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Malta / Malta

Malta

Strategic geographic location and good infrastructure

The Republic of Malta is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean Sea, 80 km south of Sicily, 284 km east of Tunisia and 333 km north of Libya. Malta covers just over 316 km2 (122 sq mi) in land area, making it one of the world's smallest states.

Malta has excellent flight connections with most European countries, with more than 800 flights per month. More than 1,2 million tourists visit the island every year. 

Population

The total population of the islands is estimated to be just over 409,000 (July 2012) and is homogeneous with its own identity and language.

Language

The country has two official languages: Maltese (the national language) and English, with most of the people also fluent in Italian.

Currency

Since 1st of January 2008 Malta has adopted the Euro.

Tax system

Malta has one of the most competitive tax regimes in the EU. Its tax system offers significant advantages for companies based in Malta. 

Briefly the main advantages are:

  • The general corporate tax rate is 35%, but due to favorable tax credits the majority of holding companies in Malta are taxed at 0% in the hands of the investor;
  • Similar tax credits for trading companies leave only 5% tax to be paid;
  • Only 5% net tax suffered after tax-credit. 6/7 of the corporate tax is credited to the shareholder(s);
  • No withholding tax on dividend payments;
  • Parent- Subsidiary Directive is valid all over the EU/EEA area;
  • Only €240 to be paid up in share capital. Only 20% of the minimum €1,200 to be paid on incorporation;
  • Full limited liability.

Double tax treaties

Malta has entered into more than 60 double-tax treaties, which follow the OECD Model Convention.

The table below shows the countries which have double-tax treaties with Malta.

  • Albania
  • Australia
  • Austria
  • Bahrain
  • Barbados
  • Belgium
  • Bulgaria
  • Canada
  • China
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Egypt
  • Estonia
  • Finland
  • France
  • Georgia
  • Germany
  • Greece
  • Guernsey
  • Hong Kong
  • Hungary
  • Iceland
  • India
  • Ireland
  • Isle of Man
  • Italy
  • Jersey
  • Jordan
  • Korea
  • Kuwait
  • Latvia
  • Lebanon
  • Libya
  • Lithuania
  • Luxembourg
  • Malaysia
  • Montenegro
  • Morocco
  • Netherlands
  • Norway
  • Pakistan
  • Poland
  • Portugal
  • Qatar
  • Romania
  • San Marino
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Africa
  • Spain
  • Sweden
  • Switzerland
  • Syria
  • Tunisia
  • Turkey
  • United Arab Emirates
  • United Kingdom
  • Uruguay
  • USA

Legal framework

Maltese company law which is governed by the Companies Act is mainly based on English Company Law and is in line with EU directives. Shipping companies are governed by the Merchant Shipping Act. The Companies Act defines the types of corporate entities or commercial partnerships which may be established.

Banking

The Maltese banking system generally follows the UK's established banking tradition. In addition, banks are required to operate within the banking laws and regulations governed by European Union directives.

Malta offers a wide choice of banks. Services offered include online banking, telephone banking, branch services and postal accounts. Bank statements and correspondence are available in both Maltese and English, with branches offering information and services in both languages.

Types of companies

  • Malta Private Limited Company
  • Malta International Trading Company
  • Malta International Holding Company
  • Malta General Partnership
  • Malta Limited Partnership
  • Malta Branch of Overseas Company
  • Malta Trusts