Malta

After joining the EU, Malta became an onshore jurisdiction, but in a number of areas there are still specifics that apply more to offshore countries. Malta has the highest corporate income tax in the EU, however, with an appropriate corporate setup, the tax burden drops to around five percent. The tax setup makes Malta particularly advantageous for investment and gaming companies, which can draw significant incentives. Like Cyprus, Malta has a weaker image than traditional and, from today's perspec­tive, slightly ossified jurisdictions such as the Netherlands or Liechtenstein.

Setting up a company and doing business in Malta

In order to attract foreign capital to the country, Malta created a very competitive tax system a few years ago, which made the country one of the most interesting tax havens.

Thanks to its banking sector, it is often compared to another Mediterranean island – Cyprus.

Citizenship in Malta
Currently, it is possible to buy Maltese citizenship for 650 thousand Euros. This strategy is intended to bring additional funds into the Maltese economy and attract investors who are able to invest their money in this way.
Mata has a strong banking sector, whose assets are suitably diversified between individual banks.

Malta has signed 70 international treaties on the avoidance of double taxation, including the one with the Czech Republic. Good news for real international business! Its tax structure makes Malta a suitable jurisdiction for international business activities and holding structures.

Doing Business in Malta – Current Status

In 2013, Malta began to be criticized for its financial sector strikingly resembling that of Cyprus (and which caused Cyprus major problems). Malta's financial sector is eight times the size of its economy. Economists fear that if further problems emerge in Malta's banking sector, the country will lose its reputation as a tax haven.

In response to the criticism, the governor of Malta's central bank said that, unlike Cyprus, Malta's banking sector is not so heavily tied to Greek bonds. According to him, the standard corporate income tax rate is 35%, which is unattractive for foreign companies. For that reason, a tax refund system is in place. Shareholders can claim back up to 6/7 of the taxes paid. The effective tax rate is thus less than 5%, which is slightly more than half the rate that was offered in Cyprus. In addition, Malta offers a wide range of tax-deductible expenses. Currently, Malta is still strengthening its position among tax havens, mainly at the expense of the Netherlands and Cyprus, despite the fact that the image of Dutch holding structures is still somewhat better. Withholding taxes on dividends, licenses and interest are abolished by law for payments to non-residents.

Malta offers good tax conditions with significantly lower costs for setting up and operating a company. This is also helped by the long-term political and economic stability resulting from EU membership, as well as the versatility of Maltese companies in international tax planning.

A Maltese company is an excellent solution for international business activities. It is possible to trade through Malta with a maximum tax burden of 5 %. This is an undeniable advantage.

Malta is increasingly strengthening its position in the field of tax optimization at the expense of the Netherlands and Cyprus. Malta's greatest asset is certainly the versatility of use with the image of an EU country seat.

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