Malta Company Annual Accounts: Annual Compliance Obligations for International Entities 2025

Youve set up a Malta company and thought the hard part was over? Time for a reality check: Annual Compliance – the yearly requirements keeping your Maltese company alive. Forget these, and the Malta Registry of Companies (ROC) will be knocking on your door faster than you can say “Pastizzi.”

After three years working with various Maltese companies, I can say: The paperwork is manageable, but the deadlines are merciless. A late Annual Return not only costs money – in the worst case, it can mean your company is struck off. What does this mean for you? Time for an honest look at what you’re really in for.

Malta Company Annual Accounts: These Obligations Await You Each Year

A Malta company doesn’t just bring tax advantages, it also comes with clear obligations. Every year you have to prove that your company still exists, is properly managed, and pays its taxes. This happens through three main channels:

The Three Pillars of Malta Annual Compliance

• Malta Registry of Companies (ROC): Annual Return with shareholder details and annual accounts
• Malta Financial Services Authority (MFSA): Only for licensed businesses
• Inland Revenue Department: Corporate Tax Return and tax payments

Sound like a bureaucratic marathon? It is. But once you know what needs to go where and when, it becomes routine. Ill walk you through the practical steps so you don’t get lost in the Maltese administrative jungle.

What Makes Malta Different from Other EU Countries?

Malta has developed a particularly strict system, with increased attention as an EU tax oasis. Unlike Germany or Austria, where deadlines can often be extended, Maltas deadlines are strict. Miss the January 31 deadline for your Annual Return, and youll pay for it.

Pro Tip: I add all Malta deadlines to my calendar system in November – with three reminders. Sounds excessive? Wait until you pay your first penalty.

Who Is Affected?

Every Maltese company, regardless of type:

• Private Limited Company (Ltd.)
• Public Limited Company (PLC)
• Holding company with no operational activity
• Trading company with staff

Even if your Malta company hasn’t turned over a single euro all year, you still have to submit all documents. Maltese law doesn’t recognize a “zero return” like in Germany.

Annual Return Malta: What Belongs in Company House and What Doesn’t

The Annual Return is your most important document for the Malta Registry of Companies. Here you report any changes to the company and prove it still exists. The form looks harmless, but the devil’s in the details.

This Information Must Be Updated Annually

Annual Accounts: Which Standard Applies to Malta Companies?

Here’s where it gets interesting: Malta follows the International Financial Reporting Standards (IFRS), but with concessions for small companies. What exactly does that mean?

• Micro-Entities (annual turnover under €350,000): Simplified balance sheet and profit & loss statement are sufficient
• Small Companies (under €8.8M turnover): Full annual accounts without cash flow statement
• Medium/Large Companies: Full IFRS compliance with all appendices

Most international holding companies fall into the first category. This saves time and accounting fees.

Directors’ Report: What Malta Really Wants to Know

The Directors’ Report is more than a formality. Malta checks it carefully:

1. Principal Activities: What does the company actually do? “Investment Holding” is often not enough
2. Review of Business: Performance over the business year – even for holding companies
3. Future Developments: Plans for the next year
4. Risk Management: How do you manage business risks?

Note: Don’t just write “No significant events occurred.” The Registry doesn’t love this. A few concrete sentences on business development look much more professional.

Online Filing: How to Submit the Annual Return Digitally

Since 2019, almost everything is done online via the Registry of Companies Portal. The system is… let’s say, it takes some getting used to. Here’s my step-by-step guide:

1. Log in with your Company Registration Number
2. Complete the Annual Return form (takes 20–30 minutes)
3. PDF uploads: annual accounts, Directors’ Report, Auditor’s Report (if required)
4. Pay by credit card (€85 filing fee)
5. Print and archive the confirmation

The portal is prone to crashing, especially at the end of January. Plan some buffer time and save as you go.

Malta Corporate Tax Return: Tax Filing for International Companies

The Maltese tax return is a bigger deal than the Annual Return. Here it’s all about money – and Malta takes a close look. The Inland Revenue Department not only wants to know your profits, but also whether you’re eligible for Malta’s famous tax refund system.

Malta Tax Return: Form C vs. Form P

Depending on the type of company, you’ll use different forms:

Understanding the Malta Tax Refund System

This gets complex: Malta levies a 35% corporate tax but pays up to 6/7 of it back to shareholders. This works through several tax accounts:

• Maltese Tax Account: For income from Malta (refund: 6/7 = 30%)
• Foreign Income Account: For foreign income (refund: 6/7 = 30%)
• Final Tax Account: For certain passive income (no refund)

In practice this means: You pay 35% corporation tax, but get 30% back when dividends are distributed. Effective tax rate: 5%.

Important: The refund is only triggered on actual dividend payments. Retain profits in the company, and the full 35% remains due.

