Malta: Gateway to Europe
An introduction to Malta
Malta is a dynamic and innovative jurisdiction, and a place possessed of a rich history. Nestled in between Sicily and North Africa, Malta is a former British colony. Its people, its government, and its courts are bilingual in English and Maltese. Possessed of a mixed civil and common law legal tradition, Malta’s corporate law and trust law are based on English common law.
Malta is known for its booming digital economy, its role as a leading center for the global shipping and yachting industries, and for its attractive corporate tax rates. An EU member state, Malta is an excellent jurisdiction for EU market entry strategies
Corporate Focus is based in Malta and is licensed Company Services Provider regulated by the MFSA
The Maltese Company: an efficient vehicle
There are many benefits to setting up your company in Malta. Malta is a stable, well-developed European Union member state. Possessed of a highly educated workforce, well-developed financial, tech, and tourism sectors, and an attractive tax regime, it is an excellent place to do business.
Malta is notable for the imputation tax system that applies to the payment of dividends. .
Low Effective Corporate Tax: Malta’s corporate tax is 35%. However, shareholders who recieve dividends are entitled to claim tax refunds on all or part of the tax paid by the company upon its profits. Typically, shareholders may reclaim 6/7 of the tax paid by the company. This results in an effective corporate tax rate of 5% or lower
A favourable IP regime: Malta also applies refunds on tax deducted from the profits accrued by royalties and IP payments. This refund rate is set at 5/7.
No withholding tax: Malta does not levy any taxes on dividends or royalties distributed to non-resident shareholders
Double Tax Treaties: Malta has signed 70 double tax treaties,
The benefits of a Malta holding company
Malta is a jurisdiction of choice for the creation and managment of holding companies. Operating as units within a wider structure, Maltese holding companies are an attractive vehicle which which to hold corporate assets.
Maltese holding companies are able to make use of Malta’s imputation tax system, which leads to shareholders receiving refunds on tax paid by their companies. Typically this refund rate is 6/7ths of the tax paid.
If a Malta company holds at least 10% of the equity in another company this may count as ‘participating holding’, resulting in further tax efficiencies.
The benefits of a Malta trading company
As an EU member state possessed of a dynamic commercial and technological economy, Malta is a great place in which to incorporate and manage a trading company.
Many owners of digital businesses use Malta as the base for their European and wider international operations.
By basing your company in Malta you may make use of the European single market, while also enjoying an favourable tax regime for your company.
