A Malta Holding Company is a company resident in Malta formed with the object of holding shares in other companies as well as any other asset including real estate, cash, moveable valuables, shares and securities, and intellectual property whether in or outside Malta. Malta holding companies can be used to distribute income generated by such assets in a tax-efficient manner to shareholders.

A Malta Company is a very effective international tax-planning vehicle. Malta holding companies are onshore holding companies taxed on a worldwide basis at the normal corporate tax rate of 35% reduced to an effective tax rate of 0% in the hands of shareholders, and with the possibility of confidential beneficial ownership.

Malta Companies can perform specific active or passive holding activities or a mixture of holding and trading activities. The following are the typical but not the only uses of Malta Companies:

Typical Uses of Holding Companies

• property ownership & project management
• hold aircraft, motor cars, yachts, ships
• hold assets of all kinds: real estate, shares & securities, intellectual property, bank accounts
• hold patents, copyrights, franchises & other intangible rights

Participating Holding & Participation Exemption

Shareholders of Malta holding companies qualify for a full refund of the Maltese tax paid by the company on profits and gains arising from “participating holdings” when such profits are distributed. From 1st January 2008, Malta holding companies also qualify for an outright participation exemption subject to light anti-abuse provisions introduced from that date.