Malta is a small island nation in the Mediterranean Sea that has become an increasingly popular destination for company establishment. The country offers a range of advantages for entrepreneurs, including a favorable tax regime, a highly skilled workforce, a strategic location, and a stable political and economic environment.
Tax Rates in Malta
One of the most significant advantages of establishing a company in Malta is the favorable tax regime. The country has a progressive corporate income tax rate that ranges from 0% to 35%, depending on the company's size and industry. Small and medium-sized enterprises (SMEs) can benefit from a tax refund scheme that effectively reduces the corporate tax rate to 5%.
In addition to the favorable corporate tax rates, Malta also offers other tax incentives to companies, such as a participation exemption regime that exempts dividends and capital gains derived from qualifying holdings. The country also has an extensive network of double taxation treaties with more than 70 countries, which can help companies avoid paying taxes twice on the same income.
Another benefit of the tax regime in Malta is the absence of withholding taxes on dividends, interest, and royalties paid to non-residents. This makes Malta an attractive location for holding companies, as it allows them to receive income from their subsidiaries located in other countries without paying taxes on that income.
Banks for Account Opening
Malta has a well-developed banking system with both local and international banks operating in the country. Some of the most popular banks in Malta include Bank of Valletta, HSBC Malta, and APS Bank. These banks offer a range of banking services, including corporate banking, trade finance, and foreign exchange transactions.
To open a corporate bank account in Malta, companies must provide the necessary documentation, such as company registration documents, proof of identity of company directors and shareholders, and evidence of the company's business activities. The banks may also require information on the source of funds and the nature of the business transactions.
Other Advantages of Malta as a Jurisdiction for Company Establishment
Apart from the favorable tax regime and the availability of banking services, there are many other advantages to establishing a company in Malta. The country has a highly skilled and multilingual workforce, with a literacy rate of over 90%. The cost of labor is relatively low compared to other European countries, making Malta an attractive location for businesses looking to reduce their labor costs.
Malta is also strategically located in the heart of the Mediterranean, which makes it an ideal location for companies engaged in international trade. The country has a modern infrastructure, including an international airport, a well-developed port network, and a good road and rail system.
Furthermore, Malta has a stable political and economic environment, with a government that is committed to promoting foreign investment and business development. The country has a high standard of living, and it offers a safe and secure environment for both residents and visitors.
In conclusion, Malta is a highly attractive jurisdiction for company establishment. The country offers a favorable tax regime, a highly skilled workforce, a strategic location, and a stable political and economic environment. These factors, combined with a well-developed banking system and modern infrastructure, make Malta an ideal location for entrepreneurs looking to establish a company in Europe.