Cumpliendo con las obligaciones de notificación: Lo que los países de origen desean saber sobre las empresas en Malta

What are Reporting Obligations for Malta Companies and Why Are They Important?

Imagine youve set up a company in Malta, but your home country acts like a jealous ex: it wants to know exactly what you’re up to, who youre doing business with, and whether any tax benefits are being hidden. That’s basically what reporting obligations—also called reporting duties—are all about.

The Common Reporting Standard (CRS) Explained Simply

The Common Reporting Standard (CRS) is the international agreement that ensures financial information is automatically exchanged between countries. Since 2017, Malta has been part of the system, which means: Your Maltese bank automatically reports relevant account data to your home country. The system works like digital gossip between tax authorities—but much more systematic and legally binding.

What does this mean for you? Your home tax office will find out about your Maltese business accounts, even if you dont report anything yourself. The days of secret foreign accounts are definitely over. OECD statistics show that more than 100 jurisdictions now exchange information—Malta, Germany, Austria, and Switzerland are all in.

Beneficial Ownership Register – Who is Really Behind It?

The Beneficial Ownership Register is Malta’s answer to the EU’s anti-money laundering directive. This is where its officially recorded who is truly behind a company—not just the formally registered directors. You’re already considered a beneficial owner with a 25% stake in the company.

Registration has been mandatory since 2018 and costs 100 euros per year. If you forget to register or update, you risk fines of up to 10,000 euros. I know entrepreneurs who have learned this the hard way—a costly mistake you can easily avoid.

Differences Between EU and Non-EU Home Countries

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

By the way, Switzerland is a special case: Not an EU member, but fully integrated into the CRS system via bilateral agreements. Swiss Made also means precise compliance for reporting duties.

This Is What Your Home Country Authorities Want to Know About Your Malta Company

Let me be honest: Your home country 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 really behind it. After countless discussions with consultants and my own experiences, I can tell you: transparency pays off, playing hide and seek does not.

Basic Company Data and Beneficial Owners

Lets start with the basics. Your home authorities first want to know the core details about your Malta business:

• Company name and registration number (Company Registration Number at the Malta Business Registry)
• Registered address in Malta—and yes, your service provider’s P.O. box isn’t enough
• Date of incorporation and legal form (Limited Liability Company is standard)
• Business purpose as per Articles of Association
• Beneficial owners with at least 25% stake and full personal details

The best part: Since 2018, Malta maintains a public register of beneficial owners. That means theoretically, your home authorities could look this up themselves—but they still prefer to get the info via official reporting channels.

Financial Key Figures and Business Activities

This is where it gets interesting—it’s all about the money. Authorities want to understand whether your Malta company has real substance or is just a mailbox for tax optimization:

1. Annual turnover and profits as reported to the Maltese tax authorities
2. Number of employees in Malta—an important proof of substance
3. Type of business activity with concrete examples
4. Turnover broken down by country (especially important for your home country)
5. Operating expenses in Malta—rent, salaries, local service providers

Insider tip: German authorities pay special attention to the ratio of Maltese operating expenses to total turnover. If it drops below 10%, you’ll quickly face critical questions about real business activities on the ground.

Bank Accounts and Assets

Thanks to CRS, bank account information mostly flows automatically between Malta and your home country. Nonetheless, many authorities still require extra details:

Especially tricky: If you, as shareholder of the Malta company, regularly wire large amounts to your German personal account, the tax office will want to know—is this salary, dividend, or disguised profit distribution? The lines blur quickly without proper documentation.

Reporting Obligations by Home Country: A Comparison of Germany, Austria, and Switzerland

Here comes the practical part—every country has its own idea of how and when you have to report your Malta company. It’s like electrical sockets in Europe: in theory it’s the same electricity, but in practice, you need a different adapter for each country.

Germany: What the Federal Ministry of Finance Wants to Know

When it comes to Malta companies, Germany is especially thorough—typically German, in fact. The Federal Ministry of Finance (BMF) requires various reports depending on how your Malta company is classified for tax purposes:

Add-back taxation under AO §138: If your Malta company falls under add-back taxation (passive income over 80%), you must declare it in the AUS supplement to your tax return. The deadline is May 31 of the following year.

