Jean Galea

Health, Wealth, Relationships, Wisdom

How WordPress Founders and Businesses Should Use Social Media

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I’ve been building WordPress products for 15 years and one pattern I see constantly is founders spreading themselves thin across too many social accounts without any clear strategy for what each one should accomplish.

The typical setup looks something like this: a company account, one account per plugin, and sometimes a neglected personal account that posts once every few months. It looks complete on paper but in practice leads to low engagement, shallow connections, and no real strategic benefit.

Every account is trying to do everything, which means none of them do anything particularly well.

Why Your Company Account Shouldn’t Be Your Networking Vehicle

Many WordPress founders assume their company account should handle the relationship-building work. Following other founders, replying to industry threads, engaging publicly, opening partnership conversations. I understand the instinct but it rarely works.

People don’t build peer relationships with brands. They build them with other operators. When a logo tries to act like a person it comes across as either corporate and distant or casual and unserious. Neither is a good look.

Think about your own behavior. When you see a company account trying to be chummy in replies, does it make you want to build a relationship with that business? Probably not. You might appreciate the responsiveness, but you’re not thinking “I should grab coffee with the Yoast logo next time I’m at WordCamp.”

The Founder Account Does the Heavy Lifting

Your personal account is actually the most valuable asset you have on social media, even if it has fewer followers than your product accounts.

This is where trust forms. This is where people see your judgment in action. This is where long-term relationships with other founders, investors, and potential partners actually begin.

I post observations from running WordPress businesses, lessons from mistakes I’ve made, and occasionally share opinions on where the ecosystem is heading. Nothing revolutionary, but it compounds over time. People start recognizing your name. They see you engaging thoughtfully with others in the space. When an opportunity comes up, you’re already a familiar face rather than a cold outreach.

The sales and partnerships that matter don’t come from tweets announcing new features. They come from months or years of showing up consistently and demonstrating good judgment. Someone reaches out privately because they’ve been following your thinking and they trust you’re not going to waste their time.

Keep the Company Account Boring

Your main company account should feel calm, disciplined, and honestly a bit boring. That’s intentional.

Its job isn’t to network or build relationships. Its job is to signal that you’re a serious operation. Product launches, meaningful milestones, high-quality content. Follow selectively, engage rarely but thoughtfully, stay away from hot takes and arguments.

Think of it as the account someone checks after they’ve already become interested through your personal presence. If your founder account creates curiosity, the company account confirms this isn’t a one-person operation running out of a garage. It’s the validation layer.

Product Accounts Stay in Their Lane

Each product account should focus narrowly on its specific product and audience. No founder commentary, no broad industry opinions, no personality. Just updates, user support, content amplification, and building authority in that specific niche.

Trying to be clever with product accounts usually backfires. Users want to know the tool works and that someone will help them if they have problems. That’s it.

How This Plays Out in Practice

For most WordPress businesses you really only need three types of presence, each with a specific job. Your personal founder account is where the actual relationship-building happens. Your company account exists mainly to reassure people that you’re legitimate once they’ve already found you through other channels. Product accounts serve your existing users and help with distribution.

When I look at how the most successful WordPress founders operate, this is pretty much what they’re doing whether they’ve articulated it this way or not. The ones who struggle are usually trying to make their company account do the founder’s job, or they’re neglecting their personal presence entirely because they think the brand should speak for itself.

Social media in WordPress has never been about going viral. It’s about reputation compounding quietly over years. Get the roles sorted out and it stops feeling like a chore you’re failing at. It just runs in the background while you focus on building products people actually want to pay for.

Which Platforms to Prioritize

Once you have the account roles sorted, the next question is which platforms actually deserve your time. The answer depends on your business model and content strengths, but here’s how the major platforms break down for WordPress businesses specifically.

LinkedIn

B2B buying happens here. Decision-makers, agency owners, and prospective clients use LinkedIn to research partners and vendors before reaching out. Authority posts on trends like performance, security, Gutenberg, and headless WordPress perform well. Case studies and client results get traction. Longer text formats work better here than on any other platform. If you’re selling services or targeting other businesses, LinkedIn is non-negotiable.

YouTube

Visual tutorials and demos convert extremely well for technical products. WordPress audiences actively search for how-tos, and a well-made plugin walkthrough or optimization tutorial can drive traffic for years. The SEO value is substantial — YouTube videos rank in Google results and create a long-term discoverability loop that no other social platform matches. If you’re comfortable on camera or can produce screen recordings, YouTube compounds faster than anything else.

X (Twitter)

The developer and open-source community still lives here. Quick tips, code snippets, hot takes on WordPress releases, and threaded insights all perform well. It’s the fastest platform for trend monitoring and the easiest place to build visibility with the technical crowd. For founder accounts specifically, X is where most of the relationship-building with other WordPress operators happens in real time.

Instagram

Not traditionally a tech platform, but excellent for humanizing your brand. Behind-the-scenes stories, team culture reels, and simple design or process visuals help broaden awareness beyond strictly technical audiences. If recruitment or brand affinity matters to you, Instagram fills a gap that the other platforms don’t cover.

TikTok

Rapid adoption among entrepreneurs and freelancers has made TikTok surprisingly relevant for WordPress businesses. Bite-sized tutorials, quick productivity hacks, and day-in-the-life agency content can generate massive organic reach. The audience skews younger, which makes it valuable for reaching the next generation of WordPress users and builders.

