MOVE YOUR BUSINESS TO MALTA

jobs

SO, WHY IS NO ONE TALKING ABOUT MALTA AS MUCH AS ABOUT CYPRUS, IRELAND OR HUNGARY?

The answer is simple.

The corporate income tax rate in Malta is 35%, which is quite high. However, there is a law that provides that 30% of the taxes paid will be refunded, which means that the effective corporate tax rate is just 5%.

This is currently the lowest corporate tax rate in the EU and one of the lowest in the world.

The good news is, there’s now an even better option!

From 2020, Maltese legislation allows for foreign legal entities to register a subsidiary in Malta and opt for fiscal unit group taxation and simply pay 5% corporate tax without a refund procedure. 

Simple, efficient, zero hassle — and sports a huge cash flow advantage!    

Taxes on dividends are charged at 0%.

How can I move my company to Malta?

The easiest option is to either:

• incorporate a new entity in Malta whilst closing down the one in the original country;
• or use a foreign company as a parent to set up a new Maltese company. 

However, the latter is not always possible, e.g. when a company wants to retain its trading history, or it has a number of open contracts.

In such cases, registering a permanent establishment in Malta or transferring your main corporate residence would be the best choice. Setting up a Fiscal Unit is another option now offered to foreign companies migrating their business to Malta. Which is good food for thought.

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