Investing in International Business Entities through Malta: Tax Advantages and Strategies

Table of contents:
  1. Tax system of Malta
  2. Bilateral tax treaties
  3. Tax residency scheme
  4. Management Agreement
  5. Additional tax benefits
Investing in international business entities through Malta is one of the most attractive options for investors today due to a range of tax advantages and effective strategies. In this article, we will look at the details of these benefits and strategies.

Anastasia Tereshkova
Immigration lawyer

Tax system of Malta

Malta operates a taxation system based on the national taxable income principle, where taxes are assessed only on income earned in Malta. Companies are eligible to receive a tax refund on dividends, which significantly reduces the tax burden for international businesses.

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Bilateral tax treaties

Malta has an extensive network of bilateral tax treaties with various countries, which provide companies with additional tax benefits and protection from double taxation. These agreements allow you to effectively optimize tax obligations between different jurisdictions.

Tax residency scheme
Using the tax residency scheme allows you to obtain additional tax advantages. A company must be effectively managed and controlled in Malta to become a "tax resident". This status provides access to the benefits of Malta's tax treaty network.
Management Agreement
Entering into a management agreement allows a local Maltese resident to be appointed as a director of the company in order to benefit from the Maltese tax system and retain effective local management of the company.
Additional tax benefits
Malta also provides other tax benefits such as exemption from capital gains tax, inheritance tax and dividend tax. This makes Malta even more attractive to investors looking to reduce their tax costs.
Investing in international business entities through Malta offers many tax advantages and strategies. However, prior to using these strategies, consultation with experienced legal and tax advisors is required to ensure compliance with all legal requirements and international agreements.

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