Why Set Up an International Holding Company in Malta
Malta is a popular choice to set up an international holding company as it offers many tax planning opportunities. For example, the company can be eligible for a tax refund, and there is no taxation in Malta on Dividends or Capital Gains.
The Malta Tax System also has a full Participation Exemption regime rather than adopting the classical tax system. Income and gains derived by Malta companies from qualifying participating holdings may be exempt from taxation in Malta. However, you must satisfy certain conditions and pass the anti-abuse provisions in place for dividend distributions.
Malta has in place more than 70 double taxation treaties in force with countries all over the world. Therefore, this allows for many tax planning opportunities for business across multiple jurisdictions.
Alongside the financial and tax benefits, Malta is a popular choice for setting up an international holding company for the following reasons:
- Malta is a member of the European Union;
- Regulated and efficient legal and tax framework;
- Multi-Lingual Workforce;
- Legislation in written and spoken in Maltese and English;
- Malta Company Formation and ongoing administration costs are relatively low;
- Simple travelling to most European countries as well as the rest of the world.