Table of Contents Malta vs. Singapore: The Honest Location Comparison for International Companies Tax Advantages Malta vs. Singapore: What Really Matters Legal System and Company Formation: EU vs. Asia Quality of Life and Business Environment Compared Costs and Practical Considerations Strategic Location Choice: Which Type Are You? Malta vs. Singapore: The Honest Location Comparison for International Companies Let me get straight to the point: The decision between Malta and Singapore as an international business location isn’t nearly as clear-cut as many business coaches claim. Having spent two years in Malta and several extended stays in Singapore, I know both locations have their merits—but they suit completely different types of entrepreneurs. Why Malta or Singapore in the First Place? Let’s be real: If you’re a German entrepreneur looking to expand internationally, you’ll sooner or later consider these two locations. Malta attracts with EU law, 5% taxes, and the promise of being “the Singapore of Europe.” Singapore counters with 17% corporate tax, which can realistically be brought down to 8-12%, along with direct access to the Asian market. What most guides fail to mention: The choice isn’t just about tax rates. Your industry, your business model—and yes, even your personal preferences—are huge factors. I know entrepreneurs who returned to Malta after a year in Singapore because the distance from European clients was just too great. Others moved to Singapore after just six months in Malta because the local bureaucracy drove them crazy. My Experience with Both Locations When I set up my Malta Limited in 2022, I was convinced: EU access, low taxes, English-speaking—ideal. The reality was different. Three months just to open a bank account, official appointments cancelled last-minute, and a tax advisor who “needs 2-3 weeks” for a simple inquiry. My Singapore experiment in 2023 was more efficient: Company set up in five days, bank account in two weeks—but the compliance requirements are tough. Monthly GST filings (Goods and Services Tax—Singapore’s VAT), strict documentation duties, and minimum director residency requirements. Both locations work—but they appeal to different entrepreneurial types. Malta is more relaxed, but slower. Singapore is more efficient, but strictly regulated. Tax Advantages Malta vs. Singapore: What Really Matters This is where it gets concrete—and the wheat is separated from the chaff. Those blanket “5% in Malta, 17% in Singapore” comparisons you see everywhere are at best only half the truth. Malta Tax Benefits for Companies in Detail Malta’s famous 5% taxation happens via the refund system. Your company first pays 35% corporate tax, but as an EU holding company you get back 6/7 of that. Calculation: 35% – 30% refund = 5% effective taxation. But beware: This only works for certain business models. E-commerce with EU clients? Perfect. Consulting for German companies? Also good. Local Malta business? Forget the 5%—you pay the full 35%. The practical requirements for taking advantage of Malta’s tax benefits: At least 90% of income must originate from foreign sources Your company must have “substance” in Malta (real office, local employees) You need Maltese tax residency for optimal advantage Annual accounts and tax returns must be submitted on time Singapore Tax System: How It Really Works Singapore’s 17% corporate tax sounds higher than Malta’s, but the system is more transparent. No complicated refunds, no EU structures—you simply pay 17% on profits. End of story. The clever extras make all the difference: Startup Tax Exemption: First 100,000 SGD profit is tax-free (for the first three years) Partial Tax Exemption: Another 200,000 SGD taxed at only 8.5% Development and Expansion Incentives: Up to 5% tax for qualified activities Intellectual Property Regime: Earnings from patents and IP taxed at just 5% In reality, a well-structured Singapore company pays between 8-12% tax. The big advantage: the system is predictable and works without EU legal structures. Tax Comparison: Sample Calculations Let’s look at three typical scenarios—with actual numbers, not tax advisor marketing: Business Model Annual Profit Malta (effective) Singapore (effective) E-Commerce/SaaS €500,000 5% = €25,000 10% = €50,000 Consulting/Services €200,000 5% = €10,000 8% = €16,000 Trading/Investment €1,000,000 0-5% = €0-50,000* 5-17% = €50,000-170,000 *Malta: Trading gains can sometimes be tax-free if they qualify as capital gains What this table doesn’t show: the extras. In Malta, you’ll need a Maltese tax advisor (€3,000-8,000/year), compliance costs, and often a local director. In Singapore, bookkeeping fees are higher (5,000-12,000 SGD/year), but at least they’re predictable. Legal System and Company Formation: