Business Set-Up in Malta
- GlenGlen obtained his ACCA qualification in 2014 and immediately afterwards he set up a corporate service provider firm, helping foreign entrepreneurs set up companies in Malta. In 2017, he set up Fitch Assurance Ltd as an Audit firm. He specializes in Malta company formations, accounting , preparing Financial Statements and providing external audit services.
Why Set-up Business in Malta?
Malta offers significant advantages as a company domicile, offering fully EU compliant, low effective tax rates and an excellent professional services infrastructure. The combination of Malta‘s unique tax system and its extensive and growing double tax treaty network means that, with proper guidance, planning and structuring, investors can achieve considerable fiscal efficiency using a Malta company to carry out its operations.
Maltese companies are taxed at a flat rate of 35% which is also the maximum rate for individuals. Other taxes include VAT, stamp duty and customs and excise duty. Malta is the only EU member state with a full imputation system of taxation in force.
Under Malta‘s full imputation system the shareholder of a company incorporated in Malta will, upon distribution of dividends, be entitled to a refund of in part or in full of any advance tax levied on the distributing company. A resident shareholder of a Malta company will be taxable in Malta on the dividend income, including the refund, at personal rates.
- The amount of the tax refund attributed to a Malta company is set at 6/7ths of the advance corporation tax paid by the Malta company and 5/7ths in the case of passive interest and royalties received by a Maltese company.
- The refund is reduced to 2/3rds where the distributing company claims double taxation relief.
- With respect to Maltese participating holdings a full 100% refund applies. A Maltese participating holding “arises where a Malta company holds at least 10% of the equity shares of a non-resident company”, or meets certain other criteria set out in the law.
In addition to the considerable benefits of the full imputation system and the extensive network of double taxation treaties, Malta offers businesses other key benefits under its tax legislation, including the following:
- As an EU member state, entities have access to the Parent-Subsidiary, Interest & Royalties, and Mergers Directives
- An exemption from tax on income derived by collective investment schemes
- Participation exemptions
- The possibility of migrating companies to and from Malta
- Advance rulings issued by the Maltese Commissioner of Inland Revenue on international transactions that guarantee the tax provision for a minimum of five years and may be renewed for a further five year period
- The possibility for companies to denominate their share capital and their accounts in any convertible currency with the chosen currency then being used for payments of tax and tax refunds (where applicable) thus minimising exchange risks
- An absence of “thin capitalisation” rules and no anti-controlled foreign corporation legislation
No capital duty on share issues and exemption from duty on transfer of shares in, by or to companies having the majority of their business interests outside Malta
- Low registration and maintenance costs
- Relative ease of incorporation for non-regulated entities
- A taxation scheme for groups of companies allowing offset of losses between group companies.
Shareholder/s of a company registered in Malta are entitled to claim certain types of refunds. Tax Refunds may be claimed when income is allocated and distributed from the Maltese Taxed Account and Foreign Income Account. No refunds may be claimed on income allocated to the Final Taxed Account and Immovable Property Account.
Shareholders of the following legal persons may claim refunds of tax paid in Malta:
- Companies incorporated under the Laws of Malta
- Companies not incorporated under the laws of Malta which are managed and controlled in Malta
- Companies not incorporated in Malta and not managed in Malta but which operate through a branch in Malta.
Refunds may be claimed both by Maltese resident and non-resident shareholders.
Under certain conditions, the tax refund may also be subject to further tax in Malta.
Services for Businesses
Business Set-up: Limited Company
Below is a list of client testimonials received from clients of our network of Accountants in Europe, obtained via Wufoo client survey platform:
- Cheryl, SevilleMonday, May 28, 2018Miguel was helpful and kind. We will use his service in the future.
- Caroline R, BarcelonaTuesday, April 24, 2018Miguel has been great!
His English is excellent, he explains everything clearly, emails when he says he will, and is very efficient in the service he provides.
I'd definitely recommend him to ...friends.
- SH, EnglandFriday, April 20, 2018Very satisfied with the service provided. Miguel was approachable and prompt in replying.
- A. Kavanagh, GlasgowThursday, March 15, 2018Miguel provided a great service and fully explained to me about the procedures with tax & business registration. My emails and questions where always answered straight away with an immediate response ...or solution.
Very helpful and very friendly I would definitely recommend to anyone considering using Advocate Abroad
- A.Kavanagh, GlasgowFriday, March 09, 2018Rosa was exceptional at helping me setting up my business abroad.
This was a big move for me and Rosa fully explained everything to me in detail so I had a full and clear understanding of the lega...l side of things as well as always promptly responding to any emails or questions I had.
I couldn’t of asked for a better lawyer and I would 100% recommend Rosa to anyone who is deciding to move abroad.
Great service could not be happier.
- Gavin Jones, UKMonday, February 19, 2018It was a real pleasure to have Miguel working on my behalf to file my non-resident taxes. He was extremely helpful, gave reassuring advice and I had a high level of confidence in the transactions.
