Formar una empresa en Malta y ahorrar impuestos: La guía completa para emprendedores alemanes 2025

Why set up a company in Malta? Tax advantages in detail

For years, Malta has aggressively courted international businesses. The result: a tax system that looks irresistible at first glance. But let’s take a closer look.

Understanding Malta’s Tax System: The Full Imputation System

Malta operates a Full Imputation System – this means that, as a shareholder, you can reclaim part of the corporation tax already paid when profits are distributed. Sounds complicated? It is.

Here’s a simplified example: Your Malta company makes €100,000 profit. It pays 35% corporation tax, i.e. €35,000, leaving €65,000. If you distribute these €65,000 as a dividend, you get – depending on your company’s activities – between 6/7 and 5/7 of the tax paid refunded.

This means: For most business models, you receive 6/7 of €35,000 = €30,000 back. The real tax burden is then only €5,000 on €100,000 profit – effectively 5%.

The Famous 5% Corporation Tax: When Does It Really Apply?

Here’s the catch: the 5% effective tax only applies to certain types of corporate activity. Malta distinguishes between different accounts:

• Foreign Source Account: Income from abroad (6/7 refund = 5% effective rate)
• Maltese Source Account: Malta-sourced income (2/3 refund = approx. 11.67% effective)
• Final Tax Account: Already finally taxed income (5/7 refund = 10% effective)

For most German entrepreneurs, the Foreign Source Account is the interesting one. If your customers are mainly outside Malta, you’ll likely fall into this category.

Important: EU state aid rules led to changes in 2024. New companies now face stricter conditions. Always seek up-to-date advice.

Taking Advantage of EU Benefits: More Than Just Taxes

Malta has been an EU member since 2004. This brings clear advantages:

• Freedom of movement: As an EU citizen, you can live and work without a visa
• Single Market: VAT-free deliveries to other EU countries
• Banking: SEPA transfers, EU deposit insurance
• Legal protection: EU law applies, European Court of Justice as final instance

So what does this mean for you? You get the tax benefits of an “offshore” jurisdiction with EU legal security. A pretty good deal – if you know the rules of the game.

Malta Company Incorporation 2025: Step-by-Step Guide

Here comes the practical part. I’ll walk you through the full set-up process – from the first call with the lawyer to your first tax return.

Preparation in Germany: What to Sort Out Before You Leave

Before you even set foot in Malta, you should get your homework done:

1. Tax advice in Germany: Clarify the tax consequences of a Malta company for your German situation. Keyword: Controlled Foreign Company Taxation – the German tax office will look closely.
2. Define your business model: Malta doesn’t like pure shell companies. You need real business activity.
3. Prepare capital: At least €1,165 share capital plus set-up costs (approx. €3,000–5,000).
4. Prepare due diligence: All shareholders need to prove a “clean background.”

My tip: Allow at least two months’ lead time. Malta is relaxed – but slow.

Registration On-Site: The First Official Appointment

You’re standing before the Malta Business Registry in Valletta. The building looks like a baroque palace – and sometimes works that way, too. Here are my insights:

Step 1: Reserve company name
Usually takes 1–2 days. Note: Malta is picky with names. “Malta Holdings Ltd.” won’t fly – too generic. “Mediterranean Consulting Services Ltd.” works better.

Step 2: Submit memorandum and articles of association
These are your company statutes. You’ll need a lawyer for this – unless you’re fluent in legal English with a Maltese accent.

Step 3: Apply for registration
With all documents, notarised passports, and confirmation that none of you has a criminal record.

Reality Check: A 9:00 am appointment in Malta means “some time between 9:00 and 10:30, depending on how good the coffee is.” Allow buffer time.

Navigating Authorities: VAT, Taxes and Compliance

Once the company is set up, more paperwork awaits:

My survival tip: Submit all applications at once. Malta’s authorities communicate about as well as teenagers with their parents.

Malta Company Formation: Costs and Company Types Compared

Malta offers various company types. For German entrepreneurs, two are relevant: the Private Limited Company and the Public Limited Company. Here’s the breakdown.

