Relocating Your Business to Malta: Everything You Need to Know

Relocating your business to Malta offers a compelling mix of strategic location, tax efficiency, and regulatory stability. As part of the European Union with a business-friendly legal framework, Malta continues to attract entrepreneurs, holding companies, startups, and established enterprises. Whether you're redomiciling a UK company post-Brexit or expanding operations from the UAE, Malta offers continuity, access to European markets and government incentives that make relocation a smooth process.

Why Choose Malta for Business Relocation?

Malta's reputation as a corporate hub isn’t accidental and its appeal to international businesses is rooted in several key advantages, with.  access to EU markets, and a regulatory framework based on English common law principles, making the country particularly attractive to international businesses.

The corporate tax system in Malta is one of the most competitive in the EU. While the standard rate is 35%, a shareholder refund mechanism – known as full imputation – reduces the effective tax rate on profits to between 5 and 10 percent. This system ensures company profits are taxed primarily at the corporate level, avoiding double taxation when dividends are paid to shareholders.

Access to the European market is another major benefit and Malta’s legal framework is based on English common law principles, making it familiar and predictable for investors from common-law jurisdictions. The island also boasts a highly educated, English-speaking workforce and thriving sectors including fintech, iGaming, aviation, professional services and maritime services. Government-backed incentives, such as grants for research and development, training, and innovation through Malta Enterprise and a stable banking sector overseen by the Central Bank of Malta, further strengthen the case for relocating a business to Malta.

Who Can Relocate a Business to Malta?

Not all companies are eligible to move their legal domicile to Malta, but many international entities are. Businesses incorporated in jurisdictions that allow company continuation — such as the UK, Isle of Man, Cyprus, and several US states — can relocate to Malta without losing their legal or corporate identity. This process is regulated under Malta’s Continuations of Companies Regulations and eligible entities include:

• Private limited companies (Ltds);
• Public limited companies (Plcs);
• Holding companies;
• Fintech and iGaming operators; and
• Family offices and investment vehicles.

However, high-risk sectors like cryptocurrency operations or gambling may require additional licensing from the Malta Financial Services Authority (MFSA) or the Malta Gaming Authority (MGA), depending on operations. Engaging with local regulators early ensures that compliance requirements are met before the relocation is completed.

Relocating vs Starting a New Business in Malta

Businesses relocating to Malta can either redomicile their existing company or start a new entity. This distinction is essential. Redomiciling allows a company to transfer its legal domicile while retaining its structure, assets, and liabilities. This approach is particularly useful when continuity is important — for example, if the company has standing contracts or banking arrangements.

Starting a new company in Malta involves registering a new entity with the Malta Business Registry (MBR) and winding down the foreign company. While this allows for a cleaner structure, it also resets your tax history, financial standing, and credit profile.

A third option is acquiring a shelf company, a pre-registered entities with no trading history.  While this can accelerate the setup process, it requires careful due diligence to avoid inheriting any unexpected liabilities.

How to Redomicile a Company to Malta

Redomiciliation follows a clear legal process that allows a foreign company to shift its registration to Malta while keeping its existing identity, contracts, and assets intact. The process is structured and regulated by the Malta Business Registry, and typically unfolds in a series of defined steps.

Here’s a simplified breakdown of how to redomicile a company to Malta:

1. Check Eligibility: Confirm your current jurisdiction allows company continuation.
2. Board Approval: Pass a board resolution to initiate redomiciliation.
3. Prepare Documentation, including:

• Certificate of Good Standing

• Updated Memorandum and Articles of Association

• Director declarations and solvency statements

1. File with MBR: Submit all documents to the Malta Business Registry, along with a statutory fee.
2. Receive Provisional Registration: You’ll receive a provisional certificate allowing operations in Malta.
3. Deregister from Original Jurisdiction: Notify your previous registry and obtain proof of cessation.
4. Final Certificate of Continuation: Issued by the MBR once deregistration is confirmed.

At this point, your business is legally Maltese and subject to Maltese company law.

Legal and Administrative Requirements

Once a company has been redomiciled to Malta, it must comply with all local regulatory and administrative obligations. These cover areas such as taxation, employment, accounting, and corporate governance, and are overseen by the Malta Business Registry and other national authorities. These include:

• Obtaining a Tax Identification Number (TIN) from the Commissioner for Revenue
• Registering for VAT if you exceed Malta’s €35,000 annual threshold for services
• Opening a corporate bank account with a local or EU-based bank (be prepared for extensive KYC checks)
• Registering employees with Jobsplus, Malta’s employment agency
• Setting up a registered office address, either via leased space or a CSP
• Filing annual accounts and audit reports with the MBR

These steps require attention to detail, especially given Malta’s strong regulatory focus on anti-money laundering (AML) compliance.

Choosing the Right Legal Structure

Selecting the right legal structure is one of the most important decisions when relocating a business to Malta. The structure you choose will determine your company’s liability, tax treatment, reporting obligations, and even how easily you can raise capital in the future. Malta offers several options, each designed to suit different business sizes and operational goals.

