Tax Planning in Malta

After the accession in the European Union in 2004, Malta has become a reliable, competent and regulated business environment, with an advantageous taxation system. Foreign investors interested in company formation in Malta should know that the country has gained international reputation as being a very important financial center. 

Tax Planning Opportunity in Malta

A macroeconomic vision is based on tax planning, which can develop a business environment and can attract national and foreign investors who are interested in maximizing the potential of their business. Setting up a company in Malta can be a good decision for an entrepreneur, as in the last decades the country has attracted many investors, in various fields such as electronics, pharmaceutics, finances and education. It is well know that Malta has a good reputation in respecting standards of transparency and that it has implemented a business environment according to the European Union’s values. 

Highlights on Tax Planning in Malta 

The Maltese law presents a series of advantageous corporate tax measures, which have proved to be appreciated by the investors who decided on setting up a company in Malta. Below, you’ll find some of the most important tax planning measures adopted by Malta:

• the tax regime is supported by around 80 double taxation treaties;

• although Maltese law imposes a 35% corporate income tax on companies, it also offers a system of tax refunds, applicable depending on the type of income (generally 6/7, 5/7 for passive interest and royalties, 2/3 where double tax relief is claimed, or a full refund for participating holding income); our agents in company formation can offer you more details on the effective tax system in Malta;

• Malta doesn’t have any exchange control policies and the business can be carried out the currency preferred by the investor;

• payment of the royalties are exempted from the withholding tax;

• dividends paid to a foreign investor are not subjected to the withholding tax;

• qualifying IP income can benefit from the Patent Box deduction (the former royalty exemption has been repealed);

• Malta doesn’t have a capital tax or a wealth tax.

Amongst these, Maltese tax planning offers other advantages, which can be applicable to your company. Our specialists in company formation can present to you a detailed situation on the matter. 

If you want to find out more about the company registration in Malta and tax planning, you may contact our agents, who can offer you consultation on the Maltese tax systems.