EU vs. Asia This is where the fundamental difference between both locations becomes clear. Malta operates within the EU legal framework—with all its pros and cons. Singapore has developed its own system inspired by British common law. Malta Company Formation: EU Law as an Advantage Malta’s biggest trump card is EU membership. Your Malta Limited is automatically recognised in all 27 EU states. You can easily do business in Germany, France, or Italy without complex registrations. The practical benefits: EU-wide services freedom with no extra registrations Automatic VAT ID for intra-EU trade GDPR already implemented Single market access for all EU-regulated industries The flip side: Malta also adopts all new EU regulations. New directives from Brussels apply automatically, which can cause surprise changes in tax laws or compliance requirements. Malta Formation Process (my experience): Reserve company name: 1-2 days (€25) Prepare Memorandum and Articles of Association: 3-5 days Submit to Malta Business Registry: 5-10 days (€245) Open bank account: 4-12 weeks (this hurts) Tax registration: 2-3 weeks after opening bank account Singapore Company Setup: Efficiency at a Price Setting up a company in Singapore is a dream for anyone who’s dealt with German bureaucracy. Online portal ACRA (Accounting and Corporate Regulatory Authority), digital signatures—everything is done in a matter of days. Singapore Formation Process: Check and reserve company name online: instant (15 SGD) Submit BizFile+ application online: 1-2 hours Approval: 1-3 days (300 SGD) Corporate bank account: 1-3 weeks GST registration (if required): 2-3 days The catch: You need at least one local director with Singapore residency. Many entrepreneurs use corporate service providers for this (1,500-3,000 SGD/year). It’s legal but adds to your costs. Compliance and Ongoing Requirements This will determine if your international setup becomes a blessing or a curse. Both countries take compliance seriously—but in different ways. Malta Compliance Requirements: Annual Return of Allotments (by January 31) Annual Return with the business registry (by December 31) Tax return by June 30 of the following year Ultimate Beneficial Owner register must be kept up to date For substance: proof of local activities Singapore Compliance Requirements: Annual return (ACRA) within 30 days after financial year end Corporate income tax return by November 30 GST returns monthly or quarterly (depending on turnover) Controller of Immigration: work pass updates if staff changes Fulfillment of minimum local director requirements My verdict: Singapore is stricter but more structured. Malta is more relaxed but less predictable. In Singapore, you always know what’s due and when. In Malta, EU directives or local interpretations can suddenly change everything. Quality of Life and Business Environment Compared Now it gets personal. Because let’s be honest: If you pick an international business location, you’ll likely spend time there. And Malta and Singapore could not be more different—think Mediterranean laid-back vibe versus Asian efficiency. Malta: Mediterranean Lifestyle Meets EU Standards Malta markets itself as the perfect work-life balance paradise: 300 days of sunshine a year, historic cities, crystal clear sea—all true. But there’s another side you won’t find in residency brochures. The Malta reality, honestly: Climate: Yes, lots of sun—but July/August can be brutal (40°C+, humid) Infrastructure: Buses unreliable, occasional power outages Internet: Generally good (100+ Mbps), but spotty in rural areas Cost of living: Cheaper than Germany, but more expensive than expected (rental boom!) Language: English works everywhere, but Maltese dominates in official matters The business climate in Malta is… relaxed. Meetings start on time, plus 15 minutes, deadlines are flexible, and “tomorrow” sometimes means the day after tomorrow. Relaxing for some, frustrating for others. Networking runs on personal relationships. Malta is small (500,000 residents); everyone knows everyone. Once you’re in the ecosystem, doors open quickly—but getting in can take a while. Singapore: Asian Efficiency and Global Connections Singapore is the opposite of Malta—for better or worse. Everything works, but nothing is free, and rules are rules. Singapore quality of life: Climate: Tropical, consistently 28-32°C, high humidity Infrastructure: World-class—MRT runs on time, internet 1GB+, everything is digital Safety: Extremely safe but strict laws (Singapore is a “fine city” in more than one sense) Cost of living: Expensive, especially rent (3,000+ SGD for a decent 2-bed apartment) Diversity: Multicultural, but English is the lingua franca The business environment is professional and international. Meetings start on