Can I start up a business in Malta while still residing in another country?
Yes, you can but only if you hire a lawyer (solicitor) to handle the start-up for you. If you give him power of attorney he can make all the arrangements but if you choose to do it on your own you have to be present to identify yourself in Malta.
How much does a business start-up in Malta cost?
You will need a share capital of 1164 Euros, however, the actual cost for the start-up of a business in Malta is only 245 Euros.
Am I required to live in Malta in order to have a business there?
No, you can either rent a cheap office space or register your business to a PO Box. This is completely legal and your lawyer can make these arrangements.
How high are income tax and social security contributions in Malta?
Your income tax is based on your salary. If you take out a salary of 8 500 Euros/year you will be exempted from taxation but if your salary is 14 500 Euros/year the tax rate is 15 %.
Social security contribution is 10 % for both employers and employees.
Is it really possible to pay as little as 5 % in corporation tax?
Well, corporation tax is always 35 % of your profits but if your business is owned by a holding company in a different country, for example Cyprus, you will get an 86 % tax refund since offshore companies aren’t taxed in Malta. You will end up paying only 5 % in corporation tax which is completely legal.
Can I really deduct half of my rent if my business is registered to my home address in Malta?
Yes, this is true. There are also several other generous deductions for broadband, computers and vehicles.
How long does it take to get a business set up in Malta?
According to Malta Financial Services Authority it can be done in as little as 24 hours if all the necessary documents have been filled out and submitted correctly. However, taxclimate.com has never actually heard of a business start-up that fast and we advise you to expect it to take a few weeks.
Do I have to have a Maltese bank account?
Yes, you do. When you apply for an account you will be required to show your valid passport, a copy of a rental agreement and a business address. If you are residing in Malta you can use your Maltese home address. You will also need a bank reference from the bank in your home country and this reference should be addressed directly to the bank in Malta.
How long does it take to open a bank account in Malta?
This depends on the bank and the administrator but expect it to take at least a week. The two main banks in Malta are Bank of Valletta (BOV) and HSBC. We recommend that you choose Bank of Valletta for a speedy opening of an account since HSBC is known for being a bit more “picky”.
How do I register my company?
This is done at The Registry of Companies, Malta Financial Services Authority in Attard. If you have a Maltese e-identification you can register your business on the internet which will be cheaper.
Can opening a bank account, acquiring a Maltese e-identification and the start-up of a business be done at the same time?
Yes, if you hire a lawyer in Malta he/she will take care of everything for you.