Malta’s legal system is based on the civil-law structure of continental Europe. Most financial, fiscal and administrative legislation is however based on British (UK) law. Malta recognises the right of individual petition to the European Courts of Justice, and the European Convention on Human Rights forms part of Malta’s domestic law.
Malta’s international corporate tax regime presents a long-term advantageous business opportunity, allowing favorable treatment of taxable profits distributed to shareholders from income generated by companies registered in Malta.
As a member of the European Union, Malta has adopted all European tax directives. Companies incorporated under Maltese law are considered resident and domiciled in Malta for tax purposes and are taxed on their worldwide income. A company’s taxable income is the profit reported in the company’s audited financial statements. Expenses incurred by the company wholly and exclusively in the production of income are deductible for tax purposes. Companies are subject to tax in every year of assessment on the income derived in the preceding calendar or financial year. The chargeable income of a company, including its taxable income and capital gains, is taxed at 35%. Registered shareholders can claim a tax refund of the tax the company paid to Malta upon distribution of dividends
- Currency: euro (€)
- Climate: Mediterranean
- Languages: English, Maltese
- Member of the European Union
- Company formation and administration
- International tax planning
- Corporate governance
- Risk management
- Legal and regulatory compliance
- Property and asset management
Types of tax refunds available:
- 6/7ths: (most common)
- 5/7ths: passive interest and royalties
- 2/3rds: passive income and certain active income
- 100%: participating holding
- No withholding tax on dividends, interest, royalties, and liquidation proceeds to companies, individuals or any entity (regardless of residence) and trusts
- No capital tax
- No wealth tax
- No transfer tax (e.g. stamp duty on share increases and transfers) for non-residents
- No exit (re-domiciliation) tax
- No capital gains for non-residents
The Malta Enterprise Act and the Business Promotion Act provide additional tax credits and deductions and industry specific advantages aimed at encouraging innovation, foreign investment and job creation.
Start-ups may additionally qualify for funding under European Regional Development Fund schemes, and support via Malta’s Innovative Start-Up program, enabled by the Assistance to Small and Medium-Sized Undertakings Regulation
Malta has double taxation treaties in place with over fifty jurisdictions, including the United States of America, United Kingdom, Ireland, Germany, France, Luxembourg, Netherlands, South Africa, Singapore, India, China and Hong Kong.
Citizens from all Western European states, the United States of America, Canada, Japan, Singapore, New Zealand and Australia do not require a visa to visit Malta for a period of less than three months. Citizens of other countries may apply for an entry visa at a Maltese embassy or consulate prior to travelling to Malta.
We look forward to welcoming you!