time, contracts are honored, and networking happens at structured events and business clubs. You meet entrepreneurs from all over the world—but it’s more superficial than in Malta. Networking and Business Culture Here’s where a fundamental difference shows: Aspect Malta Singapore Networking Personal, familiar, slow Professional, structured, fast Business relationships Long-term, trust-based Results-driven, pragmatic Decision making Consensus-based, takes longer Hierarchical, rapid decisions Working hours Flexible, work-life balance Longer hours, performance-driven In Malta you meet business partners over family dinners. In Singapore you exchange business cards at structured networking events. Both approaches work—they just suit different personalities. Practical tip: If your main clients are in Europe, Malta is perfect time zone-wise. For Asian markets, Singapore is unbeatable—while you’re sleeping in Malta, business is booming in Hong Kong and Tokyo. Costs and Practical Considerations Now for the numbers that can really sting. Because between “low taxes” and “actual overall costs,” the gap can easily run into the tens of thousands of euros. Cost of Living Malta vs. Singapore I’ve tracked my expenses in both countries carefully for two years. The result surprises many who think of Malta as a “cheap” southern European country: Category Malta (monthly) Singapore (monthly) Germany (for comparison) Rent (2-bed, city center) €1,200-1,800 €2,400-3,600 €1,000-1,500 Groceries €400-600 €500-800 €300-500 Transport €200-400* €150-300 €100-200 Restaurants €400-800 €600-1,200 €300-600 Utilities €150-250 €100-200 €200-300 *Malta transport: High costs due to needing a car—public transport is unreliable The surprise: Malta isn’t as cheap as everyone says. Rents in particular have exploded since 2020. Singapore is pricier, but you get top-notch infrastructure and services for it. Office Costs and Infrastructure This is where the differences between the two locations are most obvious: Malta Office Costs: Co-working space: €200-400/month Serviced office: €500-1,200/month Private office: €25-40/m² (note minimum size for “substance”) Business internet: €50-150/month (100+ Mbps) Phone/mobile: €30-60/month Singapore Office Costs: Co-working space: 300-600 SGD/month Serviced office: 800-2,000 SGD/month CBD office: 60-120 SGD/sqft/year (very expensive!) Business internet: 80-200 SGD/month (1GB+) Phone/mobile: 50-100 SGD/month The Malta advantage: cheaper offices, but you’ll often need a car. Singapore’s advantage: everything is reachable by MRT, but CBD offices are extremely expensive. Personnel Costs and Talent Pool If you’re planning to hire staff, this is a decisive point: Malta personnel costs (gross annual salaries): Junior developer: €25,000-35,000 Senior developer: €40,000-60,000 Marketing manager: €30,000-45,000 Accountant/controller: €25,000-40,000 Employer’s social contributions: approx. 10% extra Singapore personnel costs (gross annual salaries): Junior developer: 45,000-70,000 SGD Senior developer: 80,000-150,000 SGD Marketing manager: 60,000-100,000 SGD Accountant/controller: 50,000-80,000 SGD CPF (pension): 17% employer’s share Malta’s wages are cheaper, but the talent pool is smaller. Especially IT skills are rare and often overpriced. Singapore is costlier, but you can find qualified staff from around the world. Work permit reality: Malta: EU citizens can work immediately; non-EU need a work permit (3-6 months) Singapore: Strict quota system—Employment Pass only for higher skilled jobs The hidden costs nobody mentions: Malta: Lawyer for EU compliance (€2,000-5,000/year), local director (€1,500-3,000/year) Singapore: Mandatory audit for companies >500,000 SGD revenue (5,000-15,000 SGD/year) Strategic Location Choice: Which Type Are You? After all the facts and figures, here’s the key question: Which location truly matches you and your company? The decision is more personal than most tax advisors admit. Malta is right for you if… Malta works best for certain types of entrepreneurs. Here’s the honest checklist: Your main market is Europe: EU law, no time zone difference, easy market access You value work-life balance: Sea on your doorstep, relaxed business culture, family vibe Your business is digital/international: E-commerce, SaaS, consulting—anything remote-friendly You can handle bureaucracy: Patience with officialdom, flexible deadlines, “it’ll-be-alright” mindset You want real tax optimization: 5% is possible, but only with the correct structure You speak fluent English: It’s enough for business, but to make friends, more is helpful Malta success stories from my network: German e-commerce agency: €2M annual revenue, 5% tax, remote team Europe-wide French SaaS founder: bootstrap startup, low costs, EU market focus