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An Overview of Malta Holding Company Taxation

This article gives an overview and the advantages of Malta Holding Company Taxation. Set up your holding company in Malta through Endevio.

Firstly, let us understand what Maltese Holding Companies are. A Malta Holding Company is formed for the purpose of holding one or more assets, including real estate, cash, movable valuables, shares and securities, investment portfolios, yachts and aircraft, works of art as well as intellectual property.

One ought to also note that typically a holding company would not be engaged in any trading activities (sale of goods or provision of services), even though Maltese law does not impose any restrictions in this respect and a Maltese registered company may perform both holding and trading activities if that is the intention of the shareholders.

When selecting a suitable jurisdiction to set up a holding company, factors such as legislative framework, economic stability, and tax efficiency are all highly valued considerations.  

In this article, we're going to discuss:


Malta Holding Companies

Why set up a Holding Company in Malta? 

Here are the top reasons why you should set up a holding company in Malta: 

  • The ease of the initial setting-up of the Malta Holding Company 
  • The ongoing advantages of operating a Malta Holding Company 

The Tax Treatment 

Participation Exemption 

Malta offers a highly attractive and flexible participation exemption whereby dividend income and capital gains derived by the Maltese Holding company may be exempt from tax, subject to certain conditions being satisfied. 

Double Taxation Agreements and EU Directives 

Holding companies which are set up in Malta will also be able to benefit from an extensive double taxation treaty network as well as EU directives in force. Currently, Malta has in excess of double taxation treaties in force with jurisdictions across all the continents. Malta’s tax systems are also compliant with the EU non-discrimination principles.  

On Non-resident Shareholders 

In addition, Malta typically does not impose any withholding taxes on dividends, interest and royalties payable to non-resident shareholders irrespective of whether the shareholders are a corporate entity, trust or individual. 

Summarising Initial Benefits 

Tax advantages for Malta holding companies are definitely worth exploring; likewise the ease with which a Maltese holding company may be incorporated is highly attractive to shareholders of any nationality and regardless of their country of residence 

Re-Domiciliation of Companies 

Although the incorporation of a new holding company remains amongst the most attractive options. Shareholders who already have a holding entity established outside Malta may also opt to have that company re-domiciled to Malta in terms of the Continuation of Companies Regulations.  Re-domicilation offers the advantage of an existing company, originally incorporated under the laws of another jurisdiction, to continue its existence under the laws of Malta without the need of liquidating the company in its original jurisdiction.  Certain conditions need to be satisfied for a successful redomiciliation.  

We would love to assist you if you’re interested in setting up a holding company in Malta or re-domicile to Malta your existing holding entity. Get in touch with our specialists so that we may explain in further detail the advantages that Maltese law offers.