Malta tax factsheets
Access the links below to view insightful applications providing information relating to Malta as prepared by Deloitte Malta professionals
Malta tax factsheets
Insightful applications providing information relating to Malta:
- The Residence Programme Rules, 2014 for individuals who are EU, EEA or Swiss nationals | PDF
- Malta Citizenship-by-Investment - Individual Investor Programme Regulations | PDF
- Non domiciled persons: Scope of taxation in Malta | PDF
- Global Residence Programme Rules, 2013 for individuals who are non-EU/non-EEA/non-Swiss nationals | PDF
- Malta as a holding company jurisdiction | PDF
- Malta tax refund system | PDF
- VAT on yacht leasing in Malta | PDF
- Investment service providers in Malta | PDF
- Reduced rate of tax for "Qualifying Expatriates" in the development of digital products in Malta | PDF
- Reduced rate of tax applicable to "Qualifying Expatriates" employed in Malta with Financial Institutions and i-Gaming companies | PDF
- Reduced rate of tax for Maltese professionals returning to work in Malta in specific industry sectors | PDF
- Returned migrants in Malta | PDF
- Residence Scheme for foreign retirees for EU/EEA/Swiss nationals | PDF
- Reduced rate of tax for “Qualifying Expatriates” extended to the Aviation sector | PDF
- Securitisation in Malta | PDF
- Aviation and finance leasing | PDF
- Group finance companies in Malta | PDF
- Malta company incorporation | PDF
- Maltese trusts | PDF
- Redomiciliation of companies to and from Malta | PDF
- Malta grants and incentives - Investment aid | PDF
- Shipping companies and the Malta flag | PDF
- Insurance captive companies in Malta | PDF
- Credit and financial institutions | PDF
- Professional investor funds | PDF
- Protected Cell Companies in Malta | PDF
- VAT treatment of private aircraft leasing | PDF
A Residence Programme (“TRP Rules”) has been introduced with effect from 1 July 2013 for individuals who are nationals of the EU, EEA or Switzerland (but not Maltese nationals) in terms of Legal Notice 270 of 2014 and Articles 56(23) and 96 of the (Malta) Income Tax Act, Chapter 123 of the Laws of Malta (“ITA”), and which TRP Rules confer on the successful applicant a special tax status. Read the full factsheet.
Malta has introduced an ”Individual Investor Programme” (the “Citizenship Programme”), with which Malta grants naturalisation (i.e. citizenship) by investment to reputable foreign individuals and their eligible dependents following a thorough and rigid due diligence process. A summary of the salient features.
FS008: Global Residence Programme Rules, 2013 for individuals who are non-EU/non-EEA/non-Swiss nationals
In terms of Legal Notice 167 of 2013 and Article 56(23) of the (Malta) Income Tax Act, Chapter 123 of the Laws of Malta (“ITA”), a Global Residence Programme (“GRP Rules”) has been introduced for individuals who are not nationals of the EU, EEA or Switzerland. The GRP Rules confer on the successful applicant a special tax status. A summary of the salient features.
The introduction of the participation exemption in 2007 has enhanced Malta’s position as a premier EU holding company location. Whilst there is no specific holding company regime, Malta’s domestic tax system positions Malta as the ideal location for establishing companies for the purpose of holding shares in one or more entities whether located within or outside the European Union. Get a clearer perspective.
The provision of investment services in or from Malta is regulated by the Investment Services Act, and the Investment Services Rules, which implement EC Council Directive 2004/39/EC (MiFID) and certain provisions of EC Council Directive 85/611/EC (‘UCITS’ Directive). We make the complex simple.
FS001: Reduced rate of tax for "Qualifying Expatriates" in the development of digital products in Malta
Effective 1 January 2012, a scheme was introduced for expatriates working in Malta who fulfil a role directly engaged in the development of innovative and creative digital products to benefit from a reduced rate of tax of 15%. The essential features revealed.
FS002: Reduced rate of tax applicable to "Qualifying Expatriates" employed in Malta with Financial Institutions and i-Gaming companies
Expatriates satisfying the definition of a qualifying beneficiary and holding an employment under a qualifying contract of employment with a licensed bank, insurance company, financial services company, or i-gaming company in an eligible office in Malta may opt to be subject to tax on such income at a flat rate of tax of 15% as from 1 January 2010. An attracting incentive.
FS003: Reduced rate of tax for Maltese professionals returning to work in Malta in specific industry sectors
An incentive scheme was introduced in the Budget Measures Implementation Act, 2012 for Maltese professionals returning to work in Malta in specific industry sectors. In terms of this new scheme, an eligible individual who is established in a field of excellence and returns as an ordinary resident to Malta may opt to have his income from employment exercised in Malta charged tax at a flat rate of 15%, as opposed to the normal progressive personal income tax rates of up to 35%. Field of excellence rules made easy.
Malta offers tax benefits to individuals who, having been born in Malta, have, after originally emigrating from Malta, returned to Malta on a date after the first day of January 1988, with the intention of taking up residence in Malta. The complex made simple.
Expatriates satisfying the definition of a qualifying beneficiary and holding an employment under a qualifying contract of employment with a licensed bank, insurance company, financial services company, or i-gaming company in an eligible office in Malta may opt to be subject to tax on such income at a flat rate of tax of 15% as from 1 January 2010. A sunny retirement.
