Corporate Giants Find Tax Haven in Malta’s Tiny Office Spaces

The strategy relies on navigating Malta’s nominal 35% corporate tax rate through complex accounting structures that effectively eliminate the liability. According to the New York Times, major accounting firms—including KPMG, PwC, Deloitte, and EY—have actively promoted these tax-avoidance schemes to their clients. The result is a surge in activity, with the number of Maltese subsidiaries registered by U.S. companies climbing nearly 70% over the past three years.

Prominent names such as LinkedIn, Abbott Laboratories, Victoria’s Secret, Kraft Heinz, PepsiCo, and Skechers have established entities on the island to leverage these loopholes. While the IRS has begun scrutinizing arrangements that lack genuine economic substance, and the European Union has pressured Malta over its contentious citizenship programs, the tax structures remain functional. For shareholders, the immediate financial impact has been positive; Crocs, for instance, has seen its stock price climb nearly 54% this year as these fiscal strategies remain firmly in place.