Facebook Groups

Community marketplaces and problem-solving hubs still thrive on Facebook. Answering questions in niche WordPress groups, sharing valuable resources, and hosting small events or live Q&A sessions build trust in a way that broadcasting on other platforms doesn’t. This is less about your own account and more about showing up where conversations are already happening.

A Simple Prioritization Framework

You don’t need to be on all six platforms. Pick based on your business model and content strengths.

If you sell B2B WordPress services (agencies, consulting, custom development): prioritize LinkedIn, YouTube, and X. These are where your buyers research and your peers network.

If you sell products (themes, plugins, SaaS): prioritize YouTube, X, and TikTok. Tutorials and demos drive product discovery, and the dev community on X amplifies launches.

If community growth matters most: prioritize Facebook groups and LinkedIn groups. Direct engagement beats broadcasting.

For content format, match the platform to what you’re actually good at. If you write well, LinkedIn and X will serve you best. If you’re comfortable with video, YouTube and TikTok win. If you have strong visual design to show, Instagram elevates your branding in a way text-based platforms can’t.

The 90-day recommendation: start with LinkedIn and YouTube as your core platforms, add X plus one visual platform (Instagram or TikTok) as secondary, and participate actively in two or three WordPress-focused groups. That covers lead generation, long-term discoverability, community presence, and brand building without spreading yourself across six platforms from day one.

How I Hire Developers

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When hiring developers, it’s crucual to develop a structured process that ensures you find the right candidates. Hiring can be a huge resource hog, especially for small companies that have to divert important resources like the CEO’s time for the hiring process.

The method below was shared by one of my friends, Dan Avramescu, who works on misstourist.com. Dan is a valued member of the the Good Life Collective, and in one of our business discussions in this community, he illustrated the meticulous process he has used to hire successfully over the past years.

Here’s the detailed breakdown:

Step 1: Posting the Job

I start by posting the job on djinni.co. In the job post, I outline all the requirements and desired qualities for the developer. This is based on my experiences with past developers—what I’ve loved about working with them and what I haven’t. Both are important, as I don’t want to repeat frustrating experiences from the past. These insights are split into the “Requirements” and “Nice to Have” sections to set clear expectations from the beginning.

Step 2: Screening Questions

I use subjective screening questions to filter out candidates early on. This approach helps me avoid candidates who might use AI tools like ChatGPT to generate polished but insincere responses. Over time, I’ve learned to spot those telltale signs of AI-generated answers.

Examples of Subjective Screening Questions:

  1. What’s a recent task that frustrated you? How did you handle it?
    • Helps understand how candidates deal with challenges and their approach to problem-solving under pressure.
  2. What solution are you most proud of in your career?
    • Allows candidates to showcase their creativity, technical skills, and the impact of their work.
  3. What is something that annoys you about working with [specific language/framework]?
    • Reveals critical thinking and familiarity with the tools they use, as well as their ability to articulate areas for improvement.
  4. Tell me about a time when you significantly boosted the results of a project you worked on.
    • Identifies past successes and their ability to contribute meaningfully to a team.
  5. Describe a situation where you had to learn a new technology or framework quickly. How did you go about it?
    • Assesses their learning agility and willingness to adapt to new challenges.
  6. What’s the most challenging bug you’ve ever had to fix? How did you approach it?
    • Demonstrates their debugging skills and perseverance.
  7. Can you tell me about a time when you had a disagreement with a teammate? How was it resolved?
    • Explores their interpersonal skills and ability to handle conflicts professionally.
  8. What do you think is the most overrated technology or trend in software development right now? Why?
    • Gauges their industry awareness and critical thinking about current trends.
  9. Describe a time when you had to balance multiple priorities. How did you manage your time and tasks?
    • Assesses their time management skills and ability to handle workload effectively.
  10. What motivates you to stay in the field of software development?
  • Helps determine if they are passionate and likely to remain committed long-term.

These subjective questions help provide a deeper understanding of the candidate’s experience, problem-solving skills, and personal traits. They elicit genuine, thoughtful responses and provide insights that go beyond technical skills.

Why These Questions Matter

  • Depth of Insight: These questions provide a deeper understanding of the candidate’s experience, thought processes, and problem-solving abilities.
  • Authenticity: Subjective questions elicit more genuine responses compared to technical questions that can be easily rehearsed or generated by AI.
  • Cultural Fit: Understanding how candidates handle challenges, work with others, and stay motivated helps determine if they will be a good fit for the team and company culture.
  • Adaptability: Questions about learning new technologies and managing multiple priorities reveal their ability to adapt and thrive in a dynamic work environment.

Using these subjective screening questions, along with the initial video screening and live coding interview, helps me identify well-rounded candidates who are not only technically skilled but also have the right attitude, communication skills, and problem-solving abilities.

Step 3: Initial Video Screening

The first screening question is always:

“Send me a video (45 seconds to 2 minutes) where you talk about a few things about yourself, personal or professional.”

In this video, I look for:

  • Ability to articulate thoughts clearly.
  • Comfort in speaking English.
  • Willingness to put in effort (not just clicking “apply”).

I move forward with candidates who demonstrate excellent communication skills or those who may be a bit nervous but still manage to communicate effectively. I disregard candidates who read off a script or stumble too much.

Case Example

I once rejected an excellent QA candidate because of his arrogant attitude. He refused to make a video, stating he wasn’t desperate for a job. Even though he was clearly skilled, I didn’t think he’d fit well in a team environment. However, for roles that require only one developer, I might give such candidates a chance.

