Located just below Sicily, Italy, Malta is becoming one of the most popular European countries as of late. It is being recognized for its strong economy and its beautiful weather and more and more people are considering relocating. In fact, many are giving some thought to incorporating companies in the country because of the advantages they can get. Why should you incorporate a company in Malta? Let’s find out:
- The taxation perks
If there is one reason why forming a company in Malta is a good idea, it is the tax benefits that people can enjoy. The country follows a full-imputation system when it comes to corporate tax, so shareholders who are receiving company dividends can get a lot of relief on the corporate profits. The 35% corporate tax may seem high, but the tax refunds make it worthwhile. Double taxation duties have also been signed by Malta and this can also cut down the tax obligations for businesses. Plus, there are no exit taxes, trade tax, payroll based tax or wealth tax to worry about, which is a huge perk.
- The low incorporation and maintenance costs
Company formation in Malta doesn’t require people to have copious amounts of money. In fact, people only need to have 20% of the €1,165 minimum share capital, which is €245. As for the registry fee, it is around €240 and annual payments are €100. These are very low costs for establishing a company in a reputable country of Europe.
- No duty on documents
Another strong reason why setting up a company in Malta is considered lucrative is because companies that conduct international activities are exempted from paying any duty on documents. This means that increase in share capital and transfer of shares of the company is not subject to any duty.