Meeting Reporting Obligations: What Home Countries Want to Know About Malta-Based Companies

What are Reporting Obligations for Malta Companies and Why Do They Matter?

Imagine you’ve set up a company in Malta, but your home country acts like a jealous ex: they want to know exactly what you’re doing, who you’re doing business with, and if you might be hiding a tax advantage. That, in a nutshell, is what reporting obligations—aka reporting duties—are all about.

The Common Reporting Standard (CRS)—Simply Explained

The Common Reporting Standard (CRS) is the international agreement that ensures financial information is automatically exchanged between countries. Malta joined in 2017, which means your Maltese bank will report relevant account data straight to your home country. It’s basically a digital gossip chain among tax authorities—just a lot more systematic and legally binding.

What it means for you: your home country’s tax office will hear about your Maltese business accounts, even if you don’t report them yourself. The days of keeping foreign accounts secret are definitely over. OECD statistics show that more than 100 jurisdictions now exchange information—Malta, Germany, Austria, and Switzerland are all in the club.

Beneficial Ownership Register—Who’s Really Behind the Company?

The Beneficial Ownership Register is Malta’s answer to the EU’s anti-money laundering directive. This register discloses who really owns a company—not just who’s listed as a director. You’re considered a beneficial owner if you hold at least a 25% share in the company.

Registration has been mandatory since 2018 and costs €100 per year. Forgetting to register or update your details can trigger fines of up to €10,000. I know entrepreneurs who have learned this the hard (and expensive) way—a costly mistake that is easily avoided.

Differences Between EU and Non-EU Home Countries

This is where it gets interesting: EU citizens benefit from harmonized rules, while non-EU countries often do their own thing. As an EU citizen with a Malta company, the EU’s Directive on Administrative Cooperation applies—your data flows automatically between authorities.

Switzerland is a special case: not an EU member but fully integrated into the CRS system via bilateral agreements. “Swiss Made” precision definitely extends to reporting obligations.

These Are the Details Your Home Authorities Want to Know about Your Malta Company

Let’s be honest: your home authorities are as interested in your Malta company as a detective is in an unsolved case. They don’t just want to know it exists—they want to understand what’s behind it. After countless talks with advisors and my own experience, I can tell you: transparency pays off, while playing hide-and-seek gets expensive fast.

Basic Company Data and Beneficial Owners

Let’s start with the basics. Your home authorities will first want the core information about your Maltese company:

• Company name and registration number (from the Malta Business Registry)
• Registered address in Malta—and no, your service provider’s P.O. box isn’t enough
• Date of incorporation and legal form (Limited Liability Company is standard)
• Business purpose per Articles of Association
• Beneficial owners with over 25% interest with full personal details

The kicker: Malta has a public register of beneficial owners since 2018. Your home authorities could, in theory, access this info themselves—but they’ll still want you to report it through official channels.

Financial Data and Business Activities

Now things get interesting—it’s all about the money. The authorities want to see whether your Malta company has real substance or is just a postbox for tax purposes:

1. Annual turnover and profit (per Maltese tax filings)
2. Number of employees in Malta—a key indicator of substance
3. Nature of business activity with concrete examples
4. Breakdown of revenues by country (especially important for your home country)
5. Operating expenses in Malta—office rent, salaries, local service providers

Insider tip: German authorities look closely at the ratio of Maltese operating expenses to total turnover. If under 10%, you can expect pointed questions about whether there’s real business activity happening in Malta.

Bank Accounts and Assets

Thanks to CRS, most bank information flows automatically from Malta to your home country. Still, many authorities request additional details:

Especially tricky: if you, as a shareholder, regularly transfer large amounts from your Malta company to your German personal account, the tax office will want to know if that’s salary, a dividend, or a hidden distribution. The lines blur quickly, especially if you don’t keep your documentation in order.

Reporting Obligations by Home Country: Germany, Austria, and Switzerland Compared

Now to the practical part—because every country has its own view of how and when you should report your Malta company. It’s a bit like power sockets in Europe: same electricity in theory, but you need a different adapter for every country.

Germany: What the Ministry of Finance Wants to Know

Germany is especially thorough when it comes to Malta companies—typical German, really. The Federal Ministry of Finance (BMF) requires different reports depending on how your Malta company is classified for tax purposes:

Controlled Foreign Corporation (CFC) Rules under AO §138: If your Malta company falls under CFC rules (passive income over 80%), you must declare it in the “Anlage AUS” of your tax return. The deadline is May 31 of the following year.

• Full profit and loss statement for the Malta company
• Balance sheet as of December 31
• Proof of effective management (board meetings in Malta?)
• Breakdown of active/passive income

Foreign Company Participation Notification: Regardless of tax treatment, you must notify the Federal Central Tax Office if you hold more than 10% of the Malta company. Deadline: within four weeks of acquiring the shares.

