Malta stands among the EU countries with the lowest tax rates. It means you can set up a company in Malta with taking care of community laws and enjoy those many benefits that come with forming and registering a company in this small island.
Malta has managed to maintain its tremendously competitive taxation system since it acceded to the European Union in 2004. Besides that, it has introduced many new incentives that attract foreign businesses from across the world to form and register a company in the country.
Some of the key benefits of forming and registering a company in Malta include the following:
- The 6/7 Reimbursement System
The Maltese law allows you to claim back most of your money paid as dividends from the business tax paid. It means you can recover almost all the business tax you have paid.
- Tax Benefits
The dividend that you receive from your registered company in Malta and the profit that you get from its subsidiary sale are exempted from corporate tax. Because this corporate tax is paid out as a dividend to the shareholders of the company hence there is no tax liability for the income generated.
- Other Benefits
The competitive tax system has led to a growing number of Malta company formations from across the world. While you can afford to set different types of businesses in Malta, a trading company has been the most legally settled companies in the island. Another area where investors have been successful in Maltese markets is offering registered ships and aircraft.
Malta does not stand as an offshore zone though it continues to be one of the European Union member states that offer the lowest tax rates and have safe investment environments. Thanks to these worthwhile features, more and more European investors are moving their businesses from other EU member states to Malta.