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

Reporting requirement for foreign companies: Regardless of tax classification, you must report your shareholding in the Malta company to the Federal Central Tax Office if you hold more than 10%. Deadline: Four weeks after acquiring the stake.

Practical tip: The German tax office likes to check if your Malta company really has “substance.” This includes: local staff, office space (not just a P.O. box), local customers, and actual business on-site. A mere “mailbox” company can quickly be reclassified as a German permanent establishment.

Austria: BMF Requirements and Special Features

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

Foreign Tax Act (AStG): Like in Germany, there is add-back taxation in Austria. Since Malta joined the EU in 2004, it’s on the “white list,” which means Austrian citizens can generally tax their Malta company as usual.

1. Declaration in tax return: Shareholdings over 10% in foreign companies must be reported in the Annex M
2. Deadline: September 30 of the following year (for electronic filing)
3. Special feature: Malta companies are often taxed at a flat rate, provided proof of local taxation is submitted

Austria is particularly accommodating regarding recognition of Maltese corporate tax. The Malta-Austria double tax treaty usually means you can elegantly avoid double taxation.

Switzerland: Federal Tax Administration and Cantonal Differences

Switzerland is pragmatic but precise when it comes to Malta companies. The Federal Tax Administration (ESTV) treats Malta as an equal partner, making reporting obligations manageable:

Reporting duty for qualified shareholdings: At 10% or more in a Malta company, reporting is mandatory. Good news: Malta dividends can be tax-free under certain conditions (participation exemption).

CRS Reporting: Switzerland has been fully integrated in the CRS system since 2017. This means: Automatic information exchange with Malta for financial accounts.

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

Step by Step: How to Properly Fulfill Your Reporting Obligations

Enough theory—now it’s time for practice. Here’s how you can systematically tackle your reporting duties without losing track or missing important deadlines. After two years in Malta, I know: organization is everything, panic helps nothing.

Preparation: Documents You Need

Before you start making reports, gather all the relevant documents. It’s like cooking—without the right ingredients, it won’t work:

Basic company documents:

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

Financial documents:

• Audited Financial Statements (if required)
• Malta Tax Return (ITR) of the last financial year
• Bank statements of all business accounts
• VAT Returns (if VAT registered)
• Payroll Records (if employees)

Proof of business activity:

• Lease agreement for office space (if any)
• Contracts with local service providers
• Minutes of board meetings in Malta
• Invoices to Maltese customers (proof of substance)

Tip from experience: Keep a digital filing system with all documents. Maltese authorities are increasingly digital, but your home country often still wants paper copies. Good document management will save you lots of time later.

Deadlines and Important Dates at a Glance

Malta has its own deadlines, your home country others—and sometimes they inconveniently overlap. Heres your annual calendar with all the key dates:

Special deadlines:

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

My personal trick: I put all these dates in Google Calendar—with automatic reminders four weeks and one week in advance. That way, I’m never pressed for time.

Common Mistakes and How to Avoid Them

We learn from our mistakes—but learning from other people’s mistakes is even smarter. Here are the five most common pitfalls I’ve observed in others:

Mistake 1: Incomplete BO Register entries
Problem: You only report the direct shareholders, not the ultimate beneficial owners.
Solution: For complex structures, go all the way up to the natural person.

Mistake 2: Incorrect proof of substance
Problem: You rent a virtual office and think that’s enough as a business address.
Solution: At least a small physical office with your own mailbox. Cost: approx. 200–400 euros per month.

Mistake 3: Mixing personal and business accounts
Problem: You casually transfer 5,000 euros from the company account to your personal account “as an advance.”
Solution: Every transaction between company and individual must be properly documented and authorized.

Mistake 4: Late reports
Problem: You miss the reporting deadline by two days and think “it can’t be that bad.”
Solution: Late fees can quickly reach three figures. Better request an extension in advance.

Mistake 5: Inadequate board minutes
Problem: Your shareholder meetings take place on WhatsApp.
Solution: Proper board minutes, at least once a year on-site in Malta. It’ll cost you a flight, but save you trouble with the authorities.

Malta Company Service Provider: When You Need Professional Help

Here comes the main question: Should you do all this yourself, or get professional help? After two years’ experience with Malta, I’ll tell you honestly: it depends. Some things are really simple, others so complex that even seasoned tax advisors break a sweat.

