End of last year, Romania proposed a comprehensive set of tax changes designed to guarantee the long-term financial sustainability of the nation, which already started showing its impact on businesses in industries like software development, oil and gas, financial services, construction, agriculture, and food.
Malta as International Hub for Businesses
Malta is a desirable destination for Romanian entrepreneurs and investors who are looking to expand or relocate their business ventures. Malta has a solid, diverse economy that performs well in industries including, but not limited to technology, financial services, gaming, and tourism. Various tax incentives are in place for businesses and individuals, and there are double taxation treaties with over 80 nations. The Malta-Romania double taxation treaty aims to prevent the same income or assets from being taxed twice in both countries. A wide range of income is covered under the treaty, including capital gains, dividends, interest, royalties, corporate earnings, pensions, and salaries.
Additionally, it has a prime location at the intersection of the Middle East, Africa, and Europe, giving access to a sizable market with more than 500 million customers.
Moreover, the personnel are highly qualified and multilingual, speaking English as well as other languages at a high level. In addition to the excellent standard of living, there is a pleasant temperature, a vibrant culture with picturesque ancient scenery and a welcoming atmosphere.
Malta's Tax Pros
Malta, as an English-speaking EU member state, provides exceptional tax benefits and schemes for firms and individuals and seeks to draw in investors, entrepreneurs, and high-net-worth individuals to the island.
According to the Malta corporate tax system, businesses that are incorporated, managed and controlled in Malta are subject to a 35% global corporate tax rate. Nonetheless, the corporation tax rate can be reduced to an effective rate of 5% through Malta's tax laws (subject to conditions).
Malta has a plethora of business opportunities that can provide advantages, such as establishing a trading and/or holding company, which is designed to become a stronghold in Europe to operate and manage a global business, or trusts/foundations that provide outstanding tax efficiency, flexibility and safeguarding the family assets. Our experts at Papilio Services can offer Romanian clients the expertise they need to fulfil the formal criteria for registering a company in Malta and we can support you with ongoing business administration.
A Maltese holding company could be the ideal solution for corporations and successful entrepreneurs wishing to consolidate their subsidiary companies or personal assets and reap international tax benefits. In addition to protecting both private and corporate assets, including real estate holdings, stock in other businesses, intellectual property, and more, Malta also offers a full participation exemption tax regime that can exempt capital gains from taxation on the sale of shares or dividends. Additionally, a number of residency programmes, such as the Malta Residence Programme (TRP) and the Malta Retirement Program (MRP) designed for individuals or foreign nationals to provide a special tax status with a 15% tax applied on income remitted into Malta (subject to certain conditions).
Another benefit to Romanian investors is that the Malta corporate tax system works off of a Full Imputation System. In simple terms, this means that company profits are taxed at the source, but dividends distributed to shareholders are not taxed again.
Seize the opportunity!
Setting up a business in Malta is a great method to extend your ventures. The process is an appealing option for Romanian businesses and entrepreneurs since it is easy to utilise, cost-effective and provides several tax advantages. If you would like more information about how we can help with registering a company in Malta or any other corporate, tax, compliance, legal and residency matters, let's get in touch and set up a free consultation. We will be pleased to assist you.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
