Malta review after 3 years: What an international entrepreneur would do differently today – Lessons Learned

Why I Moved to Malta in 2021: My Original Expectations

6% tax, EU membership, English as an official language, and 300 days of sunshine a year—that was my Malta pitch in fall 2021. Three years later, I can say: its all true. Still, there are things Id do differently today.

Back then, I was running an online marketing agency in Germany and dreaming of the digital nomad lifestyle with tax optimization. Malta seemed like the perfect fit: an EU country with attractive tax rules for entrepreneurs, without the language barriers of other tax havens. What could possibly go wrong?

The Malta Promise—from a German Perspective

My initial calculation was simple: As a German entrepreneur, I paid almost 45% tax at the time (trade tax, corporate income tax, capital gains tax). Malta promised just 6.25% on distributed profits, thanks to the Remittance System. On annual profits of €200,000, that would mean over €70,000 in savings.

EU freedom of movement made the move legally easy, and English as an official language was supposed to make bureaucracy more bearable. Add in the Mediterranean climate—I was sold.

What I Overlooked Back Then

Today I know: the 6% is real, but the road there is bumpier than any tax consultants brochure suggests. Three key points no one really told me in 2021:

• Setup Costs: Expect €15,000-€20,000 in your first year—just for lawyers, accountants, and authorities
• Substance Requirements: You really have to live and work here—not just run a mailbox company
• Practical Hurdles: From opening a bank account to finding an apartment—everything takes twice as long as planned

What does that mean for you? If youre considering Malta, plan on at least 18 months to fully relocate. And set aside a reserve of €30,000 for unforeseen expenses.

Malta Company Formation: What Really Happened During Setup

In February 2022, I found myself for the first time at the Malta Business Registry in Valletta. Three hours in line for a 10-minute appointment—welcome to Malta, I thought. Its funny now, but at the time, I was shocked.

The Paperwork: More Than Expected

Officially, it takes 3-5 working days to set up a Maltese Limited (Ltd.). Reality check? Count on 3-4 weeks—if all documents are complete. Youll need:

• Minimum Share Capital: €1,165 (must be deposited)
• Registered Office: A real business address in Malta (from €500/year)
• Company Secretary: Must be a Maltese citizen or EU resident (from €1,500/year)
• Memorandum and Articles: The statutes—let a lawyer handle this

My mistake: I thought I could handle it on my own. After two weeks of back-and-forth with incomplete forms, I ended up hiring a local lawyer after all. Cost: €3,500. Should’ve done that from the start—it would have been cheaper.

The Banking Odyssey

This is where things get truly Maltese: opening a bank account is like an initiation ritual. BOV (Bank of Valletta), HSBC Malta, APS Bank—I tried them all. Every bank wants different documents, and nobody can tell you in advance exactly what that is.

I ended up at APS Bank. Not because theyre the best, but because the banker there was patient with confused Germans.

Tax Registration: The Moment of Truth

Registering with the Commissioner for Revenue is theoretically straightforward. You fill out the VAT registration form and wait. In practice, you’ll discover Malta has its own tax system, fundamentally different from Germany.

The Maltese imputation system means your company pays 35% corporate tax, but as a shareholder, you get 6/7 of that back when you distribute profits. Effectively, you pay 5% tax. Sound good? It is—but only if you do everything right.

What does that mean for you? Have a Maltese tax advisor explain the system to you before you set up. My tip: budget €2,000-€3,000 per year for professional tax advice.

Malta Taxes in Practice: My Honest 3-Year Review

Here are the actual numbers. After three years in Malta, I can tell you exactly how much tax optimization really saved me—and what it actually cost.

The Numbers: Savings vs. Extra Costs

My average annual profit is €180,000. In Germany, I would have paid about €75,000 in tax. In Malta, it’s €9,000. Savings: €66,000 per year.

Sounds fantastic, right? Here’s the reality:

Bottom line: I save €48,500 a year—not the €66,000 from the marketing brochures, but still a lot of money.

The Maltese Tax System in Practice

What no one tells you beforehand: Maltas system is complex. Your company has three different accounts (Maltese Source Account, Foreign Source Account, Final Tax Account), and every dividend needs to be categorized correctly.

My first accountant messed this up. Result: I had to pay €12,000 back, plus penalties. Since then, I only work with tax professionals who specialize exclusively in Malta.

