Malta or Cyprus: where should you start a business?
Malta ranks higher in the index, 09 against 11. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
The headline rate is 35%. Trading profits reach about 5% effective only through shareholder refunds on distribution. VAT is 18%.
Corporate income tax rose from 12.5% to 15% on 1 January 2026. VAT is 19%, and deemed dividend distribution no longer applies to profits after 2025.
Set-up
Registration can take 24 hours once the file is complete. Fees start at €100 and the annual return at €85, both rising with authorised capital.
Online registration costs €165 and name approval €10, with a lawyer signing the application. The annual return costs €20, and no minimum capital applies.
On the ground
A registered office in Malta and a company secretary are mandatory. Authorised capital must be at least €1,164.69, with 20% paid up.
A company needs a registered office in Cyprus, which cannot be a mailbox, at least one director and a company secretary.
Ownership
General public access to the beneficial ownership register was suspended after a November 2022 EU court ruling; others must show a legitimate interest.
Public access to the beneficial ownership register was suspended on 28 November 2022. Companies must confirm their beneficial owners each year.
Residence
The Start-up Residence Programme requires at least €25,000 invested in a Malta company and a business plan approved by Malta Enterprise.
A foreign-owned company whose beneficial owner invests €200,000 can register with the Business Facilitation Unit, giving its staff access to permits.
Living and working
Currency
Euro.
Euro.
Time zone
UTC+1, or UTC+2 in summer.
UTC+2, or UTC+3 in summer.
Personal tax
Top rate 35% on income above €60,000 (single, 2026). Capital gains tax applies, but there is no inheritance or wealth tax.
Top rate 35% on income of €72,001 and above from 2026. A 20% capital gains tax applies only to Cyprus property; no inheritance tax.
Flights
Malta International Airport served 109 destinations in 2024; Delta flies to New York three times a week from June to October 2026.
Larnaka and Pafos airports served 165 destinations in 42 countries in August 2026; Larnaka handled 9.91 million passengers in 2025.
Language
Maltese and English are official languages. The courts use Maltese, although Parliament can provide for the use of English.
Greek and Turkish are the official languages and are used in the courts. Most people speak another language, usually English.
Malta vs Cyprus: common questions
Malta: The headline rate is 35%. Trading profits reach about 5% effective only through shareholder refunds on distribution. VAT is 18%. Cyprus: Corporate income tax rose from 12.5% to 15% on 1 January 2026. VAT is 19%, and deemed dividend distribution no longer applies to profits after 2025.
Malta: Registration can take 24 hours once the file is complete. Fees start at €100 and the annual return at €85, both rising with authorised capital. Cyprus: Online registration costs €165 and name approval €10, with a lawyer signing the application. The annual return costs €20, and no minimum capital applies.
Malta: A registered office in Malta and a company secretary are mandatory. Authorised capital must be at least €1,164.69, with 20% paid up. Cyprus: A company needs a registered office in Cyprus, which cannot be a mailbox, at least one director and a company secretary.
Malta: General public access to the beneficial ownership register was suspended after a November 2022 EU court ruling; others must show a legitimate interest. Cyprus: Public access to the beneficial ownership register was suspended on 28 November 2022. Companies must confirm their beneficial owners each year.
Malta: The Start-up Residence Programme requires at least €25,000 invested in a Malta company and a business plan approved by Malta Enterprise. Cyprus: A foreign-owned company whose beneficial owner invests €200,000 can register with the Business Facilitation Unit, giving its staff access to permits.
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