Tasks You Can Handle Yourself

If your Malta company is structured simply and you’re comfortable with numbers, there’s quite a bit you can take care of yourself. Here are the tasks non-professionals can usually manage:

Simple administrative tasks:

• Beneficial Ownership Register updates (online via registry.mita.gov.mt)
• Gathering and organizing all documents
• Communicating with Maltese banks
• Simple VAT returns (if only a few transactions)
• Board minutes for routine business decisions

Requirements for DIY approach:

1. You have time and energy for the Maltese bureaucracy
2. Your business structure is simple (one company, one business purpose)
3. Annual turnover under 500,000 euros
4. Only one home country is involved
5. You speak fluent English and understand bureaucratic German

Reality check: I know entrepreneurs who handled everything themselves the first year and ended up spending more time than expected. Plan at least 2–3 days per month for administrative tasks.

When a Local Partner Is Worth It

There are situations where there’s no way around professional help. As soon as any of the following applies, you should seriously consider a local partner:

Complex tax structures:

• Multiple companies in different countries
• Holding structures with Malta as an intermediary holding
• International employees or clients
• Real estate investments via the Malta company
• Licensing or IP exploitation

High compliance requirements:

• Annual turnover over 1 million euros (audit required)
• Regulated business activities (financial services, gaming)
• Multiple home countries with different reporting obligations
• Reviewed by German/Austrian/Swiss tax authorities

A Maltese Certified Public Accountant (CPA) will charge you between 2,000 and 5,000 euros annually for a standard Malta company. Sounds like a lot, but it can be much cheaper than fines or retroactive tax bills.

Costs and Benefits Compared

Let’s crunch the numbers. Here are the 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 contact with Malta Revenue and other authorities
• Translation of all official correspondence
• Coordination with your home country tax advisor
• Early warning for legal changes
• Representation at official appointments

My tip: Start with a standard service package and adjust up or down depending on how complex your structure becomes. Most good providers are flexible and tailor the services to your needs.

Red flags with service providers:

• Promises of “tax-free” profits without substance check
• No local office or staff
• Flat-rate offers under 1,000 euros per year
• No experience with your home country
• No direct contact person

The truth is: A good Maltese service provider is like a good family doctor—you only realize their value when you need them. When choosing, it’s better to pay 500 euros more for someone who still answers the phone at 7 p.m. if the tax authorities come calling.

Frequently Asked Questions About Malta Company Reporting Obligations

Do I have to report my Malta company even if it has no turnover yet?
Yes, simply holding at least 10% is already reportable in Germany, Austria, and Switzerland. In Germany, you’re required to report from the moment you acquire the shares, regardless of actual business activity.

What happens if I forget to fulfill my reporting obligations?
Late penalties and fines are common, not exceptional. In Germany, they can quickly reach €5,000–25,000, depending on how late and how much went unreported.

Is it enough for my German tax advisor to report the Malta company?
Only in part. Your German tax advisor can handle the home country reporting, but the local Maltese compliance tasks (BO register, ITR filing) must be sorted on the ground in Malta.

How do I know if my Malta company has real substance?
Rule of thumb: At least 10% of operating expenses should be incurred in Malta. That includes local rent, salaries, service providers, or other real costs on the island.

Can I offset Maltese taxes in my home country?
Usually, yes, thanks to double tax treaties. But: The credit only works with “real” taxes, not with refunds from Malta’s refund system.

What is the Common Reporting Standard and how does it affect me?
CRS is the automatic information exchange between tax authorities. Your Maltese bank automatically reports account balances to your home country—regardless of the amount, and you might never be notified.

As a Swiss citizen, are there different reporting obligations than for EU citizens?
The basic rules are similar, but Switzerland has its own forms and sometimes different deadlines. There can also be cantonal special rules depending on where you live.

How often do I need to travel to Malta for board meetings?
Legally, once a year is enough, but for credible substance 2–3 visits per year are advisable. Board minutes by video conference are possible, but less convincing in an official audit.

Can I manage my Malta company from Germany?
Technically yes, but tax-wise it’s problematic. If the real management happens in Germany, the company is often reclassified as a German permanent establishment.

Which documents should I always have handy?
Certificate of incorporation, current BO register extract, last ITR filing, bank statements, and board minutes from the past two years. These are the most commonly requested by the authorities.