Ireland vs Malta taxes (2026): 12.5% versus 15% elective tax

Ireland vs Malta tax rates at a glance

Tax	🇮🇪 Ireland	🇲🇹 Malta
Income tax	Standard rate: 20% Higher rate: 40% Single standard-rate cut-off: About EUR 44,000 USC bands: 0.5% / 2% / 3% / 8% Employee PRSI: 4.2% then 4.35% Employer PRSI: About 9% / 11.25%+	Income tax: 0%-35% Top marginal rate: 35% Foreign income for non-doms: 0% if not remitted Employee social security: 10% Self-employed social security: 15%
Corporate tax	Trading profits: 12.5% Passive / non-trading: 25% Company capital gains: 33% Pillar Two minimum: 15% Knowledge Development Box: Effective 10%	Standard corporate income tax: 35% Elective final income tax: 15% Dividend withholding tax: 0% in most cases Foreign company income: Malta-source / remitted income
Capital gains tax	Standard CGT: 33% Annual individual exemption: EUR 1,270 Certain funds / policies: 40% Corporate gains: Often 33%	Capital gains tax: Up to 35% Maltese property transfer WHT: 8% / 10% Foreign capital gains for non-doms: 0% if not remitted Listed share exemptions: Available
Dividend tax	Dividend withholding tax: 25% Standard income tax on dividends: 20% / 40% USC on dividends: Often applies Non-resident relief: Treaty / exemption dependent	General dividend withholding tax: 0% Untaxed-income distribution WHT: 15% Maltese company dividends: Usually no extra tax Foreign dividends: 0%-35% depending on status
Wealth tax	Net wealth tax: 0% Annual asset tax: 0% Local property tax: Applies	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%
Inheritance / estate tax	CAT rate: 33% Group A: EUR 400,000 free then 33% Group B: EUR 40,000 free then 33% Group C: EUR 20,000 free then 33% Spouse / civil partner: Generally exempt	Inheritance tax: 0% Causa mortis duty: 5% Reduced residential duty: 3.5% Late filing interest: 4% p.a.
VAT / GST / sales tax	VAT: 23%	VAT: 18%

Who wins on each tax

Personal income taxMalta

Malta's progressive scale reaches 35%; Ireland's 20%/40% income tax plus USC and PRSI often produces a higher employment burden for ordinary residents.

Corporate taxIreland

Ireland's 12.5% trading rate is below Malta's 35% headline, even though Malta refunds or a 15% elective final tax can change the shareholder-level result.

Capital gains taxIreland

Ireland's general CGT is 33%; Malta generally taxes company and many personal gains at up to 35% inside the income-tax system.

VATMalta

Malta's standard VAT is 18%, below Ireland's 23%.

The verdict

Ireland's 12.5% rate on genuine trading profits is simpler to explain than Malta's 35% company tax with shareholder refunds. Irish passive income is generally 25%, and close-company or IP structures without Irish people, development and decision-making do not earn 12.5% by default.

Malta can still produce a low effective company-and-shareholder result through its refundable imputation system, and certain entities can elect a 15% final tax for five years. That election is not a refund route, and both models still need Malta management, substance and a shareholder profile that actually fits.

Choose Ireland for an operating trade, especially IP that is developed there. Choose Malta when non-dom remittance planning or a refund/15% elective structure is the reason for the base, not because the headline 35% looks high or low in isolation.

How to read this comparison

Ireland and Malta are both English-speaking EU company jurisdictions, which is why they are often pitched as substitutes. They are not. Ireland sells a trading rate. A resident company pays 12.5% on trading profits and generally 25% on passive income. Large in-scope groups meet a 15% Pillar Two minimum. The Knowledge Development Box can produce an effective 10% on qualifying IP, but only where the IP is actually developed. Close-company rules, transfer pricing and management-and-control tests are how Revenue polices brass-plate claims. Personal tax on the Irish side is 20%/40% plus USC and PRSI, CGT is 33%, CAT is 33%, and VAT is 23%. There is no net wealth tax.

Malta sells a company-and-shareholder system. The company pays 35% on worldwide income and gains. Full imputation can refund part or all of that tax when profits are distributed, depending on the income class and the shareholder. Since 2025, qualifying entities can elect a 15% final tax without imputation; the election binds for five years and is not refundable or creditable. Personal income tax is 0% to 35%. Non-domiciled residents often use a remittance basis for foreign income and gains. There is no net wealth tax and no general inheritance tax, though duty can apply to property and share transfers. VAT is 18%.

Substance is the shared constraint. An Irish 12.5% claim that is really passive IP or treasury income will not survive. A Maltese refund or 15% election that is missing directors, premises and decision-making in Malta is the same problem with different branding. Personal tax then diverges: ordinary Irish employees face USC and PRSI on top of 40%, while Malta can be gentler for a qualifying non-dom who does not remit foreign income.

Choose Ireland for a real trade. Choose Malta when the refund, the 15% election or remittance basis is the designed outcome and the people who run the company will live that design.

Which one fits you

🇮🇪 Choose Ireland if you're a…

Active trading companies with Irish substance
Groups developing IP in Ireland
Founders who want a simple 12.5% headline rather than a refund model

🇲🇹 Choose Malta if you're a…

Shareholders who can use imputation refunds correctly
Entities that validly elect the 15% final tax
Non-doms using Malta's remittance basis

Frequently asked questions

Is Ireland or Malta better for a company?

Ireland is usually better for a genuine trading company because of the 12.5% rate. Malta can be competitive after shareholder refunds or a valid 15% elective final tax, but those mechanics need the right entity and substance.

Does Malta's 15% elective tax beat Ireland's 12.5%?

Not automatically. Ireland's 12.5% applies to trading profits, while Malta's 15% election is a five-year final tax for qualifying entities and is not refundable. Passive Irish income remains 25%.

Which country is better for inheritance?

Malta has no general inheritance tax, though property duty can apply. Ireland charges CAT at 33% above relationship thresholds.