Tax planning Malta Holding Malta is one of the most favorable places for setting up a holding Compay

With some interesting tax planning opportunities, Malta remains one of the most favorable places in the EU to set up an international holding company.
By: IndotInc
VALETTA, Malta - Sept. 20, 2023 - PRLog -- The Maltese holding company can be used for a variety of purposes including holding property, company shares and securities, intellectual property and intangible assets such as copyrights and patents. Shareholders benefit from a full allocation system in which tax contributions can be reduced to 0% in certain cases.

To set up a private company in Malta, all you need is one member and one director, the latter must be a natural person of any nationality and resident. There must be a company secretary who must be a Licensed Maltese Nominee Company and there must be a registered office in Malta. Registered shares are allowed, but bearer shares are not allowed. Preference or redeemable shares are allowed.

Although low-tax offshore companies are no longer permitted for foreign investors in Malta, several tax and other advantages remain for setting up a holding company. Malta has a fairly extensive network of double taxation agreements with almost 60 countries, a low income tax rate of 15% on transfers by permanent residents and no self-government taxes. There are also opportunities under the Maltese tax system to significantly reduce corporate tax liability.

A Malta Holding is a company that is resident in Malta and pays tax on its net income. However, shareholders of a Malta Holding will qualify for a full refund of Maltese tax paid by the company on profits arising from the "participating holdings" when such profits are distributed. For a Maltese company to qualify as a participating holding company in a foreign resident company, it must hold at least 10% of the equity in the non-resident company. To qualify for the exemption, the foreign subsidiary must meet one of three criteria: She must be resident in the EU; It must be subject to foreign tax of at least 15%; and derive no more than 50% of his income from passive income.

When dividends are distributed by commercial companies to shareholders, these shareholders are entitled to claim repayments of 6/7 of the tax paid by the Malta company, which amounts to an effective Maltese tax rate of 5%. For profits generated through distribution that are attributable to passive income such as interests and royalties, shareholders are entitled to recover 5/7 of the tax paid by the company. Since 2012, income from royalties on copyright-protected books, screenplays, music and art has been exempt from tax.

Founding of the company Malta Limited, International Tax Consultant and Tax Advisor (WTP Malta). Find out more about company in Malta (,
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Location:Valetta - Malta - Malta
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