You have probably already heard about the possibility of saving taxes with your company by using an offshore company in another country. However, simply operating an offshore company is often frowned upon, as it may look like you are evading taxes. There are some perfectly legal optimisation options, and I would like to tell you a little bit more about Malta and the taxation structures it applies to companies.
The taxation in Malta has a structure that allows some companies to benefit from lower taxes by applying for a refund of the corporation tax. But first things first. Malta has one of the highest rates of corporation tax in the EU, and it is currently 35%. This tax needs to be paid by every company on the island. However, with the right structure of the company it is possible to apply for a refund of 6/7 of the corporation tax if certain criteria are met, and the application is handed in with all the necessary documentation. Malta is not a low-tax country, and getting this refund is only possible in certain cases.
Another possibility to save taxes in Malta is the income tax. The income tax rate starts at 15%, and goes up to 35% on income over €60,000. The income tax only applies for individuals living in Malta, and it is not possible to obtain this rate if the person does not live on the island. If you are interested in moving to Malta, you can find more information about life in Malta in our blog.
But Malta does not only offer a lower tax rate for individuals, Malta is also a part of the European Union, and it offers the security of the legislations in the EU and the free trade agreements. A company is often perceived more trustworthy when the operations are based in a EU member state, and not outside, especially when you are conducting business in the EU.
At the office of Dr. Werner & Partner we are specialised in optimising company structures to achieve a lower tax burden. You are welcome to contact us for a personal consultation if you are interested in more details.