The most common choice for international firms setting up in Malta is a Private Limited Liability Company (Ltd). This structure offers flexibility, limited liability for shareholders, and requires a minimum share capital of just €1,165, of which only €245 (20 percent) must be paid up on incorporation.

Larger enterprises may prefer a Public Limited Company (plc), which requires at least €46,588 in share capital and is often used by businesses planning to attract investors. Other options include:

• Branch – a branch allows a foreign company to operate in Malta without forming a completely new and separate legal entity. Instead, it is considered an extension of the parent company. This means the parent remains fully liable for the branch’s debts and obligations, but it can be a faster and more cost-effective way to establish a presence in Malta.
• Partnerships – partnerships can be set up in two main forms either en nom collectif (general partnership), where all partners share management responsibilities and carry unlimited liability, or en commandite (limited partnership), where some partners have limited liability but less control over management. Partnerships are often used for professional services or family-run businesses, but they require careful structuring to balance liability and decision-making power.
• Sole Trader – rarely used for cross-border moves due to personal liability but is the simplest form of business structure. It means the business is owned and run by one individual, and there is no legal separation between the person and the business.

Each structure comes with distinct accounting, tax, and compliance obligations, so legal consultation is strongly advised.

Taxation and Financial Considerations

Malta’s tax system is designed to support international business and is globally renowned for its shareholder refund mechanism. While the standard corporate tax rate is 35%, shareholders can reclaim the majority of the tax the company has paid, reducing the effective rate to around 5%–10%.

In addition to the corporate tax framework, companies relocating to Malta should also take into account the following financial and compliance factors:

• Full imputation system – ensures that the corporate profits distributed to shareholders are largely exempt from further taxation, avoiding double taxation and making Malta highly attractive for international investors.
• VAT – The standard rate is 18%, with reduced rates of 7% and 5% for specific goods and services, allowing businesses to benefit from lower tax on essential sectors.
• No withholding tax on dividends paid to non-residents – profits can be repatriated to foreign shareholders without additional tax, simplifying cross-border financial management.
• Double Taxation Agreements (DTAs) – Malta has over 70 agreements with other countries, helping businesses avoid being taxed twice on the same income and supporting international tax planning strategies.
• Substance requirements –to comply with EU anti-avoidance rules, companies must demonstrate that key management decisions and core operations are conducted locally, ensuring real economic presence on the island.

Businesses employing staff must also factor in National Insurance contributions, which are deducted at source and paid monthly to the Commissioner for Revenue, covering social security obligations for employees.

Business Incentives and Support Programmes

Malta offers a range of incentives and support programmes to help businesses establish and grow on the island. Malta Enterprise offers a suite of funding, grants, advisory services and incentive schemes, aimed at facilitating relocation, encouraging innovation and supporting expansion in key sectors such as technology, fintech, and research and development. These include:

• MicroInvest – provides tax credits to support micro and small enterprises in Malta, helping them invest in equipment, training, and technology to grow their operations.
• Start-Up Finance Scheme – offers up to €400,000 in a combination of repayable and non-repayable funding to assist new and innovative businesses with capital, working expenses, and initial growth.
• Investment Aid for SMEs – allows small and medium-sized businesses to benefit from tax reductions based on qualifying capital expenditures, encouraging investment in infrastructure, machinery, and technology.
• Highly Qualified Persons Rules – provides senior professionals relocating to Malta with a reduced personal income tax rate of 15%, making it easier to attract top international talent in specialized sectors.

The Malta Digital Innovation Authority (MDIA) also supports tech and blockchain-related initiatives with certification and grants.

Practical Considerations for Business Owners

Relocating a business to Malta involves more than just completing paperwork. It requires careful planning for day-to-day operations and the smooth integration of staff and resources. Business owners should consider not only legal and financial obligations but also practical aspects that impact employees, infrastructure, and the overall cost of running a company on the island. Consider the following:

• Staff relocation - work permits, residency cards and related documentation are managed via the Identity Malta Agency, ensuring employees can live and work legally in Malta while complying with immigration regulations.
• Office options - businesses can choose between coworking spaces, business centres, or long-term commercial leases depending on size, operational needs and budget, allowing flexibility for both startups and established firms.
• Utilities - Companies must set up accounts with ARMS Ltd, Malta’s main energy and water provider to ensure uninterrupted essential services for their operations.
• Internet and Telecoms - regulated by the Malta Communications Authority, providers like GO and Melita offer reliable business packages including high-speed internet and phone services.
• Cultural factors - English is widely spoken, and the business culture blends Mediterranean and British influences making it easier for international teams to integrate.
• Cost of living - significantly lower than Western Europe, Malta offers a competitive lifestyle for staff, however, costs have been rising in recent years due to increased demand, particularly for housing and services.

