Company Formation: Why Choose Malta?
Malta has become a popular international hub for Company Formation and Registration due to several factors, including:
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- Location: Mediterranean Sea, Europe
- Population: 460,000 (2017)
- Capital: Valletta
- Currency: Euro (€)
- Size: 316 km² (122 sq mi)
- Languages: English & Maltese
- Life Expectancy: 82 years old
- Timezone: Central European Standard Time (GMT +1)
- Climate: Average annual temperature of 23°C
- Airport: Malta International Airport (MLA)
- UNESCO World Heritage Sites: 3
Why is Setting Up a Business in Malta is Perfect for Business?
Legal & Tax Framework
- 72 Double Taxation Agreements
- Low effective tax rates
- Tax Residency Programmes
- Robust legal framework
European Union (EU)
- Member of the E.U. since 1st May 2004
- Freedom of trade between member states
- E.U. Taxation Framework
- E.U. Legislative Framework
- Strategic location between Europe and North Africa
- Direct Flights across European cities
- Connected to significant flight hubs such as Istanbul, Dubai and London
- Excellent Import and Export hub
- One hour ahead of the U.K.
- GDP: €12,320 million (+8.9% from 2017)
- GDP per capita: $30,170.47
- Government Budget Balance: +1.1%
- Unemployment Rate: 3.5%
- Inflation: 1.74%
- Cost of living in 18% lower than the EU average
Malta embracing the future
- Medical Marijuana
- Tourism and Leisure
- Finance and Banking
5 Reasons Why Malta’s Tax System is so Attractive
Malta’s Tax Refund System
Shareholders are typically entitled to claim a refund of 6/7th of the tax charged to the Maltese trading company. Therefore, this makes the effective tax rate of 5%.
Malta’s Participation Exemption
Participation Exemption is an exemption from taxation for a shareholder on dividends received, and potential capital gains arising on the sale of shares.
Full Imputation System
Company profits are taxed at source, but dividends distributed to shareholders are not be taxed again.
This system is different from the classical system, whereby company profits are subject to tax and shareholders are taxed on dividends.
EU Parent-Subsidiary Directive
This directive has the aim to eliminate double taxation on profit distributions between associated companies in the various EU Member States.
No Withholding Taxes
In Malta, there is no withholding tax imposed on:
- Dividends distributed to Non-Maltese residents.
- Interest and royalties derived by Non-Maltese residents.
- Gains realised from transfers of corporate securities by non-residents.
About Papilio Services
Papilio Services Limited, founded in 2012, is one of Malta’s leading independent service providers. We focus on corporate service, residency programmes and tax advice to both private clients and businesses. Papilio Services are specialists in Maltese Company Formation, International Tax Planning as well as providing many other services to help your business.
As an international team that is based locally in Malta, we have a deep understanding of the Maltese and global market. As a result, our clients appreciate and desire this perspective when we’re dealing with their business or individual needs.
- Setting up of beneficial royalty structure in Malta
- Setting up trading companies focusing on e-commerce
- Establishing holding companies with a variety of complex private equity interests
- Setting up a holding company that contains several subsidiary companies as part of a worldwide international trading group
- Building a holding company holding private equity vehicles
- Setting up a Public Limited Liability Company with dematerialised shares available on the Clearstream system
- Helping individuals and families to become residents and citizens in Malta
- Company Formation
- International Tax Planning
- Maltese Residence and Citizenship Advice
- Holding Company Formation
- Intellectual Property (IP) Registration
- Office Space and Services
- Company Director & Secretarial Services
- Legal and Tax Advice
- Mergers and Acquisitions
- Website and Email Set Up
- Tax and VAT Compliance
- Invoicing and Bookkeeping
- Assistance in applying for Government Grants & Licences
Are you interested? Fill out our short contact form below and we will get in contact with you within 24 hours. We will discuss your current situation, future plans and where Papilio Services can assist you.
We look forward to hearing from you soon.
Papilio Services Limited
168, St Christopher Street
Phone: +356 2122 7553
Fax: +356 2122 7667