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A Malta Holding is a parent company, limited liability company or limited partnership that owns sufficient voting shares in another company to control that company's policies and oversee its management decisions.

As highly tax efficient companies, Maltese holding companies are attractive to international investors looking to thrive in this part of Europe. There are no taxes on capital gains and dividends, so these are one of the reasons why holding companies are formed in Malta. Also, investors wishing to consolidate the existing subsidiaries in Malta under the control of one company can choose Malta to form a holding company. Raising capital and gaining greater powers in allocating that capital to subsidiaries are also reasons for international players to locate holding companies in Malta.

The location of a holding company is an important consideration in any international structure where one of the objectives is to minimize the tax levied on the flow of income.

One of the main advantages of a Malta Holding is that income or capital gains generated in the country may be exempt from taxation. To benefit from the participation exemption, an investment must qualify as a participatory interest. The conditions are:

- the Maltese holding company must hold at least 10% of the shares in a company, all or part of which is divided into shares
- the holding company is a shareholder in another company and has the right to acquire the remaining shares in the company
- the holding company is a shareholder in a company and has a right of first refusal in the event of redemption or cancellation of the shares
- the holding company is entitled to sit on the board of directors of the other company
- the holding company must have held a stake of at least 1,164,000 euros for at least 183 days hold another company

The holding company is a shareholder in another company, but the interest must be for business purposes and not held as a trading stock. The participation exemption may also apply to participations in Maltese limited partnerships and investment companies.

Potential benefits include:

- the benefits offered by Malta's extensive network of double taxation treaties
- exemption of dividends from taxation in Malta
- exemption from capital gains tax on disposals of shareholdings
- the absence of capital gains tax on the sale of shares in a holding company by foreign shareholders
- the absence of withholding tax
A corporate holding company can be used to hold corporate interests such as:

-Corporate shares
-Real estate holdings
-Intellectual property
-Aircraft
-Ships
-Other corporate investments

A personal holding company holds a variety of investments such as:

-Portfolio of investments
-Luxury yachts
-Private aircraft
-Real estate holdings
-Other personal investments
 
Our qualified accountant (Member of the Institute of Financial Services Practitioners in Malta and Corporate Service Provider) will help you in all aspects of your Malta Privat Limited Company, Malta Holding Company or Public Limited Company formation process, as our services do not stop at registering the company in Malta on your behalf. Our coporate lawyers and accountants will provide you all information regarding corporate tax and incorporate in Malta under maltese companies act.
 

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