Launching a company in Malta is undoubtedly an exciting venture. Not only is the nation a great place to do business, it is also a place that people fall in love with due to its gorgeous weather, local people and beautiful scenery. If you are wondering whether to set up a company in Malta or not, here are top reasons to consider it:
- Lowest corporate tax rates in the EU
There is a 35% corporate tax rate in Malta, which may seem too high at first glance, but you can reduce this rate to 5% to 7% by distributing the profits to a holding company registered in a different country. Plus, there are a number of tax benefits in Malta that can reduce the company’s taxes.
- Reasonable income taxes
The income tax system in Malta is an intuitive one as the rates are distributed in bands. You only have to pay a higher tax rate on income that exceeds the bands, which can help in keeping your taxes down.
- Lower minimum wage
Many people open a company in Malta because of the lower minimum wage requirement. This is extremely helpful for businesses because it helps them in saving money on wages, which allows your business to be highly profitable.
- Low share capital requirement
Not everyone has a lot of capital at their disposal when they are starting a business. This is not a problem when you are setting up one in Malta because the share capital requirement is fairly reasonable. This means that it takes a lot less money to start a business in Malta than anywhere else.
- Low social security
Both the employees and the employer pay social security in Malta, which means the cost of hiring employees stays under control. You don’t have to worry about breaking the bank.