Malta company formation and MGA gaming licences
Malta remains the reference jurisdiction for licensed online gambling in the EU. It is not the cheapest option, and it is not a place to incorporate casually — but for an operator that needs an EU licence banks and payment providers respect, nothing replaces it.
Effective tax
5–19% after refunds
Formation
~10 days
Regulator
Malta Gaming Authority
Best for
Gambling, gaming, iGaming B2B
Why operators choose Malta
Malta is an EU member state with an English-language legal system, a mature gaming regulator and a deep local supply of compliance, audit and payments expertise. An MGA licence is understood by acquirers, PSPs and banks across Europe — which in practice means better processing rates and fewer onboarding refusals than a comparable offshore licence.
The trade-off is scrutiny. The MGA reviews ownership, funding, game fairness, player-fund protection and responsible-gambling controls, and it supervises continuously after grant.
Corporate structure and tax
The standard vehicle is a private limited liability company. Headline corporate tax is 35%, but Malta's full imputation and refund system commonly brings the effective rate on distributed trading profits to about 5%, with other refund fractions producing higher effective rates depending on income type. Holding structures frequently use a Maltese operating company beneath a holding entity.
The refund mechanism is a tax system, not a loophole — it requires proper accounting, audited statements and timely filings to work as intended.
- Private limited company, minimum share capital of €1,165 (20% paid up).
- At least one director and a company secretary; local directors support substance.
- Registered office in Malta, audited annual accounts, VAT registration where relevant.
- Effective tax commonly 5% on distributed trading profits via the refund system.
MGA licence classes
Applications run in stages: fit-and-proper review of owners and directors, a business and financial plan, operational and statutory compliance review, then a system audit after go-live. Budget several months and expect detailed questions about funding sources.
- B2C Type 1 — casino, slots and games of chance against the house.
- B2C Type 2 — fixed-odds sports betting.
- B2C Type 3 — poker, betting exchanges and peer-to-peer games where you take commission.
- B2C Type 4 — controlled skill games.
- B2B — platform and critical gaming supply to licensed operators.
Substance and ongoing obligations
- Key function holders appointed and approved for compliance, AML and player protection.
- Player funds segregated and reported.
- AML/CFT programme aligned to Maltese and EU requirements, with FIAU reporting.
- Annual audits, gaming tax and compliance contributions, and system audits.
Banking and payments
Malta's advantage is that gambling-aware banking and acquiring exists. It still has to be argued for: institutions want the licence, the AML programme, player-fund arrangements and realistic volume forecasts by market. We prepare that file and place a backup relationship alongside the primary account.
Frequently asked questions
How long does an MGA licence take?
Typically four to six months from a complete application to go-live approval, depending on how quickly fit-and-proper and funding questions are answered.
Is Maltese tax really 5%?
The effective rate on distributed trading profits is commonly around 5% after shareholder refunds, but that depends on income type and correct filings. Gaming tax and compliance contributions are separate.
Do I need staff in Malta?
Yes in substance terms. Key function holders and genuine local management are expected by both the regulator and your banks.
Can I start with a smaller jurisdiction and move to Malta later?
Many operators do — Curaçao or Costa Rica first, then Malta when volumes justify it. Plan the migration path at the outset so contracts and player data transfer cleanly.
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