“Saving taxes legally abroad” – at first, many will think that this sounds too tempting and therefore options such as a company name in Malta are quickly pigeonholed as “shady”. With this prejudice, I would like to clear up today.
Malta Limited is nothing illegal and recognized by the tax authorities
In the consultations that we have with our potential clients at the law firm of Dr. Werner & Partner before the formation of any company, I have already had to deal with many people. However, one question that reached me not so long ago made me wonder: I was asked how one would cover up the transaction in a legally secure way before the tax office. I was all the more pleased to be able to tell the interested party that there was no need to conceal anything, which would be due to Malta’s EU membership. The double taxation agreement that most of the EU countries have with Malta (as well as with most other countries in the world), as well as the free choice of the place of business activities (EU law), make this possible.
Place of business activities and activity execution of importance
It is not important for the low taxation that anything is kept secret. With Malta Limited, income is taxed and declared legally and fully under EU and national law. One point is of essential importance: the location of the company’s activities. Where will my business be conducted, where will the profitable deal take place? To benefit from the double taxation agreement, this location must be Malta. This means of course that for example, a hairdresser who has his business in his hometown can NOT profit from a company in Malta. The situation is different for a graphic designer. He can do his business in any country in the world, including Malta, and is therefore entitled to pay tax on his sales in Malta (provided he has a Malta Limited).
A Malta Limited is therefore particularly worthwhile for online service providers. But also other industries can benefit from the 5 percent effective corporate tax rate. However, the easiest way here is a personal consultation, since, depending on the activity, restructuring is possible and so entrepreneurs can profit who might not have expected this. This applies to both existing and planned businesses. My team at the law firm Dr. Werner & Partner and I look forward to your call or mail.
