Malta – Why and for Whom? 2023-06-27T12:12:53+00:00

Malta – Why and for Whom?



Why? At first glance the Maltese corporate tax rate of 35% does not seem to offer much by way of incentives to foreign investors. However, the local tax imputation system in effect means that distributions made to companies with an interest/participation in the Maltese company can claim back (in most cases) 6/7th of the initial amount of corporate tax paid or in simple terms, the final amount of corporate tax can be as low as 5%.The complexity of this system and the need for overhead and tax efficient legal entities may seem invasive until one takes note of the reasons why this system was set-up in the first place, which was namely to circumvent the anti-avoidance provisions of countries such as Germany where in general withholding taxes can only be avoided if the recipient country will tax its legal entities at, at least, 2/3rd’s of the applicable German tax rate. In précis, Malta has established itself as a premium tax planning centre not quite at the level of much larger countries such as Ireland or the Netherlands but nonetheless certainly as the most stable and prestigious tax planning centre in southern Europe.

Tax Planning Benefits

  • No Malta is an EU member state – Malta is a full member of the EU benefiting from EU Directives and Regulations such as the Parent Subsidiary Directive 90/435, which allows dividends to be paid from one EU country to another EU country without withholding taxes whilst under EU Directive 03/49 Maltese companies can also issue loans and receive interest without the normal application withholding taxes;
  • Extensive Double Taxation Treaty Network – Maltese limited companies that are locally managed and controlled will benefit from some 60 double taxation treaties that Malta has with other countries;
  • Malta is part of the Euro Zone – The local currency is the Euro and unlike Cyprus, Greece or Portugal it hasn’t had to have a financial bailout;
  • Excellent reputation – Malta has an excellent reputation and has had few of the negative associations that other countries may have had regarding money laundering and/or tax evasion which is primarily because most of its corporate formation clients’ are West European.
  • Gaming, Shipping and Aircraft Registrations – Malta offers a very attractive regulatory and registration regime for gaming, shipping and aircraft registration;
  • International banks located in Malta – There is a comprehensive range of international and local banks available in Malta;
  • Well educated professionals – Malta has well educated professionals mostly educated at UK universities;
  • English is the business language – English is the dominant language in commerce throughout Malta and is spoken by almost everyone as a first language;
  • The legal system is mostly common law based – The company formation legal system in Malta is common law based and very much influenced by that of England and Wales.

Double Taxation Treaty Network

The Maltese double taxation treaty network is one of the largest in southern Europe and has become a favored business and holding location for those based in the financial and/or gaming sectors.

For Whom? Maltese companies offer a convincing alternative to Cyprus with technically an even better corporate tax outcome provided there are external/non-Maltese shareholder companies. Malta also has very attractive personal tax incentives and like Gibraltar is also targeting the gaming and crypto-currency sectors.


(Strictly Confidential No Obligation)

    SCF Legal & Corporate Management Services Limited

    Address: 250 Kings Road, Chelsea, London SW3 5UE

    Telephone: 020 7731 2020   Email:

    Registration number: 05462416



    The SCF International  specializes in providing accountancy and management services for UK and Irish limited companies, UK & Irish company management services including the provision of (where necessary) domestic directors, domestic company secretaries, registered office address services, trading offices, value added tax (VAT) registration and management, payroll (Pay as You Earn PAYE), opening up and managing UK or Irish bank account facilities, raising  invoices and any and/or all other services required to establish a bone fide managed and controlled UK or Irish limited liability company.

    Our in-house team of legally and accountancy qualified experts can also provide advice on current UK & Irish tax laws/provisions including anti-avoidance provisions, EU directives and regulations, the impact of BREXIT for both UK and EU based businesses and other relevant. In addition, where required the SCF Group can also set-up and arrange the management of companies in tax efficient EU based jurisdictions such as Cyprus, Luxembourg or Malta or indeed any jurisdiction in the world including those in the Middle and Far East.

    Property de-enveloping services – In conjunction with leading UK firms of solicitors SCF can help transfer companies currently held by what were known as ‘offshore’ companies into either more tax efficient UK companies or directly back into the names of individual beneficial owners’ often without attracting stamp duty land tax (SDLT) but still avoiding the advance tax on enveloped dwellings (ATED).

    Our fiscal migration and tax planning department is operated by qualified lawyers and accountants and can advise both domiciled and non-domiciled individuals on how to mitigate their individual and corporate tax exposure be it in the UK or abroad. Our legal & business department can provide specialized advice on all domestic and international tax planning issues but also upon ‘key’ issues such as asset protection be it in the form of trusts and private interest foundations (PIF’s). In particular, SCF can provide advice to those intending to relocate to the UK on how to do so in the most tax efficient way.