Private Limited Company (Ltd.): The Standard for Most

The Private Limited Company is Malta’s equivalent of the German GmbH. Key points:

• Minimum capital: €1,165 (historical, equals 500 Maltese Liri)
• Shareholders: Minimum 1, unlimited maximum
• Director: At least 1, must be resident in Malta
• Annual general meeting: Mandatory yearly
• Annual accounts: Mandatory filing

Biggest advantage: flexibility. You can increase the capital later, add shareholders and adapt operations.

Disadvantage: Less prestige than a PLC. Some banks scrutinize Ltd.’s more heavily.

Public Limited Company (PLC): For Larger Ventures

The Public Limited Company is similar to the German AG. It’s more involved, but offers greater possibilities:

• Minimum capital: €46,587
• Shareholders: Minimum 2
• Board: At least 2 directors
• Stock exchange listing: Can be listed on the Malta Stock Exchange
• International recognition: Taken more seriously by banks and partners

Who should choose a PLC? If you plan to bring on investors, go public or handle large sums.

Cost Overview: What Does Malta Company Formation Really Cost?

Now to the critical question: what’s the real price tag? Here’s a realistic breakdown for a standard Ltd.:

Conclusion: Expect €3,000–5,000 in set-up costs and €7,000–15,000 annual running costs. Cheaper than a German GmbH, but no bargain.

Important note: Cheap providers promising a “Malta company for €999” often hide real costs. The rude awakening comes in year two.

Save Taxes with a Malta Company: Strategies for German Entrepreneurs

Now it gets technical – and interesting. Here’s how German entrepreneurs use Malta companies strategically, and which pitfalls to watch out for.

Double Taxation Treaty: Your Shield Against Double Taxation

Germany and Malta have a Double Taxation Agreement (DTA) – your key pillar for legal tax optimisation. The DTA defines which country may tax what.

Key points:

• Business profits: Taxed where management actually takes place
• Dividends: 5% withholding tax in Malta, creditable in Germany
• Interest and royalties: Usually taxed only in the country of residence

What does this mean? If you manage your Malta company from Germany, it counts as German for tax purposes – and the tax advantages are lost. So you must set up real operational substance in Malta.

Holding Structures: The Royal Discipline of Tax Optimisation

Many German entrepreneurs use Malta companies as holding companies. Here’s how:

1. You set up a Malta holding
2. It acquires shares in your German operating company
3. Profits flow as dividends from Germany to Malta
4. Only 5% withholding tax in Malta (thanks to the EU Parent-Subsidiary Directive)
5. When paid out to you as an individual, part of the Maltese tax is refunded

An example: Your German GmbH earns €200,000 profit. After German corporation tax (about 30%), €140,000 remains. This is paid as a dividend to your Malta holding. Malta charges 5% withholding tax (€7,000). If the Malta holding pays these €133,000 to you, you get about €6,000 in Maltese tax back.

Effective tax burden: Down to about 16% from an original 48% (corporate tax + withholding tax).

Compliance and Risks: What Can Go Wrong

Now the dark side: Malta isn’t the tax haven some claim. Risks include:

Controlled Foreign Company (CFC) Rules:
If your Malta company pays less than 25% tax and mainly generates passive income, the German tax office may allocate the profits directly to you. Game over for tax optimisation.

Permanent Establishment Risk:
If you manage your Malta company from Germany in practice, a German permanent establishment arises. All profits are taxed in Germany.

EU State Aid Rules:
In 2024, the EU Commission decided that Maltas tax system provides some illegal state aids. New stricter rules now apply for new companies.

My advice: Don’t play with fire. A shaky structure could cost you more than a higher tax bill. Invest in good advice.

Malta Company Address: Practical Office vs. Virtual Office

Every Malta company needs a registered office in Malta. You have several options – with different costs and consequences.

Office Options: From Mailbox Address to Penthouse

Virtual Office (€1,200–2,400/year):
The cheapest option. You get a Maltese address, mail forwarding and sometimes telephone service. Sufficient for most founders.

Advantages: Inexpensive, immediately available
Disadvantages: Not very prestigious, some banks do not accept virtual offices

Serviced Office (€2,400–6,000/year):
A real workspace, with reception, meeting rooms and professional appearance. Good for: client meetings, bank appointments, proof of substance.

Own Office (from €12,000/year):
Only worthwhile if you actually work on-site. Rents in Valletta and Sliema have exploded – expect prices like a major German city.

