A small Mediterranean jurisdiction is a real draw for entrepreneurs and investors from across the globe. Malta can be rightfully called a tax haven, and it is one of the best European destinations where you can start your company. It offers everything you may reasonably need to achieve success: the tax rates are not very high, you can easily get access to European markets, the country supports start-ups by providing considerable benefits to them, and you can take advantage of a special residence program. Let’s take a more detailed look at all these features.
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Malta’s Taxation System
Malta is a great jurisdiction for tax planning and optimization purposes. Let’s look at the features that make the island attractive for international business and investments:
- If you are a highly qualified professional employed in such fields as aviation, gaming, finances, and so on, you can apply for a reduced income tax rate of 15%.
- If your company generates 100% of its profits outside Malta and distributes dividends only among non-resident shareholders, you can reduce the payable income tax rate to 0-10%. This is a truly amazing opportunity as the standard income tax for companies registered in Malta amounts to 35%, making it one of the highest ones in the world.
- If you have an innovative company, you can get a tax credit of up to 50% from the cost of R&D and get an exemption from royalty income to use patents and other intellectual rights.
- If the company incorporated in Malta participates in a holding structure that meets certain requirements, you can get an exemption from the sales income or dividends from affiliated companies.
- EU taxation directives are applied in Malta, and all the conditions contained therein are applicable, including zero tax if the dividend/interest is distributed among related companies.
- Malta offers a number of residence programs, such as Malta Residency for Self-Sufficients, Permanent Residence Programme, Nomad Residence Permit, and so on. If you receive a resident’s status under one of them, you can apply for a reduced income tax rate of 15%.
- Malta has concluded a number of double taxation treaties (81 in total), and your company has a chance to benefit from them and thus considerably reduce expenses.
Sounds impressive? Please get in touch with us by following the above link if you have any questions at this stage.
Companies That Opt for Malta
This industry is being actively developed in Malta, and it deals with bets and online games. This country was among the first ones in the world that elaborated a legal framework for the iGaming industry. Today, Malta is home to more than 300 iGaming companies that ensure approximately 12% of the country’s GDP and create jobs for more than 10,000 people. Do you know Unibet, Betsson, or LeoVegas? They are all registered in Malta.
Malta was once referred to as the Blockchain Island as it was one of the first countries that adopted relevant laws to regulate this sphere. It created a register of blockchain-based IP addresses and transmitted 60,000 records with the help of a blockchain network. Malta’s authorities launched three more blockchain projects:
- Certification of foodstuffs produced on the island of Gozo
- Blockchain-based system that deals with copyright and intellectual property right
- Blockchain-based system for property planning that ensures the transparency of processes
As for the level of digital assets regulation, Malta ranked 3rd among 42 countries in 2022 according to the Global Crypto Regulation Index. The country is very popular with blockchain companies thanks to its benefits for innovators, flexible regulations, and accessible financing. OKEx, BitBay, and Binance have Maltese offices.
The fintech industry is one of the leaders in development in Malta, and it has all to become one – starting from highly qualified experts to progressive regulation and highly accessible banking services. Malta comes third after Great Britain and Switzerland in the ranking of countries that created an attractive pro-fintech environment. There are three aspects of the European fintech sector that help the country occupy such a high place: scaling, creation, and financing. Malta provides all assistance possible to fintech companies when they launch operations, get access to funds, and expand their activities.
Binance, Moneybase, and Entercash are a few examples of prospering Maltese companies.
This sphere is important for Malta and it accounts for 10% of the country’s GDP and provides jobs for more than 20,000 people. The island’s property is popular with local and foreign investors, and it is often bought to fulfill the requirements of the citizenship- or residency-by-investment programs offered by Maltese authorities.
Malta is first of all a beautiful island with stunning landscapes! No wonder it attracts a lot of tourists from all over the world, and the tourist industry is of utmost importance as it brings 30% of Malta’s GDP and gives jobs to about 50,000 people. Tourists come here to enjoy the warm sunny weather, historical and cultural places, and take advantage of various rest and entertainment opportunities. However, there are people who flock here for different purposes than taking a rest: entrepreneurs and scientists hold conferences here, and there are those who come here to study English or undergo medical treatment. Of course, there was a sharp drop in the number of tourists during the pandemic, but the situation has almost recovered.
There is much more to Malta than we can describe in this short post, of course. Follow the above link to visit our portal and discover more – or get in touch with our experts to find out all the details even more quickly!
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