Malta is the outlier. In most European countries the employee wins for take-home; in Malta the company structure wins by a mile, at every income level — because of the island's full-imputation refund system. Here's what that looks like in 2026:
| Gross / year | Employee | Freelancer | Company | Best |
|---|---|---|---|---|
| €25,000 | €19,650 | €18,400 | €23,750 | Company, by €4,100 |
| €30,000 | €22,992 | €21,538 | €28,500 | Company, by €5,508 |
| €40,000 | €30,492 | €29,038 | €38,000 | Company, by €7,508 |
| €50,000 | €37,992 | €36,538 | €47,500 | Company, by €9,508 |
| €75,000 | €55,242 | €53,788 | €71,250 | Company, by €16,008 |
| €100,000 | €71,492 | €70,038 | €95,000 | Company, by €23,508 |
(2026 rates, single filer, trading company with the 6/7 shareholder refund. Estimates — read the caveats, they matter more here than anywhere.)
That company column is not a typo: a ~5% effective rate across the board. At €100,000 the company keeps €23,508 more than the employee. This is the single biggest structure-driven gap of any country we model — and it's why Malta attracts so many international companies.
How the 6/7 refund works
Malta taxes company profits at 35% — high on paper. But when a company distributes a dividend, its shareholders can claim a refund of 6/7ths of the tax paid on trading income. 35% minus 6/7 of 35% leaves an effective ~5% on distributed trading profits. (Different income types get different fractions — 5/7 for passive interest/royalties, 2/3 with double-tax relief.)
For comparison, a Maltese employee or freelancer pays the normal progressive income tax (up to 35%) plus social security, landing in the mid-20s percent effectively — perfectly normal, just nowhere near 5%.
The caveats here are the whole story
The 5% figure is real, but it is not a DIY setup, and the table above is a theoretical outcome, not a plan:
- These are estimates from a deterministic calculator, not tax or legal advice.
- The refund goes to shareholders, is usually claimed after the company pays the 35% (so there's a cash-flow gap), and the structure is often a two-company arrangement (a trading company plus a holding company).
- It typically only delivers the headline rate with genuine substance in Malta and the right shareholder residence — and it sits squarely inside EU anti-abuse and ATAD scrutiny.
- The model assumes distributed trading profits and the 6/7 refund; change the income type or structure and the number changes completely.
- Full-imputation systems are periodically challenged at EU level — don't assume permanence.
In short: Malta's company route is genuinely powerful, but it's an advised, structured decision, not a checkbox. Use the number to understand why people incorporate in Malta — then talk to a Maltese firm before doing anything.
See your own numbers
Compare all three side by side with the full breakdown at taxoptimum.eu, or jump to a worked example:
TaxOptimum is an informational estimator — not tax, legal or financial advice. Rates are 2026, primary-sourced and human-verified; the company figure depends on a structured refund arrangement — confirm with a Maltese adviser before relying on it.