Malta has emerged as an attractive hub for businesses especially startups, offering a blend of financial, legal, and operational advantages. In fact, Malta was recently ranked the 4th best destination in Europe for innovative startups.
As an EU member state with an English-speaking environment, Malta provides startups with tax-efficient structures, robust banking infrastructure, easy business setup, and quick access to European markets.
Tax and financial incentives
- Competitive corporate tax regime: Malta’s corporate tax rate is 35% but uniquely operates on a full imputation system that can reduce the effective tax to 5% for non-resident shareholders. This EU-approved tax system allows foreign startup founders/investors to claim generous tax refunds, significantly lowering the tax burden on distributed profits. Such a regime can dramatically improve a startup’s post-tax profitability, freeing up capital for reinvestment.
- Startup tax incentives and credits: Malta offers various schemes to lighten the tax load for new businesses. For example, highly skilled expatriate employees in innovative fields can benefit from a flat 15% personal income tax rate under the Qualifying Employment in Innovation & Creativity programme. There are also tax credit initiatives such as MicroInvest and Start in Malta, aimed at small startups, allowing companies to offset a portion of eligible expenses against taxes, effectively rewarding entrepreneurs for investing in their business growth.
- Grants and funding: Through Malta Enterprise, early-stage companies can access seed grants such as the “Business Start” scheme which offers up to €10,000 to develop a business idea into a feasible plan. There are other funding schemes offering larger amounts for different projections.
Robust banking infrastructure
- Stable banking system: Malta’s banking sector enjoys a stable and well-regulated reputation, with most credit rating agencies rating Malta at A or higher.
- Easy euro transactions: Since adopting the euro currency, businesses with a business bank account in Malta can easily make SEPA payments across EU and EEA countries swiftly and at low costs. This makes financial operations even more seamless.
Access to EU Markets and funding programmes
- Gateway to the European Single Market: A company based in Malta is a fully-fledged EU company, with the ability to gain a foothold in the entire EU single market of 27 countries and over 450 million consumers. You can easily passport services across borders, trade goods with no customs barriers, and expand operations throughout Europe with Malta as your launchpad. Access to this vast market from a stable, English-speaking base is a compelling reason many startups choose Malta.
- EU-wide funding: Maltese businesses are eligible to tap into EU funding programmes and grants that are inaccessible to those outside the EU.
- Proximity to European third parties: Malta’s geographic position offers connectivity to key European markets to reach more investors and clients. It also enables flight connections to well-known locations such as London and Frankfurt, making it easier to travel for business purposes.
Banks in Malta and digital alternatives
It’s important to be aware of the available business banking solutions, and luckily, this is not a scarcity in Malta! There are several traditional banks to open a business bank account in Malta such as Bank of Valletta and HSBC, that provide local business bank accounts, cards, lending and more. However, these typically require in-person visits, extensive documentation and very lengthy processes, which may take around 2 to 3 months.
This is where digital alternatives such as Moneybase provide a faster and smoother solution to managing your finances. Moneybase stands out due to the all-rounded digital platform, allowing business account opening in 48 hours with a unique Maltese IBAN, starting from only €9.99 per month.
Your business in one place, from anywhere
Moneybase enables businesses to open a business account in just 48 hours! Here’s all you get with a Moneybase Business Account:
- Simple and online account opening process, in just 48 hours
- A trusted local business account supercharging payments globally to over 185 countries in 24 currencies
- All your business finances on one single, end-to-end platform
- Creation of multiple wallets, with specific access and permissions assigned to specific users
- Different business plans for business of all sizes, at just €9.99 per month
- Advanced features such as liquidity reporting, statements generation, income reports and tax certificates
- Access to over 40 international exchanges and more than 20,000 stocks, ETFs, bonds and funds on an award-winning platform
- Setting up of automated payments approval flows
- Robust security systems to protect you, your business, and your finances
- Access business account on web or on mobile app for more flexibility
- ISO-certified customer support, available 7 days a week
Whether you’re a local looking to open a business or an entrepreneur looking to move your operations to Malta, Moneybase is an efficient digital alternative to local business bank accounts to partner you in your journey. For assistance, you can easily speak to our customer support through the in-app live chat, call us on +356 25 688 688, or simply visit any of the Calamatta Cuschieri Branches in Mosta, Birkirkara, Fgura and Sliema.
Payment services are brought to you by Moneybase Limited (MB) C 87193 which is licensed by the MFSA to transact the business of a Financial Institution in terms of the Financial Institutions Act, Cap 376. All investment services are brought to you by Calamatta Cuschieri Investment Services Ltd (CCIS) C 13729 which is licensed by the MFSA to undertake investment services business under the Investment Services Act, Cap 370. Calamatta Cuschieri Investment Services Ltd is a member of the Maltese Investor Compensation Scheme (“Scheme”). Instruments entrusted with us are covered under the Scheme in line with the Investor Compensation Scheme Regulations (S.L. 370.09). The value of investments may go up as well as down and investors might not get back the original amount invested. MB and CCIS are both subsidiaries of the Calamatta Cuschieri Moneybase plc with their registered address situated at Level 0, Ewropa Business Centre, Dun Karm Street, Birkirkara, BKR 9034, Malta.
FAQs
If you’re interested in starting a business in Malta, you will need to determine what type of business formation, is best for you. From there you can proceed to open a business bank account in Malta. You can also opt for faster digital alternatives such as Moneybase, where you can open a business account within 48 hours, for only €9.99 per month.
To set up a business bank account in Malta, you’ll typically need company registration documents, identification of shareholders, proof of address, proof of business activity, completion of due diligence checks, and an initial deposit. For freelancers and sole traders, the required documentation is more straight forward. Moneybase is a digital alternative to business banking, you can open your business account in 48 hours, for just €9.99 a month.
Malta offers one of Europe’s most competitive tax environments. Its corporate tax rate is 35%, but thanks to an imputation system, non-resident shareholders can reduce their effective tax rate to as low as 5%. The country also provides tax incentives for startups, including tax credits, grants, and a flat 15% personal income tax rate for highly skilled expatriates in innovative sectors. These benefits make Malta an attractive base for entrepreneurs and international businesses.
Through Malta Enterprise, early-stage companies can access seed grants such as the “Business Start” scheme which offers up to €10,000 to develop a business idea into a feasible plan. There are other funding schemes offering larger amounts for different projections. You must have a business account in Malta, to be eligible for grants.
