Business Forms in Malta 2026: Self-Employed, Ltd or Partnership?

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You work for yourself and you are setting up in Malta, or running a Maltese structure from abroad. The choice is mostly between self-employment and a private limited company, with partnerships as a niche option. You will learn what each form costs in tax for 2026, what the law requires and where the cross-border traps are.

Malta business forms in 2026: the key figures

What changed for 2026

• New personal rate tables. The Budget Measures Implementation Act 2026 (Act III of 2026) replaced the rate tables in article 56(1) from year of assessment 2027, which taxes 2026 income. Self-employed parents of qualifying children get wider 0% and 15% bands.
• 15% final tax option now in use. The FITWI Regulations, published on 2 September 2025, let Maltese companies opt for a final 15% tax from the fiscal year preceding year of assessment 2025. A company that opted in stays in the regime for 2026, per PwC (secondary).
• Company law consolidated to 28 April 2026. The Companies Act (Cap. 386) in that version keeps the EUR 1,164.69 minimum for private companies.

Is this guide for you?

Read on if you…

• are a freelancer, consultant or founder about to start working from Malta;
• are deciding between self-employment and a Maltese company;
• want to run a Maltese business while travelling or living partly abroad.

Probably not your case if you…

• are a salaried employee with no side business; see personal income taxes in Malta;
• need a regulated vehicle such as a fund, bank or gaming licence, which brings its own capital and licensing rules.

Which business forms exist in Malta?

Business First, Malta's government business agency, lists the common options: sole trader, partnership, limited liability company and cooperative. For an independent professional, four are realistic.

A word on partnerships

The Income Tax Act treats a partnership as a "company" only if it elects to be treated as one under article 27(6) of the Income Tax Management Act. An en commandite partnership with share capital set up before 1 January 2015 is deemed to have elected. Without the election, the partners are taxed on their share. Partnerships suit professionals sharing a practice, not solo founders.

Self-employed or limited company: which fits what you do?

Self-employed: the simple start

Self-employed means you trade in your own name: no separate legal person, no share capital. You register with Jobsplus as self-employed, then complete the permits your activity needs. For Maltese nationals the tax number is simply the ID card number; as a foreigner, you need a Maltese tax number before your first invoice.

Profit goes into your personal return at the 2026 rates. See the full tables in personal income taxes in Malta. Deductible costs follow the business rules in business expenses in Malta.

During the year you pay provisional tax in three instalments: 20%, 30% and 50%, based on your last return (PwC, secondary). Your return and any balance are due by 30 June of the following year. Late tax costs 0.6% interest per month, per the Tax and Customs Administration.

Class 2 social security adds 15% of your previous year's net income. For 2026 the Department of Social Security caps it at EUR 83.89 a week if you were born from 1962. Most self-occupied people pay at least EUR 36.18 a week.

Maltese Ltd: what the law requires

A private limited company is a separate legal person. Under article 67 of the Companies Act, members are liable only for any amount unpaid on their shares.

What you need:

• a memorandum subscribed by at least two persons (art. 68), unless you form a single member company (art. 212);
• share capital of at least EUR 1,164.69, with 20% paid up when the memorandum is signed (art. 72);
• named directors and a company secretary in the memorandum (art. 69(1)(g) and (h));
• proof that the paid-up capital is available, and certified ID for directors, shareholders and secretary.

On registration with the Malta Business Registry, the company receives a tax identification number automatically, according to Business First. A single eForm then opens the VAT number and employer registration.

Each year the company files a return within nine months of its financial year-end. If the year ends between January and June, the deadline is 31 March of the following year, per the Tax and Customs Administration.

How is a Maltese company taxed: refunds or 15% FITWI?

The default: 35% and full imputation

The company pays a flat 35% on its chargeable income, as the Tax and Customs Administration confirms. Malta then uses full imputation. In plain words, the company's tax counts as a credit against the shareholder's tax on the dividend. Depending on the income and the shareholder, part of the company tax can be refunded on distribution. The refund fraction drives the real cost, so model it before you incorporate. Detail in corporate income taxes in Malta.

The alternative: FITWI at 15%

FITWI means final income tax without imputation. Under the September 2025 Regulations, eligible Maltese entities can elect a 15% tax on their income. Per PwC (secondary):

• the tax is final: it cannot be credited, set off or refunded;
• the election lasts at least five consecutive years, with no early exit;
• companies, bodies of persons electing company treatment and certain trusts can opt in.

Here's the catch: you trade the refund for certainty. With a large refund available, FITWI can cost more.

Can you run a Maltese company from abroad?

Malta itself is relaxed. Article 2(1) of the Income Tax Act treats a company incorporated in Malta as resident in Malta. It does not lose that status because you manage it from Lisbon or Bali.

