Have you heard of people setting up a company in Malta? This European company is becoming one of the top places to establish a business and there are numerous reasons why people are considering doing so. Do you want to know what they are? Let’s check some out:
- The low effective corporate tax rates
The flat corporate tax rate in Malta is 35%, which seems a bit high, but this figure can be reduced to somewhere around 5% to 7% through distribution of profits. Establishing a holiday company elsewhere means that you will only be liable to pay taxes on the income that’s remitted to Malta. Likewise, the income tax rate in Malta is also quite sane. Malta also has double taxation treaties and various exemptions. You can get more guidance about these policies from https://papilioservices.com/.
- The low minimum wage
One of the best reasons to consider setting up a company in Malta is that you will have to pay a very low minimum wage. It is just around €720, which means that you don’t have to pay very high salaries to have motivated and satisfied employees.
- The share capital requirement
Another great reason to consider setting up a company in Malta is the low share capital requirement of just €1,165. As only 20% of it has to be paid up, this makes it a very small investment when it comes to forming a company in a European country. You need less physical money and the annual fee is also quite reasonable at €100, which makes it difficult to resist.
- The low social security
Companies are required to pay social security to all employees and the good news is that it is very low in Malta, which can reduce the cost for the business in the long run.