Affiliate Marketing
Legal certainty for scalable performance in the Maltese iGaming sector.
Key Areas of Expertise
Performance marketing providers require a legally robust and compliant operating model. From drafting watertight affiliate agreements to optimizing your global cash flows from a tax perspective. We structure legally sound frameworks to secure your commission streams.
Make an appointment
Dr. Hermann Kresse
Founder & CEO
Speak Directly with Our Legal Counsel Ensure Compliance. Mitigate Risks. Free Initial Consultation with Experienced Lawyers.
1. Contract Architecture
Drafting and reviewing affiliate network agreements and bespoke contracts. Legally sound structuring of Terms and Conditions (T&Cs) for sub-affiliate networks. Protection against unjustified account suspensions and fund freezes.
2. Regulatory Compliance
Data protection compliance for lead generation and tracking mechanisms. Reviewing advertising compliance under EU consumer protection directives. Advisory on mandatory disclosure requirements and unfair competition law in an international context.
3. Tax Compliance
Implementation of holding structures to retain and reinvest necessary capital. Securing robust local economic substance to mitigate controlled foreign corporation (CFC) taxation risks. Advisory on withholding tax exposure in cross-border commission and affiliate pay-outs.
1. Why is Malta the leading jurisdiction for Performance- and Affiliate Marketing?
Answer:Malta is widely recognized as a global hub for the iGaming and digital marketing industries. In addition to a first-class ecosystem of service providers (legal, accounting, audit, corporate banking, and more), affiliates, payment service providers, and tech vendors, Malta offers an effective corporate tax rate of just 5% through its proven 6/7 tax refund system. Furthermore, businesses benefit from an EU-compliant legal framework, high legal certainty for cross-border services, and flexible holding and trading structures.
2. Does a pure affiliate marketing agency require an MGA license?
Answer:No. Pure affiliate publishers, lead generators, and marketing agencies that do not operate gaming activities themselves or hold player funds generally fall outside the licensing scope of the Malta Gaming Authority (MGA). They operate as standard commercial service entities. Nonetheless, strict adherence to advertising codes, target-market regulatory frameworks, and sector-specific promotional restrictions in the iGaming industry remains mandatory.
3. What economic substance requirements apply to affiliate enterprises in Malta?
Answer:To establish tax residency in Malta beyond dispute and prevent characterization as a controlled foreign corporation (e.g., under German CFC rules pursuant to Sec. 7–14 AStG), genuine economic substance (substance over form) is essential. Key requirements include:
An actual place of effective management on the ground (a qualified, resident director in Malta).
Dedicated or leased physical office premises (office substance).
Local employees or operational service contracts (e.g., content creation, media buying, campaign management).
Dedicated corporate bank account and local operational accounting.
4. How is income from international affiliate marketing networks treated for VAT purposes?
Answer:Because affiliate marketing earnings (such as CPA, CPL, or RevShare models) are generally classified as cross-border B2B services, the reverse-charge mechanism typically applies within the EU. Consequently, invoices issued to European affiliate networks or contractual partners are billed net without Maltese VAT (subject to quoting valid VAT identification numbers). Distinct rules apply to non-EU third countries, which we structure and align specifically as part of our firm's ongoing corporate and tax advisory services.
5. How can domains, tracking software, and intellectual property (IP) rights be structured optimally?
Answer:Valuable digital assets—such as trademarks, proprietary codebases, media assets, or blockchain and crypto assets (Web3)—can be consolidated within a dedicated Malta IP holding company. Under qualifying criteria, Malta offers advantageous frameworks (such as the **Patent Box Regime** and favorable IP taxation rules), allowing licensing and exploitation income to be substantially optimized from a tax perspective while insulating core intellectual property from the operational liabilities of the trading entity.
6. How does the firm support affiliate entrepreneurs during setup and ongoing operations?
Answer:We provide holistic, end-to-end support.
Structuring & Incorporation: Establishing holding and trading companies, including registration with the Malta Business Registry (MBR) and relevant tax authorities.
Bespoke Contract Drafting: Master affiliate agreements, joint venture and collaboration contracts, tailored Terms & Conditions (T&Cs), Data Processing Agreements (DPAs / GDPR), and regulatory advertising disclaimers.
Substance Building & Relocation: Hands-on guidance for the relocation of founders and managing directors to Malta, as well as the local recruitment and onboarding of personnel.
Ongoing Compliance: Full bookkeeping, FSS/payroll management, annual corporate tax filings, and handling the submission and processing of tax refunds with the Maltese revenue authorities.
Why Kresse Law for Affiliate Marketing in Malta?
In an era of tightening transparency and reporting frameworks (such as DAC8), letterbox arrangements pose a fatal risk to successful affiliate operators. At Dr. Kresse International Law Firm, we approach your affiliate enterprise for what it truly is: a highly scalable online business. We ensure your corporate setup not only optimizes taxes today, but reliably withstands rigorous audits by corporate banks and tax authorities tomorrow. We build structures that don't just operate smoothly; they are built exit-ready.
Schedule an appointment with your German partner in Malta now.
We support your affiliate marketing business with legally sound planning, precise corporate execution, and dedicated, hands-on guidance locally in Malta.