Substance Requirements: More Than a Mailbox

Malta takes economic substance very seriously. You need to prove your business actually happens here. Practically, that means:

• Spending at least 183 days a year in Malta
• Having a real office (home office only counts to a limited extent)
• Using Maltese employees or service providers
• Holding board meetings in Malta

Authorities check these requirements carefully now. A friend had to pay back €35,000 because he spent too much time in Germany.

What does that mean for you? Make Malta your real home—not just a tax trick. Anything else gets expensive.

Everyday Business in Malta: What Nobody Tells You Beforehand

After three years in Malta, I know every coffee shop in Sliema and that the bus to St. Julians is more likely to be canceled on Mondays. But what does that mean for business?

Internet and Infrastructure: Better Than Their Reputation

Surprise: the internet is much better than expected. With Epic or Melita, you get 1 Gbit/s for €40-50 per month. In Germany, youd pay twice as much.

Power outages? They happen, but less than feared. Over three years, I had maybe five outages longer than 30 minutes. It’s worse on Gozo, but in mainland Malta, it’s pretty reliable.

Business Partners and Networking

Malta is small—this is both a blessing and a curse. Upside: after a year, youll know the key players in your industry. Downside: everyone knows everyone, and rumors travel fast.

The business community splits into three groups:

• iGaming sector: The biggest employer, with plenty of events
• Fintech and Blockchain: Growing quickly but still manageable
• Traditional Business: Import/export, real estate, tourism

My tip: Go to the Malta Blockchain Summit events. Even if you’re not into crypto—that’s where you’ll meet the island’s most innovative entrepreneurs.

Finding Employees: The Eternal Struggle

Malta has full employment. Sounds good, but actually means: qualified employees are hard and expensive to find. A good marketing manager costs €35,000-€45,000 a year—back in Germany, you’d get better people for that price.

The solution: work remotely first. I now have a team from Germany, Poland, and Malta. The best of all worlds.

Bureaucracy: Slow, But Not Impossible

Yes, Maltese authorities are slow. No, theyre not incompetent. You just have to learn how the system works:

What does that mean for you? Schedule time for trips to government offices and be patient. Bring a book or a podcast to make the wait bearable.

Malta Mistakes and Lessons Learned: What Id Do Differently Today

Three years in Malta, lots of learnings. Here are the five biggest mistakes I made—and how you can avoid them.

Mistake 1: Choosing the Cheapest Accountant Instead of the Best

My first Maltese accountant charged €1,500 a year. Sounded cheap, but turned out to be a disaster. Wrong tax returns, missed deadlines, and in the end a €12,000 retroactive payment.

The Lesson: Do not cheap out on tax advisors in Malta. A good specialist costs €5,000-€8,000 a year, but will save you hassle and money. My tip: only hire firms that specialize exclusively in Maltese tax law.

Mistake 2: Renting an Apartment Too Quickly

In March 2022, I signed a rental contract for €1,800/month in Sliema. Didn’t know the area, didn’t compare. The apartment was okay, but overpriced and too noisy.

The Lesson: Take at least two months to try different neighborhoods. St. Julians is party central, Sliema is pricey but practical, Valletta is historic but touristy. I now live in Gzira—cheaper, quieter, still central.

Current prices (3-bedroom furnished apartment):

• St. Julians/Paceville: €1,800-2,500/month
• Sliema/Ta Xbiex: €1,500-2,200/month
• Gzira/Msida: €1,200-1,800/month
• Valletta: €1,300-2,000/month

Mistake 3: Trying to Keep My German Bank Account

I thought I could keep my German business account while running just a Maltese company. Wrong. After six months, German banks asked questions and closed the account when they realized I no longer lived in Germany.

The Lesson: Plan the full banking move from the start. Today, I use a mix of APS Bank Malta for local transactions and Wise for international transfers.

Mistake 4: Underestimating Social Life

Malta is an island. That means: limited social options. After a year, to be honest, I felt lonely. The expat community exists, but it’s often superficial—many stay only 1-2 years.

The Lesson: Invest consciously in friendships. Join local clubs (diving, hiking, photography), go to business events, and learn some Maltese—even just the basics. Locals open up much more when you show interest in their culture.

Mistake 5: Not Taking Substance Requirements Seriously

In my first year, I was still spending a lot of time in Germany—old clients, family, friends. Thats normal, but a tax headache. Malta counts every day, and 183 days really means 183 days.

The Lesson: Keep a meticulous travel log. App tip: TripIt or a simple Excel sheet. And make Malta truly your home, not just an extended workation.

