Tuesday, 17 October, 2017
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Malta
  • The Republic of Malta is an archipelago consisting of three main islands and is located in the centre of the Mediterranean Sea. The area of the country is 316 square kilometres, and it has a lovely warm climate.
  • In 1530, the King of Spain transferred Malta to his knights for their use. The organisation established at that time continues to operate to this day and is known as the Order of Malta. Malta has been a part of the British Empire since 1814. In 1964 the country became independent. Malta has been a member of the EU since 2004.
  • The corporate tax rate in Malta is 35 % but the law provides for a tax refund. After the financial statements are filed, the tax to the government is paid and a decision on the profit distribution is taken by a company, the shareholders receive a tax refund in the amount of 6/7 of the amount paid, which results in an actual tax rate of 5%.

GENERAL INFORMATIONTotal area – 316 sq km
Population – 450,000
Location - click here to see the map of offshore jurisdictions
Political status – republic
Capital – Valetta
Official language – English, Maltese
Official currency – Euro (EUR)
Time zone – GMT + 1
Company typePrivate Limited Liability Company (Ltd.)
Directors/OfficersMalta Limited companies require a minimum of 1 Director, who may be a natural person or a corporate body from any legal jurisdiction.
Each Malta company must file a Register of its Directors with the Register of Enterprises of Malta.
ShareholdersMalta Limited companies require minimum 2 shareholders, who may be natural persons or a corporate bodies from any legal jurisdiction. Only 1 shareholder required if it is licensed Malta trustee.
Each Malta company must file a Register of its shareholders with the Register of Enterprises of Malta.
SecretaryMalta Limited companies require a minimum of 1 Secretary, who, in practice, must be a resident of Malta.
Each Malta company must file information on its Secretary with the Register of Enterprises of Malta.
Authorised share capital Standard authorised capital - EUR 1165; at least 20% must be paid into account of the company before registration.
Company Names The name of a Malta company must end with the word "Limited" or the suffix "Ltd.".
Company names containing restricted words such as "Bank", "Insurance", "Trust", "Finance", "Deposit", "Savings", "Security", "Royal" etc., will not be permitted unless an appropriate national operating licence has been obtained by the company.
Beneficial Ownership information Information with regard to ultimate beneficial ownership must be disclosed to the Registered Agent of the company and is held by the agent on a confidential basis.
Filing of Annual ReturnAn Annual Return must be submitted every 12 months after the date of registration.
Filing of Financial StatementsA Financial Statement must be submitted every year, not later than 9 months after the end of each financial period (01.01 – 31.12.). Relevant Tax Declaration must be submitted to Malta Inland Revenue.
Corporate TaxationThe standard tax rate in Malta is 35 %, however, as result of Tax Refund, effective Tax rate on trading operations is about 5%. Income from holding operations may be fully exempt from the taxation.
Tax TreatiesMalta has concluded more than 40 Double Tax treaties with different countries worldwide.
Timeframe for incorporation 8/10 working days. A complete set of company documents can be delivered in 6/7 weeks.
Takeover of management & secretarial services for an existing Malta companyPossible, following verification of Beneficial Ownership and agreement with and discharge of liabilities to previous corporate service provider in Malta.
Description of incorporation documentsClick here for itemised description of company documents.
"Ready-made"("Shelf") companiesWe are happy to register new Maltese companies in accordance with client instructions.
Price of Malta companyEUR 3,880, including incorporation costs, full domiciliary (Registered Agent/Office) costs, set of documents legalised by Apostille, including General Power of Attorney.
Fees for preparing of Financial Statement for the first accounting period, must be paid in advance.
Also, for performing of operations of Tax Refund, licensed Malta trustee may be appointed in the company.
Cost of annual support servicesEUR 2,440 per year, including annual Government Duty, full domiciliary (Registered Agent/Office) costs, General Power of Attorney for current year.
Also, additional fees must be paid for preparing of financial statement, which depends on complicity of the statement.
  • INTERNATIONAL OVERSEAS SERVICES has the following comments: -

Malta’s tax system is one of the most favourable in the EU. Along with the actual corporate tax rate of 5%, the income received as a capital gain or dividends are exempt from tax in full. For these types of income to be exempt from tax (Participation Exemption), a Maltese company must hold a capital share in a foreign company of not less than 10%. In turn, the foreign company should meet at least one of the following criteria:

  • being a resident of, or registered in, one of the EU countries, or
  • being subject to taxation in the country of incorporation at the rate of not less than 15%, or
  • having not more than 50% of its income from passive (portfolio) investments or royalties.

The tax refund is made within 2 months on average.

Moreover, in Malta there is no withholding tax on the repatriation of dividends, interest or royalties, regardless of the country they are paid to. Losses of previous years may be deducted from profits of the following periods without time limitation.

Maltese companies are subject to the EU Parent/Subsidiary Directive and the EU Interest and Royalties directive.