Moving to Malta: an ideal jurisdiction for both corporate structures and private residence

History shows that Malta has always been subject to invasion with many actually battling with the aim of conquering this small Mediterranean country.

Many years forward and still the obsession of getting hold of Malta is stronger than ever for people around the world. But besides the intriguing history and rich cultural locations, Malta is also a gem when it comes to business opportunities and fiscal incentives.

From a corporate perspective, whether if Malta is to be used for carrying out business activities or simply for holding and ownership purposes, Maltese companies enjoy an edge. By default, a Maltese company would be European Union (EU) domiciled and therefore is inherently subject to high level laws and regulations. This notwithstanding, Malta offers friendly tax measures and optimal business opportunities fully within the EU Commission’s approval. Doing business through a Maltese company would ensure the lowest effective tax rate in the EU, generally ranging between 0% and 6.25%. Features which make Maltese corporate structures so efficient include:

• A full imputation and refundable system of taxation; • A widely applicable participation exemption, exempting various dividends, capital gains and income from foreign permanent establishments; • No withholding taxes on payments of dividends, interest and royalties irrespective of double taxation treaties; • No exit taxes; • A considerably wide network of OECD based double taxation treaties

Now let’s get personal….over the years Malta has become a jurisdiction of choice for relocating, working, raising a family and/or retiring. A survey carried out by InterNations Malta was listed among the top 11 safest countries in the world and described the Mediterranean island as highly popular with British expats in particular, and having one of the best climates in the world. Besides offering the necessary amenities and infrastructures one would need, Malta offers private people with a unique taxation system. In particular, one must mention the remittance basis of taxation courtesy of which an individual moving to Malta can totally avoid, being subject to taxes herein albeit for any income sourced in Malta.

For peace of mind, Malta offers a number of officially approved residence and citizenship programmes which in addition to offering tax benefits also offer comfort of stability. Besides its fiscal benefits, a Maltese residence card would also mean an EU and Schengen residence.

At NCMB we assist with all corporate structuring and advisory needed as well as handling residence and citizenship applications. Besides contacting us, should you require further information we invite you to stay tuned for more detailed blogs.

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