Malta Holding Company Taxation

Malta holding companies can be used to hold business assets, shares, securities, and personal assets, including investments, real estate, intellectual property, yachts, and fixed assets. Malta has numerous tax laws that are pro-business and favourable to investors in the Holding Company jurisdiction. Maltese Holding Companies can perform tax optimization or tax planning to legally cut down tax leakage.


Entrust tax-related business activities to Borg Galea & Associates so you can maximise your company’s financial potential.


What Makes Taxation of Malta Holding Companies Attractive to Investors?

Although Malta has no distinctive holding company regime, the domestic tax treatment granted to companies with different types of income and the 2007 participation exemption makes Malta a prime EU location to hold foreign investments through a Maltese Holding Company.


  • Tax Treaty Network and Attractive Withholding Tax Rate
  • Malta has a network of more than 70 double tax treaties. For registered Malta companies that are in possession of over 10% of the issued share capital of an overseas subsidiary, the rate of withholding tax on dividends a Malta company received from a treaty partner is reduced to 5%. As an EU member, the EU Parent/Subsidiary Directive can further reduce the withholding tax to zero on dividends from many EU countries.
  • Participation Exemption and Capital Gains Tax Exemption
  • Participating holding derived dividends and capital gains are exempt from Malta tax. The 2018 Budget Implementation Act has introduced several modifications to the shareholding participation treatment, which reduces the application tax rate from 10% to 5%.


Why Partner With Trusted Malta Tax Experts

Borg Galea Limited is a trusted tax specialist agency that has assisted over 200 clients in the past 5 years to develop highly effective tax structures. Choosing our services means working directly with the key individuals in our company; you are guaranteed world-class personalized services that can address your every tax-related concern.


Call us at +356 2703 7012. Send us an email at info@borggalea.com or fill in our contact form.