Swiss investment boutique: private clients, tax optimization, lifestyle factor Singapore is right for you if… Singapore fits a different entrepreneurial profile—here’s the reality check: You want to expand into Asia: China, Japan, Southeast Asia—Singapore is your gateway You need top-class infrastructure: Reliability matters more to you than low costs Your business is scalable: FinTech, deep tech, manufacturing—anything that’s investment-heavy You value clear rules: Compliance is well-defined, but must be strictly followed You want global networking: Venture capital, major corporations, global players You’re okay with higher costs: ROI must add up, but the investment is bigger Singapore success stories: German FinTech: Southeast Asia expansion, Series A funding via Singapore VCs Swiss trading firm: Asia focus, 24/7 markets, professional infrastructure US tech startup: APAC headquarters, local team, government incentives Decision Matrix for Your Business Location Here’s a practical decision helper. Rate each point 1-5 (5 = very important to me): Criterion Malta Strength Singapore Strength Your Priority (1-5) Low taxes 5% possible 8-12% realistic _ EU market access Perfect Complicated _ Asia expansion Difficult Perfect _ Infrastructure Basic++ World-class _ Quality of life Relaxed Efficient _ Startup ecosystem Small Large _ Setup effort Medium Low _ Ongoing costs Medium High _ My honest recommendation: If your primary clients are European and you value work-life balance, go for Malta. The 5% tax saving is real—as long as you can live with Malta’s easy-going ways. If you want to scale internationally and need professional infrastructure, go for Singapore. The higher costs pay off with better business opportunities. And if you’re unsure? Start with Malta. You can always switch to Singapore later, but switching the other way is easier. Malta forgives beginner mistakes—Singapore does not. Whatever you choose: Both locations can work. But only if they suit your business model and personality. Lowest possible taxes are useless if you’re unhappy—or if your business flounders. Frequently Asked Questions (FAQ) Can I, as a German entrepreneur, easily set up a company in Malta or Singapore? Yes, both are possible in principle. In Malta, you benefit from EU freedom of establishment. In Singapore, you’ll need a local director or a corporate service provider. Both countries are foreigner-friendly for company setups. How exactly does the Malta refund system work? Your company first pays 35% corporate tax. As an EU holding company, you get 6/7 (30%) refunded, so you end up at 5% effective tax. Important: This only works for foreign-sourced income and the proper structure. Do I have to live in Malta or Singapore if I own a company there? No, there’s no residency requirement. But for optimal tax benefits in Malta, Maltese tax residency (183+ days) is advantageous. In Singapore, the corporate structure is enough; personal residency is optional. What are the minimum “substance” requirements in Malta? You need a real office (not just a mailbox), actual local business activity, and demonstrable management decisions taking place locally. A local director or staff is sensible, but not always mandatory. Is Singapore really as expensive as everyone says? Yes, Singapore is expensive—especially for housing and restaurants. But you get world-class infrastructure and services. Costs are predictable and transparent, unlike hidden extra expenses in some other countries. Can I just move my German company to Malta or Singapore? That’s complicated and tax risky. Usually it’s better to found a new company and transfer the business over step by step. Definitely discuss your plans with a tax advisor and lawyer first. Which industries are especially promoted in Malta or Singapore? Malta supports gaming, blockchain, maritime services, and film. Singapore focuses on FinTech, biotech, deep tech, and manufacturing. Both offer special incentive programs for qualified companies. How long does it take to open a bank account in Malta vs. Singapore? Malta: 4-12 weeks (very variable, depends on the bank and paperwork). Singapore: 1-3 weeks (more efficient, but strict due diligence). In both countries, you need full compliance documentation. What happens with Brexit—is Malta safer as an EU location? Malta remains an EU member with all its advantages. Singapore is independent of EU developments, but also doesn’t benefit from them. Both are politically stable, but strategically different. Can I serve German clients using a Maltese or Singaporean company? Yes, both options work. A Malta company has simplified access to German clients thanks to EU law. A Singapore company may need German VAT registration, depending on your business model. Get expert advice first!
