Malta is strategically located in the Mediterranean, making it a bridge between Europe, North Africa, and the Middle East. This location provides easy access to multiple markets, making it an ideal base for businesses with international operations.
Malta has a stable and well-developed economy, which is part of the European Union (EU) and the Eurozone. This stability can provide a secure environment for businesses to thrive.
The country has a highly educated and skilled workforce, with a strong focus on education and training. The labour force is proficient in multiple languages, including English, which is widely spoken and used for business.
The Maltese government has streamlined its business registration and licensing processes, making it relatively easy to start and run a business. The legal system is based on British law, providing a familiar framework for many businesses.
Malta offers a highly competitive tax environment for businesses. The corporate tax rate is generally 35%, but Malta operates a full imputation system, which means that when dividends are distributed to shareholders, the tax paid by the company is imputed to the shareholder, resulting in an effective tax rate for most shareholders. This system makes Malta attractive for holding companies and international businesses.
It also has an extensive network of double taxation treaties, which can help businesses avoid or reduce double taxation on their income when operating in multiple countries.
Malta is known for its financial services sector, including banking and insurance. The country has a well-regulated financial industry and is considered a gateway for financial services in the EU.
As an EU member state, businesses in Malta have access to the single European market, providing opportunities for trade and collaboration with other EU countries.
The country also has various agencies and organizations that offer support to businesses, including the Malta Enterprise and the Malta Chamber of Commerce. These entities can provide guidance, incentives, and support for business growth and development.
Malta offers a high quality of life, with a pleasant climate, a rich cultural heritage, and a strong focus on healthcare and education. This can be attractive for attracting and retaining skilled employees.
Advice on setting up business in Malta including company formations
In the past decade, Malta has become a much sought after jurisdiction for company registration and the reasons for this are multiple. The English language enjoys a national status on the island, thus being itself a vehicle of efficient communication and transparency. A company registered in Malta is an EU-based company, with unlimited access to the rest of Europe and all the other benefits this position administers. It is also without a doubt, Malta’s competitive and attractive tax system which many shareholders and founders find most attractive, together with the compelling possibility of relocating office to a sunny, warm island.
We can assist you with company incorporation services, who wish to register their company in Malta, through our authorised agents. Our specialists can help you with legal advice, administration, and accounting, constantly aiming to deliver an efficient and sound service. With Malta being recognized as financial and legal hub, the framework within which we operate is increasingly effective and able to deliver results in the least time possible.
Our network strives to create a comfortable corporate environment for our clients, whereby all necessary stages are dealt with in the least time possible, and by drawing on our vast experience in the field.
Company continuation services
We can assist you with a full spectrum of company continuation services, following your incorporation of the companies in Malta, including directorship, accounting, audit, assurance, taxation, corporate compliance, and secretarial services.
Consultancy on Malta tax efficient solutions
The economic advantages of setting up a company in Malta are multiple. Chief amongst them, however, is the taxing system and incentives put in place to attract businesses to the island. Our local agent, TACS we can provide guidance on the benefits reaped in this regard, upon registering a company in Malta.
A corporate company in Malta is taxed at 35% on chargeable income. However, Malta is the only EU member state which enjoys the Full Imputation System. In such a system, the shareholders of a company are entitled for a tax credit amounting to the tax paid by the company upon distribution of profits. This credit scheme is eligible for both residents and non-residents and is compliant with the EU. One of the credit method’s main aims is to waive double taxation, ensuring incoming income from overseas is not taxed twice in the hands of two different persons. The system, therefore, sees shareholders of a Maltese company, able to claim back 6/7ths of tax paid on the profits earned from trading activities and 5/7ths on passive income and royalties. If the company claims double taxation relief on foreign tax already suffered, the tax rate can be further reduced to 0%. Refunds to shareholders in this case will amount to 2/3rds.
Tax treaties have been signed with over 70 countries, with a number of others currently pending. Countries such as China, the US, the UK, India, Singapore, South Africa, Sweden, Germany, and Hong Kong have signed and ratified treaties with Malta, thus encouraging international trade and helping Malta-based companies benefit from lower taxes. Apart from individual agreements set in place, Malta also enjoys a few other tax reliefs, including the Commonwealth relief, unilateral relief, and a flat rate foreign tax credit. This means that it is possible for a company to avoid double taxation on revenue coming from abroad with countries with whom there are no tax treaties brokered.
While businesses from an array of industries may make use of these benefits, Malta has also set aside particular incentives for the Film Industry. The islands have long been targets of directors and producers, with its well-preserved fortifications, its ease of access to different locations due to their proximity to each other as well as the natural beauty of the island. Blockbuster movies like Gladiator and Troy have been filmed on our shores, with scores of other movies like By the Sea and Assassin’s Creed, along with all the A-listers which accompanied these productions, having graced our islands. Malta has therefore set up several fiscal incentives to alleviate production costs and attract more investment to the island. Investment Aid in tax credits, cash grants, exemption on royalty income derived from copyrights and the ‘Create’ scheme, all aim to give a boost to productions in terms of taxation costs.
