LLC × residence calculator · Edition 2026.09

If you lived in Malta: how much tax you would pay on your LLC profit

A Malta non-dom resident only pays tax on foreign-source income remitted to the island: if the LLC profit stays abroad, the Malta bill is 0%. But article 56(27) of the Income Tax Act sets a minimum of €5,000 a year once income arising outside Malta reaches €35,000, whether or not it is fully remitted, and a normal LLC profit clears that bar almost every year. That is why 'the LLC at 0% in Malta' is a myth as soon as the business earns anything serious.

Isaac Cubero · Checked on 14 September 2026 · territorial

At $100,000 of profit

You would pay
$0
Effective rate
0%
You would keep
$100,000

On $100,000 of LLC profit, living in Malta, you would pay $0 income tax (territorial regime), with conditions.

territorial

LLC profit as non-remitted foreign-source income (non-dom)$0
Estimated total$0

Sources: Income Tax Act (Cap. 123), art. 56(27): €5,000 minimum for non-doms with foreign income at or above €35,000 (text as quoted by PwC Worldwide Tax Summaries, Malta, 14 Sep 2026) · MTCA (Malta Tax and Customs Administration), 2026 rate tables for single, married and parent computations after the Budget 2026 bracket increase (figures cross-checked between PwC Tax Summaries and Mondaq) · Full imputation system and 6/7 refund on trading income: mechanism described by the Commissioner for Revenue and confirmed by Dr. Werner & Partners and Gonzi & Associates · Fixed exchange rate 0.86 EUR/USD.

Rank 1 of 38 residences by effective rate at this profit.

What we assume
  • 2026 personal tax scale (single rate) from the MTCA (Malta Tax and Customs Administration), no spouse or children.
  • LLC profit: NOT remitted to Malta that year, hence the 0% on the card; the €5,000 minimum sits separately under 'what can change it'.
  • Foreign company dividend: assumed to be fully remitted that same year.
What can change it
  • The €5,000/year minimum (ITA art. 56(27)) triggers once the non-dom's income arising outside Malta reaches €35,000 in the year, whether or not it is fully remitted; it does not depend on how much you remit, only on crossing that foreign-income threshold.
  • If you render the service from Malta, the profit becomes Malta-source: the remittance basis no longer applies and it is taxed in full on the 0 to 35% scale.
  • Malta transposed the EU CFC rules (ATAD, LN 411/2018), but they target Malta-resident companies controlling a foreign subsidiary, not an individual who is the sole member of a transparent LLC; worth confirming case by case.
  • The 6/7 refund is not instant: it is normally paid about two weeks after the Ltd files its return, so the 5% net figure is an annual effect, not the rate in the exact cash year of the dividend.
Sources
  • Income Tax Act (Cap. 123), art. 56(27): €5,000 minimum for non-doms with foreign income at or above €35,000 (text as quoted by PwC Worldwide Tax Summaries, Malta, 14 Sep 2026)
  • MTCA (Malta Tax and Customs Administration), 2026 rate tables for single, married and parent computations after the Budget 2026 bracket increase (figures cross-checked between PwC Tax Summaries and Mondaq)
  • Full imputation system and 6/7 refund on trading income: mechanism described by the Commissioner for Revenue and confirmed by Dr. Werner & Partners and Gonzi & Associates
  • Fixed exchange rate 0.86 EUR/USD.

At three profit levels

What you would pay in Malta depending on what your LLC earns.

Annual profitEstimated taxEffective rateYou would keep
$50,000$00%$50,000
$100,000$00%$100,000
$250,000$00%$250,000

And if it were not an LLC

The five cheapest structures from Malta, distributing all the profit.

StructureCorporateWithholdingYou, in MaltaTotal
US LLC$0$0$00%$0
Ltd in Malta$5,000$0$05%$5,000
UAE free zone$0$0$24,07024.1%$24,070
Hong Kong Ltd$8,250$0$21,18229.4%$29,432
Cyprus Ltd$15,000$0$18,82033.8%$33,820

Compare all nine structures from Malta

Frequently asked questions

Does a US LLC pay tax if I live in Malta?

The LLC pays no US federal tax if it has no US activity. A Malta non-dom resident only pays tax on foreign-source income remitted to the island: if the LLC profit stays abroad, the Malta bill is 0%. But article 56(27) of the Income Tax Act sets a minimum of €5,000 a year once income arising outside Malta reaches €35,000, whether or not it is fully remitted, and a normal LLC profit clears that bar almost every year. That is why 'the LLC at 0% in Malta' is a myth as soon as the business earns anything serious.

How much would I pay in Malta on $100,000 of profit?

On $100,000 of LLC profit, living in Malta, you would pay $0 income tax (territorial regime), with conditions. The €5,000/year minimum (ITA art. 56(27)) triggers once the non-dom's income arising outside Malta reaches €35,000 in the year, whether or not it is fully remitted; it does not depend on how much you remit, only on crossing that foreign-income threshold.

Is Malta a territorial country?

Yes: it only taxes local-source income. The profit of an LLC operated from abroad is not taxed, provided the work is rendered outside Malta.

Next

The figure is the start. The structure is the decision.

To see Malta against the other 37 residences: the full ladder.