Doing Business in Malta
Why choose Malta as a destination
A key factor in Malta’s choice of destination is the country’s clear political will for financial services, as in the case of Cyprus, that makes a significant contribution to national GDP.
The country’s legislation is based on EU directives. It has an extensive network of double tax treaties and a tax system with significant returns and tax credits. This combined with the availability of highly skilled, English-speaking workforce and cost-effective functions, makes it an ideal jurisdiction.
A Maltese company can be set up in just a few days, provided that all the necessary documents are produced. FCI-PlusPoint is able to assist you with the recommendation process and provide you with professional advice and services for a smooth operation of your company.
Registration costs vary according to the value of the company’s share capital. The minimum share capital is € 1,200, of which 20% must be paid in full. There is an annual fee according to the approved share capital.
The company must have at least one shareholder (natural or legal person), a manager and a secretary.
Large corporations are taxed with Advanced Corporation / Pre-Taxation at a rate of 35% on taxable income. Non-resident residents are entitled to opt for a refund of the tax paid on dividends, as described below. A tax is imposed on their “global income”, in the case of companies set up and resident taxpayers in Malta. A company not established or not resident in Malta and operating through a branch in Malta is charged only on the profits generated in Malta.
Unlike Cyprus which adopts a simplified system where the company is taxed at a flat rate of 12.5% on profits.
The refund may be up to 100% of the corporate tax paid under certain conditions. Non-Maltese shareholders receiving dividends paid by a company incorporated in Malta may have the right to claim reimbursement of the tax paid on the dividends. Refunds from taxable sources are paid directly by the Government of Malta within a maximum of 45 days of the distribution of the dividends. They are deposited into an account specified by the shareholder in any part of the world.
Tax refunds also apply when a company operates through an external branch in Malta.
The available tax refunds are:
- 6/7 return – on profits from commercial activities, with a maximum net tax leak of 5%.
- 5/7 return – on profits from interest and royalties, with a maximum net tax leak of 10%.
- Return 2/3 – Available when the company has applied for relief from double taxation. The refund depends on the type of double taxation exemption and is limited to the tax paid in Malta.
- 100% refund – applied when earnings are derived from a participating holding.
Our mission is to complete the business start-up process in Malta with no problems or surprises, providing to our customers high-quality services at competitive prices.