The risk sits in the other country. Many states tax a company where its management and control, or place of effective management, sits. If you decide everything from your laptop abroad, that country may claim the company as resident too. A tax treaty tie-breaker then decides, and it may not favour Malta.

A second risk is a permanent establishment (PE): a fixed place of business that gives another country taxing rights. Your home office abroad can be one.

To keep Malta as the company's real base:

1. Hold board meetings in Malta and minute them there.
2. Appoint at least one director who genuinely lives and decides in Malta.
3. Keep a real office, bank account and records in Malta.
4. Check your own country's controlled foreign company and residence rules before you start.

Leaving Malta personally? Read ceasing your tax residency in Malta. For a structure review across countries, see Heavnn business setup.

How do you register, step by step?

1. Choose the form using the matrix above.
2. Settle your own status first: residence permit, tax identification and tax residence in Malta.
3. Self-employed: register with Jobsplus as self-employed, obtain any permits, then register for VAT if your activity requires it.
4. Ltd: draft the memorandum and articles, open an account and deposit at least 20% of the capital.
5. Ltd: file the signed documents with the Malta Business Registry. You receive the registration certificate and a tax number.
6. Ltd: complete the VAT and employer eForm, and set up payroll if you pay yourself a salary.

Common mistakes (and what they cost)

• Incorporating too early → accounting, secretarial and filing costs can exceed the tax saving on modest profits.
• Running the Ltd from your home abroad → another country may treat the company as resident and tax its profits, on top of Malta's claim.
• Electing FITWI without modelling refunds → you give up refunds for at least five years and may pay more than under 35% with imputation.
• Skipping provisional tax as self-employed → interest of 0.6% per month runs on unpaid tax, plus a large bill at filing.
• Leaving Class 2 contributions out of your budget → 15% of your previous year's net income, up to EUR 83.89 a week, comes on top of income tax and is not optional.

Frequently asked questions

What is the minimum share capital for a Maltese Ltd?

EUR 1,164.69 for a private company, under article 72 of the Companies Act. At least 20% of each share's nominal value must be paid up when the memorandum is signed. A public company needs EUR 46,587.47, with 25% paid up. You need at least two subscribers, unless you set up a single member company.

Should I be self-employed or open a company in Malta?

It depends on profit and plans. Self-employment is cheaper to run, but profit is taxed at up to 35% plus 15% Class 2 social security. A Ltd pays 35%, with possible shareholder refunds, or 15% final under FITWI. It also brings accounting and secretarial costs. Many freelancers start self-employed and incorporate once profits grow.

How are self-employed people taxed in Malta?

Profit is added to your personal income and taxed at 0% to 35% in 2026. Singles pay 0% up to EUR 12,000 and 35% above EUR 60,000. You also pay Class 2 social security at 15% of the previous year's net income, up to a maximum. Provisional tax is due in three instalments, and the return by end of June.

Can a non-resident own and run a Maltese company?

Yes. A company incorporated in Malta is resident in Malta under article 2(1) of the Income Tax Act. But if you manage it from abroad, your country may also treat it as resident, or find a permanent establishment. Hold board meetings in Malta and keep real decision-making there.

What is the 15% FITWI option for Maltese companies?

FITWI means final income tax without imputation. Under Regulations published on 2 September 2025, eligible Maltese entities can elect a final 15% tax instead of 35% with imputation. The tax cannot be credited, set off or refunded. The election applies for at least five consecutive years. It suits companies that would gain little from refunds.

Are partnerships taxed like companies in Malta?

Only if they elect. The Income Tax Act counts a partnership as a company when it elects under article 27(6) of the Income Tax Management Act. An en commandite partnership with share capital formed before 2015 is deemed to have elected. Otherwise, partners are taxed on their share of profit at their own rates.

Related guides

• Corporate income taxes in Malta: rates, refunds and FITWI
• Business expenses in Malta: what you can deduct
• Personal income taxes in Malta: 2026 rate tables
• Obtaining tax residency in Malta
• Your complete tax guide to Malta
• Legal forms of business in Austria
• Legal forms of business in Switzerland
• All country tax guides

Sources

• Companies Act, Chapter 386 of the Laws of Malta – Malta Legislation
• Income Tax Act, Chapter 123 of the Laws of Malta – Malta Legislation
• Budget Measures Implementation Act 2026 (Act III of 2026) – Malta Legislation
• Registration of a business – Business First (Malta Enterprise)
• Social security contributions (Class 2) 2026 – Department of Social Security
• Company income tax and return deadlines – Malta Tax and Customs Administration
• Tax return cycle for individuals – Malta Tax and Customs Administration
• Malta, Corporate: Taxes on corporate income – PwC Worldwide Tax Summaries (secondary)

This guide is general information, not personalised tax advice. See how we research and review.