Step 4: Screening by Criteria

When I gather a reasonable number of candidates (15-20 at least), I further filter applicants based on:

  • Matching skill set.
  • Video presentation.
  • Relevant experience.

Step 5: Live Coding Interview

I invite 5-10 candidates for a live coding interview. During this interview, I set tasks that are similar to what they would work on within our development stack. These tasks are intentionally designed to be impossible to complete within 1-1.5 hours. This lets me observe:

  • Their ease of working with the stack.
  • Their problem-solving skills.
  • How they utilize online resources and AI tools like ChatGPT.
  • Their ability to quickly complete basic tasks, indicating familiarity and prior experience.
  • How they handle errors and debugging.

I inform candidates that they can use any resources online, as I want to see their resourcefulness and comfort with AI coding tools. In fact, I secretly hope they will use AI—a good programmer is a lazy programmer who looks to automate rather than do manual work.

Step 6: Final Selection

From the live coding interviews, I typically narrow it down to 2-3 candidates. I then make my final decision based on their overall performance and fit for the role. If I don’t find 2-3 suitable candidates, I run another batch of coding interviews.

Conclusion

I’ve been using this process myself with excellent results. It helps me find developers who are not only technically proficient but also good communicators and team players.

Having access to discussions like this one is why I really love being part of several communities. If you haven’t checked out the Good Life Collective yet, go do so, and let me know if you have any questions about what I am building there. Thanks again to Dan for this great experience share.

A Comprehensive Guide to Malta’s 5% Effective Corporate Tax Rate

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Malta is an attractive destination for setting up companies due to its unique taxation system, which offers several benefits for non-resident and non-domiciled individuals.

Over the years, I’ve delved very deep into the topic of tax optimization, and if you haven’t done so already, I recommend starting off with my article on low tax strategies in Europe, where I cover the basics and also suggest a few different setups involving other countries in addition to Malta.

In this article, I will discuss Malta’s full imputation system, how it impacts both resident and non-resident shareholders, and how to structure companies for maximum tax efficiency. I’ll also cover the new 15% FITWI regime introduced in September 2025 and clarify who should (and shouldn’t) pay attention to it.

Malta’s Full Imputation System

Malta is the only country in Europe that operates a full imputation system for corporate taxation. This means that corporate profits are taxed to the company at a rate of 35%.

However, when dividends are distributed to individuals out of taxed profits, the dividend carries an imputation credit of the tax paid by the company on the profits so distributed.

Essentially, this system eliminates the economic double taxation that arises under the classical system.

Implications for Resident Shareholders

In Malta, personal taxation is based on a progressive system, with rates ranging from 15% to 35%.

Therefore, for shareholders who are residents of Malta, since the current rate of income tax applicable to companies is 35% and the maximum rate applicable to individuals is also 35%, the receipt of a dividend out of these tax accounts can never result in a shareholder having to pay additional tax on receipt of the dividend.

Implications for Non-Resident Shareholders

Non-resident shareholders, on the other hand, will not be taxed in Malta on their dividends but would still need to declare the receipt of the dividends in their country of residence and pay tax there.

This creates a situation where it would be very disadvantageous to set up a company in Malta if you’re a non-resident shareholder because you’d have to pay the 35% corporate tax plus the tax on dividends in your country.

To address this issue, Malta offers a 6/7ths refund on the corporate tax paid in Malta if the shareholder is a non-resident and non-domiciled person. This brings down the effective corporate tax rate in Malta to 5%.

The 6/7 refund system is still fully operational as of 2026. It has not been abolished, amended, or phased out. This is still the primary route for SMEs and owner-managed businesses.

Who is this Setup Good For?

With that basic knowledge of how the full imputation system works and how it affects resident and non-resident company shareholders, let’s dig deeper into who the Malta setup is ideal for. I will list a few eligibility criteria for setting up in Malta.

  1. Shareholder Structure: The company can be owned by individuals or corporate entities, either resident or non-resident. It’s crucial to understand the tax implications for shareholders in their country of residence, as they may be subject to additional taxes on dividends received from the Maltese company.
  2. Business Activity: The company must carry out genuine business activities, whether trading, holding, or a combination of both. Purely shell or paper companies without substance are not eligible for the 5% effective tax rate.
  3. Tax Residency: To benefit from Malta’s tax system, the company must be considered tax resident in Malta. This typically means that the company is either incorporated in Malta or, if incorporated elsewhere, managed and controlled from Malta.
  4. Compliance with Maltese Regulations: The company must adhere to all relevant Maltese regulations, including company law, tax law, and anti-money laundering regulations. This includes timely submission of tax returns, financial statements, and other necessary documentation.

Optimizing the Company Structure in Malta

To make the most of Malta’s tax system, I recommend the following structure with two companies based in Malta:

  1. Set up a Maltese Trading Company that generates income from its trading activities.
  2. The Maltese Trading Company pays Malta Corporate Tax of 35% on net profits.
  3. Upon distribution of dividends to the Maltese Holding Company, the latter may claim a 6/7 refund of Malta corporate tax paid by the Maltese Trading Company.
  4. Dividend income and the tax refund received by the Maltese Holding Company are not liable to any further tax in Malta.
  5. The Maltese Holding Company can distribute in full both the tax refund and the dividend income received to its foreign shareholder.
  6. No withholding taxes are applied on dividends paid to the foreign shareholder.

malta holding and trading company

This structure results in a net tax rate of 5% on company profits in Malta (after receiving the 6/7ths tax refund) plus the taxation on dividends received in the shareholder’s country of residence.

