What are the advantages of forming a company in Malta?

1. Well regulated yet flexible regulatory jurisdiction

Malta is renowned for being a well regulated jurisdiction, with specific legislation covering a host of different forms of entities (e.g. foundations, trusts, protected cell companies, single member companies etc) as well as for specific business activities, such as gaming, maritime, financial services, intellectual property and so forth.

2. An efficient tax jurisdiction

Malta has an effective and efficient tax jurisdiction, both in respect to corporate taxation as well as other direct and indirect taxation. Malta adopts a system of tax refunds upon the distribution of dividends. The tax refund system significantly lowers the effective tax suffered in Malta and in fact this effective rate is presently the lowest in the EU region. Malta does not levy any withholding tax on payments of dividends, interest and royalties. Distributions to shareholders of a Maltese company by a liquidator in the course of winding up the to the extent to which they represent income derived by the company are deemed to be dividends paid to the shareholders out of the profits derived by the Maltese company. Malta does not have any controlled foreign company legislation as well as no transfer pricing rules. Malta’s Income Tax Act does not contain any thin capitalisation rules. Malta does not levy any exit taxes, wealth taxes or any payroll-based tax or trade tax.

3. Low Set-up and Operational Costs

The costs of setting up and running a company in Malta are reasonable and relatively lower than the same costs in other jurisdictions in Europe. Professional services are normally attained at considerable lower rates than in most of Europe and these entail an overall efficient and lean operating cost structure whilst being compliant in all respects.