Start a Business in Malta: An Expat’s Guide

Published on September 30, 2025 and written by Cyril Jarnias

Malta, a small Mediterranean archipelago at the crossroads of Europe and Africa, is attracting a growing number of expatriate entrepreneurs drawn by its pleasant living environment and business-friendly climate. With advantageous taxation, a skilled and English-speaking workforce, and privileged access to the European market, Malta offers numerous opportunities to create and grow a business. This comprehensive guide outlines the key steps and specific aspects you need to know to succeed in your entrepreneurial venture on the island.

The Benefits of Starting a Business in Malta

Before detailing the procedures, it’s important to understand what makes Malta so attractive to expatriate entrepreneurs:

Advantageous Tax Environment: Malta offers one of the lowest corporate tax rates in Europe, with a tax refund system that can reduce the effective rate to just 5% in some cases.

Skilled and English-Speaking Workforce: English is one of Malta’s official languages, greatly facilitating communication. The country also boasts a well-trained workforce, particularly in the finance and technology sectors.

Privileged Access to the European Market: As a member of the European Union, Malta offers direct access to the single European market, while benefiting from a strategic position between Europe and Africa.

Simplified Procedures: Starting a business in Malta is relatively simple and fast, with streamlined administrative procedures compared to other European countries.

Pleasant Living Environment: With its Mediterranean climate, beaches, and rich historical heritage, Malta offers a quality of life appreciated by expatriates.

Legal Structures for Starting a Business in Malta

Maltese law offers several options for structuring your business. Here are the main legal forms to consider:

Limited Liability Company (LLC)

This is the most common and flexible form for expatriate entrepreneurs. There are two types of LLCs:

Private Limited Company: Ideal for small and medium-sized enterprises, it requires a minimum share capital of €1,164.69 and can have up to 50 shareholders.

Public Limited Company: Suitable for large companies, it requires a minimum share capital of €46,587.47 and can make public offerings.

Partnership

This structure involves at least two partners who are personally liable for the business’s debts. It can take two forms:

General Partnership: All partners have unlimited liability.

Limited Partnership: At least one partner has liability limited to their contribution.

Sole Trader

This option is suitable for entrepreneurs wishing to operate alone, without a separate legal structure. The entrepreneur is personally liable for the business’s debts.

Steps to Start a Business in Malta

Here are the main steps to follow to realize your entrepreneurial project in Malta:

1. Develop a Solid Business Plan

First and foremost, clearly define your business project, your business model, and your objectives. A well-structured business plan will be essential to convince potential partners or investors, as well as to obtain the necessary authorizations.

2. Choose the Appropriate Legal Structure

Depending on your activity, objectives, and personal situation, choose the most suitable legal form from those presented above.

3. Reserve the Company Name

Check the availability of your chosen company name with the Malta Business Registry and proceed with its reservation.

4. Prepare the Incorporation Documents

Draft the Memorandum and Articles of Association, the fundamental document that defines your company’s structure and operation. It is recommended to enlist a local lawyer to ensure compliance with Maltese law.

5. Open a Bank Account

Open a professional bank account in Malta to deposit the share capital and manage the company’s transactions.

6. Register the Company

Submit the incorporation documents and proof of capital deposit to the Malta Business Registry to formalize the creation of your company.

7. Obtain Necessary Licenses and Permits

Depending on your sector of activity, you may need to obtain specific licenses or permits from the relevant Maltese authorities.

8. Register with Tax and Social Security Authorities

Register your company with the Maltese tax administration to obtain a VAT number and with social security organizations.

Tax Considerations for Expatriate Entrepreneurs in Malta

Taxation is often a determining factor in choosing Malta as a destination to start a business. Here are the main elements to know:

Corporate Tax

The standard corporate tax rate in Malta is 35%. However, thanks to the tax refund system, non-resident shareholders can benefit from a partial refund, reducing the effective rate to:

– 5% for income from trading activities – 0% for passive income (dividends, interest, royalties)

VAT

The standard VAT rate in Malta is 18%, with reduced rates of 7% and 5% for certain goods and services.

Personal Income Tax

Expatriates resident in Malta are taxed on their worldwide income according to a progressive scale ranging from 0% to 35%. However, there are special regimes for highly qualified expatriates, offering reduced tax rates.

Tax Treaties

Malta has signed numerous international tax treaties to avoid double taxation, which can be advantageous for expatriate entrepreneurs with activities in multiple countries.

Funding and Support for Expatriate Entrepreneurs in Malta

Malta offers various funding and support options to assist expatriate entrepreneurs:

Government Grants and Subsidies

The Malta Enterprise agency offers several financial assistance programs and tax incentives for innovative or job-creating businesses.

Bank Financing

Maltese banks offer loans and credit lines tailored to business needs, including for expatriate entrepreneurs.

Venture Capital and Business Angels

Malta has a growing ecosystem of private investors and venture capital funds, particularly in the technology and innovation sectors.

Incubators and Accelerators

Several support structures are present in Malta to assist startups and entrepreneurs, such as TAKEOFF Business Incubator or Malta Innovation Hub.

Expatriate Entrepreneur Networks

Associations like InterNations or Malta Expat Network regularly organize networking events for expatriate entrepreneurs.

Cultural and Practical Challenges to Anticipate

Although Malta is a welcoming country for expatriate entrepreneurs, it’s important to be aware of certain challenges:

Cultural Differences in Business Practices: Despite British influence, Maltese business culture may have its specificities. It’s important to familiarize yourself with local codes and build trust-based relationships.

Bureaucracy: Although procedures are generally simplified, some administrative steps can take time. Patience and perseverance are key.

Limited Local Market: With a population of about 500,000, the Maltese market is relatively small. It’s often necessary to think internationally from the start.

Cost of Living: Although lower than in some major European capitals, the cost of living in Malta, particularly for housing, can be significant in certain sought-after areas.

Seasonality: The Maltese economy is heavily influenced by tourism, which can impact certain business sectors depending on the season.

Starting a business in Malta as an expatriate offers numerous opportunities, thanks to an advantageous tax environment, strategic geographical location, and pleasant living conditions. By following the steps detailed in this guide and surrounding yourself with the right local experts, you will maximize your chances of success in your entrepreneurial adventure on the island. Remember that each project is unique and deserves a personalized approach.