Malta is the smallest state successful the EU, but it’s go a large taxation haven for U.S. companies.
By Jonathan Small | edited by Dan Bova | Aug 07, 2026
Crocs sells its chunky clogs to 150 cardinal customers crossed 100 countries each year. But erstwhile taxation play rolls around, the Broomfield, Colorado institution has claimed that each of those world profits were really earned successful a two-person agency successful Malta, according to the New York Times.
Crocs isn’t the only one. Accounting giants KPMG, PwC, Deloitte and EY person been aggressively trading akin strategies, and companies including LinkedIn, Abbott Laboratories, Victoria’s Secret, Kraft Heinz, PepsiCo and Skechers person each group up ammunition entities connected the island. The number of Maltese subsidiaries created by U.S. companies has jumped astir 70% complete the past 3 years.
Why Malta? While its charismatic firm taxation complaint is 35%, companies tin push that down to astir zero done the correct paperwork. The IRS has started challenging arrangements that deficiency existent “economic substance,” and the EU has already taken ineligible action against Malta complete a abstracted citizenship-selling scandal. For now, though, the loophole remains wide open, and Crocs’ shareholders aren’t complaining: the banal is up astir 54% this year.
Crocs sells its chunky clogs to 150 cardinal customers crossed 100 countries each year. But erstwhile taxation play rolls around, the Broomfield, Colorado institution has claimed that each of those world profits were really earned successful a two-person agency successful Malta, according to the New York Times.
Crocs isn’t the only one. Accounting giants KPMG, PwC, Deloitte and EY person been aggressively trading akin strategies, and companies including LinkedIn, Abbott Laboratories, Victoria’s Secret, Kraft Heinz, PepsiCo and Skechers person each group up ammunition entities connected the island. The number of Maltese subsidiaries created by U.S. companies has jumped astir 70% complete the past 3 years.
Why Malta? While its charismatic firm taxation complaint is 35%, companies tin push that down to astir zero done the correct paperwork. The IRS has started challenging arrangements that deficiency existent “economic substance,” and the EU has already taken ineligible action against Malta complete a abstracted citizenship-selling scandal. For now, though, the loophole remains wide open, and Crocs’ shareholders aren’t complaining: the banal is up astir 54% this year.
Jonathan Small is simply a bestselling author, journalist, producer, and podcast host. For 25 years, he... Read more
.png)
