Malta company annual obligations: Financial statements and tax returns for international entities – The complete Annual Compliance Guide 2025

The Malta Company Reality: More Than Just Tax Advantages

I still clearly remember the moment I saw my first Maltese Limited on the screen. Setting it up was surprisingly easy – two clicks online, documents via email, and I already had my EU company. What nobody told me beforehand: The real work only begins after incorporation.

Because a Malta Company brings with it yearly obligations that go far beyond what you know from German or Austrian companies. That’s because Malta, as an EU jurisdiction, must simultaneously meet EU compliance standards and ensure international transparency.

What makes Malta Company compliance special?

Malta combines three different regulatory levels that affect your annual obligations:

• Malta Financial Services Authority (MFSA) – for licensed activities
• Malta Business Registry (MBR) – for all companies
• Commissioner for Revenue (CFR) – for tax obligations

Each authority has its own deadlines, its own forms, and – yes, you guessed it – its own quirks. Let me be clear with you: Don’t underestimate the administrative workload. What sounds like “EU standard” in theory often turns into quite an idiosyncratic system in practice.

For whom do these obligations apply?

As soon as you set up a Maltese Limited Company, you’re automatically in this system. This applies to:

• Private Limited Companies (Ltd.)
• Public Limited Companies (plc)
• Limited Liability Companies (LLC)
• Partnerships en commandite

Even if your company has zero turnover or is completely dormant – the basic obligations remain. I witnessed this with an entrepreneur friend who wanted to “just let his Malta company sit for a while.” Spoiler alert: Even “pausing” cost him 1,200 euros per year in compliance costs.

Annual Accounts and Annual Return: Your Key Deadlines

The Annual Return is your most important annual milestone. Its a combination of annual accounts and shareholders report, which you must submit to the Malta Business Registry.

Annual Return: What exactly do you need to submit?

The Annual Return (Form AR1) includes several components, which I’ll break down for you here:

When do you need an external auditor?

Here’s where it gets interesting, as Malta has clear thresholds for the audit requirement. You need a statutory audit if your company meets at least two of the following criteria in two consecutive years:

• Balance sheet total over 4.6 million euros
• Net revenue over 9.2 million euros
• More than 50 employees on average during the year

For most international companies that means: No audit required. You can instead have a so-called “compilation” prepared by a Maltese accountant, which is much cheaper.

Financial Statements: IFRS vs. Malta GAAP

When preparing your Financial Statements, you basically have two options:

1. Malta GAAP – local accounting standards (cheaper)
2. IFRS – international standards (more expensive but internationally recognized)

I recommend Malta GAAP if you only need to meet local compliance. IFRS only makes sense if you have international investors or plan to sell your company later. The cost difference is about 500-800 euros annually.

The practical process

This is how it typically works: In January, you forward your accounting documents to your Maltese accountant. They draft by March, you comment by April, and everything is submitted by the end of May. Plan at least 3-4 months lead time – Maltese accountants are thorough, but not quick.

Tax Returns in Malta: What You Really Need to Submit

Malta has a pretty sophisticated tax system, which confuses many international entrepreneurs. Let me explain the different returns you might need to file.

Corporate Tax Return (Form C)

Every Maltese company must file a Corporate Tax Return – regardless of whether it made a profit or not. The deadline is June 30 for the previous calendar year.

The interesting thing about the Maltese system: Malta uses an imputation system. This means your company pays 35% corporate tax on all profits up front. Later, shareholders can reclaim part of it through the refund system.

Understanding the Maltese refund system

This gets a little complicated, but I’ll explain using a concrete example:

Important: The refund is only granted if profits are distributed as dividends to Maltese or EU tax resident shareholders. This is a crucial point many overlook.

Provisional Tax and Advance Payments

Malta requires advance payments on expected corporate tax. Here’s how it works:

• By April 30: Provisional Tax for the current year
• Quarterly: Advance Payments (if expected profit is over 10,000 euros)
• By June 30: Final settlement via Corporate Tax Return

Pro tip: Don’t underestimate the provisional tax. I’ve seen entrepreneurs give a conservative estimate in the first year, then earn much more. This led to hefty back payments plus interest.