...Miguel is now acting as my fiscal representative in Spain and I plan to continue to use his firm's services for all my tax requirements.
- Ali Hashemi, AlicanteWednesday, February 14, 2018Rafael was extremely helpful, accommodating and understanding. He couldn't have done more.
- Richard Quick, EsteponaSunday, February 04, 2018I was particularly impressed by Miguel's approachability & professionalism, excellent service!
- Francis Dale, MarbellaThursday, December 21, 2017Very helpful, quick to respond and very knowledgeable.
- Bart Cuyvers, BelgiumWednesday, December 20, 2017The service we received was perfect!
- S Crawford, Alhaurín El GrandeWednesday, November 22, 2017Miguel was quick to respond to questions, professional, personable, knowledgeable. Very Satisfied with the service.
- Bruce and Susan Moore, EnglandTuesday, October 31, 2017Great responsive and assured service
- Hugh and Ann Morgan, Palma de MallorcaMonday, October 30, 2017His command of English is First Class.
He demonstrated the highest level of professionalism and efficiency and l would have no hesitation in using him again or recommending him to any of my collea...gues or friends
Competent, capable value for money FIRST CLASS and a credit to the organisation
- Anthony Bennett, BarcelonaThursday, October 19, 2017Anna provided the best possible solution for me in my situation, and helped out as much as she possibly could. I would recommend her services to anybody seeking legal or financial advice.
- Carlos Pelaez, LondonMonday, July 03, 2017She was friendly and attentive at all times, quick answers on whatsapp app and always up to help and answer my questions. I'm pretty satisfied with her service.
- Amy Wahba, BarcelonaMonday, March 06, 2017She was understanding and tried to maintain positive always even when doors closed in our face. She is always smiling and tried to find solutions to my problems which kept me always at rest.
- Richard Whiteside, LucenaMonday, February 20, 2017Miguel has provided an excellent service, helping me sort out my tax and social security obligations as an ‘autonomo’.
He is always prompt with his answers to my questions, he offers timely adv...ice and always makes sure that I am prepared in advance.
His English level is excellent and I will continue to use his service in the future.
- Robert Toth, IrelandThursday, February 09, 2017Anna was very, very helpful, always happy to assist and also approachable and professional. I was very satisfied with the legal services.
- Saeid Aboutalebian, IranWednesday, February 08, 2017Everything is good about Anna. She is very friendly. And I definitely would use the same lawyer again in the future.
- Fiona Murie, UKWednesday, November 09, 2016Miguel has always been extremely approachable, helpful and given sound advice. He has kept us informed at every stage and quickly answered questions to help us make informed decisions.
We feel like... we have had value for money and will definitely use Miguel as our only lawyer for all Spanish business.
He has been fantastic! Very professional
- JS, BarcelonaFriday, May 20, 2016Miguel is extremely helpful, couldn’t have done more. He is also responsive, transparent and informative.
- Sharon Janet, Stoke-On-TrentWednesday, April 06, 2016Miguel was always available to discuss any issues we had.
Excellent service more than happy and will be going back to him with and future legal issues. I would advise anyone to deal with this pract...ice more than accommodating.
- AJH Platino Servicios, S.L., TenerifeTuesday, March 31, 2015To date these are routine services but he appears to be up to date with the latest legislation and the advice we have received thus far has appeared sensible to me. As we begin to explore what our com...pany might do I am sure we can make it a little more challenging for him!
- Marian O’Dwyer, Alhama GranadaMonday, March 30, 2015Prompt, professional, friendly, explained everything clearly, went above and beyond the necessary to make things easy.
- Kevin Neylon, PolandMonday, February 23, 2015Jaime was very responsive, represented value for money and was very professional and helpful. I was very satisfied with his advice.
- P.T., BenalmadenaThursday, January 15, 2015All tax returns are handled online, so I don't need to go anywhere to accomplish my tax obligations in Spain. Although the service is provided mainly by internet, Jaime met me when necessary, and I ca...n always contact quickly him or his team by phone, email, skype and even whatsapp.
Jaime and his team have been really helpful during the setting-up process of my business.
- Nikolay Denev, CádizThursday, November 20, 2014I was very satisfied with the short time it took to set-up my documents and register me as autonomo initially.
Now I'm happy with the service, and if I have any questions I have them answered quickly... and the answers are always easy to understand.
The service represents excellent value for money.
- H R Crowther, HuddersfieldMonday, November 10, 2014Prompt response followed by confirmatary e-mails. Very approachable, and inspired confidence. Good value for money. Very satisfied and would definitely use the service again.
- Florian Burkart, BarcelonaFriday, September 05, 2014What we like about the service from Advocate Abroad: - Very knowledgeable and competent - Very friendly and helpful - Very good English and reasonable prices - Not trying to rip us off
- B Clarke, JayenaFriday, February 14, 2014Jaime was extremely helpful and professional. He was happy to meet all of our requests and made our transaction extremely simple. Everything was explained clearly and all of our questions were answere...d.
We also felt that the service provided to us, offered great value for money and we would highly recommend Jaime to other individuals.