How to Start a Business in Malta as a Foreigner in 2026

Starting a business in Malta as a foreigner gives you an EU company in an English-speaking, eurozone country, with no rule that owners or directors must be Maltese or live in Malta. A Malta company can be fully foreign owned, and its trading profits are taxed at about 5% after the shareholder refund.

The hard part is the difference between owning a company and working in Malta. Owning and directing it from abroad needs no permit. Moving to Malta to run it does: non-EU founders need a work and residence permit, which costs from €600 and can take up to four months, and self-employment permits are rare.

This is where we come in. We form the company ourselves, from abroad, with the KYC file, the documents, the filing and the bank file handled for you. We tell you early whether you need a permit and which one. One team, one clear price from €1,299, formed in about a week.

Already living in Malta? Read our guide on how to register a business in Malta.

Why Start a Business in Malta as a Foreigner

Starting a business in Malta as a foreigner is popular because Malta puts almost no limits on foreign founders. There is no nationality or residency rule for shareholders, directors or the company secretary, the language of business is English, and a company can bring tax on trading profits to about 5% inside the EU.

No Residency or Nationality Rule

A Malta company can be 100% owned by foreigners and run by directors who live anywhere, which is what makes starting a business in Malta as a foreigner so simple on paper. The company needs a registered office in Malta and a company secretary, which our partners provide from €900 + VAT a year each. Nobody needs to move to Malta to own it, as our guide on how to set up a company as a non-resident explains.

Run It From Abroad

Companies are filed online through the Registry's BAROS system and signed with qualified e-signatures. With a licensed provider filing for you, starting a business in Malta as a foreigner needs no Maltese e-ID, no trip and no local bank visit.

English, the Euro and the EU

English is an official language, Malta has used the euro since 2008 and it has been in the EU since 2004. Contracts, Registry forms and most guidance are in English, one of the benefits of setting up a business in Malta, which is why many founders find a Malta company for foreigners easier to run than a company in most EU countries.

Low Tax on Trading Profits

A Malta company pays 35% tax, and its shareholders claim back six-sevenths of the tax on trading profits when a dividend is paid, for about 5% net. Dividends paid to non-resident shareholders carry no Malta withholding tax. Since 2025, a company can instead elect a final 15% tax with no refunds.

Residence Routes if You Want to Move

If you do want to live in Malta, there are routes for founders: free movement for EU citizens, the Startup Residence Programme for innovative non-EU founders, and work permits for non-EU founders employed by their own company. Each has its own conditions, set out below.

Can a Foreigner Open a Company in Malta

Yes. A foreigner can open a company in Malta and own all of it, whether they are an EU citizen or not. Malta's company law sets no general limit on foreign ownership and no residency rule for directors, so starting a business in Malta as a foreigner works the same way as it does for a local founder.

What the Company Needs

A private limited company needs authorised capital of at least €1,164.69, with 20% paid up, at least one director, a company secretary, a registered office in Malta and a beneficial ownership declaration. A private exempt company can have a single shareholder, whose sole director can also act as secretary, as our guide on how to set up a limited company in Malta explains. Our guide to Malta company formation requirements lists every rule.

Extra Checks for Non-EU Shareholders

Non-EU shareholders give a bank or professional reference letter dated within six months, on top of a certified passport and proof of address. Documents issued outside Malta often need an apostille. These are the documents that take longest, so order them first.

Investment Screening in Sensitive Sectors

Non-EU investors in sensitive sectors, such as critical infrastructure, critical technology, data or media, must notify Malta's national foreign direct investment screening office, including when they set up a new company. Most trading, service and software companies fall outside these sectors, and we check this before anything is filed.

EU and Non-EU Founders

The rules for starting a business in Malta as a foreigner split on citizenship. EU, EEA and Swiss citizens can live, work and run a business in Malta freely. Non-EU citizens can own and direct a Malta company from abroad, but need a permit to live in Malta or work there, including for their own company.

