Company Formations in Malta - Interesting facts and general conditions
Company formations in Malta are an excellent option for those looking to run their new business in a business-friendly, relaxed, and sunny environment. Why You Should Consider Setting Up a New Malta Company? Malta is a tiny island in the Mediterranean Sea near Sicily. The weather is nice (320 sunny days in a year), the island enjoys a growing expat community, and the tax framework is complicated but competitive.
Furthermore, if living in a hot spot is not required, one can enjoy reasonable living costs and low housing costs. Hence, numerous international companies are already doing business in and from Malta. Increasingly, firms and entrepreneurs are becoming aware of the benefits of company formations in Malta and establishing subsidiaries and branches on the Mediterranean island.
After several years of turmoil, the banking sector had fully recovered, and newly formed companies could now obtain bank accounts at Internet banks or local banks. However, Malta is by no means a banking center, as sometimes proposed on the internet. Many entrepreneurs struggle to obtain banking facilities. Here we can help.
Our internationally experienced and highly qualified lawyers and tax advisors will review your company structure and existing management or mandate contracts. We also offer a review of your contractual arrangements at home and abroad. Additionally, our tax and accounting department will be pleased to handle your bookkeeping and tax returns.
Why not consider partnering with us? We offer competitive company formations in Malta at a fixed price of 2.480,00 € net. Our services are not only affordable but also efficient, reliable, and delivered in your native language. Whether you prefer to communicate in German, English, French, Italian, Spanish, Czech, Slovak, or Greek, we’ve got you covered!
Ideal Tax Framework for a wider range of Buisnesses
Why a new Malta company? Before Malta joined the European Union, it abolished the former “offshore” regulations. Thus, Maltese legislation today fulfills all relevant EU standards, OECD standards, FATF standards, and FSF standards.
Maltese companies are recognized throughout the European Union as EU companies with an extensive Network of Tax Treaties. This circumstance is used mainly by holding companies. Nowadays, Malta has one of the most favorable tax regimes, competing with Cyprus, Ireland, and the Netherlands within the EU, as well as with the UK as a non-EU jurisdiction. Regarding fund formations, Malta competes with Luxembourg on a cost split but has a lower reputation.
Why not speak to us about the advantages of company formations in Malta?
What you need to consider
A long-term stay in a country for more than 183 days will usually (and automatically lead to an unlimited tax liability for your worldwide income. Some countries go even further and already assign this tax liability if you can permanently use your apartment (this can even be the room in your parents’ house or a regularly visited hotel), which you can access with your keys – known as “Schlüsselgewalt” in German-speaking countries. This rule establishes or maintains an unlimited Tax liability for your worldwide income. If this subject interests you, you may learn more about it on our dedicated website for Taxation.
However, a tax residency in Malta is granted to non-domiciliaries if they stay in the country for at least 183 days each calendar year. This fact limits your ability to engage in extended travel.
Especially for Digital Nomads, Malta is a fantastic place to stay, creating a safe environment within the EU and short distances to the continent. But leaving all doors open for up to six months of travel. One can’t stay in any other (EU-) country for more than 183 days, as this would trigger a tax residency there. There are some exceptions we will discuss in a meeting.
Setting up a company in Malta is a straightforward process. The real challenge lies in establishing an unassailable tax residence for both the company and its founder. Relocation may sound simple, but it is by no means as easy as moving to a new country. German-speaking countries in particular are familiar with the Taxation of hidden reserves and exit taxation.
Once you have overcome these problem areas, the next hurdle awaits you: opening a bank account. You probably cannot imagine how many founders in Cyprus, Malta, and Ireland are stuck with a useless company without a bank account. Please don’t listen to rumors; instead, contact us directly. We will tell you straight up whether it can work for you or not. That’s a promise.
If you have plans for company formations in Malta, be sure to speak with us first to avoid costly mistakes. We can help you determine if a relocation is a good fit. Our Tax Experts and corporate finance experts at TAXEDO LLP will find a sophisticated solution.
TOP Jurisdiction for EU Residence
Malta, however, offers ideal conditions for a tax residence. To obtain tax residence, one must stay in Malta for more than 183 days. With close links to other European countries, excellent flight connections, and travel times of approximately two hours to the center of Europe, this is an ideal location for conducting business of any kind.
Of course, you cannot stay in any other country for more than 183 days, which would trigger an unlimited tax liability there. This concept is, therefore, ideal for everyone who can live and work flexibly (e.g., digital nomads). If you need more flexibility due to a busy travel schedule, we strongly recommend Cyprus as an alternative.
You can rely on well-founded and legally sound advice if you come to us. Together, we will find your ideal life concept.
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