Malta Film Commission Incentives: Why Netflix competitors are relocating their productions to Valletta

Last week I received an interesting message from a client. He asked me: Richard, why is Disney suddenly producing so many movies in Malta?

This question made me reflect. Because theres much more behind it than just picturesque locations and low production costs.

Malta has undergone a remarkable transformation in recent years. The small island nation in the Mediterranean has developed into one of Europe’s most attractive filmmaking destinations. Not just because of the sun and historical settings.

But because of an extremely smart tax system.

The Malta Film Commission offers tax incentives that even experienced producers find astonishing. Up to 40% cashback on qualifying expenses is possible. In real terms: For a €10 million production, you can get back up to €4 million.

Impressive, isnt it?

But heres the key point: These incentives aren’t only interesting for Hollywood studios. They open up completely new opportunities for you as an entrepreneur in the entertainment industry.

Today, I’ll take you on a journey through Malta’s film incentives landscape. I’ll show you not just the technical details, but also how you can concretely use these advantages for your international tax planning.

Ready for a look behind the scenes of Malta’s film success?

Yours, RMS

Malta Film Commission Incentives 2025: The secret behind Hollywoods newest passion

Why Malta offers more than just beautiful backdrops

Malta is often underestimated. Many see only its 316 square kilometers and think: What can such a small island really offer?

The answer will surprise you.

Over the last 15 years, Malta has strategically developed one of Europe’s most attractive film funding landscapes. The Malta Film Commission (MFC) was founded in 2000. Since then, it has attracted over 200 international productions to the island.

But why Malta in particular?

The answer lies in a perfect combination of several factors:

• EU member since 2004: Legal certainty and recognition across Europe
• English-speaking administration: No language barriers with authorities
• 300 days of sunshine per year: Reliable shooting conditions
• Diverse locations: From medieval cities to modern venues
• Experienced crew base: Expertise cultivated over two decades

But the most important factor is the financial incentives. And this is where things get really interesting for you as an entrepreneur.

The numbers speak for themselves: Up to 40% cashback

Let me show you the actual numbers. Because this is where the real treasure lies.

The Malta Film Cash Rebate Programme works as follows:

You can already see the potential here. By cleverly structuring your expenses, you can maximize your cashback considerably.

But beware: Not all expenses automatically qualify. The Malta Film Commission reviews every application in detail. So, a professional preparation is crucial.

A practical example: One of my clients produced a Netflix series with a €15 million budget. Through smart expense structuring, she received €5.2 million cashback. That’s an effective cost reduction of 35%.

Impressive, right?

Malta Film Tax Advantages: How the system works in practice

The Malta Film Cash Rebate Programme in detail

Now it gets specific. Because, as always, the devil is in the detail.

The Malta Film Cash Rebate Programme isn’t just a simple tax deduction. It’s a government-funded incentive programme. That means: You receive real cash back, not just a tax reduction.

This is how the process works:

1. Application before production starts: You must register before the first day of shooting
2. Pre-approval: The MFC reviews your project and confirms eligibility
3. Expense documentation: All receipts must meet Maltese standards
4. Interim settlements: Partial payouts possible for longer productions
5. Final audit: A comprehensive review after completion
6. Payout: Within 6-8 weeks after a successful audit

The key question: Which expenses count as Malta-specific and qualify for the highest 40% funding?

Here are the main categories:

• Salaries for Maltese crew members: Including social security
• Equipment rental from Maltese providers: Cameras, lighting, sound
• Location rentals in Malta: Hotels, restaurants, private properties
• Catering by Maltese companies: Meals for cast and crew
• Transport services: When provided by Maltese firms
• Post-production services: Editing, sound, VFX in Malta

Important note: The Malta Film Commission is very strict with its review. Shell companies or artificial setups will be recognized immediately and disqualified.

Which productions qualify?

Not every film project is eligible for the Malta Film Incentives. The criteria are clearly defined:

In addition, all productions must pass a cultural test. That means: Your project should have either a cultural link to Malta or contribute to the country’s international reputation.

A practical example: An action movie set in Malta would pass the test. A pure studio production without a connection to Malta would have fewer chances.

Minimum expenses and practical prerequisites

Now, let’s talk about the practical hurdles. Because most applicants don’t fail because of the big requirements, but because of small details.

An overview of the main prerequisites:

• Maltese production company: You need a local company as a partner
• Minimum stay: At least 5 shooting days in Malta for feature films
• Crew share: At least 15% of the crew must come from Malta or the EU
• Accounting standards: All receipts must meet Maltese requirements
• Proof of insurance: Comprehensive production insurance required

The critical point is often the Maltese production company. Many international producers underestimate this aspect. They think a simple shell company will be enough.

That’s a mistake.

The Malta Film Commission checks very carefully whether the local company has substantial activities. A pure letterbox company leads to immediate disqualification.

Therefore, I always recommend my clients: Work with established Maltese production partners. It costs a bit more, but secures your cashback.

