
• You’re seeking international business contacts
• You can handle at least €5,000 a month in living expenses

Malta isn’t for you if:

• You sell or produce physical goods
• You need large local teams
• Your earnings are under €150,000 a year
• You expect perfect infrastructure
• You need fast government processes

The raw numbers after 5 years:

With €300,000 in annual profit, I save about €85,000 a year. That’s 28% more net income. That’s why, for all the challenges, I’m still here.

Would I do it all again?

Yes, but with a different approach. I’d budget more from the start, hire better consultants, and have more realistic expectations about infrastructure.

My recommendation:

Come for 3–6 months and try it out. Rent an apartment, work from here, get to know the community. But don’t uproot your life—plan it as an addition. If it works, you can always make the switch completely.

And forget the YouTube gurus with their “Malta tax hacks.” Reality here is more complex, more expensive, and more bureaucratic than any video suggests. But it can still be worth it—if you know what you’re in for.

What does all this mean for you? Crunch the numbers honestly to see if Malta makes sense for your business. And if it does: bring patience, funding, and a great tax consultant.

Frequently Asked Questions About Malta Business

How much profit do I need for Malta to make sense?

In my experience, you should have at least €150,000 annual profit—€200,000+ is where it gets interesting. Below that, high overheads (tax, cost of living) eat up most of the tax benefits.

Do I really have to move to Malta, or can I manage my company from Germany?

You don’t have to live in Malta, but your company does need “economic substance” in Malta. That means: genuine business activity, local staff or at least one director based in Malta. Pure shell companies no longer work since the EU Anti-Tax Avoidance Directives.

How long does the full business setup really take?

Plan for at least 3–4 months start to finish: company formation (3 weeks), bank account (4–8 weeks), finding an office (2–6 weeks), arranging tax advice (2–4 weeks). Very few steps can be done in parallel—each depends on the one before.

What ongoing costs will I really face?

Budget at least €2,000 a month for business basics: tax advice (€300), office (€600), utilities (€200), compliance (€150), banking (€50), Internet/phone (€100)—plus €3,000 for your personal living costs. Under €5,000 a month, it gets tight.

Is Malta really EU-compliant or do I risk trouble with Germany?

Malta is an EU member and the 6/7 rule is officially EU-approved. But: you must fulfill all German reporting obligations (especially exit taxation) and prove genuine substance in Malta. If it’s a sham setup, you’re in trouble. Professional advice is a must.

How do I find a good tax consultant in Malta?

Through the Malta business community or via recommendations from other German entrepreneurs. Make sure they understand both Maltese and German tax law. Good consultants charge €200–400 an hour, but it’s money well spent. Steer clear of cheap online services.

Can I just bring my German staff with me?

EU citizens can work in Malta without any problem, but bear in mind: Malta has different labor laws, social security and payroll taxes. A German employee often costs 20–30% more in Malta than in Germany. Plus: salaries in Malta are lower, so you may need to top up.

What happens if I want to leave Malta again?

Shutting down your company takes 6–12 months and costs €3,000–5,000. You need to clear all outstanding taxes, appoint a liquidator, and settle everything with the German authorities as well. Plan at least a year for the complete exit process.