EU, EEA and Swiss Citizens

EU citizens can move to Malta and work or run a business without a permit. If they stay more than three months, they register their residence with Identità at no fee. A self-employed EU citizen applies with an active Jobsplus self-employment registration, a VAT certificate, a tax certificate and a social security certificate, and the residence document takes about 30 working days. After five years of legal residence they can apply for permanent residence.

Non-EU Citizens Running the Company From Abroad

A non-EU founder who stays outside Malta needs no permit at all, which is why a Malta company for foreigners living abroad is so common. They own the shares, act as director from abroad, sign by e-signature and hold board meetings remotely or with a Maltese director through our company director services in Malta. This is the simplest way of starting a business in Malta as a foreigner from outside the EU.

Non-EU Citizens Moving to Malta

Identità treats anyone who works for a Malta company as its employee, and that includes directors, shareholders and beneficial owners who perform an executive function. A non-EU founder who moves to Malta to run their own company therefore needs a Single Permit, applied for by the company, unless another route applies.

Read more: Malta company director residency requirements and the Malta employment licence for non-EU staff.

Residence and Work Permits for Foreign Founders

Foreign founders who want to live or work in Malta choose between EU free movement, a Single Permit, the Key Employee Initiative, the Startup Residence Programme and, rarely, a self-employment permit. The Nomad Residence Permit does not allow work for Malta companies, so it does not suit someone running a Malta business.

For most non-EU founders the realistic routes are a Single Permit through their own company or, for an innovative startup, the Startup Residence Programme. A self-employment permit is the hardest, and the Nomad permit is closed to anyone working for a Malta company.

Single Permit Through Your Own Company

The company applies online for the founder. From August 2025 the fee is €600 for a first application and €150 a year on renewal, the job must first be advertised for three weeks, and processing can take up to four months. Most permits run for one year, and some qualify for two or three.

Key Employee Initiative

A faster route for managers and highly qualified staff on a salary of at least €45,000 a year, in management or professional roles, with a degree or three years' experience. Identità processes it in about five working days. Fees match the Single Permit.

Startup Residence Programme

For non-EU founders of innovative startups registered within the last seven years. Malta Enterprise must approve the business plan, and the company needs at least €25,000 of investment or paid-up capital. Founders get three years of residence, extendable by five, family can be included, and the application fee is €750 per adult. Founders must live in Malta and pay tax there.

Self-Employment Permit

A non-EU citizen who wants to be self-employed needs a Jobsplus employment licence and then an Identità permit at €100 a year. Under the Jobsplus guidance in force since January 2021, the licence needs €500,000 of capital spending in Malta within six months, an innovative project that will hire three EU or Maltese workers within 18 months, or a project approved by Malta Enterprise. Most founders use a company instead.

How to Start a Business in Malta as a Foreigner

How to start a business in Malta as a foreigner comes down to seven steps with us: decide where you will work, choose the structure, build the KYC file, pay in the capital, form the company, get the tax numbers and open the account. The company is ready in about a week. A permit, if you need one, runs in parallel.

Decide Where You Will Work

If you will run the company from abroad, you need no permit, and the steps are the same as in our Malta company formation guide. If you will move to Malta, decide the route now, because a Single Permit needs the company to exist and to advertise the role first, and the Startup Residence Programme needs Malta Enterprise to approve the plan.

Choose the Structure

For starting a business in Malta as a foreigner, most founders use a private limited company or a private exempt company with one shareholder. Founders with several businesses add a holding company. See our guide to setting up a Malta holding company.

Build the KYC File

Every director and owner provides a certified passport, a proof of address under three months old and, for non-EU shareholders, a reference letter dated within six months. We prepare the ownership chart and the source of funds documents at the same time.

Pay In and Form the Company

At least €232.94 of share capital is paid in, with a receipt showing the name of the company in formation. We draft the memorandum and articles and file everything online with the ownership declaration. The Registry fee is included in our price, and a complete file can be registered within 24 hours.

