Guide · setting up a company

Malta vs Cyprus: setting up a company

Costs, registration time, destination taxes and yearly duties side by side, from the same official data as the setup cost calculator.

Malta and Cyprus are both EU members that use the euro, and both run their company registers online. For a founder setting up a private limited company, the differences sit in four places: who must be involved at formation, how much of the price firms publish, how profits are taxed inside the company, and what each year asks of the company after registration.

This guide sets the official facts side by side, with the date each source was read. It does not rank the two. Which one fits depends on where you live, where the company will be managed from, where its customers are and what kind of income it will earn. Your own country of residence may tax the dividends you receive and, under its rules on foreign companies controlled by its residents, the company’s profits too.

At a glance

MaltaCyprus
Company typePrivate limited liability company (Ltd)Private limited liability company by shares (Ltd)
Official fees at setupEUR 100EUR 175
Official fees every yearEUR 85EUR 20
Company formation by a firmPrice on requestEUR 1,170 to EUR 1,820 one-off
Accounting and annual accountsPrice on requestEUR 500 to EUR 2,100 per year
Registration timeAbout 1 dayNot published
Minimum share capitalAt least EUR 1,164.69 authorised, 20% of each share taken up paid up at signingNo minimum share capital for a private company
Corporate tax35%, with refunds to shareholders depending on the income and structure; or a final 15% by election15% from 1 January 2026
Tax on dividends to a non-resident individualNone on dividends from taxed profits paid to a non-resident individual not controlled by Malta residentsNo Special Defence Contribution for a non-resident individual
VAT18%; registration within 30 days of the first taxable supply19%; registration above EUR 15,600 of taxable supplies in 12 months

Firms' figures are starting prices published by firms on Accountanty (the lower to the upper quartile with at least 8 firms; "from" with 5 to 7; on request below 5). Tax lines are summaries: the full rules and sources are further down.

Cost to set up and run the company

The calculator's estimate for each company type with its default services: company formation, accounting and the services the law requires.

Malta

Official fees only, at setup EUR 100 + firms' fees (on request)
Official fees only, every year EUR 85 + firms' fees (on request)
Open the calculator for Malta

Cyprus

Setup cost EUR 1,350 to 2,000
Every year From EUR 1,140
Open the calculator for Cyprus

Taxes on the destination side

Your country of residence may tax the dividends you receive, and it may also tax the company's profits under its rules on foreign companies controlled by its residents. A company managed from your country may be treated as resident there. This is general information, not tax advice.

Malta

Corporate tax

  • Companies are taxed at a flat rate of 35% on chargeable income. mtca.gov.mt
  • When dividends are distributed, shareholders may claim a refund of part or all of the tax paid by the company. mtca.gov.mt
  • Refunds are set by article 48(4) and (4A) of the Income Tax Management Act; the fraction depends on the kind of income and on the structure. legislation.mt
  • From year of assessment 2025 a company may elect a final 15% tax instead of 35%: no refunds, at least five years, and never less than the 35% tax net of shareholder refunds. legislation.mt

Tax on dividends paid abroad

  • 15% is deducted only from dividends paid out of untaxed profits to Malta residents other than companies, or to non-residents controlled by persons resident and domiciled in Malta. legislation.mt
  • A dividend paid from taxed profits to a non-resident individual not controlled by Malta residents has no withholding. legislation.mt

VAT

  • VAT standard rate 18%. legislation.mt
  • A taxable person established in Malta applies for VAT registration within 30 days of its first taxable supply; small undertakings can register under article 11 up to EUR 35,000 of domestic turnover. legislation.mt

Example: profit of EUR 100,000, all paid out

35% rate (refunds not computed)
Corporate taxEUR 35,000 (35%)
Tax withheld on the dividendEUR 0
Dividend received, before any tax in your countryEUR 65,000
15% final tax election
Corporate taxEUR 15,000 (15%)
Tax withheld on the dividendEUR 0
Dividend received, before any tax in your countryEUR 85,000

Shareholders may be entitled to refunds that reduce the effective tax, depending on the structure of the company and its income. Ask firms in Malta to assess your case.

Cyprus

Corporate tax

  • From 1 January 2026 Cyprus companies pay corporate income tax at 15%. gov.cy

Tax on dividends paid abroad

  • Individuals who are not Cyprus tax resident, or not domiciled in Cyprus, are not subject to Special Defence Contribution on dividends. gov.cy
  • Dividends paid to a non-resident company carry Special Defence Contribution only if that company is resident in a jurisdiction on the official lists: 5% or 17% depending on the list. gov.cy

VAT

  • VAT standard rate 19%; reduced rates 9% and 5%; super reduced rate 3%. europa.eu
  • VAT registration when taxable supplies exceed EUR 15,600 in the last 12 months or are expected to in the next 30 days. companies.gov.cy

Example: profit of EUR 100,000, all paid out

Corporate income tax (15%)
Corporate taxEUR 15,000 (15%)
Tax withheld on the dividendEUR 0
Dividend received, before any tax in your countryEUR 85,000

Destination taxes only, before tax treaties and before any tax in your country of residence. Assumption: one shareholder, an individual not resident in the destination, holding 100% of the company; EUR 100,000 converted at the ECB rate. Try your own figure in the calculator.

