Published on and written by Cyril Jarnias
Dreaming of launching your startup in an environment conducive to innovation and growth? Malta could be the ideal destination to bring your entrepreneurial project to life. This Mediterranean archipelago, a member of the European Union, offers a dynamic ecosystem and significant advantages for young companies. In this article, we’ll explore in detail why Malta is a land of opportunity for startups, what legal structures are most suitable, and how to effectively finance your project on the island.
Malta: A Paradise for Startups Seeking Success
Malta has established itself in recent years as a prime destination for entrepreneurs worldwide. This small island nation has leveraged its assets to create an environment favorable to the emergence and development of startups.
A Thriving Startup Ecosystem
The island of Malta has undergone a remarkable economic transformation over the past decade. The Maltese government has implemented an ambitious strategy aimed at diversifying the country’s economy and attracting innovative businesses. This proactive policy has borne fruit, as evidenced by the spectacular growth in the number of startups on the island. According to data from Malta Enterprise, the government agency responsible for economic development, the number of registered startups in Malta increased by 150% between 2020 and 2025.
State-of-the-Art Infrastructure Serving Innovation
Malta has heavily invested in its digital and technological infrastructure. The island now benefits from some of Europe’s fastest internet connectivity, with extensive 5G coverage across the entire territory. Additionally, the country hosts several technology parks and startup incubators, offering modern workspaces and support services for young companies. For example, the Malta Life Sciences Park is a hub dedicated to startups in biotechnology, digital health, and green technologies.
An Attractive Tax Framework for Innovative Companies
One of Malta’s main advantages for startups lies in its favorable tax regime. The country offers a corporate tax rate of 35%, but through a tax refund system, the effective rate can be reduced to just 5% for qualified companies. Moreover, Malta provides specific tax incentives for research and development activities, with deductions of up to 150% of eligible expenses.
A Pool of International Talent
Malta attracts numerous qualified professionals from around the world each year, creating a diverse and highly skilled talent pool. The country has implemented special visa programs to facilitate the hiring of foreign workers in technology and innovation sectors. According to Malta’s National Statistics Office, the number of foreign workers in the ICT sector increased by 30% between 2023 and 2025.
Good to Know:
Malta offers a conducive environment for startups thanks to its dynamic ecosystem, modern infrastructure, attractive tax regime, and pool of international talent. These assets make it a prime destination for ambitious entrepreneurs.
Ideal Legal Structures for Launching Your Startup in Malta
Choosing the right legal structure is a crucial step in creating your startup in Malta. The country offers several options, each with its advantages and specificities. Here are the most suitable structures for startups:
Limited Liability Company (LLC): The Winning Formula
The Limited Liability Company (LLC) is by far the most popular legal form for startups in Malta. It offers great flexibility and optimal protection for entrepreneurs.
- Limited liability for shareholders
- Minimum share capital requirement of only €1,200
- Possibility of having a single shareholder
- Simplified management with only one director required
- Flexibility in dividend distribution
To create an LLC in Malta, you’ll need to follow a multi-step process, including reserving the company name, preparing the articles of association, and registering with the Malta Business Registry. The average time to finalize the creation of an LLC is about 2 to 3 weeks.
Private Limited Company (Ltd): A Solid Alternative
The Private Limited Company (Ltd) is another popular option for startups in Malta. It shares many characteristics with the LLC but has some notable differences.
- Minimum share capital of €1,165
- Limitation of shareholders to a maximum of 50
- Requirement to have at least two directors
- Restrictions on share transfers
The Ltd can be particularly suitable for startups planning to raise funds from private investors while maintaining tight control over ownership.
Start-up Foundation: A Maltese Innovation
Malta recently introduced a new legal status specifically designed for startups: the Start-up Foundation. This hybrid structure combines the advantages of a foundation and a commercial company.
- No minimum share capital required
- Tax exemption during the first 3 years of operation
- Possibility to convert the foundation into a commercial company later
- Flexible governance with a board of administration
The Start-up Foundation is particularly suited for innovative projects with high social or environmental impact. It allows benefiting from tax advantages while offering an evolving structure to support the startup’s growth.
Good to Know:
The Limited Liability Company (LLC) is the most popular legal status for startups in Malta, offering flexibility and protection. The Private Limited Company (Ltd) and the Start-up Foundation are interesting alternatives depending on your project’s specificities.
Financing Your Startup in Malta: Keys to Success
Funding is often the lifeblood for startups. Fortunately, Malta offers a diverse and dynamic funding ecosystem to support young companies in their development.
