US Company Formation from Malta (2026): The Refund System vs the New 15% Final Tax, Non-Dom Remittance Basis, iGaming and the US–Malta Treaty for US LLC and C-Corp Owners

Malta built an international business sector on a tax system unlike any other in the EU. Its companies pay 35% corporate tax, but shareholders can claim refunds of most of it, often six-sevenths, bringing the effective rate on trading profits to around 5%. In 2025, Malta added an elective 15% final tax for companies that prefer a simple rate without refunds, partly in response to the global minimum tax. Malta is also a hub for online gaming, fintech and blockchain companies, and home to many foreign residents taxed on the remittance basis.

Each of these interacts with a US company in its own way. This guide explains how Malta's refund and 15% systems work with US subsidiaries, how non-doms should treat income from a US company, why an MGA gaming licence does not open the US market, and the US–Malta treaty. It goes further than our Greece, Cyprus and Malta overview.

In short: Malta residents and Maltese companies can own 100% of a US LLC or C-Corporation, formed remotely. Maltese companies pay 35%, with shareholder refunds that often bring trading profits down to about 5%, or can elect a 15% final tax from 2025. Resident non-domiciled individuals are taxed on Maltese income and on foreign income remitted to Malta, with a €5,000 minimum tax in many cases. Malta generally treats a US LLC as a foreign company. The US–Malta treaty limits US withholding on dividends to 15% (5% for companies owning 10% or more), interest to 10% and royalties to 10%, subject to a limitation on benefits. With UCB, a Delaware corporation with EIN is $358 and a Wyoming LLC with EIN is $249, all-in.

Malta's corporate tax: refunds or 15%

The refund system

A Maltese company pays 35% on its profits. When it pays a dividend, the shareholder can claim a refund of part of the tax:

• 6/7 of the tax on trading profits, so the overall rate is about 5%;
• 5/7 on passive interest and royalties;
• 2/3 where double tax relief was claimed;
• full refund on profits from qualifying participations (where the participation exemption is not used).

Dividends received by a Maltese company from a participating holding (for example, at least 5% of a foreign company) can be exempt under the participation exemption, subject to anti-abuse conditions for companies outside the EU.

The 15% final tax (FITWI)

From year of assessment 2025, a company can elect the Final Income Tax Without Imputation regime: a 15% final tax on its profits, with no shareholder refunds, locked in for at least five years. It cannot produce less tax than the refund system would have. It suits groups whose shareholders cannot benefit from refunds, and groups affected by the global minimum tax.

Why this matters for a US company

• A Maltese company owning a US C-Corporation usually receives US dividends under the participation exemption, or with a full refund, so Malta adds little tax. The US withholding at 5% (treaty) is the main cost on distributions.
• A Maltese company providing services to its own US subsidiary is taxed in Malta on that income, at 35% with refunds or 15%. The US subsidiary deducts the fees in the USA at 21%. The IRS and Malta will both look at transfer pricing.

Non-doms and the remittance basis

Individuals who are resident but not domiciled in Malta are taxed on:

• income arising in Malta; and
• foreign income remitted to Malta.

Foreign capital gains are not taxed even if remitted. Non-doms with foreign income of at least €35,000 pay a minimum tax of €5,000 a year.

For a non-dom who owns a US company:

• dividends from a US corporation kept outside Malta are not taxed in Malta;
• distributions from a US LLC are generally foreign income, taxed only when remitted;
• but income from work done in Malta is Maltese income, whichever company invoices it. A consultant living in Sliema who bills US clients through a US LLC is earning Maltese-source income, not foreign income, because the work is done in Malta.

That last point is where non-doms most often go wrong.

How Malta treats a US LLC

A US LLC with limited liability is generally treated by Malta as a body of persons, that is, a company. A company whose management and control is exercised in Malta is Maltese tax resident, taxed at 35% with refunds, or 15% if it elects. A single-member LLC run by its owner from Malta is managed in Malta.

A Maltese company that owns a disregarded US LLC should check the anti-hybrid rules and Malta's CFC rules, which apply to low-taxed foreign entities with non-genuine arrangements.

The US–Malta treaty

The treaty in force since 2010 limits US withholding:

It limits US tax on business profits to a US permanent establishment and has a modern limitation on benefits article. A Maltese company owned mainly by people outside Malta and the USA, or with little activity in Malta, may not qualify. The treaty also contains a special rule restricting benefits where Maltese tax is reduced through the refund system in certain cases, so take advice on how refunds affect your treaty claim. Claim treaty rates on Form W-8BEN or W-8BEN-E (see W-8BEN-E vs W-8BEN explained).

iGaming: the licence does not cross the Atlantic

Malta's Gaming Authority (MGA) licenses hundreds of online gaming companies that serve European markets. None of that applies in the USA, where online gambling is legal only in some states and regulated state by state:

• operators need a licence from each state's gaming regulator (for example, New Jersey, Pennsylvania or Michigan), usually through a partnership with a land-based licensee;
• suppliers of games and platforms need supplier licences in each state;
• federal law, including the Wire Act and UIGEA, limits payments and cross-state activity.

