Confidential Advice Line: 0800 063 9221

Being resident and non-domiciled in Malta


Being resident and non-domiciled in Malta

Maltese law provides the possibility for companies incorporated outside Malta but effectively managed and controlled in Malta (which is relatively easy to prove so) to be taxed only on a source and remittance basis.

This means that such company will only be taxed in the following instances:

on income and capital gains arising in Malta; and
on foreign income (excluding capital gains) which are remitted into a Maltese bank account.

Therefore such companies do not incur any Maltese tax on foreign income which is not remitted to Malta or on any foreign capital gains (irrespective if remitted to Malta or not). Obviously, should any Maltese tax trigger in, the possibility for tax refunds which lower the effective corporate tax rate to only 5% (the lowest in Europe) would still apply.

The use of resident non-domiciled companies could be very useful in particular for the following activities:

for companies with a considerable cash balance for investment purposes
for loan and financing operations (under Maltese legislation no transfer pricing regulations exist with respect to inter-company loans)
for companies deriving royalty income

For any queries about the aforementioned issue or other matters, kindly contact Mr Joseph Gauci (Managing Partner) at: jgauci@ksimalta.com or Mr Benjamin Griscti (Senior Advisor) at: bgriscti@ksimalta.com


About the author

Julie Palmer

Regional Managing Partner

Meet our Team of Experts

Julie is a law graduate who qualified with Price Waterhouse in 1994. Julie joined Smith & Williamson in 1997 and became a partner in 2001. With Mike Stevenson, Julie set up Middleton Partners offices in Salisbury and Southampton, both of which are now part of Begbies Traynor.

Julie is a member of the Insolvency Practitioners Association and is a Fellow of The Association of Business Recovery Professionals. Julie deals with all aspects of Corporate Recovery and turnaround work and takes all form of personal insolvency appointments.

48 Regional UK Offices

Find your local Begbies Traynor office and speak to an adviser today.

Find your Local Office
0800 063 9221

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0800 464 0871

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0161 837 1700

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
Advice for businesses on EBTs after HMRC Supreme Court victory
Begbies Traynor currently advising numerous businesses
HMRC sends out follower notices to reclaim tax lost to Employee Benefit Trusts
Find out more →
 
Open Banking to Reshape the Alternative Finance Sector
CMA mandates the adoption of Open Banking by early 2018
Will see alternative lenders competing on a level playing field with dominant banks
Read more →
 
Join thousands of professionals by signing up for our updates
Analysis and Opinion from our Partners
Top Industry News
Register Now →
 

Advice you can trust

We are accredited by the following industry leading organisations

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ACCA (the Association of Chartered Certified Accountants) ICAS | The Institute of Chartered Accountants of Scotland

Contact the Begbies Traynor team

or Find your Nearest Office
Processing...