Get the Tax Numbers

The company gets its tax number automatically on registration. A foreigner who earns income in Malta, or remits taxable income there, registers through the Expatriates Taxpayer Registration Form, which takes about eight days. VAT is a separate registration, under Article 10 for most trading companies.

Open the Account

Our banking partners open a multi-currency account online, usually within 2 to 4 business days of registration, with no branch visit. Our guide on how to open a business bank account in Malta as a non-resident covers this step.

Documents Needed to Start a Business in Malta as a Foreigner

The documents needed to start a business in Malta as a foreigner cover every person behind the company and any company that owns it. Certification matters as much as the list, and documents from outside Malta usually need extra steps.

For Each Owner and Director

A certified copy of a valid passport, a proof of address under three months old and, for non-EU shareholders, a bank or professional reference letter dated within six months. Each director signs a consent and declaration form dated within one month of filing.

For a Company Shareholder

A certificate of good standing, a register extract showing directors and shareholders, the constitutional documents and a board resolution approving the investment, with an ownership chart up to the individuals at the top.

Certification and Apostille

Copies are certified by a lawyer, notary or accountant in your own country. Documents issued outside Malta often need an apostille, or consular legalisation where the country is not in the Hague Convention, and anything not in English needs a certified translation.

For a Permit

A permit application adds its own file: for a Single Permit, a contract and proof the role was advertised; for the Startup Residence Programme, the business plan approved by Malta Enterprise, health insurance and proof of investment.

Tax for Foreign Business Owners in Malta

Foreign business owners face two tax questions: how the company is taxed and how they are taxed. The company pays 35% with refunds to shareholders, or a final 15%. The owner's own tax depends on where they live, and moving to Malta brings its own rules.

How the Company Is Taxed

A company incorporated in Malta is resident there and taxed on its worldwide income at 35%. Shareholders claim refunds on dividends, usually six-sevenths on trading profits, for about 5% net. Malta charges no withholding tax on dividends paid to non-resident shareholders. Our guide to Malta offshore company formation explains the refunds in detail.

If You Live Outside Malta

Your home country may tax the dividends, and it may tax the company's profits under controlled foreign company rules if you control it from there. A company whose directors decide everything in another country can also be treated as resident in that country. Check your own position before you rely on the Malta rate.

If You Move to Malta

A foreigner who becomes resident but not domiciled in Malta is taxed on Malta income and on foreign income brought into Malta, not on foreign capital gains. Non-doms with foreign income of €35,000 or more pay a minimum of €5,000 a year. The special programmes for wealthy residents change from January 2027, when the minimum tax for global residents rises to €35,000.

Read more: tax advisors in Malta and how to file a Malta company tax return.

Cost of Starting a Business in Malta as a Foreigner

Starting a business in Malta as a foreigner costs from €1,299 for the company with us. A realistic first year, with the office, secretary, accounts, tax return and a bank account, is about €6,800 to €10,500 plus VAT for a small company, before any permit or local director.

Our price covers the structure advice, the KYC file, the memorandum and articles, the ownership forms, the Registry fee and the filing, confirmed in writing before you pay. Trusts, foundations and licensed structures are quoted separately. The yearly services come from our partners.

If you move to Malta, add the permit: €600 for a Single Permit and €150 a year to renew it, or €750 per adult to apply for the Startup Residence Programme. A Maltese director adds €1,500 to €2,000 + VAT a year through our partners. Our guide to how much a Malta company costs breaks down every line.

Banking for a Foreign-Owned Malta Company

A Malta company for foreigners pays more and waits longer at a Maltese bank. HSBC Malta charges a company at least 50% owned from abroad €175 a month as an International Company, BNF charges international corporate customers €1,500 a year per account, and reviews take weeks or months, usually after a branch appointment.

The Faster Route Through Our Partners

Our banking partners are licensed e-money institutions, regulated in the EU and the UK. They open multi-currency accounts online in days, with no branch visit, no minimum balance and the same plan whoever owns the company, from €30 to €100 a month. We prepare the bank file during formation, so the account opens soon after the certificate.