Keep in mind that as a shareholder, you will still need to pay taxes on dividends in the country where you are fiscally resident.

For example, if the shareholder is a resident of Spain, he would pay between 19% and 26% of tax on the dividends received from the Maltese company, since no withholding tax was applied at the shareholder level in Malta. As another example, if the shareholder lives in France, he will pay 30% (flat savings tax rate in France) on the net amount of dividends received from the Maltese company.

Can You Have Your Holding Company in Another Country?

It is not essential to have the holding company also based in Malta. There are many cases where having the holding company based in another country makes more sense.

The biggest two reasons not to have the holding in Malta would be the following:

  • The setup involves a big company that has been operating its holding company in another country for many years. Moving that holding company would be a big hassle, not to mention potentially causing the ire of the local tax authorities and attracting unwanted attention.
  • The ultimate beneficial holder might want to establish a presence in multiple countries (perhaps due to his flag theory preferences), or he might want to perform other investments from the holding company that are easier done if the holding company is placed elsewhere not Malta.

When structuring your business this way, the Maltese trading company would operate and generate income from its activities, while the holding company in the other country would own the shares in the Maltese trading company.

To determine the most convenient country for the holding company, consider the following factors:

  1. Double Taxation Treaties: Check if the chosen country has a double taxation treaty with Malta, as these agreements often help reduce or eliminate withholding taxes on dividends, interests, and royalties. This can enhance tax efficiency when distributing profits from the Maltese trading company to the holding company.
  2. Tax Regulations: Assess the tax regulations of the holding company’s country of residence, including taxes on dividends received from the Maltese trading company, capital gains tax on the sale of shares, and other relevant taxes. Ideally, choose a jurisdiction with low or no taxes on such income.
  3. Holding Company Requirements: Some countries have specific legal and regulatory requirements for holding companies, such as minimum capital requirements, local directorship, or annual reporting obligations. Be aware of these requirements and ensure they align with your business plans and resources.
  4. Substance Requirements: Consider the economic substance requirements in the holding company’s jurisdiction. Some countries may require a physical presence or a minimum level of economic activity to access their tax benefits. Ensure you can meet these requirements to maintain tax efficiency.
  5. Confidentiality and Privacy: Evaluate the level of confidentiality and privacy provided in the chosen jurisdiction. Some countries offer higher levels of privacy protection for shareholders and company ownership information.

Some popular jurisdictions for holding companies include Cyprus, the Netherlands, Luxembourg, and Singapore. Each jurisdiction has its own set of advantages, and selecting the most suitable one depends on your specific business goals, tax planning objectives, and the relationship between the jurisdictions involved.

Participation Exemption for Holding Companies

Malta’s participation exemption is one of the most valuable features of the Maltese holding company structure, and it remains fully intact.

A Maltese holding company that holds at least 5% of the equity shares in a foreign subsidiary can receive dividends and capital gains from that subsidiary completely free of tax in Malta — provided the subsidiary meets one of the following conditions:

  • The subsidiary is resident in an EU member state, or
  • The subsidiary is subject to an effective tax rate of at least 15%, or
  • The subsidiary derives less than 50% of its income from passive sources (interest, royalties, etc.)

Capital gains on the disposal of qualifying holdings are also exempt without any further conditions. And Malta does not impose withholding tax on outbound dividends from a Maltese holding company (except from the untaxed account, which is rarely relevant in a properly structured setup).

This makes Malta a genuinely competitive holding company jurisdiction — not just for the trading company story, but for building a multi-company international structure.

The New 15% FITWI Regime (September 2025)

In September 2025, Malta introduced a new optional corporate tax regime called the Final Income Tax Without Imputation (FITWI), established by Legal Notice 188 of 2025.

This is important to understand — but equally important not to misread.

FITWI does not replace the traditional 35%/5% system. Both exist side by side.

Here is how FITWI works:

  • The company pays a flat 15% tax on its profits
  • No shareholder refund is available (the imputation/refund mechanism does not apply)
  • The election is optional but comes with a minimum 5-year lock-in period
  • There is a safeguard clause: the 15% rate can never result in less tax being paid than would have been payable under the traditional refund system

Who is FITWI Actually For?

FITWI was designed with large multinational groups in mind — specifically those caught by the OECD Pillar Two framework, which requires a minimum 15% effective tax rate for groups with global revenues over EUR 750 million.

For those groups, the traditional 5% effective rate via refunds creates complications when their parent company is in a country that has implemented Pillar Two (as most EU countries now have). The parent country can “top up” the tax to 15% regardless. FITWI allows the Malta company to simply pay 15% upfront and be done with it, avoiding the administrative complexity of refunds that would otherwise be clawed back.

For SMEs and owner-managed businesses, FITWI is almost certainly not the right choice. The traditional 35%/5% refund system continues to deliver a 5% effective rate, which is better than 15%. There is no reason to voluntarily elect FITWI unless you are part of a large multinational group navigating Pillar Two compliance.

If you are running a small or medium-sized business through a Malta company, nothing has changed for you. The 6/7 refund still works, and it is still the lowest effective corporate rate in the EU.

Additional Benefits

There are two additional big benefits of operating a corporate structure in Malta, one of them fairly new. Let’s have a look at them.

