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We are proud to offer a careful selection of properties throughout the Maltese Islands. Our aim is to present you with the best value quality homes and investments to suit your requirements. We look forward to servicing your needs.
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BUILT ON A TRADITION OF QUALITY SERVICE SINCE 1969
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Companies & Trusts
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Although Malta is a civil law jurisdiction, since 1988 it has had legislation in force that provides for the creation of trusts. At the end of 2004, Malta’s trust legislation was extensively amended to make Maltese trusts more widely applicable and to reflect the latest developments in trust administration and regulation. The new law simplifies and accelerates the process of setting up a trust. It is also very flexible and requires high standards of consumer protection.
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An overseas company is a body corporate which is constituted or incorporated outside Malta. Such a company is required by law to deliver to the Registrar for registration the following documentation, within one month of establishing a branch, or place of business in Malta:
(a) an authentic copy of the charter, statutes or memorandum and articles of the overseas company or other instrument constituting or defining the constitution of the overseas company, and, if the instrument is not written in the English or Maltese language, a translation thereof into either of such languages, certified to be a correct translation in such manner as may be prescribed;
(b) a list of the directors and company secretary, if any, or of the persons vested with the administration of the overseas company, or a list of the persons vested with the representation of the overseas company. Such lists shall include the following particulars:
i. in the case of an individual, his name, his usual residential address, his nationality and his business occupation; and
ii. in the case of a body corporate, its registered or corporate name and registered or principal office;
(c) a return containing the following particulars:
i. the name under which the branch or place of business is carrying on its activities where different from the name of the overseas company;
ii. the address of the branch or place of business established in Malta by the overseas company, and where more than one branch or place of business has been
established, there shall be indicated the address of the principal branch or place of business;
iii. the activities to be carried out by the branch or place of business established in Malta;
iv. the names and addresses of one or more individuals resident in Malta authorised to represent the overseas company for the activities of the branch or place of business established in Malta; and
v. the extent of the authority of any individual falling within subparagraph (iv), including whether that individual is authorised to act alone or jointly with others, and in the latter case, the name of any person with whom he is authorised to act;
(d) unless disclosed by the document specified in paragraph (a), a return containing (i) the information about the legal form of the overseas company; and (ii) the identity of the register in which the overseas company is registered and the number with which it is so registered.
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Malta’s taxation system is designed to:
- promote international investment in Malta
- support actively the development of financial services in Malta
- ensure that company profits are not taxed twice - i.e. at company and again at shareholder level
Under Malta’s tax system, a company is considered resident if it is incorporated in Malta or, in the case of a foreign body of persons, if its control and management are exercised in Malta.
All companies pay 35% on chargeable income; however tax paid by the company is then imputed to the shareholder in the event of a dividend distribution. As Malta operates a full imputation system, there is no withholding tax on dividends.
Upon distribution of dividends, shareholders will be entitled to a refund of a part or whole of the tax paid by the company on the profits out of which the dividends were paid.
The amount of the tax refund is set at 6/7ths of the tax paid by the company (5/7ths in the case of passive interest and royalties). This refund will be reduced where the distributing company would have claimed double taxation relief.
The resident shareholder will be taxable for the total amount of net dividend and refund received. The non-resident shareholder is not taxed in Malta.
When dividends received from a participating holding are distributed by a Maltese company to its shareholders such shareholders are entitled to claim a refund of 100% of the tax paid on the distributed profits.
With regard to acquisitions of participating holdings made on or after 1 January 2007, where the non resident company, having mainly passive income, is not resident or incorporated in an EU Member State or is subject to tax at a rate which is less than 15%, the following additional conditions must be satisfied:
- the shares in the non-resident company must not be held as a portfolio investment; and
- the non-resident company or its passive income must have been subject to tax at a rate which is not less than 5%.
Resident individual shareholders will be subject to Malta tax on the dividend and tax refund while non-resident shareholders and resident corporate shareholders in receipt of the dividend and tax refund will not be subject to tax thereon.
As from 1 January, 2007 a participation exemption has also been introduced. This exempts dividends derived from participating holdings and gains derived from the disposal of such holdings. The participation exemption is also subject to the anti-abuse provisions described above for participating holdings. Where the participation exemption applies obviously the refund system in respect of participating holdings will not apply.
If the conditions to qualify as a participating holding or for the participation exemption to apply are not met the normal general tax system including the normal tax refunds will be applicable.
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Persons dealing in investment services in Malta or through Malta are required to obtain a licence from the Malta Financial Services Authority. Various categories of licences relating to the provision of investment services in the capacity of principal or agent, advisor, management and administration, trustee, custodian or nominee are available.
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All types of vessels - from pleasure yachts to cruise liners, to container ships, to oil tankers, to oil rigs - may be registered under the Malta flag provided they are wholly owned by Maltese citizens, by Maltese companies, or by bodies corporate/entities established outside Malta which appoint a resident agent. Maltese law also provides for bareboat charter registration of foreign ships under the Malta flag as well as for bareboat registration of Maltese ships under a foreign flag.
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Foreign nationals including citizens of the member states of the EU require a permit to work in Malta.
EU Nationals
Albeit nationals of the European Union require a permit to be employed in Malta. This is normally granted automatically unless the Government of Malta sees that the granting of the permit is against public policy, public security or public health. The prospective employer applies for the permit known as the Employment Licence.
Non-EU Nationals
Non-EU nationals also require a permit which is applied for by the prospective employer. This is normally granted unless apart from the reasons quoted above, there is supply on the local labour market for the post that the foreign national would eventually be occupying.
