Malta has produced a number of successful modern poets and literary figures that have exported Maltese literature across the world. Why Choose Malta as a Tax Haven? One is designed for high net worth individuals (HNWI). On Saturday, The Times reported that “illegal and undeclared economic activity was estimated at more than €320 million last year but experts believe the figure is actually significantly higher.”. What is a ‘shell’ company? Taxation in Malta is levied by the State and it is administered by the Commissioner for Revenue (il-Kummissarju tat-Taxxi). The cuisine of Malta has strong English and Sicilian roots as well as influences from France and Spain. Malta, Europe’s most densely populated country, is perhaps best known for tourism. Europe Row ignites after Germany slams 'tax haven' Malta. There is also a tax-favorable residence scheme for highly qualified individuals (HQI). A Personalised Offshore Plan Makes Sure You Are Protected. Thanks to it’s co-operation, the country has not been included on subsequent lists such as one published by the EU. The colonial history combined with a more recent desire to build a reputation as a financial center and establish a strong economy has led Malta to a very favorable tax regime. The executive branch is led by the president but the formal decision making power is given to the Prime Minister; the President taking on more of a ceremonial role. The Maltese government has reacted angrily after a German state's finance minister called the EU island state "Europe's Panama." The report compiled by the EP’s Tax3 committee received the majority of support from … Company may operate an office in Malta and employ skilled expatriates in Malta. Among EU Member States, Malta is a tax haven for different reasons, mainly as for tax laws, with very interesting rates, rendering the island one of the most advantageous European countries from fiscal point of view. But there are definitely tax advantages in Malta. Whether deserved or not, all of this pressure from the EU may lead Malta to change its tax regime in the near future. Whatever the label, Malta is a favorable jurisdiction to do business and live thanks to it’s fair tax code. EU tax haven blacklist not catching the worst offenders “By calling the EU list of tax havens ‘confusing and inefficient’, the Parliament tells it like it is. Still, government authorities say Malta’s tax code is its strongest card in a competitive world. Sovereign or sub-national states that are very traditional tax havens (i.e. The total tax revenues in 2014 amounted to €2.747 Billion, which represents 34.6% of the Maltese GDP. Definitely not, it has some of the highest on-paper tax rates in the world. But there are some very attractive tax advantages in Malta and we’ll thoroughly outline them in this article. For instance: Thanks to steering clear of the many blacklists, Malta is not legally a tax haven, but in the traditional sense of the term, some people may still class it as one. Taxation in Malta is levied by the State and it is administered by the Commissioner for Revenue (il-Kummissarju tat-Taxxi). Money. Offshore Tax Havens: The concept of an offshore tax haven can mean different things to different people. Traditional dishes include fenkata (stewed rabbit) kawlata (soup), and pastizzi (savory pastry). Malta’s most popular offshore product is the Malta Private LLC. A flat tax rate of 15% is charged on foreign income remitted to Malta while income which arises in Malta is taxed at a flat tax rate of 35%. Get in touch and I’ll be thrilled to help. The MEPs found that seven of the EU’s 28 member states — Belgium, Cyprus, Hungary, Ireland, Luxembourg, Malta and The Netherlands — “display traits of a tax haven and facilitate aggressive tax planning.” It’s very difficult to imagine a set of circumstances where a country could offer both an EU passport and a true haven from taxes. This is the question that has been making the rounds for quite some time now. - Implications for Europe during the Maltese Presidency and beyond - Greens/EFA". If a Maltese national has resided outside of Malta for 20 years in the previous 25 years, then the 15 per cent tax regime can also apply subject to a minimum tax liability of €2,325. Malta is a touristic haven but certainly not a tax haven, according to French President François Hollande, who is satisfied with its “strong” banking system. How Can Individuals Take Advantage of Malta’s Tax Code? There are also two very attractive tax breaks available as part of Malta’s residence permit system. We will also look at Malta’s link with the Panama Papers and at previous positions taken by Malta at a European level on tax matters to assess whether they are likely to deliver on ongoing and urgently needed tax reforms recently proposed by the European Commission. There are a number of pieces of Maltese legislation that deal with corporate law that include: Malta has a 'full-imputation' tax system where corporate profits are taxed at 35%. Without an offshore legal strategy, you put yourself at risk. Following a number of multi-billion euro scandals over the last few years, […] Tax rates vary between 0 - 35%, depending on the declared salary of the employee. As well, just as for companies, the Maltese tax authorities are basically only interested in the income an (expat) individual makes in Malta or remits to Malta. Though, before 1934, Italian was the official and cultural language of Malta. Malta landed on the well-known 2000 list from the OECD of 35 countries who had agreed to improve. The main sources of tax revenue were value-added tax, income tax, and social security contributions Malta: Little Known Tax Haven within EU. The population of Malta as of 2011 was estimated at 408,000. The country covers 316 square kilometers making it one of the world’s smallest countries. © 1997 – 2021 Offshore-Protection.com. Malta was forced to relinquish its 'tax haven' status and reform its offshore company structures, however, it has been able to maintain much of the desired aspects attracting many international companies and offshore investments due to its excellent reputation, low tax and rebate policies, EU conforming corporate legislation and its world-class banking system. There are a number of religious orders that are spread throughout the country including the Jesuits, Franciscans, Dominicans and the Little Sisters of the Poor. Malta lies in the central Mediterranean just 80 kilometers south of the Italian island of Sicily and consists of an archipelago of three small, inhabited islands and over a dozen others that are uninhabited. Offshore Tax Havens: The concept of an offshore tax haven can mean different things to different people. ♣Malta – an emerging tax haven inside the EU, which has been a target of wider media scrutiny. The mobile phone penetration rate is over 100% and boasts a state of the art phone and Internet communication system. Page topic: "IS MALTA A TAX HAVEN? “Is Malta a Tax Haven?” Not according to Oxfam International. The Maltese government has reacted angrily after a German state's finance minister called … Many international companies have incorporated in Malta due to its geographical location, tax rebate policies and accessibility to European Union (EU) trade agreements and markets.   Global Diversification Planning. Malta is the EU’s number four corporate tax haven – Oxfam… Malta is the EU’s number four corporate tax haven – Oxfam International Sunday, 12 June 2016, 10:00 Last update: about 6 years ago The Black Sea presents Malta Files. Malta has a modern telecommunications and transport system with a bus network that is the most widely used form of public transport. Among EU Member States, Malta is a tax haven for different reasons, mainly as for tax laws, with very interesting rates, rendering the island one of the most advantageous European countries from fiscal point of view. I can't promise catwalks every day, but I will share all the secrets, tips & advice I've learned from living & working in Malta. Malta is a traditional tax-based system though many people consider it a tax haven as it has a number of potential benefits for foreign companies and shareholders. 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