The Maltese tax system is designed to attract investors and entrepreneurs. The Malta tax system requires Maltese companies to pay a corporate tax rate of 35%. However, there is a refund system in place that allows shareholders to receive a 6/7th refund on dividends. Therefore, this makes the effective tax rate of 5%.
Malta has made over 70 double taxation treaties with countries from around the world. In other words, these treaties provide two things — protection from double taxation on the same income from two states and protection against excessive foreign tax.
As Malta in the Mediterranean, the island’s location is very strategic. Positioned between Europe and Africa, Malta benefits from being one-hour ahead of UTC. Moreover, access to Malta is simple thanks to Malta’s international airport. Flights to major airports over the world include:
Malta has a lower-cost and highly qualified workforce compared to the rest of Europe. The cost of living in Malta is 18% cheaper compared to its EU counterparts. Therefore, due to the lower cost of living, salaries and rent are more economical than say Denmark, Ireland, Luxembourg and the UK, who all scored higher than the EU average. Most importantly, the standard of education in Malta is world-class, making Malta an excellent spot to find your perfect team.
Source: Eurostat (Link here)
Being a member of the EU also brings some fantastic benefits. In short, this includes free trade between members, a vast potential market, the currency and competition laws. Read more ‘6 Benefits of Setting Up a Business in the EU’.
Malta is an English speaking country. Therefore, this makes doing business with the rest of the world a much easier task. Moreover, as Malta attracts many EU citizens, it is more than likely, you will find a multilingual workforce here than anywhere else in the EU.
The banking system is composed of national banks (such as Bank of Valletta) and international banks (such as HSBC). Malta’s banking system is also ranked T-14th in the world for the soundest banking system from the World Economic Forum.
Finally, the Maltese lifestyle is one to be desired.
Mdina is a fortified city in the Northern Region of Malta, which served as the island’s capital from antiquity to the medieval period.
Contact us for a free consultation. Papilio Services are an international team; therefore, we have a unique and experienced understanding of you’re needs. We offer a full range of services, including corporate advisory, tax advice and back-office assistance. We put a big focus on having a high-quality service that enables us to advise our clients over many years. We take great pride in our customer retention and referral rates.