Malta: Corporate Tax

FinanceMalta speaks with Rachel Zarb Cousin, President of the Malta Institute of Taxation, about the main tax schemes and changes currently in play in Malta. Taxation is a moving target, and the rules keep shifting both locally and abroad, with key implications for businesses and professionals operating in the financial services sector.

Malta has established itself as one of the world's premier yachting jurisdictions, with over 1,000 superyachts registered under its flag. What makes Malta's combination of EU compliance, competitive VAT rates, and flexible registration pathways so attractive to yacht owners and operators seeking a strategic Mediterranean base?

The European Commission has adopted a comprehensive tax simplification package aimed at streamlining compliance burdens for businesses operating within the EU's internal market. Through the Direct Taxation Omnibus and the recast of the Directive on Administrative Cooperation, the proposals seek to address the complexities that have emerged from numerous EU tax directives, the Pillar 2 global minimum tax, and varying implementation approaches across Member States.

The European Commission has unveiled a comprehensive tax simplification package aimed at streamlining the EU's corporate tax framework through two key proposals: the Direct Taxation Omnibus and the recast of the Directive on Administrative Cooperation. These reforms seek to reduce complexity, eliminate overlapping provisions, and enhance competitiveness by simplifying withholding tax relief, revising anti-tax avoidance rules, and consolidating administrative cooperation mechanisms across Member States.

Paul Micallef Grimaud and Philip Formosa from Ganado Advocates examine Malta's evolving gambling regulatory landscape, covering MGA licensing requirements, cross-border player claims, prediction markets, and the latest gaming tax reforms. Their comprehensive analysis provides essential insights into one of Europe's most established gaming jurisdictions and its regulatory framework for 2026/27.

Malta's citizenship and taxation systems operate independently, with tax obligations determined by residence and domicile rather than nationality. The Malta Citizenship by Merit programme allows individuals to acquire citizenship while benefiting from the country's non-domiciled tax regime, which taxes only Malta-sourced income and foreign income remitted to Malta.

For decades, US businesses viewed tax treaties primarily as technical instruments and mechanisms to reduce withholding tax or avoid double taxation on cross-border income.

For UK entrepreneurs looking to regain access to the EU market post Brexit, Malta has become one of the most attractive jurisdictions for company formation.

Mr Mario Rossi is an Italian entrepreneur who has invested in several companies across Europe in different sectors. He owns 70% of a German manufacturing company, 60% of a Czech software company, and 80% of a Spanish distribution company.