Save Taxes in Malta – Here’s How
Italian companies can save taxes in Malta by leveraging the island’s efficient 5 % corporate-tax regime to maximize free cash, simplify compliance, and gain a real competitive edge. (Figures are illustrative)
How to Save Taxes in Malta: Step 1 – Compare Rates
| Jurisdiction | Nominal Rate | Net Bite on Distributed Profits |
|---|---|---|
| Malta | 35 % → 5 % effective¹ | 5 % (no further dividend tax²) |
| Italy | 24 % IRES + 3.9 % IRAP = 27.9 % | 27.9 % + 26 % dividend tax³ ≈ 46.6 % |
Profits taxed at 35 %, then you reclaim 6 / 7 of that via refund, leaving a 5 % net corporate tax.
Malta’s full-imputation system means no further withholding on dividends.
Italian resident shareholders face a 26 % withholding on distributed profits.
How to Save Taxes in Malta: Step 2 – Model Your Numbers (Illustrative €1 M Case)
Revenue: €1 000 000
Local director fee: €24 000
Tech services: €100 000 (illustrative – your actual spend may be higher or lower depending on hosting, development, subscriptions, etc.)
Consulting & tax support: €30 000 (illustrative – varies with your advisory needs and complexity of filings)
Profit before tax: €1 000 000 – (€24 000 + €100 000 + €30 000) = €846 000
| Jurisdiction | Profit Before Tax | Corp Tax | Net Profit | Dividend Tax | Cash to You |
|---|---|---|---|---|---|
| Malta | €846 000 | 5 % | €803 700 | 0 % – no withholding | €803 700 |
| Italy | €846 000* | 27.9 % | €609 966 | 26 % withholding | €451 375 |
How to Save Taxes in Malta: Step 3 – Extract Your Cash
Malta: Distribute €803 700 net—no further tax.
Italy: A 26 % withholding on €609 966 leaves €451 375.
Bottom Line: Pocket Over €350 000 More
€803 700 versus €451 375 = €352 325 extra cash-in-hand.
That’s €350 000+ you can reinvest, expand, or distribute legally, with minimal bureaucracy and at lightning speed!
📞 Ready to Save Taxes in Malta?
Contact us now to model your own numbers and claim your massive savings!
