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abacus-malta

JURISDICTIONS

MALTA

Since joining the European Union in 2004, Malta has become a fast growing, strong and reputable financial centre and is a very attractive jurisdiction, both, for corporates and for private investors.

With its Mediterranean location, English widely spoken as a business language, politically stability, a sound legal framework based on a combined civil and common law system, and a favourable tax environment, it is not surprising that Malta is at the forefront of financial jurisdictions to choose from.

Malta is well established in the EU, and its financial services industry is governed by a single regulatory body, the Malta Financial Services Authority, who is responsible for all licensed financial services activity in Malta.

Different company forms are available in Malta, although most Maltese companies are formed as private limited companies. Both holding and trading companies can also be easily formed in Malta. The costs of setting up in Malta may be slightly higher, but provide access to a wide range of benefits.

Corporates can enjoy the tax efficiency provided by this leading jurisdiction. Through its imputation tax system and its tax refund/rebate system, Maltese legislation allows companies and their shareholders several benefits that can significantly reduce their tax liabilities. This is supported by a Participation Exemption system that ensures that income dividends or capital gains arising from a qualifying entity are exempt. Amongst other benefits, there are no Maltese withholding taxes on dividends, royalties or interest to non-residents, nor to its shareholders. There are no transfer pricing rules. Malta also enjoys double taxation agreements with 70 countries, which has contributed to the attraction and growth of its financial centre, and is a leading centre both for company incorporation and for Qualifying Recognised Overseas Pension Schemes.

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