Malta is emerging as a preferred jurisdiction for family offices. A family office can be crucial for the success of certain families especially when these have multiple assets to administer. One such type of family profile is that of the families of tech entrepreneurs.
A Malta Tax Residence Certificate is an official document issued by the Maltese Commissioner for Revenue that confirms on an official level an individual's tax residency status. It is often used by taxpayers to provide proof of their residency status to foreign tax authorities and to claim benefits under double taxation avoidance agreements.
Since before the pandemic, Malta has been a favourite location attracting not only professionals in IT, aviation, financial services and shipping but also family principals and family offices to make this country their base. Malta is a jurisdiction that because of its climate and lifestyle appeals to families who would then establish a Malta family office as party of their migration plans.
Taxation of Maltese Citizens based on Residence and Domicile. Malta Citizenship does not alone alter the tax treatment of persons acquiring Maltese Citizenship under the Citizenship by Investment Program. Maltese citizenship alone does not change the tax treatment of an individual or family acquiring citizenship unless they take up tax residence in Malta.
Digital nomads who want to apply for a residence permit in Malta must have a clean criminal record, a rental or purchase agreement in Malta, a valid international health insurance, and be of a non-EU, non-EEA, or non-Swiss nationality.
Recently Porsche lost a design protection case for its widely known Porsche 911 model, with the European Court confirming such cancellation by quoting lack of individual character and no substantial difference from previous models.
27 Mar 2023 Wojciech Gadzala
A Maltese company can trade and provide an array of services internationally as well as outside the EU, enjoying a net 5% effective tax rate after refunds to shareholders. Malta is a full member of the European Union since 2004 and enjoys reputable onshore status. Maltese companies enable highly competitive tax opportunities in a reputed jurisdiction.
Individuals who are resident though not domiciled in Malta are required to register for tax purposes in Malta, irrespective of whether they are in employment or not. Malta tax registration is required for persons who despite not being tax resident in Malta, are involved in an income-generating activity in Malta. This requires Malta tax registration.
A corporate entity needs to be mindful of the application of timely and effective compliance monitoring and appropriate controls. The Business Risk Assessment process empowers organisations to develop a thorough understanding of the innate and residual risks present in a subject-person’s operating environment.
10 Mar 2023
A trust is taxed in Malta if it is being managed by trustees who are located in Malta. A licensed trustee may opt for a trust to be treated for tax purposes as a company ordinarily resident and domiciled in Malta, and thus taxed at the standard corporate income tax rate of 35%.