CBD Business in 2024: 5% Corporate Tax Rate in Malta – The Go-To Hub for CBD Companies in Europe for International Trade

CBD Business in 2024: 5% Corporate Tax Rate in Malta – The Go-To Hub for CBD Companies in Europe for International Trade

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As the global CBD market continues its rapid expansion, Malta is quickly becoming a standout destination for companies in the cannabis industry, especially those focusing on cannabidiol (CBD) products. This vibrant Mediterranean nation has crafted a regulatory framework that’s highly supportive of CBD business growth, making it an ideal spot for companies looking to establish or expand their operations. In this article, we’ll delve into Malta’s favorable legislation for CBD company incorporation and explore why this dynamic country is drawing in businesses from around the world.

Clear and Supportive Regulatory Framework Liberalizing the Cannabis Industry

Malta offers a well-defined legal framework for CBD businesses, providing clarity and stability. Companies produce and distribute CBD products under clear guidelines, which reduce the regulatory uncertainty often found in other jurisdictions.

Distribution Only: (no production involved)

Licensing is not required for international trade of CBD products containing up to 0.3% THC, such as vapes, CBD oil, etc.


The Production of Cannabis for Medicinal and Research Purposes Act (2018): This act provides the legal basis for the cultivation, production, and distribution of cannabis for medicinal and research purposes. It allows companies to apply for licenses to produce and process cannabis products, including CBD. Ref link: LEĠIŻLAZZJONI MALTA (legislation.mt)

License Application

For production Companies must apply for a license from the Malta Medicines Authority (MMA) or the Malta Enterprise. This application involves submitting detailed information about the company’s operations, security measures, and quality control procedures.

The Medicines Act: This act regulates the production and distribution of medicinal products, including those containing CBD. It ensures that all CBD products meet stringent safety and quality standards. Download “The Medicines Act” here.

Malta legislation also encourages investment in research and development, offering tax incentives and grants to companies involved in innovative sectors, including CBD.

Access to EU Markets

As a member of the European Union, Malta provides CBD companies with access to the entire EU market. This access is crucial for businesses looking to expand their operations and distribute their products across Europe.

Incorporating a CBD Company in Malta for International Trade

Malta has a well-established financial services sector with a reputation for excellence. This includes a robust banking system, favorable tax policies, and a network of professional services firms that can support CBD companies with incorporation, legal, and financial advice.

The process of incorporating a CBD company in Malta is streamlined and efficient, reflecting the country’s business-friendly ethos. Here are the key steps involved:

Step 1: Company Registration

Your CBD company is registered with the Malta Business Registry within 3 working days. Learn more about Malta Co. here: Move your business to Malta – 1st Step Solution (1step.eu)

Step 2: VAT and International Tax Numbers Registration

Obligatory to start trading activity of your products.

Step 3: Bank account opening with CBD-friendly payment institutions

It’s tricky to find a payment institution that has appetite for CBD business. That’s why you need professionals to select those EMIs that can accommodate your company. Our considerable expertise and extensive network of international banking connections means that we are able to identify the right banking solutions for your CBD business.

Step 4: Skyrocket sales & maximize profits with a corporate tax rate as low as 5%

Foreign shareholders of Malta companies engaged in trading activities outside Malta can benefit from a significant tax refund. Here’s how it works:

Corporate Tax Rate: Malta’s standard corporate tax rate is 35%.

Effective Tax Rate: After applying the 30% tax refund, the effective corporate tax rate for eligible shareholders drops to just 5%.

Malta operates a full imputation system, meaning that tax paid by a company can be imputed (credited) to shareholders, avoiding double taxation.

This makes Malta an attractive jurisdiction for international business operations, offering both a robust legal framework and a highly competitive tax regime.

Success Stories: CBD Companies Thriving in Malta

Several CBD companies have successfully set up an online shop n Malta, taking advantage of its supportive environment. Here are a few examples:

Alphagreen Group (originally based in the UK, expanded to Malta to leverage its favorable regulations and access to the EU market for their wellness products, including CBD), MGC Pharma (an Australian company chose Malta as its European base), Aleafia Health (a Canadian company that partnered with Maltese entities to distribute its CBD products across Europe).

Ready to start your CBD Company in Malta? Contact us now!

1st Step’s core business activity is the formation, management and day-to-day administration of Malta-based companies, which include company administration, accounting, secretarial services and audit support. Over the years, we have acquired and developed vast and in-depth knowledge and experience by assisting foreign and local clients, businesses, expatriates, entrepreneurs, private individuals and families with their corporate needs.

As corporate services are 1st Step’s main area of expertise – this gives us a unique advantage over specialised law offices, or accounting firms and family offices who manage corporate services only as a side business. We shall cover all your business needs under one roof. Contact us now!

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