Registration: steps and time

Malta

About 1 day. Within 24 hours of a complete online application, including due diligence documents.

  1. Draw up the memorandum and articles, naming the objects, the registered office in Malta, the first directors and the company secretary legislation.mt
  2. Subscribers sign the memorandum and pay up at least 20% of each share taken up legislation.mt
  3. Prepare the beneficial owner declaration (Form BO1) where needed mbr.mt
  4. Submit the incorporation online to the Malta Business Registry with the due diligence documents mbr.mt
  5. Receive the certificate of registration; the company exists and may start business from that date legislation.mt
  6. An income tax number is generated automatically once the company is registered mtca.gov.mt
  7. Register for VAT, which all companies registered in Malta must do mtca.gov.mt

Cyprus

Not published. Registration is generally completed within a few days; the Registrar offers an accelerated procedure for an extra fee.

  1. Apply to the Registrar of Companies for approval of the company name companies.gov.cy
  2. A lawyer licensed by the Cyprus Bar Association prepares and signs the memorandum, articles and form HE1 investcyprus.org.cy
  3. File the incorporation through e-filing within six months of the name approval companies.gov.cy
  4. Register with the Tax Department and obtain a tax number within 60 days of incorporation companies.gov.cy
  5. Enter the beneficial owners in the register within 90 days of incorporation companies.gov.cy
  6. Register with the Social Insurance Services when the company becomes an employer companies.gov.cy

Every year after registration

Malta

  • Annual return within 42 days of the anniversary of registration legislation.mt
  • Annual accounts with the auditors' report and directors' report delivered to the Registrar within 42 days of the period for laying them legislation.mt
  • Tax return and self-assessment within nine months of the financial year end, submitted by a registered tax practitioner mtca.gov.mt
  • Late annual return or accounts: maximum penalty EUR 2,329 plus EUR 46 a day legislation.mt
  • Companies Act audit exemption for small private companies under 2 of: balance sheet EUR 46,600, turnover EUR 93,000, 2 employees legislation.mt

Cyprus

  • First annual return made up 18 months after incorporation, then yearly, filed within 28 days of its drafting date companies.gov.cy
  • Late annual return: up to EUR 50, plus EUR 1 a day, to a maximum of EUR 150 companies.gov.cy
  • Every private company's financial statements are audited by a statutory auditor cylaw.org
  • A review may replace the audit where turnover and balance sheet stay within EUR 300,000 and EUR 500,000 for two consecutive years cylaw.org
  • From tax year 2026 every Cyprus company files a tax return, whatever its income, by 31 January of the second following year gov.cy
  • Beneficial owner details confirmed each year between 1 October and 31 December companies.gov.cy

Documents and requirements

Malta

  • Memorandum of association subscribed by at least two persons, or by the single member legislation.mt
  • Articles of association legislation.mt
  • Each director's signed consent to act, on the memorandum or in a separate written consent legislation.mt
  • Beneficial owner declaration (Form BO1), unless all shareholders are natural persons disclosed in the memorandum mbr.mt
  • At least one director legislation.mt
  • Every company must have a company secretary, who cannot be its sole director (except in an exempt company) legislation.mt
  • The memorandum must state a registered office in Malta and an email address legislation.mt
  • Anyone providing company formation, directors, secretaries or a registered office as a service must be authorised by the MFSA legislation.mt
  • The objects may not be stated simply as any lawful purpose or trade in general legislation.mt

Cyprus

  • Memorandum and articles of association, signed in Greek companies.gov.cy
  • Statutory declaration form HE1, signed and sworn before the court by the lawyer companies.gov.cy
  • By hand or post: form HE2 (registered office address) and form HE3 (first directors and secretary) companies.gov.cy
  • At least one director, aged 18 or over companies.gov.cy
  • One company secretary aged 18 or over; the director may also be secretary only with one member and one director companies.gov.cy
  • A registered office address is filed with the incorporation (form HE2) companies.gov.cy
  • Only lawyers licensed by the Cyprus Bar Association may prepare and sign the memorandum investcyprus.org.cy
  • Firms that provide administrative services to companies need a CySEC licence cysec.gov.cy

What to weigh between Malta and Cyprus

Formation. In Malta the registry fee for a company with authorised capital up to EUR 1,500 is EUR 100, and a complete online application is registered within 24 hours. Malta also sets a minimum: EUR 1,164.69 of authorised capital, a fifth of each subscribed share being paid when the memorandum is signed. In Cyprus the name approval and the online incorporation cost EUR 175 together, there is no minimum share capital, and only a lawyer licensed by the Cyprus Bar Association may prepare and sign the memorandum.

