International Holding Activities through a Malta Company
Starting an International Holding Company Guide
An International Holding Company is a viable option for organisations and investors whom have businesses situated in many different countries and jurisdictions and want to centralise management and control as well as consolidate all subsidiary companies within one group. This can also allow for greater efficiencies on fiscal and management reporting obligations.
A holding company can be used to hold many different types of business investments and these can range from shares of companies, real estate, intellectual property, aircraft, maritime vessels and other business investments. A holding company can also be used for holding personal investments such as a portfolio of investments, luxury yachts and real estate to name a few.
In summary, a holding company can hold property and protect it, give greater control over a group organisation, allow for many tax planning opportunities and allow for effective succession planning.
International Holding Company in Malta
Malta is a popular choice to set up an international holding company as it could offer many tax planning opportunities owing to the attractive tax system the country has in place. This could mean the company is eligible to a tax refund, no taxation in Malta on dividends and no taxation in Malta on Capital Gains.
The Malta Tax System also has a full participation exemption regime and income and gains derived by Malta companies from qualifying participating holdings may be exempt from taxation in Malta subject to satisfying certain conditions and passing the anti-abuse provisions in place for dividend distributions.
Malta has in place more than 70 double taxation treaties with countries all over the world and this allows for many tax planning opportunities for business across multiple jurisdictions.
Alongside the fiscal and taxation benefits, Malta is a popular choice for setting up an international holding company for the following reasons:
- Member State of the European Union;
- Regulated and efficient legal and tax framework;
- Multi Lingual Workforce;
- Legislation in Maltese and English;
- Malta company formation and ongoing administration costs are relatively low;
- Relatively easy travelling to most European jurisdictions.