Legal Requirements: What Malta Really Demands

Malta is ever stricter on substance requirements. Here is what the law actually asks for:

• Registered Office: Must be in Malta, with local address
• At least one Director: Must reside in Malta or use a nominee
• Company Secretary: Not mandatory, but recommended
• Business activity: Must be actually undertaken
• Board meetings: At least once a year in Malta

The reality: Malta understands international companies won’t operate 100% locally. But you must be able to prove real business activity.

My survival tip: Plan at least two trips to Malta per year. Document meetings, business decisions and operations. The Malta Financial Services Authority (MFSA) may ask at any time.

Avoiding Common Mistakes in Malta Company Formation

Learning by own mistakes is good – learning from others’ is better. Here are the classic stumbling blocks I see repeatedly after two years consulting in Malta.

Typical Pitfalls: What Can Go Wrong

Mistake #1: Underestimating German Tax Consequences
Many founders focus only on Malta and forget about Germany. Result: nasty surprises at the next German tax return.

Solution: German tax advice BEFORE incorporation. Clarify CFC rules, permanent establishment risk and your personal tax liability.

Mistake #2: Setting Up Without Substance
Ill quickly open a Malta company to save taxes – many think like this. Without genuine activity, this gets expensive.

Solution: Build real operational substance. Employees, office, local clients or at least regular business activity on-site.

Mistake #3: Choosing Cheap Providers
€1,000 for the complete Malta incorporation? Too good to be true. These providers cut corners on compliance, advice and support.

Solution: Invest in qualified advice. A good Maltese lawyer costs €2,000–3,000 – but can save you five-figure problems later on.

Compliance Traps: What Authorities Really Care About

Malta is an EU member and must follow EU rules. That means: ever-tighter scrutiny.

Economic Substance Test:
Malta increasingly checks if companies have real economic activity. Shell companies are prosecuted.

Authority checkpoints:

• Where are board meetings held?
• Who makes operational decisions?
• Are there local employees?
• Is genuine value generated in Malta?

Beneficial Ownership Register:
Since 2019 all Maltese companies must declare their true owners. Complex structures are no longer possible.

Anti-Money Laundering (AML) Compliance:
Malta takes anti-money laundering very seriously. Expect thorough due diligence from banks and authorities.

Reality Check: Malta is no longer an offshore paradise. It’s a regulated EU financial centre with requirements to match. Plan accordingly.

My Conclusion: Is a Malta Company Worth it in 2025?

After two years’ Malta experience and dozens of incorporations, my assessment is nuanced: Malta CAN be worthwhile – but only under certain conditions.

Malta makes sense for you if:

• You want to build real business activity (not just tax optimisation)
• Your business model is international
• You’re ready to invest time and money in compliance
• You can stomach the €7,000–15,000 annual running costs
• You can travel to Malta regularly (and want to)

Malta is NOT right for you if:

• Your only aim is tax savings without substance
• You have a purely German business model
• The running costs are too high for you
• You don’t have time for international compliance

My honest verdict: Malta is an attractive location for real international businesses. But it’s not a magic tax trick for German freelancers or small consultancies.

If you opt for Malta: Do it right. Good advice, genuine substance, clean compliance. Then Malta can really be a building block for your international business.

Frequently Asked Questions

How long does it take to set up a Malta company?
A standard Ltd. takes 2–4 weeks. Allow 6–8 weeks including VAT registration and all permits.

Can I set up a Malta company as a German citizen?
Yes, as an EU citizen you can incorporate in Malta with no restrictions. You don’t need a visa or special permits.

Do I need to move to Malta to set up a company?
No, but you need a Maltese director. Either move to Malta yourself or use a nominee director.

How much tax do I really save with a Malta company?
This totally depends on your business model. At best, 5% corporation tax is achievable. But: don’t forget German tax consequences!

Do German banks accept Malta companies as clients?
Most German banks are sceptical of Malta companies. Expect thorough due diligence and possible rejection.

What if I want to close my Malta company again?
Liquidation takes 6–12 months and costs €2,000–5,000. All tax duties must be fulfilled and a liquidator appointed.

Do I need a Maltese lawyer to incorporate?
Not legally, but in practice indispensable. Rules are complex and change often. Don’t skimp here.

How does bookkeeping work in Malta?
Malta uses International Financial Reporting Standards (IFRS). You need a qualified accountant – costs: €3,000–6,000 per year.