Practical tip: The German tax office likes to check if your Malta company has real “substance.” That means local employees, office space (not just a P.O. box), local clients, and actual business activities in Malta. A pure “letterbox” setup will quickly be reclassified as a permanent establishment in Germany.

Austria: BMF Requirements and Special Rules

Austria takes a slightly more relaxed approach to Malta companies than Germany, but still has clear rules. The Austrian Ministry of Finance (BMF) focuses mainly on correct taxation:

Foreign Tax Act (AStG): As in Germany, Austria has CFC rules. Since Malta joined the EU in 2004, it’s on the “white list,” which means Austrian citizens can in principle tax their Malta company in Austria as normal.

1. Declare in your income tax return: Holdings over 10% in a foreign company must be disclosed in Annex M
2. Deadline: September 30 of the following year (for electronic filings)
3. Special rule: Malta companies are often taxed at a flat rate if local taxation is documented

Austria is especially generous in recognizing Maltese corporate income tax. Thanks to the Malta–Austria double taxation agreement, double taxation can usually be easily avoided.

Switzerland: Federal Tax Administration and Cantonal Differences

Switzerland is pragmatic but precise regarding Malta companies. The Federal Tax Administration (ESTV) treats Malta as an equal partner, which keeps reporting obligations manageable:

Reporting Obligation for Qualifying Shareholdings: Once your stake in a Malta company reaches 10%, you must report it. The upside: Malta dividends can be tax-free under certain conditions (participation exemption).

CRS Reporting: Switzerland has been fully in the CRS system since 2017. That means: automatic information exchange with Malta on financial accounts.

Important for Swiss taxpayers: If you live in Malta but are still liable for Swiss tax (less than 183 days in Malta), your Malta company will often be taxed as a “controlled foreign corporation.” This can get expensive if the Maltese tax is considered too low.

Step by Step: How to Fulfil Your Reporting Obligations Properly

Enough with the theory—let’s get practical. Here’s how to systematically tackle your reporting obligations without losing track or missing a deadline. After two years in Malta, I can tell you: organization is everything, panic helps no one.

Preparation: These Are the Documents You’ll Need

Before you start reporting, it’s best to gather all relevant documents. Think of it like cooking—without the right ingredients, you won’t get anything tasty:

Basic company documents:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form BO (Beneficial Ownership Register entry)
• Current Company Registration Certificate
• Up-to-date Certificate of Good Standing

Financial documents:

• Audited Financial Statements (if required)
• Malta Tax Return (ITR) for the last business year
• Bank statements for all business accounts
• VAT returns (if VAT-registered)
• Payroll records (if you have employees)

Proof of business activity:

• Office lease agreement (where applicable)
• Contracts with local service providers
• Minutes from board meetings in Malta
• Invoices to Maltese clients (for substance proof)

Practical tip: Keep a digital archive of everything. Maltese authorities increasingly work digitally, but your home country will often still want hard copies. A good document management system will save you a ton of time later.

Deadlines and Key Dates at a Glance

Malta has one set of deadlines, your home country another—sometimes they overlap awkwardly. Here’s your annual calendar for the most important dates:

Special dates:

1. Four-week rule, Germany: New shareholdings over 10% must be reported to the Federal Central Tax Office within four weeks
2. CRS Reporting: Happens automatically, but banks report to Malta Revenue by May 31
3. VAT quarterly reports: Due by the 15th of the month following each quarter

My personal tip: I put every deadline into Google Calendar—with automated reminders set for four weeks and one week in advance. That way, you’ll never be caught off guard.

Common Mistakes and How to Avoid Them

You get wiser by making mistakes—but you get even wiser by learning from the mistakes of others. Here are the five most common pitfalls I’ve seen others run into:

Mistake 1: Incomplete BO Register Entries
Problem: You only report direct shareholders, not the actual beneficial owners further up the chain.
Solution: For complex company structures, you must drill down to the natural person ultimately in control.

Mistake 2: False Substance Proof
Problem: You rent a virtual office and think that’s enough as a business address.
Solution: At minimum, rent a small physical office with its own letterbox. Cost: around €200–400 a month.

Mistake 3: Mixing Personal and Business Accounts
Problem: You casually transfer €5,000 from company to personal account “as an advance.”
Solution: Every transaction between company and private person must be properly documented and authorized.

Mistake 4: Late Filings
Problem: You miss the deadline by a couple of days and think “what’s the harm?”
Solution: Late fees can quickly run into the hundreds. It’s better to request an extension in advance.

