Key facts Malte taxation

Malta has always played a key role in commercial relations between Europe and North Africa. Malta has always been strongly linked to Europe, partly also being a part of the Sicily Kingdom. Since the end of the British colony rule, Malta emerged to a well-connected hub for business and production in the Mediterranean, with maritime and shipyard business always being in the focus.

  • Ease of incorporation (in most cases 24 – 48 hours)
  • Low minimum capital requirements (minimum of EUR1,165 with 20% being paid up)
  • No corporate tax on holding companies in respect of dividends and gains derived from underlying entities qualifying as participating holdings
  • A Malta tax burden of 5% (and in certain cases possibly less) through a simple tax refunds mechanism that shareholders are entitled to claim, amounting to 6/7ths of the corporate tax rate of 35% incurred at company level. Such refunds are payable to shareholders within 14 days of making a valid refund claim
  • No withholding taxes on dividends, interest and royalties paid out of the Company to non-residents
  • Capital gains on the transfers of shares in a Maltese Company by non-resident shareholders are normally exempt
  • No thin capitalisation rules
  • A very flexible transfer pricing regime
  • No CFC legislation
  • No stamp duty is payable on the issuance of shares upon incorporation. Stamp duty payable upon the issuance of further shares or share transfers in
  • Companies held by non-residents can also be exempt subject to certain conditions being met
  • Extensive use of Malta’s double tax treaty network spanning across 57 countries
  • As an EU member, the application of provisions in the Parent-Subsidiary Directive and Interest & Royalties Directive result in further tax planning opportunities for a Malta Company
  • Low registration and low annual return fees
  • These vary with the authorised share capital and range from EUR245 –EUR2,250 for registration fees (non-recurring) and EUR100 – EUR1,400 for annual return fees
  • Possibility of redomiciling companies to and from Malta and no entry/exit taxes arising from these redomiciliations
  • No exchange controls
  • Tax losses can be carried forward indefinitely
  • Advance revenue rulings can be obtained from the Income Tax Department – valid for five years
  • Dedicated unit at the Income Tax Department dealing with international structures and able to issue guidance on a case by case basis