In this guide
Why Malta Dominates European Gaming and Fintech
Malta has positioned itself as the EU's premier hub for gaming and fintech — and the numbers back it up. Over 300 gaming companies are licensed in Malta, generating more than EUR 2 billion in annual revenue. The Malta Gaming Authority (MGA) is one of the most respected gaming regulators globally, and a Malta license is accepted in most European markets.
For fintech, Malta was among the first EU jurisdictions to create a regulatory framework for blockchain and virtual financial assets (the VFA Act). The Malta Financial Services Authority (MFSA) offers licensing for payment institutions, e-money institutions, and investment services firms.
But Malta's appeal goes beyond regulation. The island offers an effective corporate tax rate of 5% (through the shareholder refund system), English as an official language, EU market access, and a growing talent pool. This guide covers what you need to set up a company in Malta for fintech or gaming operations.
Malta's Tax Refund System Explained
Malta's corporate tax system is its most misunderstood feature. The headline rate is 35% — one of the highest in Europe. But through a perfectly legal shareholder refund mechanism, the effective rate drops significantly.
How the Refund Works
The Maltese company pays 35% corporate tax on its profits. When dividends are distributed to shareholders, the shareholders can claim a refund of 6/7ths of the tax paid (for trading income). This means the effective tax rate on distributed profits is approximately 5%.
For passive income (interest, royalties), the refund is 5/7ths, resulting in an effective rate of approximately 10%. For income from a participating holding, the effective rate can be 0%.
The refund is paid directly to shareholders by the Maltese tax authority, typically within 14 days of filing.
Important Conditions
The shareholder claiming the refund must not be tax resident in Malta. The refund system is designed for non-resident shareholders. If you plan to live in Malta, a different structure may be needed.
The system has been reviewed and approved by the European Commission. It's not an aggressive tax scheme — it's the intended design of Malta's tax system to attract foreign investment.
Company Formation Process
Forming a company in Malta is relatively straightforward compared to obtaining regulated licenses.
Step 1: Company Registration (1–2 Weeks)
Register a private limited liability company with the Malta Business Registry (MBR). Requirements: minimum share capital of EUR 1,165 (of which 20% must be paid up, i.e., EUR 233), at least one shareholder and one director, a local registered office address, and company secretary.
Vector provides registered office and company secretary services as part of our Malta package.
Step 2: Bank Account Opening (2–4 Weeks)
Open a corporate bank account with a Maltese bank. Main options include Bank of Valletta, HSBC Malta, APS Bank, and newer entrants like Papaya and Brighty. Banks will require detailed KYC documentation, business plan, and expected transaction volumes.
For fintech companies, banking can be more challenging as banks may view you as competition or a compliance risk. Having clear documentation and a professional introduction helps.
Step 3: Tax Registration
Register with the Commissioner for Revenue for corporate tax, VAT (if turnover exceeds EUR 35,000 or if dealing in intra-EU trade), and PAYE if employing staff in Malta.
Gaming License (MGA)
If your business involves online gambling or gaming, you'll need a license from the Malta Gaming Authority.
License Types
B2C License: For operators offering gaming services directly to players. Covers casino games, sports betting, poker, and other gaming verticals.
B2B License: For companies providing gaming software, platforms, or services to licensed operators.
The MGA issues a single license that can cover multiple gaming verticals, reducing the administrative burden compared to jurisdictions with separate licenses per vertical.
Application Process and Timeline
The MGA license application is comprehensive: detailed business plan and financial projections, technical infrastructure documentation, source of funds verification, fit and proper assessment for all directors and shareholders, system audit by an MGA-approved testing lab, and responsible gaming policies.
Timeline: 3–6 months from submission to approval. The MGA has streamlined the process but remains thorough. Application fees start at EUR 5,000, with annual license fees of EUR 25,000+.
Fintech Licensing (MFSA)
For fintech companies, the Malta Financial Services Authority offers several licensing options.
Payment Institution License
Required for companies providing payment services (transfers, card issuing, acquiring). Minimum capital: EUR 125,000. Application timeline: 6–12 months.
E-Money Institution License
For companies issuing electronic money (prepaid cards, digital wallets). Minimum capital: EUR 350,000. More complex application with additional requirements for safeguarding client funds.
VFA (Virtual Financial Assets) License
Malta's framework for crypto and blockchain businesses. The VFA Act covers exchanges, brokers, custodians, and token issuers. Capital requirements vary by class. Malta was one of the first EU jurisdictions to regulate crypto — the framework is mature and well-understood.
Costs and Practical Considerations
Malta is more affordable than most EU jurisdictions, but regulated businesses face higher costs than standard company setups.
Standard Company (No License)
Vector setup fee: from $6,500 Company registration: EUR 500–1,000 Registered office: EUR 1,500–3,000/year Accounting and compliance: EUR 3,000–6,000/year Total Year 1: approximately $10,000–15,000
Licensed Company (Gaming or Fintech)
All standard costs above, plus: License application fees: EUR 5,000–25,000 Legal and compliance advisory: EUR 15,000–50,000 Technical infrastructure and audits: EUR 10,000–30,000 Annual license fees: EUR 25,000+ Compliance officer salary: EUR 40,000–60,000/year
Total Year 1 for a licensed operation can easily exceed EUR 100,000. This is why Malta is best suited for businesses with sufficient capital and revenue to justify the regulatory investment.
Living in Malta
Malta offers a Mediterranean lifestyle at a fraction of the cost of comparable EU destinations. English is widely spoken (it's an official language alongside Maltese), the weather is warm and sunny for most of the year, and the expat community — particularly in gaming and fintech — is large and active.
Cost of living for a single professional: EUR 2,000–3,500/month including accommodation. Valletta, Sliema, and St. Julian's are popular areas for business professionals.
The main downsides: traffic congestion is severe (Malta is one of the most densely populated countries in the world), the island is small and can feel limiting, and property prices have risen significantly in recent years.
For founders who need an EU base with regulatory access, Malta offers a compelling combination of tax efficiency, regulatory sophistication, and lifestyle quality.
Is Malta Right for Your Business?
Malta is ideal if: you need a regulated EU entity for fintech or gaming, you want access to the EU single market, the 5% effective corporate tax rate matters to your structure, you or your team are willing to base operations in Malta, or you value English-language business and legal environment.
Malta is not ideal if: you have no regulatory requirements (simpler jurisdictions may be better), you need a large domestic market, you can't maintain a local office and presence, or your business is purely digital with no EU regulatory needs.
Want to explore whether Malta fits your business? Our Relocation Readiness Audit compares Malta against other jurisdictions based on your specific regulatory and tax requirements.
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