Participation Exemption: Tax-Free Earnings from Participations

For holding companies, the Participation Exemption is the gold standard. Earnings from corporate holdings are completely tax-free if:

1. The holding is at least 10%
2. The holding is kept for at least 183 days
3. The target company is resident in an EU country or double tax treaty country

This makes Malta especially attractive for international holding structures. Dividends from German, Austrian, or Swiss subsidiaries pass tax-free through Malta.

Substance Requirements: What Malta Means by “Real” Business

Since the EU anti-tax-avoidance directives, Malta checks more closely whether your company has real economic substance. So-called Economic Substance Requirements apply to:

• Intellectual Property Holding
• Fund Management
• Insurance Business
• Shipping Activities
• High-Risk IP Business

Pure holding activities are usually not affected, but you must still be able to prove that key decisions are made in Malta.

Transfer Pricing: Even Small Companies Are Affected

Malta applies OECD transfer pricing rules. That means transactions between related companies must be at arm’s length. Sounds theoretical? It’s practically relevant if you recharge management fees or licenses between Malta and other countries.

Document all intra-group transactions carefully. Malta is increasing their checks here.

Deadlines & Dates: What Needs to Be Filed When

In Malta, time is money – and it’s your money when you miss deadlines. The Maltese system is unforgiving: One day late, and penalties begin. Here are all the key dates, with what happens if you miss them.

The Malta Compliance Calendar: These Deadlines Are Non-Negotiable

Annual Return Deadline: Why 31 January Is So Critical

31 January is the most important date in the Malta company year. Here you must prove your company still exists and is properly managed. The deadline is strict: No extensions, no excuses.

What happens if you’re late?

• Day 1–30: €233 base penalty plus €2 per day
• Day 31–60: Additional €233 plus still €2/day
• From day 61: Registry can initiate company strike-off

Sounds minor? Being two months late will cost you €590 – just for the Annual Return. Plus fees to re-register the company if it is struck off.

My experience: In 2022 I missed the 31 January deadline by three days – due to an IT problem with the Company Secretary. Cost: €239 penalty. Since then I always file by 25 January at the latest.

Corporate Tax Return: Why 30 June Is Non-Negotiable

The tax return must be filed by 30 June for the previous calendar year. Malta does not allow extensions like Germany or Austria. 1 July = penalty due.

Especially tricky: Even if you owe no tax (loss carryforward or participation exemption), you still need to submit a zero return. Not filing costs €465.

Preliminary and Interim Tax: Planning Advance Payments Properly

Malta doesnt want to wait until June for its money. That’s why there are two advance tax payment dates:

• 31 March (Preliminary Tax): 50% of expected annual tax
• 15 September (Interim Tax): Additional 40% of expected annual tax

The remaining 10% is settled with the tax return in June. Problem: You make these advance payments based on your own estimate. If you underestimate, you pay interest; if you overpay, you’ll only be refunded after completing the tax return.

Annual Accounts Deadlines: When You Need an Auditor

The annual accounts must be completed within 10 months after the end of the financial year. For most Malta companies (calendar year), that’s by 31 October.

When do you need an auditor?

• Never: Micro-entities under €350,000 turnover
• Sometimes: Small companies – only in special circumstances
• Always: Public companies and larger companies

Most international holding companies don’t need an auditor. That saves time and €3,000–5,000 annually.

Cost Overview: What Annual Compliance Really Costs

Malta promotes itself as a low-cost company location. Is that true? It depends how you calculate. The base costs are manageable, but extras and penalties can quickly add up. Here’s my transparent cost breakdown from four years’ experience.

Mandatory Costs: These Expenses Are Unavoidable

Bottom line: Minimum €2,285 per year for a simple holding company with no operations. Realistically closer to €3,000–4,000.

Variable Costs: Where Things Get Individual

Depending on the complexity of your Malta company, additional costs are possible:

• Audit (if required): €3,000–8,000
• Transfer Pricing Documentation: €2,000–5,000
• VAT Registration + Returns: €1,200 setup + €800 annually
• Economic Substance Compliance: €1,500–3,000
• Compliance Officer (for licensed activities): €6,000–12,000

Hidden Costs: The Ones Nobody Expects

This is where the nasty surprises can blow your Malta budget:

Bank Account Maintenance: Maltese banks love their fees. HSBC Malta charges €25 monthly for business accounts, Bank of Valletta even €35. Plus transaction fees of €0.50–2 per transfer.

• Notary fees for changes: Company contract amendments cost €500–1,500
• Due Diligence updates: Banks require updated KYC docs each year (time + document costs)
• Apostille certifications: €35 per document in Malta, often several required
• Express processing: Registry of Companies charges 100% premium for priority filing

Cost Comparison: Malta vs. Other EU Countries

How does Malta compare internationally?

