3. EU Parent-Subsidiary Directive
Finally, as Malta has been a member of the EU since 2004, it does benefit from some Intra-EU tax benefits — one of these perks being the EU Parent-Subsidiary Directive. The directives aim is to eliminate double taxation on profit distributions between associated companies in the different EU Member States.
For example, if a company gets liquidated in Malta and profits of the sale are received by the parent company in the EU, the gains get taxed in Malta, not the other EU country. However, there is a second benefit! There are no withholding taxes or stamp duty on the distribution of dividends or profits to the shareholders. Therefore, you can liquidate a company in Malta and distribute the profits to the shareholders in another EU country, tax-free.
You can see why Malta is the fastest growing economy in the EU!