Tax Payment Deferral

In Malta, companies with most of their income sourced outside of Malta can benefit from a tax deferral mechanism, allowing them to defer their tax payments by up to 18 months. This provision can offer significant cash flow advantages and flexibility for businesses, especially those that rely on reinvestments or are in a growth phase.

Here’s an overview of the tax deferral mechanism in Malta:

  1. Eligibility: To be eligible for the tax deferral, the majority of a company’s income must be sourced from outside Malta. The company must also meet all other tax compliance requirements, including accurate and timely filing of tax returns and the provision of necessary documentation.
  2. Tax Deferral Period: The tax deferral allows companies to postpone their tax payments by up to 18 months from the end of the accounting period in which the income was generated. This means that if a company’s accounting period ends on December 31, the tax payment can be deferred until June 30 of the following year, at the earliest.
  3. Application Process: To benefit from the tax deferral mechanism, companies must apply with the Maltese tax authorities, providing details about their income sources and the reasons for requesting the deferral. The tax authorities may ask for additional documentation to support the application.
  4. Cash Flow Benefits: The tax deferral can provide significant cash flow advantages for companies, allowing them to use the funds that would otherwise be paid as taxes for other business purposes, such as reinvestments, expansion, or working capital management.
  5. Interest and Penalties: It’s important to note that deferring tax payments does not mean avoiding them altogether. Companies must eventually pay the deferred taxes, along with any interest or penalties that may apply if the tax payment is not made within the allowed deferral period.

The tax deferral mechanism in Malta can be an attractive option for companies with income primarily sourced from outside the country.

Consolidated Accounts for Holding and Trading Companies

Starting from 2021, Malta introduced new rules that allow for the submission of consolidated tax statements by Maltese holding and trading companies. This change brought a significant improvement to the Maltese tax system, streamlining the process and providing certain benefits to companies operating under this structure.

Benefits of Consolidated Tax Statements in Malta:

  1. Simplified Tax Reporting: Under the new rules, holding and trading companies can submit a single consolidated tax statement, rather than filing separate tax returns for each company. This simplifies the reporting process and reduces the administrative burden on companies.
  2. Faster Tax Refunds: Previously, companies in Malta had to first pay the full 35% corporate tax and then wait for the 6/7ths tax refund, which could take around a year. With consolidated tax statements, the effective tax rate of 5% can be applied directly, eliminating the need to wait for the refund. This allows companies to access their funds more quickly, which can be especially beneficial for reinvestments and cash flow management.
  3. Reduced Compliance Risks: Consolidated tax statements reduce the risk of errors or inconsistencies in tax reporting between the holding and trading companies. By submitting a single statement, companies can ensure that all relevant information is accurately reported and consistent across both entities.
  4. Enhanced Transparency: Submitting a consolidated tax statement provides a clearer picture of the overall financial performance and tax position of both the holding and trading companies. This can help business owners, investors, and other stakeholders to better understand the financial health of the group.
  5. Potential Interest Savings: Since companies no longer need to wait for the tax refund, they can potentially save on interest costs associated with borrowing funds to cover cash flow requirements during the refund waiting period.

This change in the law further enhances the tax efficiency of Maltese companies for non-residents.

Is Malta Right for You?

While setting up in Malta is generally a very good idea to explore, and I know many companies who have gone down this route successfully, I would also like to make it clear that this setup is not for everyone.

There are certain situations where opening a company in Malta may not be a viable or advantageous option:

  1. Limited Substance: If the company would not have sufficient substance in Malta, such as a physical presence, employees, or genuine economic activities, it may not be considered tax resident in Malta and could face challenges in benefiting from Malta’s tax regime or accessing double tax treaties.
  2. High-Tax Jurisdictions: For individuals or corporate shareholders residing in high-tax jurisdictions with stringent Controlled Foreign Corporation (CFC) rules, the benefits of Malta’s tax system might be limited. In some cases, the income of the Maltese company could be attributed back to the shareholders and taxed in their country of residence.
  3. Unfavorable Tax Treaties: If the country of residence of the company’s shareholders or the countries where the company’s income is sourced have unfavorable tax treaties with Malta, it could result in higher withholding taxes or limit the benefits of Malta’s tax system.
  4. Regulatory Restrictions: In some industries or sectors, regulatory restrictions in either Malta or the company’s country of operation could make it difficult or even impossible to set up a Maltese company. For example, certain financial services, gambling, or cryptocurrency businesses may face stricter licensing requirements or prohibitions.
  5. Small Business or Sole Entrepreneur: For small businesses or sole entrepreneurs with limited profits, the added complexity and costs of setting up and maintaining a company abroad may outweigh the potential tax benefits. Establishing a company in Malta involves registration fees, annual expenses, and professional service fees for accounting, auditing, and legal support. Additionally, managing cross-border operations can be time-consuming and challenging. In such cases, it may be more beneficial to focus on growing the business domestically before considering international expansion or tax planning strategies.

The most common mistake I see is point number 5, and this doesn’t just apply to Malta. I see too many freelancers and small business owners that try to attempt such a setup prematurely. You will hear many stories of people and companies who are paying low taxes because of their setups, but establishing these structures and keeping them running is no joke. You have to be ready to spend money and deal with the additional complexity (cultural differences, language barriers, different laws etc.) that operating in another jurisdiction bring with them.

