Is Cyprus automatically cheaper than Malta?

No. 15% plus a possible 3% IP Box on qualifying profits is a different mechanic from Malta’s system. Without the asset, substance and home state, neither location is “cheaper”.

Can you compare both for my case?

Yes. That is what the first conversation is for: your facts, not a marketing table alone.

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Cyprus vs Malta: company formation compared

Both are EU members with English-language practice. The difference sits in tax rate and IP mechanics, in how substance is done, and in which model fits your business, not in a blanket “better”.

Criterion	Cyprus	Malta
EU / euro	EU since 2004, euro area since 2008	EU since 2004, euro area since 2008
Corporate tax (standard rate)	15%	Higher headline rate with a refund mechanic depending on the model; review in the specific case
IP / patent box	80% deduction, 3% effective on qualifying IP profits after review	Its own IP regime; not the same mechanic as Cyprus
Language / law	English, common-law shaped	English, its own company law
Substance	Management and control, local director with documented duties	Its own substance and governance requirements
Relocation	60-day rule and non-dom as a personal layer, separate from the Ltd	Its own residence and non-dom setting

Takeaway

Cyprus fits projects with potentially qualifying IP (3% effective after review), manageable governance in Larnaca and DACH-facing support. Malta remains relevant where existing Malta structures, particular fund or gaming ecosystems, or a different personal residence model dominate. This is a structuring choice, not a ranking.

Last updated: 16 August 2026

Why Cyprus · Cost and scope

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