Officially known as the Republic of Malta, Malta is a Southern European is land located in the central of Mediterranean Sea with an area of about 316 square kilometres and a populations of approximately 450,000. Malta has been a member of the European Union since May 2004. The official languages of Malta are Maltese and English.
Malta’s competitive tax system, extensive network of Double Tax Treaties, and its English-speaking educated workforce make it an increasingly popular business vehicle for companies from all over the world to register a company in Malta. Malta is currently signatory to almost 70 Double Tax Treaties and some interesting opportunities exist when putting into place the appropriate corporate structure. Corporate tax in Malta is calculated at a flat-rate of 35% on the gross profits based on the audited financial statements of the company. However, through the availability of a tax refund system granted to shareholders of Malta-registered companies, the overall net effective tax rate could be reduced to 0% in the case of holding company structures, and 5% in the case of trading companies. In either case, there are specific legal requirements that must be satisfied in order for shareholders to benefit from such tax refunds.