Taking advantage of Malta Limited in Germany?

In most cases the reason for founding a company outside of Germany is to save taxes or alleviate one’s or the company’s tax burden. In times when the only economically liberal party in Germany does not collect enough votes to enter the Bundestag, it is in my opinion a legitimate concern if your own interests are no longer being represented in your country.

Still, establishing a business in a foreign country does not mean that you turn your back on Germany or that you do not engage in any business activities there. Especially for German companies that do not focus on foreign markets but have close national economic ties to be nurtured, the question arises in which way a Maltese Limited is useful in Germany.

Of course I have a lot of German clients and we thought through the scenario of establishing a Maltese Limited to engage in business activities in Germany together. Thinking everything through it is important to remember that, in accordance with the tax law, taxes generally have to be paid in the country of the corresponding business activity. Thus, a company doing its main business in and managed from Germany also has to pay its taxes in Germany . Nevertheless, this is also possible with a Malta Limited, which besides always provides a limited liability. From that point of view, this type of a Maltese company corresponds to a German GmbH.

Yet another possibility to take advantage of a Malta Limited in Germany is to establish a limited partnership in Germany. As a limited partnership consists of two parts (limited partner and general partner) the Malta Limited can act as general partner and a natural person in Germany becomes limited partner. In this case it is possible to benefit from trade tax allowance. The corporation tax will not be applied because, legally, the limited partnership is a general partnership in Germany.

As you can see, a Maltese company allows you to engage in business activities in Germany, while bearing in mind the corresponding tax configuration. If you have any further questions, do not hesitate to contact us. We would be very pleased to answer them.