Malta

Malta is a viable jurisdiction which easily compares to Cyprus, offering all the same advantages as Cyprus plus some extra
features that are unique to Malta.

The changes in Maltese legislation of 2007 have put Malta in the top league among the most favourable EU jurisdictions for holding and trading activities.
The changes in legislation made taxation much more simple and understandable. There is only one type of company now which can be used for both – trading and holding activities.
Holding companies can use the advantages of full participation exemption (with certain reservation). Dividends received from a qualified participation are tax free. Malta companies can pay dividends out to any jurisdiction with no withholding tax.

This makes a Maltese holding company a ‘flow through’ entity in the majority of situations.
Trading companies still pay 35% of income tax. 30% is refunded by the Malta government on the shareholder’s level. This brings the effective tax rate of Malta companies down to 5%. Profits of Malta companies can be mitigated with commission fees, marketing and management charges payable to offshore entities.

English and Maltese are both the official languages in Malta, English being the business language. This means that absolutely all company registration, accounting and reporting documentation can be done in English with no need to translate anything to Maltese.

The registration and tax matters of Malta companies are handled by a special unit called the Malta Financial Services Authority. This ensures that new company formations and other bureaucracy is handled very quickly. Certificates of Goodstanding, Incumbency and Residency can be obtained within 1, or 2 days. Acquisition of VAT-numbers is a matter of days.

This also means that the tax base matters of Malta companies owned by foreigners are handled quickly and the level of scrutiny is very low.

There are no restrictions as regards to the nationality of a person who can act as a director of a Malta company. For tax purposes it is advisable that a local director is appointed. We are happy to provide this local directors (KYC requirements apply).

Malta also is a jurisdictions where the companies can be used for online gaming.