Mistake 5: Inadequate Board Minutes
Problem: Your shareholder meetings happen over WhatsApp.
Solution: Proper board minutes, at least once a year physically in Malta. Yes, it costs a flight, but it’ll save you a lot of trouble with the authorities.

Malta Company Service Provider: When You Need Professional Help

Let’s get to the key question: do you do everything yourself, or do you get help? After two years in Malta, my honest answer is: it depends. Some things are really simple, others are so complex that even experienced tax advisers start sweating.

Which Tasks You Can Handle Yourself

If your Malta company has a simple structure and you’re generally comfortable with figures, there’s quite a bit you can do yourself. Here’s what’s manageable even for non-professionals:

Basic administrative tasks:

• Beneficial Ownership Register updates (online via registry.mita.gov.mt)
• Collecting and archiving all documents
• Communication with Maltese banks
• Simple VAT returns (if there are only a few transactions)
• Routine board minutes

Requirements for a DIY approach:

1. You have the time and patience for Maltese red tape
2. Your company structure is simple (one company, one business activity)
3. Turnover under €500,000 per year
4. Only one home country involved
5. You’re fluent in English and understand official German

Reality check: I know entrepreneurs who did everything themselves in the first year and ended up spending more time than they planned. Budget at least 2–3 days a month for admin work.

When a Local Partner Is Worth It

There are situations where professional help is essential. If any of the following apply, it’s time to consider a local partner:

Complex tax structures:

• Several companies in different countries
• Holding structures with Malta as an intermediary
• International staff or clients
• Real estate investments via the Malta company
• Licensing or IP business

High compliance requirements:

• Turnover above €1 million (audit required)
• Regulated business activities (financial services, gaming, etc.)
• Multiple home countries with different reporting rules
• Audits by German/Austrian/Swiss tax authorities

A Maltese Certified Public Accountant (CPA) will cost you between €2,000 and €5,000 a year for a standard Malta company. That might sound like a lot, but it’s far cheaper than fines or retrospective tax assessments.

Cost-Benefit Comparison

Let’s do the sums. Here are typical costs for different service levels at Malta company service providers:

What you get for your money (with reputable providers):

• Local address and phone number
• Direct line to Malta Revenue and other authorities
• Translations of all official correspondence
• Coordination with your home country tax adviser
• Early warning for law changes
• Representation at official appointments

My advice: start with a standard package and move up or down depending on how your company evolves. Most good providers are flexible and will tailor their services to your needs.

Red flags to watch for:

• Promising “tax-free” profits without substance checks
• No local office or staff
• Flat-rate offers under €1,000 a year
• No experience with your home country
• No designated contact person

The truth is: a good Maltese service provider is like a good doctor—you only realize their value when you need them. My rule: pay €500 more for someone who’ll actually answer your call at 7pm if the German tax office comes knocking.

Frequently Asked Questions about Malta Company Reporting Obligations

Do I have to report my Malta company even if it has no revenue yet?
Yes, just holding more than 10% is reportable in Germany, Austria, and Switzerland. In Germany, you must report as soon as you acquire the shares, regardless of business activity.

What happens if I forget my reporting obligations?
Late penalties and fines are the rule, not the exception. In Germany, this can be anywhere from €5,000 to €25,000, depending on how late and how much was left unreported.

Is it enough if my German tax adviser reports my Malta company?
Only partly. Your adviser can handle your German reporting, but Maltese compliance duties (BO Register, ITR filing) must be handled locally.

How can I tell if my Malta company has real substance?
Rule of thumb: at least 10% of operating expenses should occur in Malta. That includes local rent, salaries, service providers, or other on-the-ground costs.

Can I offset my Maltese taxes in my home country?
In principle yes, thanks to double taxation treaties. But: this only works with “real” taxes, not with Maltese tax refunds you receive via their refund system.

What is the Common Reporting Standard and how does it affect me?
CRS is the automatic exchange of account information between tax authorities. Your Maltese bank automatically reports account balances—regardless of amount—to your home country. You won’t get a notice.

Do Swiss taxpayers have different reporting obligations than EU citizens?
The basics are similar, but Switzerland has its own forms and in some cases, different deadlines. Cantonal requirements may also apply depending on where you live.

How often do I physically need to be in Malta for board meetings?
Legally, once a year is enough, but 2–3 visits are recommended for real substance. Video conferences are allowed but hold less weight in official audits.

Can I manage my Malta company from Germany?
Technically yes, but it’s a tax risk. If real management occurs in Germany, the company may be reclassified as a German permanent establishment.

Which documents should I always have handy?
Certificate of Incorporation, up-to-date BO Register extract, last ITR filing, bank statements, and board minutes from the past two years. These are what authorities most often request.