Tax Incentives for Businesses Relocating to Malta

Malta has numerous tax advantages to offer businesses considering relocation to this warm and vibrant Mediterranean archipelago, including a variety of attractive tax incentives, exemptions and deductions.

 

Your FSPC Lead Contact can advise you regarding your eligibility for each of Malta’s many tax programmes, while assisting you with every aspect of relocating your business to Malta to ensure that your company can make the most of the island’s booming business sector.

 

Tax Refunds

The island’s full imputation system includes no withholding taxes on dividend, interest and royalties. While the standard corporate tax rate is set at 35%, company shareholders may receive a partial or total refund of this if they are eligible for one of several applicable tax refund programmes introduced by the Maltese government.

 

Participation Holding

A participating holding is considered to exist if a company is compliant with one of several eligibility scenarios, and profits derived or gained from it may then be exempted from tax in Malta.

 

Double Taxation Relief

In order to prevent the same income from being taxed twice in different countries, Malta has participated in multiple Double-Tax treaties and adopted the credit methods of Double Taxation Relief, Unilateral Relief, Flat Rate Foreign Tax Credit (FRFTC) and Commonwealth Relief.

 

High-Net-Worth Individuals

Nationals and non-nationals of the EU, EEA and Switzerland who are high-net-worth individuals and are considering relocating to Malta, can take advantage of the tax benefits proposed by various focused schemes that will also benefit these individuals’ businesses. To qualify for the reduced tax rate of 15% on foreign income that is remitted to Malta, a high-net-worth individual must purchase or rent property in Malta. To do this, there are also tax advantages: there are no capital or property taxes in Malta, and no VAT due on the acquisition or letting of property.

 

Company Re-domiciliation

Any company that is registered in a particular jurisdiction may be re-domiciled or continued in another jurisdiction such as Malta through a process of re-domiciliation or continuation, so that it may take advantage of the island’s highly favourable tax regime without interrupting the day-to-day operations of the business.