While Malta isn’t solely focused on attracting investors, it does offer several attractive tax benefits that can make it an appealing location for certain investment strategies. Here are some key points to consider:

Direct Tax Benefits:

• Participation Exemption: When a resident Maltese company receives dividends from another resident Maltese or foreign company in which it holds at least 10% of the voting rights, the dividends are generally exempt from Maltese corporate tax. This can significantly reduce the overall tax burden on your investments.
• Refund System: The full imputation system allows shareholders to claim a refund of most of the tax already paid by the company on distributed dividends. This effectively reduces the tax rate on dividends to around 5-7%, making Malta a competitive option compared to other jurisdictions.

Additional Tax Incentives:

• No Withholding Tax: Malta generally doesn’t apply withholding taxes on dividends, interest, and royalties paid to non-residents. This simplifies the process and reduces the costs associated with receiving investment income.
• Double Taxation Treaties: Malta has a broad network of double taxation treaties with many countries. These treaties can further reduce your tax burden by preventing you from being taxed on the same income in both Malta and your home country.

Considerations & Caveats:

• Tax benefits are not guaranteed: These advantages apply to specific situations and investments. It’s crucial to consult with a tax professional to understand how these benefits apply to your specific circumstances.
• Minimum investment requirements: Some tax benefits might be subject to minimum investment thresholds.
• Type of investment: Certain investment structures might be more favorable than others in terms of tax advantages.

Additionally:

• Malta also offers various tax credits and incentives for specific industries and investment activities. You can explore these options through government resources or with the help of a professional.