Government Assistance: Valuable Support
The Maltese government has implemented several assistance and incentive programs to stimulate innovation and support startups.
- Business Start Scheme: Grants up to €25,000 for innovative startups
- SME Growth Grant Scheme: Funding up to €500,000 for expansion projects
- R&D Tax Credit: Tax credit of up to 25% of eligible R&D expenses
According to Malta Enterprise, over 200 startups benefited from these aids in 2024, totaling €15 million.
Venture Capital and Business Angels: Key Players
The venture capital ecosystem in Malta has significantly developed in recent years. Several investment funds specialized in startups have emerged, offering funding opportunities for innovative companies.
- Malta Venture Capital PLC: Public-private fund dedicated to tech startups
- Evolve Venture Capital: Specialized in fintech and blockchain startups
- Malta Business Angels Network: Network of private investors
In 2024, venture capital investments in Malta reached €50 million, a 30% increase compared to the previous year.
Crowdfunding: A Growing Alternative
Crowdfunding is gaining popularity in Malta as a funding method for startups. Several local platforms have emerged, offering new opportunities for entrepreneurs.
- Access to a broad pool of investors
- Market validation of the concept
- Increased visibility for the project
- Possibility to combine funding and pre-sales
The Malta Financial Services Authority (MFSA) recently established a specific regulatory framework to oversee crowdfunding activities, thereby strengthening confidence in this funding method.
Innovative Bank Loans: Tailored Solutions
Maltese banks have developed specific offers to meet the needs of startups. These innovative loans often combine favorable terms with personalized support.
- BOV Start Plus: Loan up to €100,000 with preferential interest rate
- APS Accelerate: Flexible credit line for startups in growth phase
- HSBC Innovation Loan: Long-term financing for innovative projects
These loans often benefit from partial government guarantees from the Maltese state, thus facilitating access to credit for young companies.
Good to Know:
Malta offers a diverse range of funding sources for startups, from government assistance to venture capital, including crowdfunding and innovative bank loans. This variety allows entrepreneurs to find the solution best suited to their development stage and specific needs.
Succeeding in Your Establishment in Malta: Keys to Success
Beyond legal and financial aspects, the success of your startup in Malta will largely depend on your ability to integrate into the local ecosystem and leverage the opportunities offered by the island.
Integrate into Maltese Professional Networks
Networking is essential for developing your startup in Malta. The island has numerous professional networks and associations that can help you establish valuable contacts.
- Malta Chamber of Commerce: The main representative organization for businesses
- Malta Innovation Hub: A coworking and exchange space for startups
- Silicon Valletta: Association of tech entrepreneurs on the island
Participating in events organized by these networks will allow you to meet other entrepreneurs, potential investors, and business partners.
Benefit from Acceleration Programs
Malta has several startup accelerators and incubators that offer personalized support to young companies.
- MITA Innovation Hub: Accelerator specialized in digital technologies
- Takeoff Incubator: University of Malta program for deeptech startups
- Malta Enterprise Accelerator: Tailored support for high-potential startups
These programs offer not only financial support but also mentorship, training, and access to valuable resources to accelerate your growth.
Leverage Malta’s Strategic Position
Malta’s geographical location, at the heart of the Mediterranean, makes it an ideal gateway to European, African, and Middle Eastern markets.
- Access to the single European market
- Proximity to North Africa and the Middle East
- Important logistics and maritime hub
- Multicultural and multilingual environment
By exploiting this strategic position, your startup can quickly expand internationally and conquer new markets.
Good to Know:
The success of your startup in Malta largely depends on your ability to integrate into the local ecosystem, benefit from acceleration programs, and exploit the island’s strategic position for your international development.
Conclusion: Malta, a Springboard for Your Startup
Malta offers an exceptional environment for ambitious entrepreneurs looking to launch and develop their startup. With its dynamic ecosystem, modern infrastructure, attractive tax regime, and numerous funding opportunities, the island positions itself as a prime destination for innovative young companies.
By choosing the appropriate legal structure, leveraging the various available funding sources, and fully integrating into local networks, you’ll maximize your chances of success. Malta’s strategic position will also allow you to quickly consider international expansion.
However, as with any entrepreneurial project, the success of your startup in Malta will require meticulous preparation, a clear strategy, and flawless execution. Don’t hesitate to surround yourself with local experts to guide you through the various stages of your establishment and development on the island.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
