Discover Tax Incentives

The Maltese fiscal regime has been one of the main drivers in creating an attractive environment for foreign investors. Since joining the EU in 2004, Malta has become an attractive jurisdiction for tax planning and corporate structures.

An agreement with the EU preserves the competitive Maltese full-imputation tax system and has been deemed by the European Commission to be compliant with EU nondiscrimination principals.

The Maltese fiscal regime has been one of the main drivers in creating an attractive environment for foreign investors. Since joining the EU in 2004, Malta has become an attractive jurisdiction for tax planning and corporate structures.

An agreement with the EU preserves the competitive Maltese full-imputation tax system and has been deemed by the  European Commission to be compliant with EU nondiscrimination principals.  Through the full imputation system, tax paid by the company is available as a credit to the shareholders when distributions are made to them.  

 The main advantages of the Maltese fiscal system are:        

-In respect of dividends received from a participating holding and capital gains made from the disposal of a participating holding.  Income and capital gains derived from a participating holding qualify for a full refund of the Maltese tax paid by the company when distributions are made to company shareholders.  If certain conditions are satisfied, a company may also qualify for a participation exemption where the income discussed here, is exempted from tax

-Trading income. Upon distribution of income, the shareholders would be able to claim refunds of 6/7ths of the Maltese tax paid by the company.

-Passive income. Upon distribution of profits from passive income and royalties, the shareholders would be able to claim refunds of 5/7ths of the Maltese tax paid by the company.