Comparison

Cyprus vs Malta: Company Formation Compared

Cyprus suits founders who want a simple 15% rate with no dividend withholding; Malta suits foreign-owned trading companies chasing the lowest effective tax through its shareholder refund.

Last updated June 2026 · 5 min read

Cyprus vs Malta side by side

Both are popular jurisdictions for founders, but they suit different situations. Here are the headline numbers, verified June 2026. Each country links to its full profile with the complete data.

Feature 🇨🇾Cyprus 🇲🇹Malta
Main company typeLtd (private limited)Ltd (private limited)
Corporate tax15% (from 2026)35% (~5% effective)
VAT19%18%
Minimum capitalNone (typ. €1,000)~€1,165 (20% paid)
Setup time~8-12 days~3-7 days
Remote setupYesYes

Which is right for you

Choose Cyprus if you want a straightforward 15% corporate tax, no withholding tax on dividends to non-residents, and an IP Box for technology income.

Choose Malta if you run a foreign-owned trading company and want an effective rate near 5% via the 6/7 shareholder refund, accepting that it needs more structuring and a refund cycle.

Still weighing it up? Compare them against the rest in company formation in Europe, or see the overall best country ranking.

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Frequently asked questions

Is Cyprus or Malta better for company formation?

Cyprus suits founders who want a simple 15% rate with no dividend withholding; Malta suits foreign-owned trading companies chasing the lowest effective tax through its shareholder refund.

What is the corporate tax in Cyprus versus Malta?

In Cyprus the headline corporate tax is 15% (from 2026), and in Malta it is 35% (~5% effective). Both are national rates that apply regardless of company form.

Can I form a company in Cyprus or Malta remotely?

Cyprus: Yes. Malta: Yes. We handle the cross-border requirements either way.

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