Malta lies in the middle of the Mediterranean Sea. Malta has been a member of the European Union since May 2004 and adopted the Euro as its official currency in 2008.
Malta is a democratic republic with a population of just over 400,000. The official languages are English and Maltese and a number of other languages are widely spoken.
Over the last two decades, Malta has built on its strategic location and its highly educated, multi-lingual, flexible and cost-effective workforce to become one of the most attractive financial centres and investment locations in the region, having a sound legal, tax and regulatory regime and enjoying an excellent reputation internationally.
There are many reasons for considering Malta as a base for international operations. These include:
- a stable political situation
- a modern legal and tax framework
- an accessible and flexible regulator
- a ‘can do’ attitude
- an excellent telecommunications infrastructure
- a convenient European time zone
- a reasonably priced labour force with an excellent work ethic
The statutory tax rate for companies in Malta is 35%. Malta operates a full imputation system of taxation. When a company distributes dividends out of profits on which it had paid tax, a credit for the tax paid by the distributing company (the ‘underlying tax’) is available to the shareholder/s, both resident and non-resident. In addition, all or part of the underlying tax may be refunded to the shareholder/s, both resident and non-resident, depending on the nature and source of the profits from which the dividend was distributed. Effective tax rates under the imputation system can be as low as 5%.
Malta has a very attractive participation exemption regime. Income deriving from a participating holding or capital gains realised on the disposal of a participating holding are exempt from tax. The conditions to qualify as a participating holding are detailed (generally a 10% equity or partnership interest, although there are alternative tests) and certain anti-abuse provisions apply.
There is no withholding tax on outbound dividends and no withholding tax on interest and royalties payable to non-residents (subject to certain conditions being satisfied).
Apart from certain general anti-abuse provisions, there are currently no thin capitalisation, transfer pricing or controlled foreign companies rules in force.
- Company formation
- Redomiciliation of foreign companies to Malta
- Establishment of Maltese private foundations
- Establishment of Maltese trusts
- Provision of registered address
- Provision of Director, Administrator and Trustee
- Provision of Company Secretary and company secretarial services
- Administrative services
- Accounting and reporting
- VAT compliance
- Tax compliance