Cyprus vs. Malta: Which jurisdiction is best for gaming companies?

The choice between Cyprus and Malta as a home base for gaming companies is more relevant than ever. Over the past decade, these two Mediterranean islands have grown into major iGaming and tech business hubs, attracting startups and established groups with friendly regulations, EU market access, and appealing lifestyles. If you’re planning to launch, expand, or relocate your gaming business, knowing the real pros and cons of each jurisdiction will help you make a smart, future-proof decision.

Below, I break down the key factors—tax, talent, licensing, business setup, and more—to help you assess which jurisdiction might best fit your business goals in 2024 and beyond.

Taxation: Corporate taxes, incentives, and structure

Cyprus: Cyprus offers a straightforward corporate tax rate of 12.5%—one of the lowest in the EU. For tech-focused and IP-rich companies, there’s even more good news: qualifying intellectual property profits can benefit from an effective tax rate as low as 2.5% through the IP Box regime. Dividends to non-resident shareholders are not subject to withholding tax, and personal income tax for high-earning (over €55,000) employees can get a 50% discount for up to 17 years—a big plus for attracting international talent.

Malta: Malta’s headline corporate tax rate is higher at 35%, but there’s a catch. After distributing profits, foreign shareholders may claim up to 6/7ths back as a tax refund, bringing the effective rate down to 5–10% for many companies. However, this refund system can be complex, lead to cash flow delays, and comes with extra administrative work. There’s no dedicated IP Box regime, and dividends paid to non-domiciled shareholders may face withholding tax up to 15%.

Bottom line: Cyprus offers a simpler system with immediate tax advantages, especially for IP-heavy businesses. Malta’s system is competitive if you’re prepared to manage the bureaucracy.

Licensing: Regulatory approach and business credibility

Malta: Malta has been a pioneer since the early 2000s, establishing the Malta Gaming Authority (MGA)—one of the world’s most respected gaming regulators. An MGA license is a global credibility marker, making market entry and payment partnerships smoother. The process is well-defined but rigorous, with high standards for transparency, AML (anti-money laundering), and player protection.

Cyprus: Cyprus is catching up as a gaming jurisdiction. Its National Betting Authority regulates both land-based and remote betting operations, and the Cyprus Gaming Commission oversees casino and related activities. While Cyprus is newer to the scene, its licensing is robust, and the EU-compliant framework ensures transparency and strong player protections. The process is slightly less mature than Malta’s but is evolving rapidly, with growing recognition from industry providers.

Bottom line: Malta remains the gold standard for licensing, but Cyprus is increasingly viable—especially for startups, IP companies, or hybrid crypto models.

Talent pool: Recruitment and tech skills

Cyprus: Cyprus is investing heavily in tech education and culture. EU membership makes it easy to attract candidates from across Europe. The tech and gaming pipeline is expanding, and companies report good success recruiting software developers, compliance experts, and managers. For businesses relocating talent, the personal tax incentive (50% exemption for high salaries) is a significant recruitment tool.

Malta: Malta boasts a well-established gaming workforce and has long attracted talent globally. However, competition for skilled employees has steadily increased, and the pool—especially for senior developers and specialized compliance staff—is not as deep as it used to be. Higher demand in key areas like Sliema or Gzira has pushed up living costs and made recruitment tougher.

Bottom line: Cyprus currently offers a broader, more cost-effective hiring market, particularly for tech and support roles.

Ease of company setup and relocation

Cyprus: Company formation is quick, transparent, and fully in line with EU business standards. Redomiciliation (moving an existing company with its legal history) is possible from many jurisdictions. Partial relocation—such as moving key staff or holding IP in Cyprus—is increasingly popular, giving flexibility to gaming groups.

Malta: Malta has a standardized company formation process. While straightforward for new entities, relocating an existing business can be more involved, especially for partial moves (such as transferring only a product division or IP assets). There are regulatory hoops to clear for full operational migration.

Bottom line: Cyprus offers more practical options for hybrid or phased relocation.

Business ecosystem, infrastructure, and lifestyle

Both: Both Malta and Cyprus provide English-speaking professional environments, experience with international clients, and a strong network of accountants, lawyers, and support services.

Cyprus: Moderate living costs, expanding coworking and tech hubs, and an international school network make Cyprus attractive for relocating teams or founders. The Mediterranean lifestyle is a major draw, and costs—outside top tourist months—remain affordable.

Malta: Malta’s cosmopolitan vibe attracts expats, but high demand in key areas can drive up prices and reduce availability for office space and housing.

If you’re searching for experienced advisors—lawyers, incorporation partners, relocation consultants—both islands can deliver. Some firms, like your global business partner, offer custom consultancy on cross-border licensing, tax strategy, and market entry for iGaming ventures.

Market access, international perception, and long-term trends

Both Cyprus and Malta are EU member states, providing access to the common market and recognition for regulatory purposes. Historically, Malta had the upper hand in international reputation for gaming, but Cyprus is rapidly gaining ground.

Gaming groups are increasingly utilizing Cyprus for its tax simplicity, more flexible company structures, and attractiveness for both EU and non-EU investors. Malta’s strengths still lie in licensing (especially for those targeting a wide range of white-listed jurisdictions) and a legacy ecosystem built around iGaming.

The trend? Many companies are starting with a partial move—transferring tech, holding IP, or relocating executives—while keeping customer-facing operations in Malta. As Cyprus expands its regulatory credibility and talent pool, full relocations are expected to increase.

Key challenges and things to watch

  • Regulatory shifts: Always check the latest updates. Both Malta and Cyprus regularly tune gaming and AML laws in line with EU guidance.
  • Banking and payments: Both have EU-compliant banks familiar with gaming clients, but compliance requirements are strict.
  • Costs and scalability: Malta’s costs continue to rise; Cyprus can offer more scalable options for small- to mid-size businesses looking to grow.

Who is moving—and why?

Recent trends show increasing interest from:

  • Online casino platforms moving licenses or tech teams
  • Game and content studios centralizing their IP structures
  • SaaS providers in payments, RegTech, and analytics
  • Crypto and hybrid gaming projects seeking EU-friendly bases
  • Startups entering regulated markets who want simpler compliance

If you’re an entrepreneur considering a Mediterranean base, understanding the differences is essential for a smooth launch. To see how other founders are navigating these changes—especially those in fast-moving tech sectors—look at the journey of legarithm entrepreneurs in Eastern Europe for some practical perspectives.

How do you decide?

  • If tax simplicity, rapid company formation, and talent access are top priorities: Cyprus is likely your best fit—especially for modern, cross-border tech structures.
  • If you need a globally recognized gaming license and are willing to navigate more compliance: Malta still sets the benchmark and serves as a powerful industry hub.
  • For most scale-ups and innovative startups: Combining both jurisdictions (e.g., licensing in Malta, holding company/IP in Cyprus) could be the most strategic approach.

In short: both Cyprus and Malta remain top choices for gaming ventures, but the gap is closing fast. Your decision should balance risk, cost, speed, and long-term growth. Starting with an initial consultation with a trusted advisor can save months of trial and error and keep you focused on scaling your business.

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