Malta vs Cyprus, Ireland and the UK for Foreign Founders

Foreign founders who look at Malta usually compare it with Cyprus, Ireland and the UK. All four let foreigners own 100% of a company. The differences are tax, director rules and EU access.

Malta gives foreign founders the lowest effective rate on trading profits inside the EU, with no director residency rule. Cyprus is simpler at one flat rate, Ireland has the strongest trading reputation, and the UK is cheapest but outside the EU.

Malta vs Cyprus

A Cyprus company pays a flat 15% since January 2026 with no refund step, but every Cyprus company needs an audit. See our guide to holding company formation in Cyprus.

Malta vs Ireland

An Irish company pays 12.5% on trading profits, but needs an EEA-resident director or a bond, which adds cost for founders from outside Europe. See our Ireland company formation guide.

Malta vs the UK

A UK company is the cheapest and fastest to set up, from €350 with us, with no residency rule, but it is outside the EU. See our guide to UK company formation for non-residents.

Who a Malta Company Is Wrong For as a Foreign Founder

Malta company formation for non-residents is a poor fit for foreign founders who want to move to Malta and work as self-employed without a company, because non-EU self-employment permits are granted only in exceptional cases. It also suits badly a founder whose home country will tax the profits anyway under its controlled foreign company rules.

It is not the cheapest option for a very small business, because the yearly costs of about €6,800 or more can outweigh the tax saving. And it is the wrong tool for anyone who wants secrecy: owners are recorded in the beneficial ownership register and accounts are reported to their home tax authorities. If you only need a cheap company outside the EU, a UK company may cost less to run.

Common Mistakes Foreigners Make Starting a Business in Malta

Most mistakes foreigners make when starting a business in Malta come from mixing up company ownership with the right to work. These are the ones we see most often.

Working in Malta Without a Permit

A non-EU founder who moves to Malta and runs their own company needs a permit, because Identità treats executive directors and shareholders as employees. Working first and applying later puts the permit and the company at risk. Plan the Single Permit, the Key Employee Initiative or the Startup Residence Programme before you move.

Using the Nomad Permit to Run a Malta Company

The Nomad Residence Permit is for people working remotely for foreign employers or clients. Holders cannot work for companies based in Malta, including their own. A founder who runs a Malta company on a nomad permit breaks its conditions.

Expecting Low Personal Tax by Moving

The 5% figure is the company's net rate after the refund, not your personal tax. A resident non-dom pays tax on foreign income brought into Malta, with a €5,000 minimum where foreign income is €35,000 or more. Model your personal tax before you move.

Running the Company Entirely From Home

A Malta company whose directors decide everything in another country can be treated as resident there and taxed on its profits. Hold board meetings in Malta or with a Maltese director, and keep minutes that show it.

Sending Uncertified Home Country Documents

Plain copies of passports and utility bills from abroad are sent back. Certify every copy, add an apostille where needed and translate anything not in English before the file goes to the Registry or the bank.

Bottom Line

Starting a business in Malta as a foreigner is open to anyone. There is no nationality or residency rule for owners or directors, the company can be formed and run from abroad, and trading profits are taxed at about 5% after the shareholder refund.

The line to watch when starting a business in Malta as a foreigner is work. EU citizens can move and work freely, but non-EU founders need a permit to work in Malta, even for their own company. If you will run it from abroad, you need none. We handle Malta company formation for non-residents from €1,299, with the documents and the bank file included, and tell you early if a permit applies.

Sources

• Companies Act, Cap. 386
• Malta Business Registry, formation and registration
• Identità, residence for EU nationals
• Identità, working and residing in Malta
• Identità, employment and self-employment permits
• Identità, Key Employee and Specialist Employee Initiatives
• Jobsplus, employment licence guide for third-country nationals
• Residency Malta, Startup Residence Programme eligibility
• Residency Malta, Nomad Residence Permit eligibility
• Servizz.gov, Expatriates Taxpayer Registration
• Individual Tax Programme Rules 2026, L.N. 195 of 2026