A Malta Holding Company, as the name suggests, serves the primary function of holding assets ranging from real estate and financial instruments to intellectual property rights. One distinguishing characteristic of Maltese holding companies is their versatility; while they are primarily designed for asset holding, they are not precluded from engaging in trading activities should shareholders wish to pursue such ventures.
Here’s what makes Malta an attractive destination for establishing a holding company.
What’s the Capital Required to Register a Holding Company as a Private LTD in Malta?
Malta offers a smooth process for setting up a holding company. With supportive regulatory frameworks and efficient administrative procedures, entrepreneurs can go through the initial setup phase with ease, allowing them to focus more on their business objectives.
Important note: To register a holding company as a private limited company in Malta, the minimum share capital required is approximately 1,200 euros. However, for a public company, the minimum share capital is nearly 46,000 euros. Additionally, a Maltese holding company must have at least two shareholders, who can be either foreign citizens or corporations.
For further guidance on the registration process and other requirements concerning holding companies, we recommend reading our article on how to set up a holding company in Malta and also feel free to consult our team at Expatax.mt.
What other costs should I expect to incur?
Financially, the company must register for income tax with the Commissioner for Revenue and for VAT if applicable, depending on the business activities and turnover. The registration fee for a company ranges from €245 to €1,750, depending on the share capital. Annual compliance costs include audit fees, which typically range from €1,000 to €3,000, and legal and accounting fees, which can range from €1,500 to €5,000 annually, depending on the complexity and size of the company. Additionally, there is an annual fee of €100 for submitting the Annual Return.
The Favourable Tax Treatment is Attractive for Potential Company Founders
Perhaps the most compelling reason to choose Malta for establishing a holding company lies in its favourable tax regime. The country offers a highly attractive participation exemption, where dividend income and capital gains earned by Maltese holding companies may be exempt from taxation, subject to fulfilling certain conditions. Read more about corporate income tax.
(https://docs.google.com/document/d/11ibitD-Q-YrgWEWL7dePyk-9D3coFOQlALkxkwlDQww/edit)
Moreover, Malta’s extensive network of double taxation treaties and compliance with EU directives further enhance tax efficiency for holding companies.
Read more about Malta’s double taxation agreements for foreign investors.
Non-resident Shareholders Benefits
For non-resident shareholders, Malta presents additional benefits. With no withholding taxes imposed on dividends, interest, and royalties payable to non-residents, Malta provides a tax-efficient environment conducive to international investment and collaboration.
Re-Domiciliation Opportunities
In addition to establishing new entities, Malta also offers re-domiciliation options for existing holding companies established elsewhere. Through the Continuation of Companies Regulations, companies can transfer their domicile to Malta, enjoying the benefits of Malta’s regulatory framework without the need for liquidation in their original jurisdiction
Would You Invest in Malta?
The decision to establish a holding company in Malta is not just about compliance or tax optimisation; it’s also about seizing opportunities and unlocking the full potential of your assets and investments. With its favourable tax treatment, supportive regulatory environment, and strategic location, Malta stands as a premier destination for businesses looking to establish holding structures that are strong, efficient, and conducive to long-term success.
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