However, let’s say that your case is ideal for exploring a corporate setup in Malta. You should also be aware of certain important downsides of setting up a company in Malta:

  1. Size and Limited Market: Malta is a small island nation with a limited domestic market, which may not be ideal for businesses that rely heavily on local demand. However, its strategic location in the Mediterranean and EU membership can mitigate this issue for companies focused on international trade.
  2. Regulatory Complexity: Navigating Malta’s tax landscape can be complex, especially for businesses unfamiliar with the country’s tax laws and regulations. It’s essential to seek professional advice and ensure compliance with all relevant requirements when setting up a company in Malta.
  3. Reputational History: Malta received significant scrutiny in the early 2020s over anti-money laundering and financial transparency standards, which resulted in its placement on the FATF grey list in June 2021. Malta was removed from the grey list in June 2022 after demonstrating significant progress in addressing those deficiencies. The reputational cloud has lifted considerably since then, though due diligence standards and compliance requirements remain high — which is ultimately a good thing for legitimate businesses.
  4. Limited Local Talent Pool: While Malta has a skilled workforce, its small population size may limit the availability of local talent in specialized fields. Companies in niche industries may need to invest in training or recruit professionals from abroad to meet their staffing needs.
  5. Increased Reporting Requirements: As a result of the country’s efforts to improve its financial transparency, companies operating in Malta may face increased reporting and compliance requirements. This can lead to additional administrative burdens and costs for businesses.
  6. Banking Challenges: Opening a bank account in Malta has become increasingly difficult, particularly for non-residents and foreign-owned companies. Bank of Valletta (BoV) remains the dominant bank and is financially healthy — reporting strong pre-tax profits — but the onboarding process for non-resident companies is slow and bureaucratic. The high-balance fees that BoV had introduced during the negative interest rate era were withdrawn in August 2022, which is welcome news, but the general experience remains cumbersome. In practice, many Malta-based companies now use EMIs like Revolut Business or Wise Business as their primary banking while maintaining a BoV account for compliance purposes. If you go down this route, factor in the time and cost of setting up banking alongside your company formation.

To finish off, let’s have another rundown of the benefits of setting up in Malta.

  1. Attractive Tax System: Malta’s full imputation system, combined with the 6/7ths refund mechanism for non-resident and non-domiciled shareholders, results in an effective corporate tax rate of just 5%. This is one of the lowest rates in the European Union, making Malta an attractive destination for businesses seeking tax efficiency.
  2. Participation Exemption: The Maltese holding company structure benefits from a full participation exemption on dividends and capital gains from qualifying shareholdings of 5% or more. This makes Malta a strong jurisdiction for building an international holding structure.
  3. Consolidated Tax Statements: Maltese holding and trading companies can submit consolidated tax statements, simplifying tax reporting and enabling businesses to directly apply the 5% effective tax rate without waiting for a refund. This can significantly improve cash flow management for businesses operating under this structure.
  4. Tax Deferral Mechanism: Companies with most of their income sourced outside of Malta can defer their tax payments by up to 18 months, providing additional cash flow benefits and flexibility for businesses that rely on reinvestments or are in a growth phase.
  5. EU Membership: Malta is a member of the European Union, which means that Maltese companies can benefit from access to the European single market, free movement of goods, services, and capital, and reduced trade barriers with other EU member states.
  6. Skilled Workforce: Malta is home to a highly-skilled, multilingual workforce, with many professionals proficient in English, Italian, and other European languages. This can be advantageous for businesses looking to tap into the European market.
  7. Eurozone Membership: Malta’s membership in the Eurozone, having adopted the euro as its currency in 2008, offers additional benefits for businesses. Operating in a country that uses the euro eliminates currency exchange risks and simplifies cross-border transactions within the Eurozone. As a member of the European Union, Malta enjoys seamless access to the EU’s Single Market, promoting easier trade with other EU countries and enhancing a company’s credibility. This membership also provides the potential for businesses to access EU funding programs and grants, which can be particularly beneficial for startups and small-to-medium-sized enterprises seeking financial assistance.

I hope that I have been able to paint a good picture of what the setup in Malta looks like and who would best benefit from it.

If setting up in Malta sounds interesting, I would recommend getting professional advice early on to determine whether the structure is really suitable for your specific circumstances. The tax landscape can be complex, and it’s essential to understand the implications and compliance requirements before setting up a company in Malta.

To help you navigate this process, I am happy to connect you with my lawyers in Malta for a free consultation. By filling out this form on my website, you can receive personalized guidance on the potential advantages and challenges of establishing a Maltese company, tailored to your unique situation.

I think that Malta remains one of the top places in Europe for corporate setups. Pairing a Malta company with a favorable personal tax situation in your country of residence — whether that is a participation exemption, a territorial tax system, or a non-dom regime — is where the real power of the structure comes through.

Get advice on a Malta setup

This article is for informational purposes only and does not constitute tax or legal advice. Tax rules and corporate structures are complex and change frequently. Always consult a qualified professional before making decisions based on this information.

Should Freelancers Set Up a Company in Estonia?

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Estonia has become one of the most popular places for European freelancers to set up a company. The combination of a genuinely digital-first government, EU legitimacy, and a deferred corporate tax system makes it stand out from almost every other jurisdiction.

In this article I want to look at why tens of thousands of freelancers have been forming Estonian companies in recent years — and whether it makes sense for you.

Set up in Estonia with Xolo

What Is e-Residency?