Netflix competitors bet on Malta: Why Valletta is becoming the film capital

Successful productions and their tax savings

Let’s talk about real success stories. The numbers don’t lie.

In the past five years, over 50 international large-scale productions have filmed in Malta. The tax savings are impressive:

These figures show the real potential. But they also show something else: Malta now competes with established film hubs like the UK or Germany.

Why is that?

The answer lies in the overall cost balance. Even if Malta’s base costs aren’t necessarily lower than elsewhere, the cashback is the deciding factor.

For example: A series with a budget of €100 million costs around €100 million (net) in Germany. In Malta, it may cost €105 million (gross), but after a cashback of €35 million, the net cost is just €70 million.

That’s a saving of 30%.

Malta vs. other European film locations

Let’s compare Malta to its direct competitors. Only then you’ll understand why so many producers are rethinking.

As you see: Malta offers not only the highest support, but also the fastest payout and manageable bureaucracy.

This is crucial for producers. Liquidity is often vital in the film business. If you have to wait 16 weeks for your money, projects can be endangered.

Malta has another advantage: planning security.

While other countries frequently change their incentive programmes, Malta’s system has remained stable for years. This builds trust for international investors.

The strategic advantages for entertainment companies

But Malta offers more than just financial incentives. For you as an entrepreneur in the entertainment industry, strategic opportunities open up.

Here are the key benefits:

• EU-wide recognition: Your Maltese company can operate throughout the EU without problems
• Double taxation agreements: Malta has treaties with over 70 countries
• Intellectual Property Regime: Special tax advantages for IP earnings
• Flexible corporate structures: From Limited to holding companies
• English Common Law: Familiar legal structures for international contracts

A practical example: One of my clients established a Maltese production company. She not only produces films for cashback but also uses Malta as a base for international licensing.

The result: Her overall tax burden dropped from 35% in Germany to 15% in Malta. With annual revenues of €50 million, that means €10 million saved per year.

Impressive, right?

But here’s the important tip: Such structures must be professionally planned. Substantial requirements in Malta are strict. A mere letterbox company doesn’t work.

Malta Film Funding for Entrepreneurs: Your chance in the entertainment industry

How you as an entrepreneur can benefit from Malta’s film incentives

Now let’s get practical. Many of my clients ask me: Richard, I’m not a film producer. How can I still benefit from these incentives?

Good question. And the answer will surprise you.

The Malta Film Incentives aren’t just designed for traditional film productions. The programme covers many areas of the entertainment industry:

• Digital game development: 25% cashback on development costs
• Commercial film production: For international campaigns
• Streaming content: YouTube, TikTok, or other platforms
• Virtual reality projects: Immersive experiences and training
• Post-production services: Editing, animation, VFX
• Audio production: Podcasts, audiobooks, music

A practical example: One of my clients runs a successful YouTube production company, creating high-quality documentaries for various channels.

Through a clever relocation to Malta, he has reduced his production costs by 30%. At the same time, this optimized his entire tax structure.

Here’s how he proceeded:

1. Establishment of a Maltese production company: With local partners
2. Relocation of post-production: Editing and VFX in Malta
3. Building a Maltese team: 3 full-time employees
4. Optimization of IP structure: Licensing rights through Malta

The result: With an annual turnover of €8 million, he now saves €2.1 million per year.

But beware: Such structures require real substance in Malta. The days of mere shell companies are over.

Practical steps to using the Malta Film Commission

Let me show you a concrete roadmap. The first step is often the hardest.

Phase 1: Preparation (4-6 weeks)

1. Project evaluation: Check if your project is eligible
2. Budget planning: Calculate Malta-specific expenditures
3. Partner search: Find an experienced Maltese partner
4. Legal structure: Plan the optimal corporate structure

Phase 2: Implementation (6-8 weeks)

1. Company formation: Registration with the Maltese authorities
2. MFC registration: Registering with the Malta Film Commission
3. Project application: Submitting detailed project plans
4. Pre-approval: Wait for confirmation from the MFC

Phase 3: Execution (project-dependent)

1. Production start: Launch eligible activities
2. Expense documentation: Careful record keeping
3. Interim settlements: For longer projects
4. Final audit: Completion check by the MFC

The critical success factors:

Legal pitfalls and how to avoid them

Now on to the risks. Malta is attractive, but not risk-free.

The most common pitfalls from my experience:

Pitfall 1: Lack of substance

Many entrepreneurs think a mere letterbox company is sufficient. That’s wrong. Malta requires real economic activity.

Minimum requirements:

• Local management or substantial staff
• Own office space (not just a virtual address)
• Local bank accounts and accounting
• Real decision-making in Malta

Pitfall 2: Aggressive tax planning

Malta offers legal tax advantages, but exaggerated structures attract attention.

What works:

• Real business activities in Malta
• Appropriate profit allocation
• Market standard transfer pricing
• Transparent documentation

Pitfall 3: Underestimating EU regulations

Malta is an EU member. That means: EU directives apply fully.

