Legal and tax terms explained clearly
CFC rules (Controlled Foreign Companies) allow the home state to attribute the income of a foreign company to its domestic shareholder when certain conditions are met.
A Corporate Service Provider (CSP) is a service firm licensed by the MFSA that incorporates and administers companies in Malta and acts as registered agent.
Economic substance means the genuine business activity of a company at its Maltese location - office, staff, decisions taken locally - and is the precondition for tax recognition.
Exit taxes charge unrealised gains when a taxpayer moves abroad - the UK has no general exit tax, but the Temporary Non-Residence rule claws back gains realised during absences of less than five full tax years.
The FITWI regime is a Maltese tax regime in force since September 2025 that offers individuals relocating to Malta a flat tax on employment and investment income.
Malta's imputation system allows shareholders of a Malta Limited to claim a refund of 6/7 of the corporate tax paid - reducing the effective tax rate to around 5 percent.
Malta charges corporate income tax at the standard rate of 35 percent - through the imputation system the effective rate for non-resident shareholders drops to around 5 percent.
The Malta Limited is the corporate form most widely used by international entrepreneurs in Malta - a limited liability company incorporated under Maltese law.
The MFSA is Malta's single financial regulator, responsible for supervising financial services firms, insurers, pension funds and Corporate Service Providers.
Non-dom status allows Malta residents to pay tax on foreign income only to the extent that it is remitted to Malta (remittance basis).