People. Both countries require a company secretary. In Malta the secretary cannot be the sole director, so a founder acting alone needs a second person. In Cyprus the director may also be the secretary only when the company has one member and one director.

Firms’ prices. Nineteen firms on Accountanty publish a starting price for formation in Cyprus, so the calculator shows a range. In Malta only three do, so firms’ fees there are on request and the figures above show official fees only.

Taxes inside the company. Cyprus charges 15% from 1 January 2026. Malta charges 35%, and shareholders may claim refunds after a dividend that depend on the income and the structure; since 2025 a company may instead elect a final 15% with no refunds. Neither country withholds tax in the example above on a dividend paid to a non-resident individual. The refund route in Malta is worth an assessment by a firm before you choose.

Every year. Both countries expect audited accounts as a rule. Malta exempts small private companies under two of three size limits from the Companies Act audit, and Cyprus lets a review replace the audit below EUR 300,000 of turnover and EUR 500,000 of balance sheet for two years in a row. From tax year 2026 every Cyprus company files a tax return, whatever its income.

Next steps

Malta

Get quotes from firms in Malta

Cyprus

Get quotes from firms in Cyprus

Malta vs Cyprus: questions and answers

Is it quicker to register a company in Malta or in Cyprus?

Malta states that a complete online application is registered within 24 hours. Cyprus says registration is generally completed within a few days and offers an accelerated procedure for an extra fee. In both countries the time before that, preparing documents and due diligence, depends on the founder and the firm.

How many directors and secretaries does a company need in Malta and Cyprus?

Malta asks for at least one director and a company secretary who cannot be the sole director. Cyprus asks for at least one director aged 18 or over and one secretary; the director may also be secretary only with one member and one director. Where the company is managed from matters for tax, so ask a firm before you appoint them.

What corporate tax does a company pay in Malta and in Cyprus?

Cyprus charges 15% from 1 January 2026. Malta charges 35%, and shareholders may claim refunds of part of that tax after a dividend, depending on the income and the structure; a company may instead elect a final 15% with no refunds, for at least five years. Your country of residence may tax the dividends and, in some cases, the company's profits.

Why does the guide show official fees only for Malta?

Only three firms on Accountanty publish a starting price for company formation in Malta and one for accounting, too few for a reliable range. The figures show the registry fees, which are paid in any case, with the firms' fees on request. A quote request to firms in Malta gives the full cost for your company.

Which is better for my company, Malta or Cyprus?

This guide does not rank them. The answer depends on your residence, where the company is managed, its customers and its income. Compare the facts above, try your own figures in the calculator for each country, and ask firms in both for a quote and an assessment of your case.

Sources and notes

  1. mbr.mt read 2026-10-23
  2. legislation.mt read 2026-10-13
  3. mbr.mt read 2026-10-23
  4. legislation.mt read 2026-10-23
  5. mbr.mt read 2026-10-13
  6. mtca.gov.mt read 2026-10-23
  7. mtca.gov.mt read 2026-10-13
  8. legislation.mt read 2026-10-13
  9. legislation.mt read 2026-10-23
  10. mtca.gov.mt read 2026-10-23
  11. legislation.mt read 2026-10-23
  12. legislation.mt read 2026-10-23
  13. legislation.mt read 2026-10-23
  14. legislation.mt read 2026-10-23
  15. investcyprus.org.cy read 2026-10-13
  16. companies.gov.cy read 2026-10-13
  17. companies.gov.cy read 2026-10-13
  18. companies.gov.cy read 2026-10-13
  19. companies.gov.cy read 2026-10-13
  20. companies.gov.cy read 2026-10-13
  21. companies.gov.cy read 2026-10-13
  22. companies.gov.cy read 2026-10-13
  23. cysec.gov.cy read 2026-10-13
  24. companies.gov.cy read 2026-10-23
  25. companies.gov.cy read 2026-10-23
  26. cylaw.org read 2026-10-23
  27. gov.cy read 2026-10-23
  28. gov.cy read 2026-10-23
  29. gov.cy read 2026-10-23
  30. gov.cy read 2026-10-23
  31. europa.eu read 2026-10-23

Official figures checked up to 2026-10-23. General information, not legal or tax advice: check the official sources and confirm costs with a firm before you act.