Especially relevant:

• Anti-Tax-Avoidance-Directive (ATAD)
• State Aid Rules for subsidies
• Beneficial Ownership Disclosure
• DAC directives for information exchange

My advice: Always work with experienced advisors. The few thousand euros for professional advice can save you millions in back taxes later.

Malta Entertainment Industry: Long-term tax planning for creatives

Combining with other Malta tax advantages

This is where it gets really interesting. Film incentives are just one building block in Malta’s tax ecosystem.

Smart entrepreneurs combine different Maltese tax benefits:

For example: A production company develops a video game based on its film at the same time.

The structure:

• Film production: 40% cashback via Film Commission
• Game development: 200% R&D deduction plus 25% cashback
• IP licensing: 80% reduction via IP-Box
• International marketing: Tax-free dividends

The result: An overall tax burden of less than 10% for a diversified entertainment business.

But caution is needed. These structures must be absolutely watertight. One mistake can negate all the advantages.

International contract structuring and optimization

Malta is not only a production location, but also an ideal base for international contract structuring.

Why is this so important?

The entertainment industry produces complex legal relationships. Films are marketed worldwide. Streaming rights are licensed by region. Merchandise is sold globally.

Malta offers optimal structures for this:

• Double taxation agreements: With over 70 countries
• EU internal market: Free movement of services
• English Common Law: Internationally recognised legal structures
• Flexible company forms: From Limited to Foundation

A typical structure looks like this:

1. Maltese holding: Holds all IP rights
2. Production company: Development and manufacturing
3. Licensing entity: Regional marketing
4. Service company: Post-production and services

Each company optimizes specific tax benefits. Together, they significantly reduce the overall burden.

A practical example: A streaming provider structured his European business via Malta. Previously, he paid between 25-35% tax in several countries. After restructuring, his effective tax rate is 12%.

With annual revenues of €500 million, this means €100 million saved per year.

Outlook and planned changes

Let’s finish with a look into the future. Smart tax planning is always forward-looking.

Malta is constantly working on developing its incentives. Here are the most important trends:

Trend 1: Digitisation of incentives

Malta plans a fully digital application process. This will reduce processing time to 4-6 weeks.

In addition, new categories are being added:

• NFT projects and blockchain gaming
• Virtual events and metaverse experiences
• AI-generated content production
• Podcast networks and audio content

Trend 2: Sustainability bonus

From 2025, there will be an additional 5% cashback for carbon-neutral productions, including:

• Renewable energy for filming
• Offsetting CO2 emissions
• Using local crews to reduce travel
• Sustainable catering concepts

Trend 3: EU-wide harmonisation

The EU is working on unified standards for film incentives. Malta is positioning itself as a leader for these standards.

That means: Malta’s system will likely be a model for other EU countries.

My assessment:

Malta will remain Europe’s most attractive entertainment location for years to come. The mix of high incentives, EU advantages, and political stability is unique.

But: the competition isn’t sleeping. Other countries are constantly improving their programmes.

My advice: If you’re considering using Malta for your entertainment activities, don’t wait too long. The best opportunities are often time-limited.

Frequently Asked Questions

How high are the Malta Film Commission incentives exactly?

Malta offers up to 40% cashback on qualifying expenditures. The basic rate is 25%, with Malta-specific spending incentivised at 40%. With clever structuring you can reclaim between 30-40% of your production costs.

What minimum expenditure is required for Malta Film Incentives?

Feature films require a minimum of €250,000 Malta spend, TV series need €125,000 per episode, documentaries €37,500, and digital games €25,000. You also need to spend at least 5 shoot days in Malta.

Do I need a Maltese company for the film incentives?

Yes, you need a Maltese production company as a local partner. This company must have real substance – mere shell companies are rejected by the Malta Film Commission. The company should have local employees, its own office space, and real business activity.

How long does it take to receive the Malta film cashback payments?

After a successful final audit, you receive the money within 6-8 weeks. This is much faster than in other European countries, where you often wait 12-24 weeks. Partial payouts are possible for longer productions.

Can I benefit from Malta Film Incentives as a German entrepreneur?

Absolutely. Many German producers use Malta successfully. You just need to form a Maltese production company or work with a local partner. Double taxation agreements mean there are no tax disadvantages in Germany.

Which expenditures qualify for 40% cashback in Malta?

The highest support applies to Malta-specific expenses: Salaries for Maltese crew, equipment rental from local suppliers, location rental, catering by Maltese companies, local transport services, and post-production in Malta. These expenses are rewarded at 40% instead of 25%.

Can Malta Film Incentives be combined with other tax advantages?

Yes, this is a major advantage in Malta. You can combine film incentives with the IP-Box (80% tax reduction on IP income), R&D deductions (200% deduction), and other Maltese tax advantages. This allows total tax burdens of under 10% with clever structuring.

What happens if my Malta film project doesn’t meet the requirements?

If your project doesn’t pass the cultural test or fails to meet the minimum criteria, the application is rejected. Costs already incurred are lost. That’s why professional pre-assessment by experienced advisors is essential to success.