Until a few years ago, Malta was of little interest to international business owners. As a rule, people were interested in Malta to move and obtain a residence permit. It was more of a “place to live” than a tool for doing business.
Key features of companies in Malta
- Unique tax system. Formally, Malta belongs to the high taxation jurisdictions (corporate tax 35%), but the actual tax burden is only 5%. Thanks to this, the owners of Maltese companies do not have to worry about transfer pricing and taxation of CFCs (controlled foreign companies).
- There is no withholding tax on dividend payments outside Malta.
- The international structure (Maltese holding) allows you to minimize the expenditure side for the withdrawal of funds abroad.
- A Maltese company can pay dividends at a 0% tax rate.
- The country has a favorable attitude from the whole world, it is an image jurisdiction for doing business.
- There is no control over transfer pricing in the country.
- Malta has signed a large number of Double Taxation Treaties. These agreements help keep the income tax rate at 5%.
- The company and the account are located in the same country.
- It is an ideal jurisdiction for entrepreneurs who strive to comply with all legal requirements, are willing to pay reasonable taxes (at a low rate), and care about the good reputation of their business.
The tax system in Malta
The main advantage of Malta is its tax system, which is specifically designed to ensure that Maltese companies are an effective tool for conducting international business in the context of global deoffshorization.
Malta’s legislation has been drafted in line with transfer pricing regulations and controlled foreign company tax rules that have been introduced in many countries to combat aggressive tax planning. Malta has provided everything to ensure that the owner of a Maltese company does not have problems with the tax authorities “at home”.
Corporate tax is 35%. But 30% is refundable after dividend distribution. The refund is not made to the account of the Maltese company, but to the account of the shareholder who received the dividend. The actual tax burden is 5%.
Types of Malta companies
In Malta, there are a large number of organizational and legal forms of legal entities for doing business. But in practice, only two types of companies are used: LLC (Limited Liability Company) and PLC (Public Limited Company).
Terms of registration of a company in Malta
The very registration of the company takes place within 24 hours. But before that, you need to go through the “Know Your Client” procedure and provide a detailed description of the business to the Maltese registered agent.
Nominee service in Malta
It is possible to use the resident director of Malta. To create an economic substance, a resident of Malta can be appointed to the position of the company secretary.
It should be borne in mind that the director of a company in Malta bears personal responsibility (up to criminal) if the company violates the requirements of the law.
Preparation and submission of financial statements in Malta
Bookkeeping and reporting are required (submitted once a year, you can choose a date). The level of protection of information about the owner is high. Confidentiality is protected by the Law on Professional Secrecy. Violating it, a professional in Malta can be held criminally liable.
Electronic Games (e-gaming).
Regardless of the type of your future business, whether it is an online casino with pictures of naked women, betting on snails, or poker with bingo by your own rules, you will be able to purchase a license of the jurisdiction.
The state has created surprisingly strict and convenient legislation that protects the rights and obligations of both parties – players and operators (companies).
Everyone can play, except those who live in countries under sanctions, and operators under the control of anti-money laundering regulations (AML).
Name any major online gambling operator and you will likely meet it in Malta. In addition to them, IT companies, a communications provider, etc. are located offshore Malta.
Apart from online casinos, Malta offshore has a developed market for real, physical casinos. Tourists from all over Europe come offshore. The jurisdiction has not reached the scale of Las Vegas and Macau, but it takes its place of honor in the industry.
Banks in Malta offshore jurisdiction
Maltese banks are by far the most stable and secure in Southern Europe. At the same time, they are on a par with some of the best German ones, both in terms of capitalization and in terms of service.
Conventionally, all local banks are divided into 4 groups: two large ones that occupy a large part of the market (Bank of Valletta (BOV) and HSBC Malta); medium-sized banks, which include Lombard Bank, Medbank, FIM Bank, Sparkasse Malta, etc .; small ones, including Volksbank; plus special banks, which are more likely to be called pocket banks.
It is possible to open an account on an offshore island, provided that you can prove your connection with the country. It is practically impossible to open a non-resident account. What is called the connection with the country? Availability of a local company office and local employees. Residence permit status, permanent residence or citizenship, the process of obtaining them. Buying a property.
If you want to create your own special or full-fledged bank: Malta is loyal in this matter. The statutory fund starts from 5 million euros, the initial fees will cost another 40,000 euros.
Most often, they choose to register a payment system under an EMI license.
Who is Malta offshore suitable for?
Offshore jurisdiction Malta is a place to live, second citizenship, to create a reputable offshore company that is capable of operating both in the real world and in the virtual one.
Depending on your desires and goals, Malta will offer its services and you will find something to surprise yourself with.
