Malta

Malta, officially the Republic of Malta, is a Southern European country consisting of an archipelago situated in the centre of the Mediterranean, 93 km south of Sicily and 288 km east of Tunisia, with the Strait of Gibraltar 1,826 km to the west and Alexandria 1,510 km to the east.

Malta covers just over 300 km² in land area, making it one of the world's smallest and most densely populated countries. Its de facto capital is Valletta and the largest town is Birkirkara. The main island is made up of many small towns, which together form one Larger Urban Zone (LUZ) with a population of 368,250 (majority of the population of the country) according to Eurostat. The country has two official languages – Maltese and English – with Maltese being considered the national language.

Throughout history, Malta's location has given it great strategic importance, and a sequence of powers including the Phoenicians, Greeks, Romans, Sicilians, Knights of St John, French and the British ruled the islands. Malta gained independence from the United Kingdom in 1964 and became a republic in 1974, whilst retaining membership in the Commonwealth of Nations. It is a member of the United Nations (since 1964) and a member of the European Union (since 2004). Malta is also party to the Schengen Agreement (since 2007) and member of the eurozone (since 2008).

Malta has a long Christian legacy and is an Apostolic See. According to the Acts of the Apostles in the Christian Bible, St. Paul was shipwrecked on "Melite", as the Greeks called the island, and ministered there. Catholicism continues to be the official and dominant religion in Malta.

Malta is internationally renowned as a tourist resort, with numerous recreational areas and historical monuments, including nine UNESCO World Heritage Sites, most prominently the Megalithic Temples which are some of the oldest free-standing structures in the world.

Malta offers a winning combination to international businesses looking for an onshore establishment within the European Union that also offers advantages of a low tax jurisdiction. Moreover, Malta structures are also very tax-efficient for holding assets outside of Malta. If a part of your company’s activities occur partly or entirely outside of your homeland, you could benefit from moving this activity to Malta. Operating your company from Malta you could reduce your net taxes to only 5%.  The net taxable effect is normally only 5% in Malta, which is clearly the lowest tax level within the EU/EEA and which benefits all beneficiaries of a Malta company. However it should be noted that only participants who reside outside Malta can enjoy the maximum benefit of this low net taxable effect upon receipt of their qualified tax-refund.

By taking advantage of the EU Parent-Subsidiary Directive any parent company tax resident in another EU/EEA member state may distribute dividend tax-free from a Malta subsidiary. Malta Ltd companies are independent legal entities with limited liability and thus you will have no personal liabilities. This corporate structure has become a major success within the EU/EEA and is being used by some of the largest brands and business corporation in Europe to structure their international activities in a tax-favourable way.

Malta currently has close to 50 double taxation relief treaties in force, most of which are based on the OECD Model Convention. In most of its double tax treaties Malta has agreed to relieve double taxation using the tax credit method.

Our Maltese office was opened in December 2010.

 

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