You might have heard of Malta’s company formation and all the tax benefits that the country offers. Malta is an attractive island for many foreigners who want to move and register a business. It is also the best place for those looking for a beautiful and peaceful environment to live with their families.
While it may take some time to enjoy a Malta company set up initially, it is worth your time and money once you are up. Here is how a Maltese company formation can be beneficial for your business.
Lowest Corporation Taxes
Malta offers a flat rate of 35 percent of corporate taxes. It is the highest tax rate in the EU. It is also possible to enjoy a reduced tax rate of 5-7 percent through profit distribution to the holding company. Being a Maltese resident, you will only pay taxes on income remitted to the country. It means owning a Maltese company; you can enjoy a total tax pressure of up to five percent.
Reasonable Income Taxes
Since the rate of income tax is not minimal, getting big salaries will mean high tax pressure. If you take out just enough salary, your effective income tax rate will be relatively low.
Lower rate of the Minimum Wage
Malta has a lower wage rate of €720.
It gives a clearer idea of the salary conditions in Malta. Your employees will be satisfied with salaries, ranging from €1000 to €2000 for common jobs. It means running your business in a Maltese company directly from the country can be in your interest for the long-run.
Low Capital Requirements
Opening up a Maltese company requires the minimum amount of share capital .i.e. €1,165. However, you only need to have 20 percent of this amount in your bank account to register a company in Malta. You would also need to pay an annual fee of €100 when opening a Maltese company.