5 good reasons to invest in Malta in 2026

In addition to the advantages regarding operating costs, capital movements, access to domestic markets and reduced currency risk associated with Malta’s membership of the Eurozone, the Schengen Area, the European Union and the Commonwealth, as well as the numerous Double Taxation Agreements with over 70 countries, there are other reasons that make investing in this territory attractive.

Here are five reasons why you should invest in Malta in 2026.

Malta offers residence permits for investors

Malta offers a diverse range of programmes and initiatives designed to attract investment to the country through competitive offers and benefits.

The Start-up Residence Programme offers a residence permit for up to 3 years, extendable for a further 5 years, aimed at eligible investors and entrepreneurs from third countries who wish to develop start-ups in Malta. To benefit from this scheme, it is necessary to prove physical presence in the country and consequently be taxed there as a resident.

The Malta Permanent Residence Programme (MPRP) also offers a permanent residence permit, which may be extended to the applicant’s family, to those wishing to invest in the country provided they meet certain requirements, namely investment in real estate, government contributions and donations to a non-governmental organisation. It should be noted that this programme is also open to third-country nationals.

Malta has a competitive tax system

Malta’s Full Imputation System is one of the most competitive tax systems for companies, as it grants partners and shareholders of a company resident in Malta the right to a tax credit equivalent to the tax on which the profits were subject. The recipient of the dividends may, in turn, claim a full or partial refund of the tax borne by the company, provided certain conditions are met, typically resulting in an effective tax rate of 5%.

Malta provides a special tax regime for investment

With the aim of attracting investment to the country, Malta also provides for a reduced income tax rate of 15% for companies, which represents a 20% reduction compared to the general income tax regime in force in the country.

Malta offers benefits regarding capital gains tax

In addition to reduced tax rates, Malta also provides tax exemptions on capital gains for non-residents who, through a sale for consideration, dispose of shares in a company resident in Malta. 

Application of Directive 2003/49/EC

The payment of royalties, interest, dividends or liquidation proceeds by a company resident in Malta to non-residents does not require withholding tax under Directive 2003/49/EC.

It should also be noted that even if the recipients are resident in tax havens, this does not preclude the application of this mechanism.

Malta allows the conversion of trusts into foundations

Trusts, as such, are inevitably subject to a general income tax of 35% as they are considered, for tax purposes, to be a company. However, Malta allows trusts to be converted into foundations, thereby acquiring, subject to certain conditions, tax neutrality, which means that there will be no taxation in Malta if the settlors, beneficiaries and assets are not resident in Malta.