Malta is an island located in the Mediterranean, with a compact economy and high statutory tax rate. Because of the high statutory tax, many businesses and wealthy people are planning to move to Malta and then transfer assets to or set up a company in Malta to optimize the taxation regime.
Malta’s tax system’s main objective is to attract entrepreneurs, investors, and high-net-worth people and propose tax incentives to businesses and particular classes of individuals. The Maltese government promotes foreign investments and gets positive results from the business world, making Malta a perfect commercial center.
Benefits of Malta Tax System for Businesses
Business owners go to Malta because of the company tax offers. The standard VAT rate in Malta is only 18% compared to the EU’s average of 23%. There are also other various benefits that business owners can have access to.
A Malta tax-paying resident pays up to 35% of income and it is permitted for a deduction based on marital status. The advantage of the tax system in Malta for a personal holding company is that you can be a tax resident even though you spend less than 180 days in the area. This makes company registration in Malta so much easier for foreign investors.
The tax rates of the island are lower than most countries because of its design to be effective and efficient. Tax residents of Malta can also optimize tax payments by giving back most of them. There are also no significant taxes for business, which many business owners take advantage of to create a company in Malta and have foreign investors finance them.
Malta is a top-notch alternative jurisdiction due to the tax benefits provided for businesses, entrepreneurs, and investors. It has the qualities to be a perfect alternative company since it has a low and effective tax rate. Although the European Union standards often monitor and regulate the tax system, making it a safe onshore company.
Besides these, there are still more advantages in the tax system of Malta that attracts foreign investors and business owners who want to create a company in Malta.
-
Corporate Tax Rates
The tax system of Malta provides various benefits to the registered companies, remarkably reducing their VAT and income tax liabilities. The VAT charged in Malta may be as low as 7% depending on what business activity you do. The tax rate on income that is earned from outside of Malta is 5% for Malta-registered companies.
-
Company Registration In Malta
In a span of 1 to 2 weeks, an organization can register a company in Malta. While citizenship through naturalization takes 14 to 36 months. Applicants receive a Maltese resident certification that permits them to stay in the country for as long as they like, apply for tax residency, and to register a company.
Besides the tax benefits Malta provides for business owners, there are still more to it. For example, the geographical advantages of Malta and social security. And you won’t have to think about the language barrier because English is one of the official languages in the area.
-
Security and Low Crime Rates
Malta is safe and secure in all aspects of living. A report confirms that Malta is one of the safest places. In recent developments, they improved their security and human rights laws. Reforming accountability and greater safeguard to protect privacy are introduced to heighten security and keep the crime rates low.
-
Double Tax Agreements
The government of Malta has signed a Double Tax Treaties (DTT) which regulates the taxation of income and the properties of the companies. Along with the individuals who are locals of the state while in another state. It is important to examine the terms of the agreement for companies that are registered in Malta and acquire income from other countries.
-
Intellectual Property Rights Protection
A business that is run by mobile and can be transferred easily to another state or country is often related to intellectual property. The laws of Malta’s intellectual property go along with the strict International and European Union legislation. Below are the agreements that Malta is participating in.
- World Intellectual Property Organisation Copyright Treaty also called WIPO Copyright Treaty
- World Intellectual Property Organisation Performances and Phonograms Treaty also known as WIPO Performances and Phonograms Treaty.
-
Locals and Economic Infrastructure
Malta provides fluent English speakers, for it is one of the national languages of Malta. The majority of Maltese can speak English and Italian. These advantages just show the solid education of Malta and how locals share some of the common western values.
Malta is in the center of the European Time Zone, which makes it convenient for logistics. The government of Malta wants flattering logistics and legal frameworks to attract foreign investors. Malta is also advanced when it comes to telecommunications services, with about 300 wifi hotspots all over the island. Connecting people is also effortless because of its vast network of roadworks and ferry services.
Retiring in Malta
Many people dream of retiring in Malta for its climate and the standard of living on the island. But if you’re a European or Swiss National and plan to retire in Malta, there is a retirement program or permanent residency program. The Malta government suggests various options for those who wish to have permanent residency in Malta.
The size of the island is one of the advantages retirees in Malta will notice. Malta is a small yet packed country, which means that making connections will be easy. It will be effortless to get around and learn about Malta too.
According to the locals of Malta, it is a place where the pace is slower and connecting with nature is common. Retiring here will be affordable because you won’t have to spend a large amount of money for a better place in Malta.
Conclusion
Business owners are attracted to setting up a company registration in Malta mainly because of the benefits it gives and how convenient it is. With a low-cost yet effective and efficient economy along with the tax system that bestows locals and companies incentives. Above all that, it is easy to set up a company in Malta and get a Malta company registration to operate.
Lower tax rates in Malta attract foreign investors too and the government fancies that. Effortless registration of the company adds to the reasons why many entrepreneurs chose Malta. Are you one of them? Let us know your thoughts!