Wealth Structuring and Estate planning
Wealth structuring and estate planning are powerful tools for individuals and families to safeguard their wealth, minimize tax liabilities, and ensure a smooth transition of assets to the next generation while maintaining financial privacy and control. We can assist you with strategies that require careful consideration, legal expertise, and ongoing review to adapt to changing circumstances and laws.
Maltese Flag Registration
Malta allows for the registration of various types of vessels, including private yachts, commercial yachts, and charter yachts, offering flexibility to yacht owners. The registration fees are relatively competitive, making it an attractive option for yacht owners.
Malta offers favourable tax incentives for yacht owners, including a reduced VAT rate on the value of the yacht. This can result in significant savings for those purchasing or operating yachts.
The Maltese ship registry is well-regarded internationally for its stability and professionalism, which can be an important factor for yacht owners who want the peace of mind that comes with a respected flag.
Malta offers a VAT leasing scheme, allowing yacht owners to lease their vessels and pay VAT only on the portion of the lease, which can result in significant savings for larger, more expensive yachts.
A well-established legal framework for maritime operations, makes it easier to navigate the regulatory aspects of yacht ownership and operation.
Yachts registered in Malta have the advantage of accessing European Union waters with ease, which can be beneficial for those who plan to cruise in European waters.
Malta is known for its safety and security, which can provide peace of mind for yacht owners and crew.
The country is a well-established maritime industry with experienced service providers, including yacht management companies, legal and financial experts, and surveyors, making it easier to manage and maintain your yacht.
The Maltese flag is often associated with quality and prestige in the yachting industry, which can be a factor for those who want to maintain a certain image or reputation.
Setting up aviation operations in Malta
Malta’s location in the Mediterranean provides a strategic hub for aviation operations, making it well-connected to Europe, North Africa, and the Middle East. This can be advantageous for airlines, aircraft maintenance, repair, and overhaul (MRO) companies, and other aviation-related businesses.
Since it is a member of the European Union (EU), it simplifies access to the EU aviation market. It allows for easy regulatory compliance and access to routes within the EU. Malta is known for its political stability and business-friendly environment, reducing uncertainty for aviation companies and investors. Maltese Civil Aviation Directorate (CAD) enforces rigorous safety standards and regulations, ensuring a safe and reliable environment for aviation operations.
Malta has an extensive network of double taxation agreements (DTAs), which can help aviation companies mitigate tax liabilities and avoid double taxation on income earned internationally. It also offers competitive corporate tax rates, and certain aviation-related income may qualify for tax exemptions or reduced rates through special tax incentives.
The country boasts of a reputable aircraft registry, making it a preferred choice for aircraft registration due to its recognition in the international aviation community. The registration process is efficient and straightforward.
It also has a skilled and multilingual workforce, which is particularly valuable for aviation companies involved in aircraft maintenance, aviation finance, and customer service. English is one of the official languages in Malta, simplifying communication and documentation for aviation companies that operate globally.
Malta’s international business services sector provides support for aviation companies through a range of financial and legal services, such as aircraft financing and leasing.
The country’s well-equipped airport along with the proximity to other Mediterranean islands makes it an excellent base for airlines and aviation companies looking to offer services to nearby destinations.
The Maltese islands are well known for their thriving tourism industry; this can be a significant advantage for airlines, charter companies, and related businesses, as it contributes to the demand for aviation services.
Malta offers a high quality of life, which can be appealing for aviation professionals and expatriates who may be relocating to work in the industry.
Setting up gaming companies and licensing in Malta
Malta has a thriving gaming community, including associations, events, and industry professionals, providing opportunities for networking, collaboration, and knowledge sharing.
The Malta Gaming Authority has earned a strong reputation in the gaming industry for its strict oversight, which can boost a gaming company’s credibility with players and partners.
Malta’s legal system is based on English common law, providing legal certainty and a familiar legal framework for many international investors. The country offers various types of licenses, including B2B, B2C, and critical gaming supply licenses, allowing for a wide range of gaming activities, from operating casinos to providing software and services to other operators.
Malta has a modern and well-developed telecommunications and IT infrastructure, which is essential for online gaming companies.
Malta Trusts and Foundations
Whether for estate planning or protection of assets or both, trusts and foundations are the vehicle of choice for high net-worth individuals. A Maltese Trust offers security, assurance and flexibility in an EU-regulated environment while maintaining the principal of confidentiality that clients expect. In summary, a Maltese Trust offers:
- Civil law jurisdiction that has developed a trust concept by integrating it with old Roman law sources.
- Recognition of foreign trust law
- Offering the set-up of both trusts and foundations
- Legislation published in English.
- EU and Eurozone location
- Competitive fiscal environment
- High professional standards with many accountants, bankers and lawyers and investment advisors holding overseas qualifications and international experience.
- Fast-track authorisation for trustees licensed in other approved jurisdictions.
- English speaking country with a pro-business environment.
