Malta offers interesting opportunities for individuals and companies to save taxes. The island in the middle of the Mediterranean has become a reputable financial centre with legislations for professional secrecy money laundering that are based on European laws. Malta benefits from an extensive double taxation treaty network with over 50 countries, and also offers a corporate tax model that enables eligible foreign-owned companies to save taxes.
The Maltese taxation laws are especially interesting for companies in Europe that want to save taxes. The requirement is that the company operations have to be moved to Malta, which means a limited company has to be established. The company is then liable to 35% corporation tax. If this limited company is owned by a foreign shareholder or a holding company, then it is possible to apply for a refund of 6/7 of the corporation tax. This creates an effective tax rate of only 5%. This is absolutely legal and in line with European laws. It also means that Malta is not a tax haven offshore country, as company operations need to be physically moved to Malta.
Individuals that are working in a company in Malta can also save taxes. The income tax and social contributions can be much lower than in other countries. These are the tax rates in Malta for the base year of 2014. It is also worth noting that the island offers good employment opportunities for specialised IT-personnel and bilingual individuals.
Moving to Malta can be a very good opportunity for companies and individuals alike. Apart from the generous tax structure, the country also boasts hot summers and mild winters, stunning waters and many things to see and do. If you are now interested, and would like to get further information about moving to, or relocating your business to Malta, you are welcome to contact the office of Dr. Werner & Partner. You can also find more information about our services on this website.