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MALTA |
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How to invest in Malta? |
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On Malta, any capital invested as well as profits may be repatriated without constraint. Generally, foreigners may hold up to 100% of the capital of Maltese businesses. Non-residents must obligatorily obtain an exchange control authorisation to invest directly in a Maltese business. |
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How to invest in Malta? |
On Malta, any capital invested as well as profits may be repatriated without constraint. Generally, foreigners may hold up to 100% of the capital of Maltese businesses. Non-residents must obligatorily obtain an exchange control authorisation to invest directly in a Maltese business. There is no exchange control for investments made by companies which operate under the MFSC act.
Besides the “normal” limited liability company, which is the norm in the manufacturing sector, Malta proposes two other distinct type of company: the International Holding Company (IHC) and the International Trading Company (ITC). These companies benefit from the fiscal advantages of a number of treaties of double taxation arrangements signed by Malta, in particular with Austria, Belgium, Cyprus, France, Italy, Libya, the Netherlands, Germany, the United Kingdom and Sweden. The International Trading Company (ITC) is a company involved solely in external trade activities run from Malta, and it may not invest in or hold foreign securities. The International Holding Company (IHC), is a company with activities limited to the participation in the shareholding of foreign companies in activities which generate similar passive income.
The "ITC" and "IHC" are taxed at 35% on their overall global income, but an ingenious mechanism exists for tax credits and de-taxation which applies to shareholders, enabling them to reduce their net tax rate to 4.2 % for the ITC, and to a net rate of between 0 and 6.5 % for the IHC.
A minimum number of shareholders is required; both physical and legal entities are accepted. It takes, on average, two weeks for the registration formalities. Maltese legislation requires that each company keeps its registered office on Malta and uses the services of a local financial advisor as a director and secretary, this person equally being responsible for the operations carried out by the Maltese company.
The customs integration of Malta into the European Union is effective since 1st May 2004, the date of membership. Certain products are subjected to an import licence: agri-food and chemical products, perfumes and cosmetics, electric and electronic equipment, transport equipment and fairground material.
Rates of customs duty are between 0 and 24% depending on CAF value. VAT is up to 18%. Other taxes exist for tobacco, alcohol and petroleum products. |
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