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Transfer your offshore entity to Malta. We help you.

Prospera Europe Ltd.
19 June, 2017

There are many benefits of re-domiciliation from an offshore jurisdiction to European Union, to Malta.

What are the reasons why a company or other legal entity would want to change its jurisdiction from offshore to onshore? There are many, these include introduction of offshore black lists, changes in the political, economic and fiscal environment, and the recent drive towards transparency, exchange of information and compliance. Due to this, people are today looking for more robust corporate locations such as Malta.

There are three common ways to move your company to Malta:

  1. Re-domiciliation from offshore to Malta,
  2. Registering an Overseas Company in Malta,
  3. Interposing a Malta company in a corporate structure;

We have practice and experience in all three above options, we advise you which way to go and make it easy for you.


Malta is a top domicile of Europe with its economic stability and robust tax and banking systems.

With the ever increasing scrutiny and vigilance of the tax authorities, especially with the introduction of offshore blacklists, it has, in recent years, become increasingly difficult for companies incorporated in offshore jurisdictions to trade directly with onshore companies. Today, in an international tax planning scenario, the selection of the location of the onshore trading or holding company is one of the most important decisions to make. We can assist you to make that decision and advise you on a set-up and on-going administration of such company.

Our choice of preference would be Malta! Malta's competitive tax legislation, which is in compliance with EU endorsement, makes Malta one of the most attractive onshore tax planning jurisdictions for international trading and holding. The main driver for setting up a company in Malta is to take advantage of the country's favourable taxation regime. The Maltese regulatory framework and company law is based entirely on EU law and directives. Malta is not considered as a tax haven - it is a well regulated onshore jurisdiction. In Malta, the effective tax rate on trading profits is 5% - lowest rate in the EU. Malta has a full participation exemption on dividend income and capital gains.
Malta with its economic stability and robust banking system is rated as an "A" country by the main international credit rating agencies. Jurisdiction offers a double - taxation agreements with over 70 countries. Malta is the only one country of European Union, which adopts full imputation tax system thanks to claim refunds on the paid tax.
Malta offers a perfectly developed infrastructure for your business, high standards of IT technologies, affordable office spaces and all opportunities for your top-class living and doing your job.

Malta is also very attractive to international investors incorporating or transferring their business thanks to:

  • Trusts and Foundations, according to worldwide trends
  • Protected Cells Companies - the only one Jurisdiction within European Union, which offers this structure. Re-domiciliation of PCCs to Malta is also possible.
  • Ship and Aircrafts registrations
  • Wealth Management, such as Residence and Citizenship Programmes, pension schemes

In summary:

  • Effective tax rate on trading profits 5%, lowest rate in the EU
  • Full participation exemption on dividends and capital gains
  • No withholding taxes on outbound payment of dividends, interest and royalties
  • Malta has no thin capitalization rules or debt-to-equity ratios
  • Malta has no transfer pricing and CFC rules
  • Member of the EU, OECD white-listed country
  • Tax residence certificates available for all Malta companies
  • Maltese companies may benefit from the EU Parent-Subsidiary Directive, Merger Directive and the Interest and Royalties Directive
  • Re-domiciliation to Malta is permitted
  • No exchange control regulations, excellent banking services
  • From January 2008 adopted the euro as the currency
  • English is the official language
  • Strong political support for the financial services industry
  • Extensive tax treaty network of 70 treaties in force
  • Tax Residency in Malta
  • Malta Citizenship Programme

How does tax refund work?

The business profits of a Malta company are taxed at the statutory 35%. However, the shareholders of a Malta company have the right of claiming a refund in the amount of 6/7ths of the Malta tax suffered on the dividends distributed in the case when a Malta company receives income from trading activities. Tax refund procedure is simple, the refund is claimed by filing the form with the International Tax Unit (ITU). No withholding tax is paid on any dividend distributions of the profits of a Malta company. After the tax refund above, the shareholders of a Malta company are left with a global effective income tax rate of 5%.

Incorporate or Re-domicile?

Both Company incorporation and re-domiciliation procedures are fast and smooth:

Company incorporation is processed by Registry of Companies within 24 hours, after all documents are submitted in a good order. Every company registered in Malta must have a registered office in Malta. The minimum authorised share capital is €1200 from which a minimum of 20% paid, a minimum of 1 shareholder is required, with a minimum of 1 director and a company secretary. Prospera offers "all inclusive" packages on a company registration, so we take care of everything what the client could need at this stage.

Company re-domiciliation procedure is also fast and clear. We would need a Certificate of Good standing issued by the First Country of the Company registration, a board resolution with confirmation of transferring its domicile and declarations signed by company director.

Registering your offshore company as an Overseas Company in Malta is yet another option. We are happy to advise you on what option suits you the best.

Prospera Europe Ltd., operating under a Corporate Providers License, has over 15 years experience in the industry and successfully responds to all corporate needs of our valuable Clients.

Please contact the undersigned for more information.

Olga Ditzel
Or give us a call on +356 21224847

About the Author

Prospera Europe Ltd.

Prospera is an international group composed of accounting services and related business consulting firms offering. Wealthy individuals and multinational companies, professional accountants and lawyers, banks and other financial institutions around the world - all have been using Prospera's services for their professionalism and integrity, since 1992.

To inquire more about Prospera, visit www.prosperainfo.com, email info@prosperainfo.com, or phone on +356 21 22 4847.


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