Malta is one of Europe’s fast growing financial services centres. Legislation which was enacted in late 1994 provides a regulatory framework for financial services activities and international business.

Malta's wide Double Tax treaty network as well as other methods for relieving Double Taxation on cross border transactions provide an excellent basis for establishing tax efficient structures through the use of trading companies, finance or treasury companies and holding companies. Although there is no specific regime for holding company structures, Maltese companies which have a participating holding in foreign subs or have a participation exemption are attractive vehicles in international tax planning.

Malta companies having foreign source income may claim a Flat Rate Foreign Tax Credit to reduce the effective Malta tax payable. The system of tax credits and tax refunds which operate under Malta’s full imputation system prove to be very attractive for companies holding investments or IP those coming on finance or treasury companies, banks and other financial institutions.

Captive Insurance Companies or Affiliated Insurance Companies as they are known in Malta, Collective Investment Schemes and Professional Investor Funds are also attractive vehicles because of the regulatory environment, tax exemptions and the single passport rights.

Apart from the modern regulatory framework and efficient tax system, Malta has the additional advantages of a central location, qualified and flexible human resources, developed & stable infrastructure and flexible operating cost base that provide excellent opportunities and incentives.

Our firm can help you set up in Malta and assist as your business develops. We provide advice on set up structures and assist with any applications which may be necessary. We also provide company administration and management services and fiduciary or trustee services.

If you would like further information on this service line contact our tax director on walter.cutajar@avanzia.com.mt