LICENSE IN MALTA
Obtaining a license for online casinos in Malta is one of the most optimal and status options to solve the problem with the legalization of online gambling. Malta is one of the first European countries that created the most favorable conditions for online gambling business.
After Malta joined the European Union, the prestige of the state sharply went uphill. Currently, Malta is one of the most accessible jurisdictions where you can open your own online business. And the local license has long been one of the most respected documents in the gambling market. Yes, passing the Maltese licensing is difficult, and it will require serious material and time costs. But all this will pay off handsomely.
Not so long time ago, the Maltese authorities established a gambling control company – Malta Gaming Authority. This organization is a single licensing committee in the country. Usually, the process of obtaining a license is delayed for 4-6 months.
Benefits of Malta Online Casino Licensing:
● Good financial and political status in a country within the European Union.
● Outstanding reputation and the highest level of trust on the part of users.
● Providing additional measures to protect the gambling business.
● Prestige and legality of the license (Malta – is not an offshore zone, in the usual sense).
● You can get a residence permit in the country.
● Satisfactory taxes.
● Affordable licensing costs.
Incorporation form of a company:
To obtain a local license, you must open a Maltese legal entity. At the moment, the most profitable option is a limited liability company (LLC), since this form provides for the establishment of a liability limit for founders.
Interest Rates: Taxes and License Fees
After Malta joined the European Union, the state has increased its tax collection sharply, but the charm is that foreign investors in gambling can take advantage of certain tax loopholes. Almost all the rules and restrictions of this jurisdiction are aimed at protecting user rights, which has formed such a high reputation of the Maltese license.
Corporate legislation provides only local banks for the authorized fund placement of gambling Internet companies , and, for this, you need to create special accounts.
In local jurisdictions, a very high corporate tax is 35% of the operator’s income. If we talk about other states issuing licenses for online casinos, then Malta is definitely the highest percentage of corporate tax.
However, the taxation regime is not strict, and foreign investors who comply with the requirements of doing online casino business are entitled to certain discounts and a privileged attitude, which will reduce the tax percentage (up to a maximum of 5%).
In addition to corporate tax, the country has a tax on profits from revenue from user rates, only 0.5%. The license is granted for a very long period of 5 years, which is ideal for long-term investments.
There is an additional interest rate – an annual fee charged for the right to host online casinos. The amount of the fee is directly tied to the license class of the institution.
Currently, the Malta Regulatory Committee issues 4 classes of licenses:
● 1st class – this license is issued to online casinos, lotteries and sites with slot machines. Tax – 4660 euros per month for the first 6 months after obtaining a license, then – 7000 euros every month.
● Grade 2 – this license is issued for betting – bookmakers, sweepstakes and so on. Tax – 0.5% of the amount of rates.
● Grade 3 – this license is issued to organizations that charge a percentage for organizing games, where participants play against each other (poker, bingo and other games). Tax – 5% of profit.
● Grade 4 – this license is issued to companies engaged in hosting and the creation of software for online gambling. Tax – there are no taxes for 6 months, but for the next six months – 2330 euros per month, and then – 4660 euros per month.
Minimum authorized capital
For 1-2 classes of licenses, the lower limit is 100 thousand euros.
For 3-4 classes, the minimum size is set to 40 thousand euros.
The feature of local legislation is an interesting requirement: the authorized capital of legal entities must be fully formed before applying for licensing.
● The application filing price is 2330 euros (if the license is refused, the money will not be returned).
● Annual payment – 8500 euros.
● License renewal after 5 years – 1,500 euros.
Other requirements for issuing a Maltese license:
● The presence of a competent business plan, marketing plan, etc.
● Timely audit of the company (conducted every year).
● Data transfer to all company founders.
● Mandatory provision of technical documentation (software licenses, user information protection systems, etc.) for the audit.
● Local certification for the use of RNG.
Authorized Body Contacts (MGA):
Responsible Department: Marketing Research and PR.
Address: SCM building 02-03, floor 4, Smartcity Malta, Ricasoli SCM1001, Republic of Malta.
Contact number: +356 25469000.
Reception days: Monday-Friday from 9:00 to 17:00. Official website: www.mga.org.mt.