Malta sits in the mid-range. The tax advantages can justify higher compliance costs – but only for companies with sufficient turnover. For small holding companies under €100,000 annual profit, it’s often not economical.

Savings Tips: How to Legally Cut Your Malta Costs

1. Use package deals: Many providers offer all-in-one packages (Secretary + Office + Accounting) for €2,500–3,500
2. DIY where possible: You can submit the Annual Return yourself if you delegate the Company Secretary tasks
3. Time management: Filing early avoids rush fees and penalties
4. Smart bank choice: Online banks like Revolut Business have lower fees
5. Multi-year contracts: Often 10–15% discount with service providers

Common Pitfalls: Mistakes You Should Avoid

Malta compliance seems straightforward on paper. In practice, there are plenty of traps that can quickly become expensive. After four years and some painful lessons, here are the common mistakes – and how to avoid them.

Mistake #1: Wrong Shareholder Addresses in the Annual Return

Sounds trivial but can cost a lot of time and hassle. The Malta Registry is strict: If your address in the Annual Return doesn’t match the registry record, the whole filing is rejected.

My 2023 mistake: Reported move from Munich to Zurich, but forgot to update the new address with the Malta Registry. Result: Annual Return rejected, two-week delay, €50 extra charge for re-filing.

Solution: Keep an Excel list of all shareholder and director data. Update it immediately if anything changes and check before each Annual Return.

Mistake #2: Company Secretary License Expired

Every Company Secretary must have a valid MFSA license. If it lapses, your company instantly loses its legally required Secretary. The Registry picks up on this quickly – and reacts harshly.

Warning signs:

• Emails from the Secretary bounce
• No response to queries for several days
• Annual Return rejected as “Invalid Secretary”

Solution: Check your Secretary’s MFSA license annually on the official website. If there are issues, switch immediately – it only takes 2–3 days.

Mistake #3: Incorrect Preliminary Tax Estimate

The prepayment on March 31 is based on your own profit estimate. If you underestimate, Malta charges 5% interest on the difference. This can get expensive for larger amounts.

Real-life example: Company expects €50,000 profit, pays Preliminary Tax on €25,000 (50% of €50,000). Actual profit: €100,000. Additional payment: €12,250 tax + €612 interest.

Solution: Overestimate by 10–20%. Overpayments are offset or refunded with the tax return in June – and you don’t lose interest.

Mistake #4: Participation Exemption Applied Incorrectly

The tax-free treatment of participation profits is Malta’s flagship benefit. But the conditions are strict:

• At least 10% holding
• Held for at least 183 days
• Qualifying holding in a treaty country

If you miss even one condition, the full 35% tax applies to all profits.

Common mistake: Sold a holding after 150 days, thinking “almost 183 days” would be enough. It’s not. Malta counts every calendar day.

Mistake #5: Ignoring Economic Substance Requirements

Since 2019, certain Malta companies must demonstrate real economic substance. Especially affected:

• IP holding companies
• Fund management companies
• Shipping companies

Ignore the substance requirements, and you risk fines up to €50,000 and, in extreme cases, lose tax benefits.

Minimum substance requirements:

• Qualified employees in Malta
• Physical office (not just a mailbox)
• Adequate operating expenditure
• Core income generating activities in Malta

Mistake #6: Neglecting Transfer Pricing Documentation

Malta applies OECD standards. Transactions between group companies must be at market rates. This also applies to small companies.

Typical problem areas:

• Management fees between a Malta holding company and a German subsidiary
• License fees for IP usage
• Loans between group companies

Without proper documentation, Malta may challenge your prices and make adjustments.

Mistake #7: Underestimating Banking Compliance

Maltese banks have tough due diligence requirements. Annual KYC updates are standard, for some banks every six months.

If you forget the update, your bank account can be frozen. That’s especially frustrating if a tax payment is due at the time.

Banking compliance checklist:

• Current Certificate of Good Standing (max. 3 months old)
• Updated directors’ and shareholders’ declaration
• Current financial statements
• Proof of address for all shareholders
• Business activity confirmation

Professional Support: When an Accountant Is Worthwhile

Theoretically, you can do everything yourself: complete the Annual Return, file the Tax Return, prepare annual accounts – all just forms and Excel sheets. In practice, things get tricky as soon as you have real business activity. Here’s when DIY ends and it’s time for professional help.

DIY Suitability: Which Companies You Can Manage Yourself

Suitable for self-management:

• Pure holding companies without operations
• Annual turnover below €100,000
• Maximum 2–3 shareholders/directors
• No complex group structures
• Only passive income (dividends, interest)

If that’s your setup, the forms are straightforward. Annual Return takes 30 minutes, Tax Return another 2–3 hours. Micro-entity accounts can be done in an afternoon.

