Europe
Slovakia Patent Box Regime
50% exemption roughly halves corporate tax on qualifying IP income
Indefinite · Foreign income partly exempt
Europe
Malta IP Box Regime
Malta's Patent Box offers a 95% deduction on qualifying IP income, producing an effective 1.75% tax rate when the OECD nexus ratio is fully met.
Regime overview
- Status
- Active
- Type
- Preferential
- Established
- 2019
- Duration
- Indefinite
- Highlight
- 1.75% effective rate on qualifying IP income
Tax regimes comparison
Default Rates
- Eligibility
- Any resident
- Duration
- Indefinite
- Income Tax
- 0-35%
- Foreign Income
- Remittance basis
- Capital Gains
- 35% / 8%
- Dividends
- None
- Wealth Tax
- None
- Inheritance Tax
- None
IP Box Regime
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 1.75% effective
- Foreign Income
- Partially exempt
- Capital Gains
- 95% deduction
- Dividends
- Standard Malta rates
- Wealth Tax
- None
- Inheritance Tax
- None
Highly Qualified Persons (HQP) Rules
- Eligibility
- Residency
- Duration
- 5 years
- Income Tax
- 15% flat
- Foreign Income
- Taxed
- Capital Gains
- N/A
- Dividends
- N/A
- Wealth Tax
- None
- Inheritance Tax
- None
Retirement Programme (MRP)
- Eligibility
- Residency
- Duration
- Indefinite
- Income Tax
- 15% flat
- Foreign Income
- Remittance basis
- Capital Gains
- 0%
- Dividends
- 0%
- Wealth Tax
- None
- Inheritance Tax
- None
| Tax Type | Default | IP Box Regime | Highly Qualified Persons (HQP) Rules | Retirement Programme (MRP) |
|---|---|---|---|---|
| Eligibility | Any resident | Residency | Residency | Residency |
| Duration | Indefinite | Indefinite | 5 years | Indefinite |
| Income Tax | 0-35% | 1.75% effective | 15% flat | 15% flat |
| Foreign Income | Remittance basis | Partially exempt | Taxed | Remittance basis |
| Capital Gains | 35% / 8% | 95% deduction | N/A | 0% |
| Dividends | None | Standard Malta rates | N/A | 0% |
| Wealth Tax | None | None | None | None |
| Inheritance Tax | None | None | None | None |
| Learn more | Learn more |
Key benefits
95% deduction yields effective 1.75% rate when nexus ratio is 1
Covers patents, R&D-linked software, and regulated IP
Eligibility certificate provides upfront clarity on qualification
Requirements and considerations
None
Migration pathways
Program details
Malta's Patent Box Regime (Deduction) Rules apply from 1 January 2019 and are structured as a deduction against taxable income rather than a separate headline tax rate.
Where the nexus ratio is 1, the regime provides a 95% deduction of net income or gains from qualifying IP, which at Malta's 35% corporate tax headline rate yields an effective 1.75% rate on that qualifying IP profit stream.
Qualifying IP is narrowly defined and generally tied to demonstrable R&D activity. Patents, utility models, orphan drugs, certain regulated IP rights, and R&D-linked software can qualify, while marketing intangibles such as trademarks and brands are excluded.
Access typically involves an eligibility determination and certificate, with supporting evidence on the IP asset and qualifying expenditure, including auditor-certified cost breakdowns. Record-keeping and compliance are material because the regime is designed to comply with the OECD nexus approach.
Interested in IP Box Regime?
Our tax advisors can help you evaluate eligibility requirements and optimize your tax position under this regime.
Schedule consultationOther tax regimes
Europe
United Kingdom Patent Box Regime
Qualifying patent profits taxed at effective 10% corporation tax
Indefinite · Worldwide taxation
Europe
Lithuania IP Box Regime
A reduced 7% corporate income tax rate can apply to taxable profits from the commercial exploitation of qualifying IP, materially below Lithuania's standard CIT rate
Indefinite · Worldwide taxation
Europe
Poland IP Box Regime
5% tax on qualifying IP income
Indefinite · Worldwide taxation
ECJ Ruling on Malta CBI
EUR-Lex Court Judgment C-181/23·Last checked: 16/01/26
Merit-Based Naturalisation Regulations
Malta Parliament Legal Notice 159/2025·Last checked: 16/01/26
2025 Citizenship Act Amendments
Aġenzija Komunità Malta·Last checked: 16/01/26
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