Open an Offshore Company in Malta
For just US$2,000
Benefits of a Malta Offshore Company
Member of the European Union
Malta is a full member of the European Union, with access to the EU Market and Directives
5% Effective Tax Rate
Maltese companies with foreign owners can profit of a 5% effective tax rate.
Access to Tax Treaty Network
Maltese Offshore Companies can benefit from Malta's international tax treaties network, making it good option for international tax planning
No Economic Substance Requirements
Malta does not have Economic Substance Requirements for Offshore Companies, making it low cost to have a tax resident company.
Maltese Company Summary
Company Type: LTD
Minimum Shareholder: one.
Minimum Paid-Up Capital: €1,165
Malta has a tax system that allows company shareholders to benefit from an effective tax rate of 5% on profits, while operating through an company formed in the Euorpean Union with access to tax treaties and the European Union Directives. In addition, a Maltese company is not subject to economic substance requirements.
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Uses: A Malta company is an excellent option for those engaged in international tax planning through tax treaties, holding companies, receiving income from clients in or operating within the European Union, or seeking to establish a low-tax offshore company while benefiting from international prestige, tax benefits, with access to the EU market, Malta can be a great option.
Taxation of a Maltese Offshore Company
How is a Company in Malta Taxed?
Malta has an effective tax rate of 5% on net profits.
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The company's income is initially taxed at a 35% rate. However, when the dividend is distributed, 6/7ths of the corporate tax paid are refunded by the tax authority. This refund is then sent to your bank account in Malta or offshore/overseas. As a result, after the refund is processed, you would effectively be paying only a 5% tax rate on your net income.
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All companies formed in Malta are considered tax residents in Malta due to incorporation, rather than the place of management. Therefore, there is no need for an Economic Substance requirement to obtain a tax residency certificate.
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This type of tax setup or system is unique and, at the same time, is perceived as a high tax jurisdiction under international tax laws. However, it is not blacklisted, as Malta is fully integrated into the European Union and can fully benefit from tax treaties. In practice, shareholders end up paying a 5% effective tax rate. (It's important to note that being liable for tax in your country of business tax residency (Malta in this case) is a requirement if you want to benefit from tax treaties, so being taxed at this 5% rate allows you to benefit from DTAAs .)
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Additionally, the yearly maintenance system is designed in a way that may resemble tax havens with low income-tax rates.
Tax Residency
Corporate Tax Residency in Malta is based on country of formation, and not place of management
Yearly Compliance
Annual Return
Annual return fee will depend on the authorized share capital. The fee starts from €85 to €1,200
Can be submitted in online format or hard copy.
Due date: within 42 days of the Incorporate Date anniversary.
What does the annual return contain:
Company Name: The name of the Company
1. Address (Address of the registered office of the company):
The company's registered address is in Malta
2. Summary of Share Capital
The authorized and issued share capital, as well as the percentage that has been paid up
3. List of Past and Present Members
Details of shareholders including their names, surnames, addresses, and identification numbers, along with the quantity and class of shares held by each individual. For corporate shareholders, the information includes the name, company number, and registered address of the company, as well as the amount and class of shares held.
4. Particulars of Directors
Names, surnames, addresses, and identification numbers of directors. For directors representing a corporate entity, the information includes the name, company number, and registered address of the company.
5. Particulars of Company Secretary:
Name, surname, address, and identification number of the company secretary. If the company secretary is a company service provider, the name, company number, and registered address of the service provider must also be provided.​
Annual Financial Statements:
The company is required to prepare and submit annual financial statements, including a balance sheet, income statement, and notes to the accounts. These statements should be prepared in accordance with International Financial Reporting Standards (IFRS) or another approved accounting framework.
Economic Substance Requirements in Malta
Malta's legislation does not have Economic Substance Requirements for companies formed in Malta, making this Malta a great option for international tax planning purposes, treaty shopping, and more.