Malta company formation

Want to learn more about this jurisdiction?

Malta is EU member since 2004. It has been a focus for European business community for decades. Its highly competitive tax regime ensures the lowest effective corporate tax rate within European Union. Besides tax advantages investors appreciate English as official language, EUR-zone convenience and professional accounting and corporate environment.

Malta company Key features

Minimum number of directors is 1 (ideally a local nominee director). However, the company may have foreign directors, including corporate directors.
If Director is a private person, one shareholder is permitted. With Corporate Director the Company must have at least 2 shareholders (nominee services are available).
Company secretary is required.
Share capital is €1,250
Amount of State duty depends on the size of share capital (with share capital up to €1,500 State Duty is €390)
Beneficial Owner is disclosed to the Company Register.
Company formation packages available. Ask now.

Maltese Company with VAT is favored for general trading purposes due to unique tax regime. When dividends are paid by a trading company to its non-resident shareholder, this shareholder is entitled to claim refunds of the 35% tax rate paid by the company. 6/7ths of the tax amount are refunded to the non-resident shareholder. As a result, the total tax rate is reduced to 5%.

The refund is guaranteed and is paid by Inland Revenue Department to shareholders account 14 days after application is submitted.

Key advantages:

6/7 refund of the paid corporate tax (at rate 35%) brings down effective tax rate to less than 5%.
Tax Residence Certificates are available provided that management & control is carried in Malta.
EU VAT number registration generally takes 2 weeks.
Malta is in EUR-zone.

Dividend Income is 100% exempt from tax if Maltese company

holds at least 10% of the foreign company shares,
or
has investments in a subsidiary company for a minimum amount of 1.5 million euros for at least 183 days.

The foreign subsidiary must comply with one of the following rules:

It is incorporated in EU,
or
it pays >15% corporate tax in any country,
or
at least 50% of its income derives from trading

Malta company Taxation

CORPORATE INCOME TAX (CIT): Resident companies are taxed at 35% rate on worldwide income. The amount of tax refund (up to 100%) depends on Company’s structure
INCOMING DIVIDENDS: 0% if Participation Exemption applies.
CAPITAL GAINS TAX (CGT): 0% if Participation Exemption applies.
WITHHOLDING TAX:
ROYALTIES: 0%
DIVIDENDS: 0%
INTERESTS: 0%
BILATERAL TAX TREATIES with 57 countries including Cyprus & UAE.
VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for inland sales is 18%.

How do I proceed with company registration in malta?

Chose the structure that fits your business. Need help? Contact us.
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