With its location in the Mediterranean, Malta situated enjoys an attractive climate, very low crime rate and an enviable lifestyle for all ages and is often cited as one of the best places to live or retire in the whole of the EU.
A full member of the EU since 2004, Malta uses the Euro as its currency and English is an official language.
Benefits for Private Clients
As a foreign resident of Malta you only pay tax on income received or omitted to Malta – 0% tax payable on worldwide income; 15% if you enjoy permanent residence under a tax residence scheme; or Malta’s progressive income tax rates for other permanent or ordinary residents.
With 0% capital gains tax on income outside of Malta, 0% wealth tax, 0% inheritance tax,Malta is a popular place to retire or live.
Essentially a civil law system, Malta has modelled its commercial law – tax, company, trusts and financial services – on UK law and is fully compliant with EU law.
Benefits for Commercial Clients
With its central location in the Mediterranean, Malta is a superb hub with excellent transport links to the rest of Europe as well as the Middle East and beyond.
Part of the Eurozone with a stable economy and a Government intent on encouraging foreign business through the investment and development of the communications infrastructure, Malta offers companies a competitive landscape within which to pursue to their commercial endeavours.
Added to which an already existing multi – lingual, multi skilled and highly educated workforce with relatively low labour costs, Malta is in prime position to offer prospective employers a beneficial and secure future.
Some of the financial and tax benefits of doing business in Malta:
- Over 60 double taxation treaties worldwide
Full imputation system with an effective corporate tax rate of 5%.
- Attractive High Net Worth tax rules
- No capital taxes and no wealth taxes
- Tax refunds are legally guaranteed and paid within 2-3 weeks of application
- Use of IFRS functional convertible currency – for statutory capital, financials, tax and tax refund purposes
- Revenue rulings are binding for 5 years or 2 years following a change in legislation
- Informal tax confirmations and advanced tax rulings
- A single, approachable, financial regulator, the Malta Financial Services Authority (‘MFSA’)
- No withholding taxes on dividends, interest, royalties or other expenses
- No transfer pricing, thin capitalisation or controlled foreign company rules
- No stamp duty on share issues or transfers
- No Exit Taxes
Malta – A Shengen Member
The Shengen scheme allows for free movement and travel, by 3rd country nationals within its borders.
The Schengen area includes the territory of the following 26 European Union countries and associated countries: Austria, Belgium, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, and Sweden. It also includes Norway, Iceland and Switzerland.
Bulgaria, Cyprus, Ireland, Romania and the United Kingdom do not participate in the Schengen cooperation.