How can I get the famous 5% tax rate in Malta? This is probably one of the first questions that you will ask yourself when reading about Maltese tax laws. This tax rate does not always apply, and is not advertised as a tax rate. Every company in Malta has to pay 35% corporation tax. However, foreign shareholders can get a refund of 30%.
This reimbursement cannot be achieved without the right strategy. One of the key factors is the correct domiciliation of the company in Malta. It is important that the company is not just a letter box company, especially when it comes to being audited by the tax authorities!
In the beginning (that is, during the initial phase) the company can be handled easily. In the long term, however, a separate office operating in Malta should be opened.
There is always the question of which office is the best one. Answering this question depends on the client, and what he wants. A client who moves to Malta can establish his office at home and register this as his office address. Alternatively, I recommend that residents of the Maltese islands get an office in St. Julians. It is no coincidence that our office is located there. Many of the government offices are within easy reach, and you are also in one of Malta’s economic centres. The area also offers many restaurants which could be used for a business lunch or formal dinner. For example, the restaurants around Portomaso are some of the most popular places.
If you are not living in Malta, you may also open an office in the south of the island. However, it needs to be apparent that the business is actually conducted from there or the company is managed from there. You can find office space for less than €400 a month in less popular parts of the island. These offices are usually furnished, and it does not require more effort to run the business from there.
For those who are looking for a more prestigious location: there is Valetta, Malta’s capital city. Valetta has a very charming atmosphere and might be an attractive alternative to the hustle and bustle of St. Julians.
As part of our service with company formations, clients of Dr. Werner & Partner can also get our help with finding suitable office space, furnishings and equipment.
