Since the introduction of the participation exemption regime, Malta has become a destination of choice for foreign investors wanting to set up holding companies. Holding companies are the best solution to hold assets and participations in other companies in Malta. There are two ways of setting up holding companies in Malta:
The minimum share capital to register a holding company as a private limited company is approximately 1,200 euros, while the minimum share capital for a public company is nearly 46,000 euros. A Maltese holding company must also have at least two shareholders who can be foreign citizens or corporations. For other requirements about the registration of holding companies, you may rely on our Maltese lawyers.
The video below presents the main steps required to set up a Maltese holding company:
One of the greatest advantages of Maltese holding companies is that incomes or capital gains derived in the country may be exempt from taxation. In order to benefit from the participation exemption, an investment must qualify as a participating holding. The qualification conditions are:
The equity shares give the following rights to the Maltese holding company:
The participation exemption may also apply to holdings in Maltese limited partnerships and investment companies.
Maltese holding companies are excellent vehicles for tax minimization purposes. Among the tax benefits provided by the registration of holding companies in Malta, there are:
Also, based on the Maltese full imputation taxation system, shareholders in holding companies may benefits from various tax credits.
For complete information about all the advantages of holding companies, please contact our law firm in Malta.