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Taxation in Malta

5% Effective Corporate Tax Rate - Malta's Tax Rate is lower than traditional offshore tax systems.

Benefits for Private Clients

As a foreign resident of Malta you only pay tax on income received or omitted to Malta – 0% tax payable on worldwide income; 15% if you enjoy permanent residence; or 25% tax if ordinarily resident and then only on income remitted or arising in Malta.

With 0% capital gains tax on income outside of Malta, 0% wealth tax, 0% inheritance tax,Malta is a popular place to retire or live.

Essentially a civil law system, Malta has modelled its commercial law – tax, company, trusts and financial services – on UK law and is fully compliant with EU law.

Benefits for Commercial Clients

With its central location in the Mediterranean, Malta is a superb hub with excellent transport links to the rest of Europe as well as the Middle East and beyond.

Part of the Eurozone with a stable economy and a Government intent on encouraging foreign business through the investment and development of the communications infrastructure, Malta offers companies a competitive landscape within which to pursue to their commercial endeavours.

Added to which an already existing multi – lingual, multi skilled and highly educated workforce with relatively low labour costs, Malta is in prime position to offer prospective employers a beneficial and secure future.

Some of the financial and tax benefits of doing business in Malta:

• Over 60 double taxation treaties worldwide

Full imputation system with an effective corporate tax rate of 5%.

• Attractive High Net Worth tax rules

• No capital taxes and no wealth taxes

• Tax refunds are legally guaranteed and paid within 2-3 weeks of application

• Use of IFRS functional convertible currency – for statutory capital, financials, tax and tax refund purposes

• Revenue rulings are binding for 5 years or 2 years following a change in legislation

• Informal tax confirmations and advanced tax rulings

• A single, approachable, financial regulator, the Malta Financial Services Authority (‘MFSA’)

• No withholding taxes on dividends, interest, royalties or other expenses

• No transfer pricing, thin capitalisation or controlled foreign company rules
• No stamp duty on share issues or transfers

• No Exit Taxes

VAT in Malta

VAT in Malta is 18% with a reduced rate of 5% - 7%

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