October 25, 2019

Costs of a foundation

The costs of setting up a limited company
Setting up a limited company in Malta is not expensive. Annual fees for the Maltese operating company and the additional administration of the holding company outside Malta can be estimated at EUR 7,100 in simple cases. They also depend on the annual accounting rates.


Incorporate a limited company in Malta with a managing director: What are the costs involved?

Anyone who does not wish to relocate to Malta but wants to set up a limited company there will need a managing director. This person receives a local salary, which must stand up to a third-party comparison in order for the company to be recognized. These salaries are slightly below the German level. It is still worth setting up a company in Malta, as Maltese companies are subject to the freedom of establishment and the EU Parent-Subsidiary Directive. This effectively saves a lot of tax. Malta attracts companies with its good framework conditions, which also include low taxes. But there are even more advantages:

  • Fast Internet
  • low labor costs
  • Highly qualified workers
  • Low real estate prices and rents
  • Low other levies (in addition to taxes)
  • Setting up a company in the EU
  • Good weather
  • Euro is the national currency
  • Stable financial sector
  • over 70 double taxation agreements
  • Codified legal system
  • Stable political and legal conditions
  • Business-friendly company law
  • Effective corporate tax rate = 5 %
  • 18 % VAT (value added tax)
  • No withholding tax

Who can settle in Malta?

In principle, any entrepreneur can set up a company in Malta. The greatest advantages are generated by German entrepreneurs who actually relocate to Malta.

We will be happy to advise you!