Doing business in Malta
The benefits of doing business in Malta
The advantages of setting a company in Malta include specialized services that are relatively cheaper than the rest of Europe, no withholding tax on the allocation of dividends to shareholders, wonderful tax rates and short delays for company registration procedures. Malta is particularly suitable for English-speaking investors, since the language is an official one and it is widely spoken within the whole Maltese community.
Doing business in Malta after joining the European Union
In addition, there are state of the art conference centres all over the island that could be used for all kind of meetings and business events, with the possibility of hosting crowds of more than a thousand people.
Registering your company in Malta
Before registering a company, you will need to create a Memorandum and Articles of Association, based on some characteristics of the company. An accountant or a company lawyer can walk you through the whole process.
After registering with MFSA, you also need to register with the following:
• The Employment and Training Corporation (ETC)
• Inland Revenue – for tax purposes
• VAT Office
Taxation in Malta
Moreover, the International Trading Company and the International Holding Company, offer great tax benefits. This kind of companies pay a 35% corporate tax on international profits, but a system of automatic refunds makes them very tax efficient, with respectively 4.17% and 0% effective tax rates. Reimbursements are carried out by the Inland Revenue Department within a short period of paying the corporate tax.
Furthermore, Malta has several fiscal treaties that might exempt you from paying taxes in your home country, or offer lower rates, depending on where you reside.
To benefit from these and other advantages, it’s best to consult tax professionals and the Inland Revenue Department, even prior to registering your company, since otherwise it could be too late. The IRD offers most of its services online, but you would need to register an e-ID first (for more info read here).
Employees tax rates in Malta
INCOME TAXABLE INCOME TAX RATE
on the first €11 400 €0 - 11 400 Nil
on the next €9099 €11 401 - 20 500 15%
on the next €7499 €20 501 - 28 000 25%
on the remainder €28 001 and over 35%
INCOME TAXABLE INCOME TAX RATE
on the first €8150 €0 - 8150 Nill
on the next €5849 €8151 - 14 000 15%
on the next €4999 €14 002 - 19 000 25%
on the remainder €19 001 and over 35%
Address: Block 4, Vincenzo Dimech Street, Floriana
Phone +356 2296 2296
VAT in Malta
Foreigners who are trading in Malta should register with the VAT department if they perform transactions that fall under the VAT scheme as stated in the Maltese legislation. You can deal with the VAT duties yourself or appoint an adequate professional to act on your behalf.
For more information, visit www.vat.gov.mt
Address: 16, Centre Point Building, Paris Street, Birkirkara BKR 4633
Phone: + 356 21499330
Malta Enterprise is a publicentity in charge of encouraging foreign investment and industrial expansion.
Its main aim is to maintain a level of competitiveness within the local industry, and to foster ideal conditions for businesses to thrive.
Malta Enterprise offers guidance to those who want to start a business venture and those willing to start exportation, gives information about the local investment opportunities as well as advice foreign investors while doing business in Malta.
In addition, Malta Enterprise offers financial support in various ways, such as monetary grants and tax credits.
It also administers funding from European programs, such as the European Regional Development Fund.
Contact Malta Enterprise
Address: Industrial Estate, San Gwann SGN 3000
Phone: +356 2542 0000
The area, which is just 5km away from the airport, is also easily accessible from Valletta via a dual carriageway. The park is purposely designed for businesses, bearing in mind their particular needs. It has a capacity to host 11,000 employees, a residential area and a huge public space that will serve as a recreational area.
Contact SmartCity Malta
Phone: +356 2164 6666
e-ID – Government services online
Most of the online services require an e-ID that gives you a secure access to the services that require the use of authentication. To apply for the e-ID you need to personally go to the Evans building in Valletta to register, and take your ID card with you. Quite obviously, you would need to have an active email account to be able to register. After registering, you will be sent your username, password by e-mail and an activation PIN code by post.