If you're looking to establish a business in Malta, it's important to understand the country's tax system. Taxes in Malta can be complex, with different types of taxes, incentives, and deductions to consider. To help you navigate this maze of tax regulations, we've put together a comprehensive guide for business owners.
Before becoming an expat and either working or retiring in Malta, taxation will likely be one of your biggest concerns. It is; therefore, best to be aware of the tax system in Malta before expatriating. Generally speaking, the tax rate is low in Malta and the taxes are categorised into different social circumstances. Corporate tax rates are low, attracting companies and entrepreneurs to the island.
The Maltese government is keen to encourage people from overseas to become residents in Malta. Recognising the economic and social benefits of immigration, the government offers an attractive tax structure tailored to foreign visitors from inside and outside the European Union. Overseas visitors wishing to take up residence are subject to the same levels of personal tax in Malta as Maltese nationals and therefore do not have to meet any extra minimum tax or remittance requirements. In addition there are relief schemes in place that mean foreign residents are not obliged to pay double taxes; that is, taxes both in their countries of origin and Malta. Such arrangements are negotiated with numerous countries or enacted through unilateral provisions courtesy of the Malta Tax Department.
Tax treaties protect taxpayers from getting taxed twice when money passes between countries. The Malta Tax Treaty is important to be aware of, for people with investments outside of the country. They protect investors when they bring their money into Malta. They also apply if you build up some investments in Malta during your stay, and intend to leave them there after you have left. There is a network of tax treaties in force with over 60 countries worldwide.