A Maltese gaming company entering the USA usually forms a US corporation to apply for licences and contract with US partners. Form it early, but take US gaming counsel before offering any service. See US subsidiary for a foreign company.

US C-Corp formation from Malta

US tax position

A US corporation pays 21% federal tax on its profits plus state tax, and files Form 1120 and Form 5472 every year (see the 21% corporate tax explained and the C-Corp guide for non-residents).

Example: a Maltese game supplier's US subsidiary

Take an illustrative case: a Maltese company that develops slot games for online casinos wants to supply operators in New Jersey and Michigan. It forms a Delaware corporation, which applies for supplier licences in both states and employs a compliance officer and an account manager in New Jersey. The US company licenses the games from the Maltese parent and pays royalties, with 10% US withholding under the treaty. It pays US tax on its own margin. Dividends to the parent carry 5%. The Maltese parent has elected the 15% final tax because its shareholders are a foreign group that cannot use refunds.

US LLC formation from Malta

US tax position

A single-member LLC with a non-resident owner pays no US income tax if the owner works from Malta and the LLC has no US office, employees or dependent agents (see effectively connected income explained). It files Form 5472 with a pro forma Form 1120 every year, and the penalty for missing it is $25,000 (see Form 5472 explained).

Example: a non-dom developer in Sliema

These are illustrative figures, not a client case, at €0.92 to the dollar.

Lucas is a French developer living in Sliema, Malta tax resident but not domiciled. He earns US$100,000 (about €92,000) a year from US clients, paid into a US LLC's account. He spends some of it in Malta and keeps the rest in the USA.

• His work is done in Malta, so the income is Maltese-source, not foreign income. The remittance basis does not apply to it, and the LLC, managed from Malta, is a Maltese-resident company.
• The right set-up is a Maltese company (or registration as self-employed), declaring the income in Malta. As a company, it pays 35% with a 6/7 refund on distribution, or 15% final tax. His US clients can still pay a small US LLC owned by his Maltese company if they insist on a US vendor.

Which state

• Delaware for a subsidiary, start-up or gaming company.
• New Jersey, Pennsylvania or Michigan where gaming licences and staff will be.
• Wyoming for a small LLC owned by a Maltese company.

See best state for non-residents and the state selector.

What it costs

UCB's prices include state fees and the first year of registered agent service:

• Delaware corporation with EIN: $358.
• Wyoming LLC with EIN: $249, or $348 with a US bank account application.

A Delaware corporation costs $578 a year to keep active. A Wyoming LLC costs $121 a year, or $421 with the annual federal return. A US business address with your own suite number is $60 a year. See what a US LLC costs every year.

Documents and banking

For a Maltese company, a certificate of incorporation and good standing from the Malta Business Registry, the memorandum and articles, and a board resolution. For an individual, your passport and proof of Maltese address. US banks accept Maltese companies but look closely at gaming and crypto businesses; some will not open accounts for them at all. See US business bank accounts for non-residents and why banks reject non-resident applications.

Mistakes to avoid

• Treating income from work done in Malta as foreign income under the remittance basis.
• Offering gaming services in the USA on the strength of an MGA licence.
• Claiming treaty rates without checking the LOB and the refund-related restriction.
• Running a US LLC from Malta and forgetting it may be Maltese-resident.
• Missing Form 5472 in a year when no US tax was due.

Frequently asked questions

Should my Maltese company use the refund system or the 15% final tax? It depends on your shareholders. Refunds often give about 5% on trading profits. The 15% final tax suits shareholders who cannot use refunds and groups under the global minimum tax. Ask your Maltese adviser.

Is income from my US LLC foreign income for the remittance basis? Only if it comes from activity outside Malta. Income from work you do in Malta is Maltese income.

Is there a US–Malta tax treaty? Yes. Dividends 15% (5% for companies owning 10% or more), interest 10%, royalties 10%, subject to a limitation on benefits.

Does an MGA licence let me operate in the USA? No. Online gaming in the USA is licensed state by state.

Does my US LLC pay US tax? Not if it has no US office, staff or agents. It files Form 5472 and a pro forma 1120 every year.

How UCB can help

We form US corporations and LLCs for Malta residents and Maltese companies remotely: the state filing, EIN, registered agent, US business address and bank application. We prepare W-8BEN-E forms once your adviser confirms treaty eligibility, and each year we file the US returns through our US tax filing service. See our formation, EIN and bank account package and the Cyprus guide.

Setting up a US company from Malta? WhatsApp us at +1 315 961 2956 or email enquiries@ucbsolutions.com.