VAT Returns – If your company is subject to VAT

If your Malta company is VAT registered (sales above 14,000 euros or voluntary registration), you must also submit quarterly VAT returns:

• Q1: by May 20
• Q2: by August 20
• Q3: by November 20
• Q4: by February 20 (following year)

The Maltese VAT authority is very strict when it comes to punctual submission. Late filings incur a minimum fine of 100 euros – per day.

Informational Returns: Social Security and Statistics

In addition to tax returns, you must submit various informational returns:

1. FS3 Return – annual statistics for the NSO (National Statistics Office)
2. Social Security Returns – if you have employees in Malta
3. Intrastat Declarations – for EU goods movement over 150,000 euros

These are often overlooked, but are just as mandatory as the “main” returns.

Your Malta Compliance Calendar: Never Miss a Deadline Again

After three years with a Malta company, I’ve learned: Organization is everything. Here’s my proven annual calendar, which you’re welcome to copy.

January – March: Annual Accounts Season

January:

• Gather all previous year’s accounting documents
• Brief your accountant and arrange appointments for annual accounts
• Check beneficial ownership forms (if changes)

February:

• Submit Q4 VAT Return (by February 20)
• Request draft financial statements from your accountant
• Submit FS3 Return to the NSO

March:

• Review and finalize financial statements
• Prepare Directors Report
• First provisional tax estimate for the current year

April – June: Tax Season

April:

• Submit provisional tax (by April 30)
• Prepare annual return for the MBR
• First advance payment (if required)

May:

• Submit Q1 VAT return (by May 20)
• Submit final annual return
• Prepare refund application (if dividend distribution planned)

June:

• File corporate tax return (by June 30)
• Second advance payment
• Compliance review: Have all deadlines been met?

July – December: Ongoing Compliance

My Digital Setup for Perfect Compliance

I use a simple but effective system:

1. Google Calendar with all deadlines (6-week advance reminder)
2. Dropbox folders with subfolders per year and authority
3. Excel spreadsheet for cost tracking and status updates
4. WhatsApp group with my Maltese accountant for quick queries

It may sound old school, but it works better than any fancy compliance software I’ve tried.

Costs and Effort: What Compliance Really Costs You

Let’s be honest: Malta company compliance isn’t cheap. But I’ll show you what costs you can realistically expect and where you can save.

Annual Basic Costs (Unavoidable)

Total basic package: 1,945 – 2,945 euros annually

Additional Costs (Depending on the Situation)

• VAT registration and returns: 200-400 euros annually
• Statutory audit (if required): 2,500-5,000 euros
• Tax advisory for complex structures: 150-300 euros/hour
• Nominee Director Service: 1,000-2,000 euros annually
• Bank account maintenance: 300-600 euros annually

Where You Can Save (Without Compliance Risk)

Over the years I’ve picked up a few tricks:

1. Bundled services: Many providers offer discounts if you book Annual Return + Tax Return + Company Secretary as a package. Savings: 200-400 euros per year.
2. Do your own bookkeeping: If you keep clean books yourself and only have the financial statements prepared, you save 300-500 euros. Important: Malta also accepts German accounting software such as Lexoffice or Datev.
3. Timing of provisional tax: Conservative estimates avoid back payments and interest. Better to estimate a bit less and pay later, than “overpay” in advance.
4. Avoid VAT registration: If your revenue is just under 14,000 euros, avoid voluntary VAT registration. That saves you 400 euros annually plus the effort.

Hidden Pitfalls

Watch out for these often overlooked items:

• Penalty fees for late filing: 100-500 euros per document
• Apostille costs for documents abroad: 50-100 euros per document
• Banking compliance: Additional KYC updates cost 200-300 euros per year
• Beneficial ownership updates: 85 euros per change

ROI Calculation: When Is It Worth It?

Honest talk: With annual profits under 50,000 euros, a Malta company often doesn’t make financial sense. The compliance costs eat up the tax savings. The break-even calculation:

So the Malta structure only makes financial sense from around 40,000-50,000 euros annual profit.