Applications for employment licences are to be accompanied by the following documentation:
- A detailed curriculum vitae including any testimonials
- Three passport-sized photographs
- A processing fee
EU nationals that are self-employed persons do not need a permit to exercise their trade or business other than the permits related to the nature of the trade or business.
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Malta Enterprise is the focal point for enterprise in Malta. Its role is to act as a single point of contact for all enterprise considering trade, investment or commercial links with Malta. The organization is committed to creating the right environment for successful enterprise in Malta. It provides a range of practical services and solutions to Maltese enterprises seeking to internationalise their operations and to international companies seeking to trade with or invest in Malta.
Malta Enterprise provides a comprehensive package of assistance and advisory services to international companies and investors wishing to set up manufacturing, R&D, international trading, regional representation and other operations in Malta.
Malta Enterprise is dedicated to finding solutions to the particular business needs of international companies and does so by delivering a range of tailor-made services which include professional pre-investment advice and support, start-up assistance as well as a suite of post-investment services and aftercare facilities.
Malta Enterprise also offers a range of trade promotion services aimed at introducing foreign companies to suitable manufacturers, service providers, suppliers and potential strategic partners in Malta.
Situated at the centre of the Mediterranean, Malta has a long tradition of international business that goes back as far as the Phoenicians in the first millennium BC. The Carthaginians, Romans, Arabs, Knights of St John and others, along with the French and British all realised the economic potential of the Maltese Islands. For close to two centuries, Malta was the Royal Navy’s Mediterranean home-port. This laid the foundations for the island’s subsequent industrial development.
This solid background has led to today’s favourable industrial climate that together with its pro-business environment makes Malta an ideal location for foreign direct investment. Today there are well over 200 foreign-owned manufacturing companies operating in Malta. Economic stability, healthy industrial relations and competitive labour costs have been the pillars sustaining the success stories of many a foreign company for the last 40 years.
For decades Malta has welcomed many companies from a wide range of sectors. There are companies involved in electronics production, medical equipment, software, plastics, automotive components, tool-making, aviation-related services and maintenance, upmarket textiles and furniture products, chemicals, pharmaceuticals and food.
These companies have found that Malta offers definite advantages in terms of quality, rapid product turnover, short but specialised production runs, product development, sales and marketing. Furthermore, a number of bi-lateral and multi-lateral tax treaties and agreements ensure favourable export conditions to Europe, the United States, Japan, North Africa and the Middle East.
With a population of 404,000, Malta’s most valuable assets are its people. The Maltese are enterprising, hard-working and proud of it. They accept the need for flexibility and have an exemplary work-ethic.
World famous names based in Malta like Baxter, Dowty Automotive, STMicroelectronics, De La Rue, Methode and others find the quality and productivity of our workforce excellent. A number of Maltese subsidiary companies have received international awards for quality and efficiency.
Standards of education are high with English being the language of instruction for most subjects at all levels of the education system. As already stated, English is an official language and many Maltese are also fluent in Italian. Furthermore many take up French and German.
Malta can boast of having the oldest University in the Commonwealth outside Britain providing education for more than 7,000 students in all the major disciplines. The vocational and technical education systems offer courses in applied electronics, design, IT and others. These complement the academic set-up and are attuned to industry’s requirements. The Employment and Training Corporation (ETC) provides various training schemes to meet the needs of both employers and apprentices, thus matching demand and supply in the labour market.
Malta offers easy access to global markets. Its developed infrastructure and excellent air and sea connections, combined with a location at the crossroads of the Mediterranean Sea make Malta an ideal base from which to penetrate markets in Southern Europe, North Africa and beyond.
The island’s physical location, in the centre of the Mediterranean is also ideal. Air and sea passenger and freight connections are excellent. London is three hours by air, Rome is just over an hour. The Central European time zone facilitates business dealings with European and North American clients.
The country’s telecommunications infrastructure is excellent. The state-of-the-art telecommunications system is constantly upgraded and includes fully compatible GSM digital cellular services. Internet use is widespread and the ISDN and ADSL network is geared to handle data transmission for business purposes.
Malta’s fine natural harbours facilitate sea connections. Extensive conventional and ro-ro services by international shipping lines including Sea Malta, carry freight and cargo directly to Mediterranean, North European, Middle East, North American and Asian ports.
The major European lines provide efficient and reliable international trailer services to most European destinations. The Malta Freeport caters for intercontinental cargo and acts as a distribution centre for the Mediterranean region with a capacity exceeding 1 million TEU.
Companies setting up in Malta can benefit from a wide range of favourable incentives under the Business Promotion Act which include:
- Reduced rates of income tax
- Investment tax credits
- Soft-loans
- Interest Rate Subsidies
- Loan guarantees
- Training assistance
- Incentives for job-creation
- Ready-built factories at very reasonable rates
- Value Added Incentive Scheme
- Investment Allowance
- Tax Treaties
Malta gained its independence from Britain in 1964 and became a Republic ten years later. Malta became a full member of the EU on the 1st May 2004. Malta is a member of the WTO and intellectual property enjoys full protection.
Malta provides a healthy business environment and company law, education, accountancy and legal systems have evolved from both the British and European Union models. There are no restrictions on the repatriation of profits and all available incentives are clearly stated, guaranteed and integrated into one legal text.
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Homes of Quality, 201, Tower Road, Sliema SLM1602, Malta
Tel: 00356 2342 0000 UK Tel: 0044 0 871 711 8994 Fax: 00356 2137 4166
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email: info@homesofquality.com.mt
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