Estonia’s e-Residency program lets you apply for a digital identity card that allows you to register and run an Estonian company entirely online — no flights required, no local director needed. You manage everything: signing contracts, filing taxes, running a bank account — through a chip-and-PIN smart card and Estonia’s X-Road digital infrastructure.

As of early 2026, over 135,000 people from 185 countries have become e-residents, and they’ve collectively set up more than 39,000 companies. In 2025 alone, e-residents founded 5,556 new companies — a 15% increase year-over-year and a new record. The program generated €125 million for the Estonian state in 2025.

The most common nationalities starting companies: Ukrainians, Spaniards, Turks, Germans, and French.

The Tax System: What Actually Makes Estonia Different

Estonia’s corporate tax system is unusual, and it’s the main reason freelancers get interested. Most countries tax your company’s profits each year, regardless of whether you take money out. Estonia doesn’t.

Under the Estonian system, an OÜ (private limited company) pays 0% corporate income tax on profits that are retained in the company. Tax is only triggered when profits are distributed — as dividends, owner salary, or other payments to shareholders.

Current tax rates on distributions

  • 2025–2026: 22% on distributed profits (calculated as 22/78 of the net distribution)

Note: until the end of 2024, there was a preferential 14% rate on regularly distributed dividends. That rate was abolished from January 1, 2025. All distributions are now taxed at the standard 22% rate. A further increase to 24% was initially planned for 2026 but was cancelled by the Estonian Parliament in December 2025.

The Bait and Switch Nobody Talks About

Let’s be honest about what’s happening here. Estonia built its entire e-Residency pitch on a simple, attractive promise: 0% on retained profits, 20% when you take money out. That’s what every blog post, every YouTube video, and every e-Residency marketing page told you.

Here’s the timeline of what actually happened:

  • Original promise: 20% on distributions, with a preferential 14% rate on regular dividends
  • January 2025: Rate raised to 22%. The 14% preferential rate? Abolished entirely.
  • 2026 increase cancelled: A further increase to 24% was planned but the Parliament reversed course in December 2025. The rate stays at 22% — for now.
  • VAT: Also raised from 22% to 24% in July 2025, for good measure.

If you set up your Estonian company in 2022 based on the 14% regular dividend rate, you’re now paying 22% on every euro you take out — a 57% increase. And the fact that they planned a further hike to 24% before reversing it tells you everything about the direction of travel.

Estonia got 135,000 people in the door with one set of numbers, then started changing those numbers once the program was too established to abandon. The 0% on retained earnings is still real, but the moment you want to actually use your money — the whole point of earning it — the deal has already gotten worse and nearly got worse again.

I’m not saying Estonia is a bad option. But go in with your eyes open: the rates they’re advertising today may not be the rates you’re paying in three years. The Estonian government has shown it’s willing to move the goalposts once you’re committed — the only reason the 24% didn’t happen is that Parliament got cold feet, not because they had a principled objection.

The practical implication: if you’re building a business and reinvesting profits — into tools, advertising, contractors, future projects — you pay no Estonian corporate tax on that money while it stays in the company. The 0% on retained earnings is the part of the deal that still works. Just don’t assume the distribution rate has finished climbing.

What about personal income tax?

Estonia’s personal income tax rate is 22% for 2025 (flat rate), with a basic exemption of €8,400 per year. But for most e-residents, this is largely irrelevant — you pay personal income tax where you are a tax resident, not where your company is registered. More on this below.

VAT

Estonia’s standard VAT rate increased to 24% from July 1, 2025 (previously 22%). If your company is VAT-registered, use the new rate from that date.

What It Costs to Set Up and Run an Estonian OÜ

The upfront costs are low compared to other EU jurisdictions:

  • e-Residency application fee: €150 (card is valid for 5 years, no annual fee)
  • Company registration state fee: €265 (online, through the e-Business Register)
  • No minimum share capital required

Ongoing costs depend on how much you outsource:

  • Registered contact person + address: ~€200–€400/year (mandatory — you need an Estonian contact person)
  • Accounting services: from ~€50/month for basic bookkeeping
  • All-in platforms like Xolo: from €59/month (includes accounting, annual reports, VAT filing, registered address, and contact person)

For most solo freelancers, the realistic ongoing cost is €600–€1,200/year using a service like Xolo. That’s not nothing, but it’s cheap for a fully compliant EU company.

Banking: Better Than It Used to Be

A few years ago, banking was a genuine pain point for e-residents. Traditional Estonian banks like Swedbank and SEB largely stopped accepting e-resident businesses without a strong local connection.

The situation has improved. Your realistic options today:

  • LHV Pank: A traditional Estonian bank that has stayed committed to e-residents. One of the few real banks that will open an account for location-independent entrepreneurs. Charges €10/month for EU e-residents, €20/month for non-EU.
  • Wise Business: Multi-currency accounts (EUR, USD, GBP, and more) with transparent fees. Doesn’t provide a local Estonian IBAN but works well for cross-border billing and client payments.
  • Revolut Business: Popular with international freelancers, free entry-level plan, good for multi-currency operations.
  • Other fintechs: Wamo, Paysera, Intergiro, and others listed on the official e-Residency Marketplace all offer business accounts to e-residents.

The official e-Residency recommendation is to open with an EEA-based fintech, as they can onboard you entirely online. LHV is still the go-to if you want a proper bank account with an Estonian IBAN.

The Substance Problem: The Part Most Articles Skip

Here is the part that matters most and gets the least attention.

e-Residency is not tax residency. Estonia’s e-Residency program gives you a digital identity and the right to register a company. It does not make you an Estonian tax resident, and it does not automatically make your company taxable only in Estonia.