Common Challenges and How to Overcome Them

Despite the many benefits of relocating a business to Malta, companies can face a few practical hurdles such as:

• Banking Delays – opening a corporate account in Malta can take time due to KYC and AML requirements. Working with a licensed Corporate Service Provider (CSP) can help to expedite the process.
• Bureaucracy - processing times for tax registration, work permits and other administrative fillings can take longer than expected. Early planning and professional guidance help avoid delays.
• Regulatory Compliance - sectors such as iGaming, financial services, and cryptocurrency firms are heavily regulated. Early engagement with the Malta Financial Services Authority (MFSA) is essential.
• Talent Acquisition - While Malta has a skilled workforce, the local pool of specialist talent is limited. Many companies rely on international hires, which requires planning for work permits and relocation support.

Working with a Local Service Provider

For a smooth relocation, partnering with a Corporate Service Provider (CSP) is strongly advised. CSPs help businesses navigate Malta’s legal and administrative requirements, making the transition faster and more efficient. They can provide hands-on support in key areas, including:

• Company formation and redomiciliation
• VAT and tax registration
• Annual reporting and compliance
• Payroll and HR onboarding
• Office space and utility setup

Choosing a licensed CSP regulated by the MFSA or listed under the Malta Institute of Accountants ensures professional standards and full compliance with Maltese regulations.

Key Considerations and Final Checklist Before Relocating Your Business to Malta

•  Confirm your business is eligible for continuation
•  Prepare and submit all redomiciliation paperwork to the Malta Business Registry (MBR)
•  Open a local bank account
•  Register for tax, VAT, and employment obligations
•  Secure a suitable commercial space and set up utilities
•  Appoint legal and financial advisors in Malta
•  Inform all stakeholders of your new jurisdiction

FAQs on Relocating to Malta 

Can I relocate my UK company to Malta post-Brexit?
Yes, the UK allows continuation of companies, and Malta recognises UK firms under the Continuation of Companies Regulations, making it possible to redomicile a UK company to Malta post-Brexit.

How long does redomiciliation take?
The redomiciliation process in Malta typically takes 4–8 weeks, depending on the documentation and due diligence.

Is Malta suitable for remote-first companies?
Yes, Malta’s modern business infrastructure, reliable digital connectivity and low personal taxation for qualifying expats make it an ideal location for ‘remote-first’ businesses.

What are the costs of relocating to Malta?
Legal and corporate service provider (CSP) fees usually range between €2,500–€5,000 in addition to setup costs for offices, registration and compliance with Malta company requirements.

Do I need a local director in Malta?
No, you do not need a local director in Malta. It is not mandatory by law, but often recommended for tax residency and regulatory compliance purposes.

Do I need to reside in Malta to run a company?
No, you do not need to reside in Malta to run a company, however, substance rules may require a local director or some physical presence.

Is it mandatory to have physical office space in Malta to maintain tax residency?

Yes. A tax-resident company in Maltamust demonstrate effective management and control on the island, typically through a local registered office and evidence of core operations or decision-making taking place on the island.

Is the redomiciliation process reversible if the business decides to leave Malta?

Yes. Companies can reverse redomiciliation by applying for continuation in another jurisdiction, provided both Malta and the destination country permit such transfers under their respective laws.

How can a SaaS (Software-as-a-Service) company benefit from relocating to Malta?

SaaS companies and tech businesses benefit from Malta’s favourable corporate tax regime, R&D incentives via Malta Enterprise, access to EU data protection compliance (GDPR), and reduced personal income tax for senior talent under the Highly Qualified Persons Rules.

What should family-owned business consider when relocating to Malta?

Key considerations include succession planning, restructuring for compliance with Maltese company law, tax optimisation for shareholder distributions, and adapting governance to meet EU substance requirements.

Are there industry-specific relocation grants available for biotech or med-tech firms?

Yes. Malta Enterprise offers tailored incentives for biotech and life sciences companies, including cash grants, soft loans, and investment aid under the R&D and Innovation Framework and Business Development Scheme.

What’s the difference in operational costs between Malta and other EU relocation destinations like Cyprus or Ireland?

Malta generally offers lower office rental and salary costs than Ireland, but slightly higher costs than Cyprus. Professional services fees (legal, accounting, CSPs) are broadly comparable to both.

How does relocating to Malta affect intellectual property rights and licensing?

Malta provides robust IP protection under EU law, with access to EU trademarks and patents. Tax exemptions may apply to qualifying IP income under the Notional Interest Deduction (NID) and Patent Box Regime.

Does relocating a business to Malta affect the ability to raise capital from international investors?

No. Malta-based entities can freely receive foreign investment. Being in the EU may enhance investor confidence, though some VCs may require additional due diligence on regulatory substance and local governance.

What are the ongoing reporting obligations after redomiciling to Malta?

Companies must file annual financial statements and tax returns with the Malta Business Registry and Commissioner for Revenue, maintain statutory registers, and comply with VAT, employment, and AML reporting where applicable.

How do exchange control regulations in the country of origin affect business relocation to Malta?

Countries with strict exchange controls (e.g. China, South Africa) may restrict outbound capital or asset transfers. Businesses must obtain necessary approvals before redomiciling to Malta to avoid legal or financial penalties.