The 7 Most Common Compliance Mistakes (And How to Avoid Them)

Over the past years, I’ve guided many German and Austrian entrepreneurs on their Malta adventures. I keep seeing the same mistakes. Here are the top 7 – and how to avoid them.

1. Not Keeping Beneficial Ownership Forms Up to Date

The mistake: Many people forget to update their BO Forms when changes occur. Change of shareholders, new powers of attorney, change of address – everything must be reported within 15 days.

The consequence: Fines from 200-2,000 euros plus possible removal from the company register.

How to avoid it: Keep an Excel list of all relevant persons and their data. Set quarterly reminders to check for changes.

2. Ignoring Substance Requirements

The mistake: Since 2019, there are EU-wide anti-tax-avoidance rules. Many Malta companies have zero economic substance in Malta – this has become an issue.

The consequence: Being reclassified as a German/Austrian company with the respective tax liability.

How to avoid it: Ensure minimal local substance:

• Local business address (not just a mailbox)
• Local company secretary with real powers
• Regular board meetings in Malta
• Local bank account with real transactions

3. Setting Provisional Tax Too Low

The mistake: Conservative estimate of provisional tax, then much higher profits are achieved.

The consequence: Back payments plus 8% interest per annum. On 50,000 euros that’s quickly 4,000 euros extra.

How to avoid it: Use the advance payment option. Better to pay quarterly in installments than owe a big sum plus interest at the end.

4. Misunderstanding VAT Thresholds

The mistake: Many think the 14,000 euro VAT threshold relates only to Malta sales. In fact, all EU B2C sales count.

The consequence: Unintentional VAT registration with retroactive payments and penalties.

How to avoid it: Track all your EU sales monthly. At 1,000 euros/month you’re already close to the threshold.

5. Confusing Corporate Tax and Income Tax

The mistake: Many assume that with the 5% corporate tax in Malta, everything is settled. But: You as a person are still subject to income tax in your country of residence.

The consequence: Double taxation or tax evasion if you ignore your personal tax liability.

How to avoid it: Plan your personal tax residence as carefully as your company structure. For German nationals living in Germany, a Malta company often doesn’t bring any tax benefit.

6. Missing the Annual Return Deadline

The mistake: The 10-month period for the Annual Return quietly expires while you’re still waiting for the accountant.

The consequence: Default notice, fine, possible deregistration.

How to avoid it: Set an internal deadline 6 weeks before the official one. Start preparing the Annual Return already in January for the previous year.

7. Underestimating Banking Compliance

The mistake: Many underestimate the ongoing KYC requirements of Maltese banks. Annual updates, source of funds proofs, business plan updates are standard.

The consequence: Account freezing or closure, often without warning.

How to avoid it: Treat your bank like an important client. Proactively communicate, provide regular updates, deliver all requested documents immediately.

Bonus Tip: Documentation is Everything

The most important overarching tip: Document everything. Maltese authorities love paperwork, and in case of doubt, only thorough documentation will save you. I keep a separate folder for each authority with:

• Copies of all submitted documents
• Email correspondence with timestamps
• Payment receipts for fees
• Screenshots of online submissions

This has already saved me several times when authorities claimed not to have received certain documents.

Practical Tips: How to Master Maltese Bureaucracy

After three years with a Malta company and countless dealings with authorities, I’ve developed a system that actually works. Here are my tried-and-tested strategies.

Finding the Right Service Providers

Maltese accountants are not all the same. Here’s my checklist for selection:

• MIA Membership (Malta Institute of Accountants) is mandatory
• Specialization in international clients – ask for German/Austrian references
• Response time test – write an email with a concrete question and measure the response time
• Fixed fee structure – avoid hourly billing for routine services
• Online portal for document exchange and status updates

My recommendation: Work with established firms, but not the largest ones. The “Big 4” are often overpriced and impersonal. Mid-sized firms with 5-15 staff usually offer the best value for money.

