Company formation in Malta — Saving taxes with a Malta Ltd

Many com­pa­nies in Mal­ta are ben­e­fit­ing from the Mal­ta Lim­it­ed com­pa­ny struc­ture which allows them to low­er the tax bur­den. We are being con­tact­ed by more peo­ple every day who are inter­est­ed in opti­mis­ing their tax­es with a lim­it­ed com­pa­ny in Mal­ta. How­ev­er, there are a few things to con­sid­er before mov­ing the com­pa­ny to Mal­ta, and unfor­tu­nate­ly, this mod­el is not suit­able for every com­pa­ny.

Com­pa­ny oper­a­tions have to be moved to Mal­ta

When estab­lish­ing your lim­it­ed com­pa­ny in Mal­ta it is nec­es­sary to move the com­pa­ny oper­a­tions to Mal­ta as well. Sav­ing tax­es is achieved through a tax refund of 6/7 of the cor­po­rate tax, but only when cer­tain cri­te­ria are met. The lim­it­ed com­pa­ny needs to be owned by a for­eign share­hold­er or hold­ing com­pa­ny, and the com­pa­ny oper­a­tions need to be in Mal­ta. It is not pos­si­ble to sim­ply cre­ate a let­ter box com­pa­ny. It is also impor­tant to adhere to coun­try reg­u­la­tions. If a com­pa­ny car­ries out busi­ness that would be con­sid­ered ille­gal in Mal­ta, it is not pos­si­ble to do busi­ness on the islands. Whether or not it is a good idea for you to move the com­pa­ny oper­a­tions to Mal­ta you will have to research if the com­pa­ny struc­ture is suit­able for your type of busi­ness, or you can con­tact our legal office in Mal­ta.

Apply­ing for the tax refund

Once your Lim­it­ed com­pa­ny has been estab­lished you have to pay a cor­po­rate tax rate of 35%. This is the gen­er­al cor­po­rate tax rate in Mal­ta that every com­pa­ny has to pay. How­ev­er, a for­eign owned com­pa­ny can apply for a refund of 6/7 of this tax, which would mean that the effec­tive tax rate is 5%. When apply­ing for the refund it is impor­tant to not make any errors, as the refund might be reject­ed.

The office of Dr. Wern­er & Part­ner is spe­cialised in com­pa­ny for­ma­tions and opti­mis­ing your com­pa­ny struc­ture in order for you to get the best results. If you are inter­est­ed in a per­son­al con­sul­ta­tion you are wel­come to con­tact the office to sched­ule an appoint­ment. We have already helped many clients to opti­mise their tax bur­den, and to have a suc­cess­ful start with their com­pa­ny in Mal­ta.

About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT ‑Advanced Diplo­ma in Inter­na­tion­al Tax.

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