The Highly Qualified Persons Rules include specific eligible offices of undertakings in the aviation industry in Malta licensed and/or recognised by the competent authority or holding an air operators’ certificate issued in terms of the Civil Aviation (Air Operators’ Certificates) Act, or an aerodrome licence issued in terms of the Air Navigation Order. Preparing for take-off.
Securitisation is an essential means of raising finance and Malta’s flexible framework creates scope for a wide range of transactions in this regard. Maltese law provides for a number of securitisation structures, all of which may benefit from Malta’s fiscal regime while taking advantage of a dynamic business infrastructure and regulatory framework. The complex made simple.
Malta is an emerging jurisdiction in cross-border financial and commercial planning structures with a flexible and business-friendly regulatory and fiscal system. It benefits from a low effective tax rate, the use of English as an official language, membership of the EU, and an extensive network of around 65 double taxation treaties. Notwithstanding the slowing down of the global economy, Malta’s economy has continued to grow steadily and Malta’s Government finance ratios are the envy of its regional peers. Attracting incentives.
Malta has over the years gained international recognition of being a reputable and robust financial centre. The island recently experienced a rapidly growing and dynamic financial sector in which it hosts a number of worldwide recognised group treasury companies. Malta’s strength as a hub for finance companies is based on the island having an excellent business infrastructure, EU compliant legislation, a sound banking system, a relatively low cost base, an attractive fiscal regime and a highly skilled multilingual workforce. Over the passage of time, the activity of a finance company has moved from traditional loan arrangements to providing more flexible terms of lending to meet the borrower’s needs and at the same time entering into sophisticated and tailor-made financial instruments to hedge and mitigate for any financial risk exposure. Finding solid ground.
The establishment and administration of trusts in or from Malta is regulated by the Trusts and Trustees Act. A trust may be created in any manner under Maltese law – orally, by unilateral declaration, by an instrument in writing including a will, by operation of the law or by a judicial decision.
The tax implications of a trust would be dependent on various factors, such as, the residence of the parties to the trust, the nature and location of the trust property and the various stages in the life of a trust (settlement of property on trust, administration of trust property, distribution of trust assets, reversion of trust property and the transfer of the beneficial interest in a trust). Recognising the opportunities.
A company formed, incorporated or registered outside Malta may, subject to certain conditions, request to be registered in Malta under the Companies Act, as a company continued to Malta (hereinafter “continuation to Malta”). Conversely, a company registered and incorporated under the Companies Act, may seek to continue to an approved country or jurisdiction outside Malta (hereinafter “continuation from Malta”), subject to certain provisions. Business in motion.
The Investment Aid incentive entered into force in the fiscal year starting on 1 January 2008 and applies to eligible expenditure incurred on or after 1 January 2008. The current scheme is applicable until 30 June 2014. Revised Investment Aid Incentive Guidelines issued to cover the period from 1 July 2014 until 31 December 2020.
Malta offers a regime with complete tax exemption for ship owners, charterers and financiers of Maltese ships over 1,000 net tons. These ships qualify as ‘exempted ships’. The use of English as an official language in all legislation, very competitive vessel registration charges and Malta’s accession to the European Union has placed Malta in the top five ship registers globally. We help you navigate the rules.
Malta provides the opportunity for companies to locate their captive insurance business and insurance management activities within an OECD-recognised tax environment that combines tax efficiency within a robust regulatory framework. Captive insurance companies enjoy exemptions from certain licensing and regulatory criteria as well as an expedited licensing procedure. Making the complex simple.
Malta’s Banking Act defines the business of banking as the business of a person who regularly “accepts deposits of money from the public withdrawable or repayable on demand or after a fixed period or after notice or who borrows or raises money from the public, in either case for the purpose of employing such money in whole or in part by lending to others or otherwise investing for the account and at the risk of the person accepting such money.” Making the complex simple.
A Professional Investor Fund (PIF) is a type of collective investment scheme licensed and regulated by the Malta Financial Services Authority (MFSA).A PIF is a non-retail fund which is not subject to investment restrictions and is not regulated to the same degree as other collective investment schemes, and accordingly may only be promoted to specified categories of investors. Bringing all the pieces together.
The Companies Act (Cell Companies Carrying on Business of Insurance) Regulations (PCC Regulations) provide that insurance companies (including captives and reinsurers), insurance brokers and insurance managers licensed by the Malta Financial Services Authority (MFSA) may be either constituted or converted into a cell company provided it has sought and obtained written approval of the MFSA.
The key benefit of the PCC model is that a promoter may write insurance business through a cell without having to comply with the own funds requirements by effectively utilising the cell company’s core capital as its own. Making the complex simple.
In October 2012, the Maltese VAT Department published Guidelines relating to the VAT treatment of private aircraft leasing, intended to explain and simplify the VAT treatment of such leasing arrangements between two Maltese persons.
Malta’s VAT law already incorporates the option granted by article 59a of the EU VAT Directive through which, in order to prevent double or no taxation, Member States are allowed to consider the place of supply of certain services, if situated within their territory, as being situated outside the Community if the effective use and enjoyment of the services takes place outside the Community.
The published guidelines seek to determine a simple method of calculating the percentage of the time that a private aircraft is deemed to be used and enjoyed outside the Community during the term of its lease. Simplifying your journey.