Politically Stable – English Speaking – Progressive Economy
The Republic of Malta a full EU member since 2004, is strategically located to provide services to the international community. Malta an English speaking country, has built upon the commercial laws of England and now the EU, to position itself as a premier family wealth, corporate and financial services jurisdiction.
With robust, competitive taxation rules, Malta has achieved sustained economic growth. Such growth is not solely the result of Malta’s tax and fiscal policies – there are other important factors such as a multilingual workforce, lower labour costs, a strategic location and a sound telecommunications infrastructure.
As a result, there has been an influx of interest from investors, high net worth individuals and corporations, who desire a stable, reputable environment in which to structure their personal and corporate affairs – as well as to reside.
Strategically located in the Mediterranean, Malta, composed of three major islands, enjoys an attractive Mediterranean climate with hot dry summers and mild winters. Annual rainfall is 23 inches and falls mostly between October and March.
With a very low crime rate, excellent medical and communications infrastructure and an enviable lifestyle for all ages, Malta is often cited as one of the best places to live or retire in the whole of the EU.
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.
Affordable Tax Rates
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% after the application of tax refunds.
- 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 – Full Schengen Member – EU Visa Free Travel
The Schengen 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.
Benefits for Private Clients
As a foreign resident of Malta, you only pay Malta tax on income received in or arising in Malta – there is no world-wide taxation of resident foreign and non-domiciled persons.
Unless a foreign non-domicilled person is resident in Malta under one of Malta’s residency or tax programmes – Malta Residency & Visa Programme, Global Residency Programme for Non-EU nationals or the Retirement Programme for EU nationals, income arising in Malta is taxed at progressive rates:
Malta Tax Rates for Basis Year 2017
|Chargeable Income (€)|