The benefits of opening a company in Malta

Malta has pro-business and pro-foreign investment regimes that have helped it stand out as a preferred EU location for entrepreneurs and multinational corporations. Investors who open a company in Malta have a series of benefits, starting with a low corporate income tax rate and relatively low costs for doing business.

Reasons to invest in Malta

The small EU member state presents a series of undeniable advantages for business purposes. We list some of these below:

• political stability and a diverse economy;

• a developed services industry;

• a competitive tax regime, with some of the lowest rates in Europe;

• low costs for running a business;

• strategic location between Europe, the Middle East and North Africa.

Malta is a well-known tourist destination, however, its modern infrastructure and the development of the services sector, along with the fact that residents speak English, make the country a suitable choice to base the headquarters of a regional business or to focus on many of the dynamic key investment areas. Some of these are the financial services industry, the IT and software industry, maritime and trade activities as well as many others.

Company formation and taxation in Malta

Malta encourages foreign direct investments in all of its business sectors and investors can even benefit from special incentives that can cover tax credits on investments, investment allowances, good loan interest rates or assistance for training. Some of the tax incentives are offered in sectors like manufacturing, technology development, information and communication technology, healthcare, pharmaceuticals and others.

Investors can start a private or a public company in Malta, with the private limited liability company remaining the most widespread business form. An important condition is for the company to have a registered office in Malta, most commonly in Valetta.

Maltese companies are subject to an effective corporate income tax rate between 0 and 10% on their worldwide income for resident companies and the Maltese-sourced income for non-residents. This is possible through an effective imputation and refund system.

With its favorable geographical location, its low tax rates and good conditions for doing business, Malta is an attractive location to open a company in Europe.