Helpful tools:

• Malta Registry online portal (for Annual Return)
• CFR (Corporate Tax Return) software from Inland Revenue
• Standard accounting software like Lexware or DATEV

My experience: I managed my first Malta company myself for three years. Time spent: about 8–10 hours per year. Savings: around €2,000 annually. Worthwhile – but only for simple setups.

When Professional Support Becomes Essential

In these situations, you should bring in a Malta specialist:

The Different Types of Malta Advisors

Malta has its own advisor ecosystem. Each type has unique strengths:

Company Secretary Services

The minimum standard. Every Malta company needs a licensed secretary.

• What they do: Annual Return filing, directors’ resolutions, statutory compliance
• What they don’t do: Tax advice, bookkeeping, strategic planning
• Cost: €600–1,200 per year
• For: All Malta companies (required by law)

Accounting Firms

For all things bookkeeping and annual accounts.

• What they do: Bookkeeping, financial statements, VAT returns
• What they don’t do: Complex tax planning, legal advice
• Cost: €2,000–8,000 per year
• For: Companies with ongoing business

Tax Advisory Firms

The top tier for complex tax structures.

• What they do: Tax planning, transfer pricing, treaty optimization
• What they cost: €350–800 per hour
• For: Complex international structures, high-net-worth individuals

Selecting a Service Provider: What to Look For

Malta may be small, but service provider quality varies widely. Here’s my checklist:

1. Check MFSA license: Verify on the official website
2. Track record: How long have they been in business? References?
3. Response time: How fast do they respond to emails?
4. Fee structure: Package or hourly rate? Any hidden costs?
5. Expertise: Do they understand your specific situation?

Red Flags: Avoid These Service Providers

Not every Malta advisor is worth the money. Warning signs:

• No physical address in Malta: Many so-called “Malta experts” are based in Germany or Cyprus
• Unrealistic promises: “Guaranteed 0% tax” is always a lie
• No MFSA license: Company Secretary without a license = illegal
• Non-transparent pricing: “We’ll discuss costs later” is a huge red flag
• Poor availability: You need to be able to reach them in an emergency

Hybrid Approach: The Best of Both Worlds

My current favourite: Do basic compliance yourself, outsource the complex topics.

What I do myself:

• Annual Return filing
• Simple tax return for pure holding income
• Micro-entity annual accounts
• Banking compliance

What I outsource:

• Transfer pricing documentation
• Complex tax planning
• Economic substance assessments
• Due diligence for new investments

Result: 60% cost savings compared to full service, but still professional advice for critical matters.

Frequently Asked Questions

Can I file the Annual Return myself, or do I need a Company Secretary?

You always need a licensed Company Secretary – this is required by law. The Secretary can delegate authority, allowing you to file the Annual Return yourself via the online portal. This saves service provider handling fees.

What happens if I miss the 31 January Annual Return deadline?

The Malta Registry charges an immediate €233 penalty plus €2 for each day late. After 60 days, a strike-off process may begin. The company loses its legal status and must be re-registered at additional cost.

Do I have to file all documents as a pure holding company with no revenue?

Yes, all Malta companies must submit an Annual Return and Tax Return every year – even with zero revenue. Malta has no “dormant” status like Germany. The only exception is that annual accounts can be ultra-simplified as a micro-entity.

How does the Malta Tax Refund System work for international dividends?

Malta charges 35% corporation tax, but refunds 6/7 (30%) when dividends are paid out. For foreign dividends that meet participation exemption rules, you pay no tax at all. Effective tax rate: 0–5% depending on setup.

Do I need an auditor for my Malta company?

Micro-entities (turnover under €350,000) are exempt from audit requirements. That covers most international holding companies. Small companies only need an auditor in special cases. Public companies are always subject to audit.

How much does Malta compliance actually cost per year?

Minimum €2,285 for a simple holding company (Company Secretary, Annual Return, Tax Return, annual accounts). Realistically €3,000–4,000. For operating businesses or complex setups it can be €10,000+ per year.

Can Malta delete my company if I miss deadlines?

Yes, the Registry can start strike-off proceedings after 60 days late on the Annual Return. The company is struck off and loses its legal status. Reinstatement is possible, but costs an additional €1,165.

What are Economic Substance Requirements and do they apply to me?

Since 2019, certain Malta companies must demonstrate real economic substance – especially IP holding, fund management, or shipping businesses. Pure investment holdings are usually not affected. Fines up to €50,000 for non-compliance.

What bank fees will I face in Malta?

Maltese banks charge €25–35 a month for business accounts, plus €0.50–2 per transaction. Annual KYC updates are standard. Alternative: online banks like Revolut Business with lower fees but fewer services.

Can I run my Malta company entirely without a local advisor?

For simple holding setups, yes. You only require a Company Secretary (by law) and can file the Annual Return and Tax Return yourself. For an operating business or complex tax structures, professional advice becomes essential.