What does that mean for you? Malta works, but only with the right preparation. Budget for an 18-month full setup and at least €30,000 initial costs.

Malta 2025: Who Should Still Take the Leap

The question I get asked most: Would you still recommend Malta today? The answer: It depends.

Malta is Worthwhile For You If…

After three years, I see a clear profile of entrepreneurs for whom Malta works:

• Annual profit above €150,000: Below this level, it’s not worth the hassle
• Location-independent business: Online services, e-commerce, consulting
• EU-focused clients: The EU passport makes many things easier
• Willing to really move: Not just for tax optimization, but for a real lifestyle change
• Business-level English: You need to converse with authorities, lawyers, and accountants

Malta Is Not for You If…

Just as clear: who tends to fail in Malta?

• Germany-dependent business: Local clients, in-person appointments
• Lower profit: Under €100,000 a year, it gets tough
• Family with school-aged kids: International schools are expensive and limited
• Health issues: The Maltese healthcare system is… challenging
• Only tax motivation: If you’re not truly interested in the Malta lifestyle, it will be hard

The Alternatives in 2025

Malta is not the only option. Other EU tax havens have caught up:

My Bottom Line After Three Years

Malta was the right move for me. I save taxes, live in a great climate, and have built an international business. But it wasn’t a walk in the park.

The honest maths: Malta saved me about €150,000 in tax over three years. Around €50,000 went into setup and ongoing costs. Net savings: €100,000. Plus, the lifestyle boost—which is priceless.

What does that mean for you? Malta works—but only with realistic expectations and professional advice. If you’re making €200,000+ in profit and want the Mediterranean, Malta is an option. If you only want to save tax, there are easier ways.

Frequently Asked Questions About Malta as a Business Base

How much does it really cost to set up a company in Malta?

Budget €15,000–€20,000 for the first year. That covers lawyers (€3,000–€5,000), tax advisor setup (€2,000–€3,000), government fees (€1,000), company secretary (€1,500/year), office address (€500–€1,000/year), and banking costs. Youll also need €5,000–€10,000 for personal relocation expenses.

Are the 5% taxes in Malta really real?

Yes, but only if you use the Remittance system correctly. Your company pays 35% corporate tax initially, but upon distribution to you as shareholder, you get 6/7 of that back. That leaves you with an effective 5% rate. However, this only works if you meet the substance requirements and spend at least 183 days per year in Malta.

How long does it take to fully relocate to Malta?

Plan at least 12–18 months for a complete relocation. Company formation takes 3–4 weeks, opening a bank account 4–8 weeks, tax registration another 2–4 weeks. Add time for finding accommodation, registration, and building local substance. Many underestimate this timeline.

What substance requirements do I need to fulfill in Malta?

Malta checks economic substance strictly. You must spend at least 183 days per year in Malta, have a real office (home office only partially counts), hold board meetings in Malta, and use local service providers. The authorities require evidence such as rental contracts, utility bills, and plane tickets. Violations lead to back taxes.

Can I keep my German bank account as a Malta resident?

No, that won’t work for long. German banks close business accounts as soon as they notice you’re no longer resident in Germany. You’ll need a Maltese business account, which takes 4–8 weeks to open and requires plenty of documentation. Plan the full banking move from day one.

What are the real living costs in Malta?

Malta is more expensive than Germany. A 3-bedroom apartment in a good area costs €1,500–€2,200/month; restaurants are 20–30% pricier; petrol is about €1.40/liter. On the plus side, power and internet are cheaper. Expect €10,000–€15,000 higher annual cost of living than in German cities.

Is Malta suitable for families with children?

That depends on their age. Malta works well for small children—there are plenty of international kindergartens. For school-aged children, it’s tougher: international schools are expensive (€8,000–€15,000/year) and have waiting lists. State schools have a good reputation, but some classes are still taught in Maltese.

Which industries work especially well in Malta?

Online business, e-commerce, consulting, iGaming, fintech, and blockchain work best. Difficulties arise for local services, businesses trading with or requiring a presence in Germany. Malta is ideal for EU-wide digital services, but not for Germany-specific business models.

Do I absolutely need a Maltese tax advisor?

Absolutely, yes. The Maltese tax system is complex and fundamentally different from Germany’s. A good Malta specialist costs €5,000–€8,000 per year but will save you from errors and back taxes. Only work with firms that focus solely on Maltese tax law—not German accountants with Malta experience.