The Maltese company offers one of the most versatile and effective tax solutions for any promoter, from the small start-up company to the most savvy investor.

At the outset, the Maltese corporate tax rate is set at thirty-five percent (35%), however, the shareholders are, upon a final distribution of dividends, entitled to a series of tax refunds – leaving an ultimate tax leakage of just 5% or less. This tax leakage, already the most advantageous in the European Union, may be further reduced, if the Maltese company has incurred expenses outside Malta, which expenses may be grossed up in the income tax computation, so as to further lower the tax leakage.

Further complementing this generous tax treatment, is an ever expanding network of double tax treaty which has placed Malta firmly on the tax planning map.

Cyprus has been a tax heaven of the Mediterranean Sea region for many years. Although the situation has changed after joining the European Union, Cyprus is still one of the most popular EU countries for trade as well as for holdings. Cyprus keeps position of the leader of tax planning in the EU mainly due to the British legislation, business-friendly tax system, and a bunch of agreements on avoidance of double taxation. The main advantage of companies in Cyprus is multi-functionality. Whether you are trading, willing to establish a holding or managing the intellectual property, we will organize a structure that suits you best.

Cyprus’ wide network of double tax treaties, particularly the former Soviet republics makes it a natural vehicle for investment in Russia and the Ukraine, amongst others.   Furthermore, its easily attainable participation holding regime renders Cypriot companies extremely flexible vehicles in tax planning structures.  The following are  some of the most salient points outlining the advantages of Cyprus:

  • Low corporate tax rate of 10% (0% for shipping companies, 4.25% for maritime management companies) with possibility of thin spreads of profits to reduce this taxation even further;
  • Investor-friendly Tax Authorities with possibility to obtain Advance Revenue Rulings;
  • No strict transfer pricing rules;
  • No specific substance requirements;
  • Trading in securities is essentially tax-exempt;
  • Non-resident beneficial owners of Cyprus Companies, Branches and Partnerships are not subject to additional taxes on dividends or profits over and above the amount paid or payable by the respective legal entities;
  • Cyprus Non-Resident Companies (Cyprus Companies with management & control exercised outside Cyprus) are tax exempt in Cyprus;
  • No capital gains tax or net worth taxes except with respect to Immovable property situated in Cyprus;
  • Transposition of  EU Directives into the Cyprus Tax Legislation;
  • Highly attractive Permanent Establishment (PE) rules and generous PE provisions available in the DTT Network;
  • Unilateral tax relief is granted to all Cyprus Companies for foreign tax suffered notwithstanding the absence of a double tax treaty;
  • Tax losses may be carried forward indefinitely, with the possibility of  group tax relief;
  • Low duties – taxes on the incorporation of companies;
  • Low administration costs.

There are no restrictions concerning maximum allowable percentage participation, and all minimum monetary level of foreign investment in any enterprise / legal entity in Malta were lifted in 2004.

Malta’s Investment Policy allows 100% foreign participation in Malta Entities in almost all sectors of the economy irrespective of nationality.

  • Full exemption from all exchange controls – restrictions, both for EU and non-EU Nationals;
  • The legislation ensures full anonymity of foreign beneficiaries;
  • Save for licensable activities, such as Remote Gaming, Captive Insurance and Financial Services, Malta Entities, whether beneficially owned by foreign nationals or local persons can engage into either local or international activities without the need for any special permit.
  • Modern and efficient multilingual banking & financial services sector;
  • Excellent air and sea connections and telecommunications services;
  • Professional, reputable and efficient Government and Tax Authorities;
  • A mature professional services sector;
  • Very low expense level (fees) for financial and professional service provision compared to other EU Jurisdictions. The difference is more evident in the case of professional service recurring costs (administration, accounting & tax compliance) are estimated to be at 35- 40% of Western European rates. One could very easily be misled by the low quoted start up costs for major European Jurisdictions as to the final total costs which can be considerable if one calculates recurring costs.