Relocating your Business to Malta - Tax and Legal Advice

VALETTA, Malta - Sept. 13, 2024 - PRLog -- The National Foreign Direct Investment Screening Office was set up to implement the provisions of Chapter 620 of the Laws of Malta and EU Regulation 2019/452. Foreign Direct Investment in Malta increased by 20840.40 EUR Million in the fourth quarter of 2023. Foreign Direct Investment in Malta averaged 4507.69 EUR Million from 2003 until 2023, reaching an all time high of 20840.40 EUR Million in the fourth quarter of 2023 and a record low of -1288.40 EUR Million in the fourth quarter of 2013.

Malta is considered as a highly attractive jurisdiction by foreign investors who wish to relocate a business to the island. Such advantages include tax, investment immigration opportunities, fiscal and social benefits, distinctive lifestyle and a stable economic ecosystem.

Furthermore, Maltas service industries, particularly the financial services sector, are consistently emerging as very strong and innovative, facilitating and adding value to the whole process of conducting business in Malta.

Malta is one of the few European countries to adopt a full imputation system, which is one of the main advantages of Malta's tax system along with the fact that Malta has an extensive network of double taxation agreements and the refundable tax credit scheme. A company which is set up in Malta would be chargeable to tax on a worldwide basis and typically taxed at our standard corporate tax rate of 35%, however, upon a distribution of dividends to the shareholder, such shareholder becomes applicable to an income tax refund on the Malta tax paid at company level. With the full imputation system, profits taxed at the level of the company are not subject to further tax at the level of shareholder, since the latter receive full credit for any tax paid by the company distributing the profits. The rate of refund depends on various factors and can be either a 2/3, 5/7 or 6/7, with a 6/7 refund applicable for companies carrying out a trading activity. Malta also adopts the participation exemption regime, meaning any dividends or capital gains derived by a Maltese company from a qualifying "participating holding" in a subsidiary would be exempt from tax in Malta. Lastly, Malta does not withhold any tax on dividends paid to its shareholders. Read more about https://imexmalta.com/relocating%20your%20business%20to%2...