Efficient Communication with Authorities

Maltese authorities have their quirks. These rules have proven useful:

1. Always communicate in writing – phone calls disappear into the ether
2. Reference numbers in every email
3. Follow up after 5 business days – politely but firmly
4. Copy to supervisor if there’s no response after 10 days
5. Take screenshots of online portals – systems crash regularly

Banking: How to Cultivate Your Relationship

Malta banking is relationship-based. Here’s my strategy:

Digital Tools for Better Organization

My proven tech stack for Malta compliance:

• Dropbox Business (not Google Drive) – Maltese lawyers/accountants mostly use Dropbox
• DocuSign for signatures – saves postage and time
• LastPass for password management – you’ll need many online portals
• Calendly for arranging appointments with service providers – shows professionalism
• Slack or WhatsApp Business for quick team communication

Emergency Strategies

What to do if, despite all planning, something goes wrong?

Late Submission:

1. File immediately, even if incomplete
2. Cover letter with explanation and timeline for missing documents
3. Pay penalty right away – shows good faith
4. Follow up after 48 hours

Missing Documents:

1. Use apostille service in Malta – faster than in Germany
2. Digital certificates are now accepted by many authorities
3. Notarized copies as a temporary solution

Banking Problems:

1. Open a second bank account at another bank (as backup)
2. EMI solutions like Revolut Business as an interim solution
3. Correspondent banking via partner bank in your home country

Timing Optimization: When Everything Works Best

Malta runs on its own rhythms. These timing tips have served me well:

• Authority appointments: Tuesday to Thursday, 9–11 a.m.
• Email communication: Monday to Wednesday – on Friday, no one reads emails
• Complex applications: Never submit in August – half of Malta is on holiday
• Banking: Meetings before 2 p.m. – in the afternoon, bankers are at the café
• Deadlines: Always plan a one-week buffer

Malta-Specific Etiquette

A few cultural tips that make a difference:

• Small talk matters – ask about the weather, family, festa plans
• Punctuality is appreciated – even if Malta time is flexible
• Dress code counts – not too casual at authorities, even in summer
• Show patience – pressure doesn’t work, polite persistence does
• Respect locality – a few words of Maltese open doors

A “Bonġu” (Good morning) or “Grazzi hafna” (Thank you very much) will often get you further than perfect forms.

FAQ: Frequently Asked Questions About Malta Company Compliance

Do I have to submit all documents in Maltese?

No, English-language documents are accepted everywhere. Maltese is only required for a few specific official procedures. All corporate compliance can be handled in English.

Can I prepare the Annual Return myself?

Theoretically yes, but I advise against it. Maltese accounting standards are complex and errors lead to questions or rejections. A local accountant costs 800-1,200 euros but saves time and risk.

What happens if I miss a deadline?

Malta automatically imposes fines for late submissions. For the Corporate Tax Return it’s at least 100 euros; for serious violations up to 2,000 euros plus possible removal of the company from the register.

Do I really need a Maltese company secretary?

Yes, it’s required by law. The company secretary must be a Maltese citizen or an EU national resident in Malta. Cost: 200-400 euros per year for this service.

How does the refund system work if there is no distribution?

Without distributing dividends to shareholders, you don’t get a refund. The company then actually pays 35% corporate tax. The refund system only works when profits are distributed.

Can I continue using my German bookkeeping software?

Yes, Malta accepts international accounting standards. You can use DATEV, Lexoffice or other German software and have the data converted for Maltese financial statements.

Do I need to travel to Malta personally for compliance?

Basically no, but it helps a lot. An annual Malta trip for bank meetings and appointments with authorities strengthens your local substance and solves many problems proactively.

What’s different for dormant companies?

Even dormant companies (without activity) must file annual returns and corporate tax returns. Costs remain the same, only the tax liability is zero. “Doing nothing” is not an option.

How can I identify reputable service providers?

Look for MIA membership for accountants, MFSA license for corporate service providers, and concrete references. Avoid providers who promise unrealistic tax benefits or treat compliance as “secondary.”

How much does a compliance violation really cost me?

In addition to direct fines (100-2,000 euros), indirect costs often arise: banking problems, extra accountant hours, possible reclassification of tax residence. Real costs can quickly reach 5,000-10,000 euros.