Incorporating in Malta

If neither Portugal, nor the MIBC serve your investment and business purposes, or you are planning in either internationalizing your business or restructuring your estate for whatever reason, we at MCS can help you incorporate any type of entity in Malta.

Since 1995, our team of legal and tax experts have assisted international investors, UHNWIs and businesses with complying with international and OECD rules. Therefore, we understand the implications and requirements of correctly incorporating and organizing a fully compliant business structure in Malta. Our team’s experience with the Maltese structures dates back to the foundation of MCS itself.

Malta has emerged, over the past decades, as fully efficient and tax compliant jurisdiction within the European Union and in the heart of the Mediterranean sea.

Generally speaking, the Maltese tax system is full imputation tax system. This means that  tax on profits paid by the company distributing dividends is “converted” into a tax credit for the shareholder receiving such dividends. This unique legal clause allows the avoidance of double taxation on the same income (for the company and for the shareholder).

Given the fact that the 35% tax rate applied to the company is equal to the maximum tax rate on personal income, paying out dividends through Malta does not lead to further taxation for shareholders. Furthermore,  a shareholder receiving profit dividends can request a tax refund on those profits paid by Maltese company.

Refund depends on the nature of the distributed profits and if these have benefited, or not, of any double taxation relief mechanisms foreseen by the extensive network of Double Taxation Agreements signed between Malta and other 70 countries.

The permanent uncertainty affecting the global economy is a constant reminder of the importance of safeguarding or enhancing one’s personal or family assets. Under its civil law system Malta has specialized it self in providing solutions capable of assuring one’s estate is preserved according to their wishes.

As such, setting up a trust or a foundation in Malta, allows one to opt between two solutions that can be tailor made  to one’s needs.

While a trust is a useful and effective means of creating a personalised asset protection vehicle, suited to each and every clients’ particular needs; during and/or after the settlor’s lifetime.

A foundation, on the other hand, is an organisation consisting of a universality of things constituted by one or more founders whereby assets are destined either for beneficiaries, other foundations or a specified purpose.

Trust are, if requirements are met, tax exempt in Malta and foundations are usually taxed as companies.

Malta's flag on top of a building

Malta

Should you require assistance in incorporating an entity in Malta (or any other tax efficient jurisdiction), do not hesitate to contact us.