There are a number of Advantages that companies registered in Malta have when compared to both companies registered in other jurisdictions within the European Union and also companies registered in offshore jurisdictions.

The following are just a number of the advantages that companies registered in Malta offer:

1. Malta is the only EU state with the full imputation system
2. Effective tax rate of 5% on company’s trading profits - following refunds (10% in the case of passive interest and royalties)
3. Participation exemption on dividends or gains from qualifying holdings (no tax paid in Malta)
4. Certainty – Malta reached an agreement with the EU in 2006 regarding changes implemented to its corporate tax regime Low annual company maintenance costs
5. No thin capitalisation or anti-controlled foreign company regimes
6. No duty payable on transfers of shares in companies having the majority of their business interests situated outside Malta
7. Company law based on the UK company law and in line with EU Directives
8. Malta is an EU Member since 2004 and Maltese Companies enjoy the benefit of relevant Directives
9. Possibility for companies to denominate their share capital in major foreign currencies – tax is paid and refunded in the same currency thereby minimising exchange rate risks Political and economic stability – bipartisan system and both parties have a political track record of achieving consensus on issues related to international business
10. Malta is a member of the Eurozone having adopted the euro in January 2008
11. English is an official language in Malta and all legislation and official documentation must be both in Maltese and in English
12. 50 Double Tax Treaties signed and ratified and more are under negotiation (if double tax relief is resorted to, a refund of 2/3 of the Malta Tax Paid is available)

Proceed to Next Article