1. Malta: reputation, stability & credibility
- An onshore jurisdiction on the OECD white list: it is not considered a tax haven.
- An EU Member State.
- In the Eurozone.
- A respected and well regulated jurisdiction whose financial legislation conforms to international best practice.
- Financial services in Malta is regulated by a single and accessible regulator: the Malta Financial Services Authority.
- Numerous double taxation treaties concluded with Malta.
- Maltese banking system ranked as the 10th soundest banking system in the world by the World Economic Forum - Global Competitiveness Report
2. Malta tax Incentives
- In Malta, companies are taxed at a flat rate of 35%. However, the overall tax payable in Malta may be substantially reduced – often up to 5% - by applying Malta’s refundable tax credit system.
- Relief from double taxation is possible either by applying double taxation treaties (Malta has concluded over 48 double taxation agreements) or by direct application of Maltese legislative provisions.
3.Cost Effectiveness and excellent professional services infrastructure
Company incorporation and maintenance costs, as well as professional fees, legal fees, accountancy fees and audit fees are significantly lower than in other comparable jurisdictions, while Malta’s professionals have an excellent international reputation.
It is possible to transfer a company to Malta without liquidating it in the country of incorporation, saving on expensive liquidation costs:
- by using Maltese company migration legislation which is, however, only possible when companies come from jurisdictions with matching legislation; or
- by conducting a cross-border merger when the company being transferred to Malta is registered in another Member State of the EU (by applying the EC Cross-border Mergers Directive).
financial legislation is comprehensive, sophisticated and business
friendly: via the various vehicles recognised under Maltese law, it is
possible to create tailor-made corporate structures which mirror the
needs of the investor/trader.
6. Low operational costs/social security
costs are much lower than in other jurisdictions: while salaries are
generally lower when compared to many EU countries, the employer will
often also have to pay much less in social security contributions (employer’s share typically does not exceed 10% of gross earnings).