Your personal income tax obligations remain in whatever country you live in. Your company’s tax obligations are more complicated.

Place of effective management

Most EU countries — including Germany, France, Spain, and others — use a concept called “place of effective management” to determine where a company is really tax resident. If you live in Germany and manage your Estonian OÜ from Germany, German tax authorities can argue the company is effectively managed in Germany and therefore German tax laws apply to it. That wipes out the Estonian tax advantage.

This isn’t theoretical. German and French tax authorities have become notably more aggressive about this in recent years. The Estonian Tax and Customs Board itself warns that e-resident companies can end up with dual tax residency — where both Estonia and your home country believe they have a claim on the company’s profits.

Who this affects least

The e-resident company setup works most cleanly for:

  • Digital nomads without a fixed tax residency — if you’re moving frequently and don’t trigger residency thresholds, the dual-taxation risk is much lower
  • People in countries with territorial or lax CFC rules — some countries simply don’t try to tax foreign company profits the same way
  • People who have genuinely relocated — if you’ve moved to a country with a favorable tax treaty or territorial tax system, an Estonian company can work well

Who needs to be careful

If you live full-time in a high-tax EU country, work from there, and direct all business decisions from there, an Estonian OÜ is not a magic tax shield. It’s a legitimate company structure that works best when you have real flexibility over where you live and work.

Always consult a tax lawyer in your country of residence before proceeding. This is not a formality — the rules vary significantly between countries, and the cost of getting it wrong can be substantial.

How Does Estonia Compare to Alternatives?

UK Limited Company

Fast to set up (Companies House, 24 hours), 25% corporation tax on profits, no deferred distribution mechanism. The UK offers simplicity and credibility but no tax deferral advantage. Good for UK-resident freelancers or those with UK client bases.

Malta

Malta has EU membership and a refund system that can reduce the effective corporate tax rate significantly — but the headline rate is 35%, and the refund structure requires proper setup and professional administration. More complex and expensive to run than Estonia.

Other e-Residency Programs

Georgia, Portugal (NHR, now reformed), and a handful of other countries have introduced e-residency or non-dom programs. None of them match Estonia’s combination of digital infrastructure, EU membership, program maturity, and ecosystem of service providers.

For a non-resident freelancer who wants an EU company they can manage entirely online, Estonia is still the leading option.

Is It the Right Choice for You?

Setting up in Estonia makes the most sense if:

  • You’re a digital nomad or have flexibility over where you’re tax resident
  • You generate enough income that the structural tax benefit outweighs the ongoing compliance costs (roughly €600–€1,200/year)
  • You want EU legitimacy for invoicing European clients
  • You’re a non-EU freelancer who struggles to invoice EU clients from your home jurisdiction

It’s a worse fit if you’re based full-time in a high-tax EU country with strict controlled foreign corporation (CFC) rules and no intention of relocating.

I’ve spoken to many freelancers who’ve made the move, and the ones who are happiest with it either have geographic flexibility or are in countries where the substance rules are less aggressive. The ones who’ve had problems typically underestimated the tax situation in their home country.

For getting set up, I recommend Xolo. They handle company formation, accounting, annual reports, VAT filing, and give you a registered Estonian address and contact person — all from a single dashboard. Their Leap plan starts at €59/month, which for a solo freelancer covers essentially everything you need on the compliance side.

If you’re a resident of Malta, USA, Spain, or Portugal and want to understand the specific implications under your local laws before making a move, I can connect you to my preferred lawyers.

Set up in Estonia with Xolo

A Guide to Basic Search Engine Optimization

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I’ve never paid too much attention to SEO when writing, just because writing is really a research tool for me as I learn new topics and consolidate my opinions on others.

However, there are a few habits and techniques that I’ve picked up over the years. I’ve been blogging for close to two decades after all.

  • Monthly go through Google Search Console and fix any issues. I like to take a look even more frequently, maybe once a week, just because this is a great tool to point out any major issues that many times only need an easy fix.
  • Make sure the site is optimized for mobile. Nowadays I get more visits from mobile devices, around 55% of all visits.
  • Comparison tables work really well at presenting information and you will achieve a high rate of clicks through them.
  • Images in posts should be linked and there should be a clear call to action.
  • Think about what the user is searching for, and what his real intent is. Then target that real intent in a laser-focused manner.
  • Open external links in new tabs, else you are inviting people to leave your site.
  • Make use of your newsletter to develop a closer relationship with your subscribers. Also ensure you’re taking actions to grow the subscriber base over time.
  • People tend to click on
    • buttons
    • links
    • images
    • logos
      Make sure you have all these elements on every blog post.
  • Every month, pick the top 5-10 posts and ensure they are optimized and up-to-date. I also like to prune and consolidate the non-performant posts.
  • Test your site with ad blockers on, make sure there isn’t any essential stuff missing.
  • Use tools to measure and optimize, but make sure you spend an appropriate amount of time on that. Your writing is always the most important thing.

Here are the top courses for those who want to learn SEO and affiliate marketing:

Here’s a list of great SEO tools:

  • Hotjar
  • Accuranker
  • SurferSEO
  • Clearscope
  • Clicky
  • Ahrefs
  • Semrush

What are your favorites? Let me know in the comments section.

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Jean Galea

Investor | Dad | Global Citizen | Athlete