Choosing Malta as a destination for a business offers many opportunities and advantages. A strategically central Position in the Mediterranean, close to African and Middle Eastern Markets, a stabile political democratic system, English as one of the official languages and Maltese being an Arabic dialect, make this island state an ideal gateway inside and outside Europe. Furthermore the Maltese workforce is multilingual and well educated, wages and salaries are still below European level. Malta is since 2004 full member of the European Union, and uses the € as a currency since 2008. It is the only state, having a full tax imputation system implemented. Malta has double taxation treaties in place with over 60 countries and offers a unique system of tax refunds for non- resident shareholders of Maltese companies, all in full compliance with international and EU legislation. Quite a number of well known international companies are operating businesses in Malta, benefitting from the Maltese legislation and the numerous supports offered to foreign shareholders. Since founding and operating costs are relatively low compared to other European States, even smaller and medium businesses and freelancers should consider a set up in Malta. A Maltese Company / Limited is generally taxed with 35 %. Therefore Malta is not a tax heaven, as sometimes mentioned in the press!!! ... but
In case the dividend is distributed to foreign shareholders, a tax refund of 6/7th of the paid tax applies, which leads to an effective tax rate of 5%. For royalties and other passive income the refund will be 5/7th
Capital gains generated outside Malta and not remitted are not taxed, if remitted a tax rate of 5 % applies
No VAT implication on transfers of shares or on securities, gold silver
No wealth tax on assets held in the Maltese Company
No withholding tax on distributions from Maltese Companies to non residents
This structure is very beneficial for most of international trading businesses, manufacturers, and even to small and medium operations in the service sector, consultants, IT services, marketing and advertising companies, agents, Internet marketing, insurance agents, etc… Depending on the double treaties with the relevant residence of the beneficial owner, additional or different setups are required, like a Plc, a trust, a holding, or the implementation of a Maltese foundation might be advisable to avoid complications for the foreign shareholder and to protect his identity. Us, at SSCI are specialized, to discuss with you your individual solution to create a stabile company structure, leading to future success and a tax burden as low as legally possible. We are looking forward to hear from you !!!!!