WITH THE MALTA EU MEMBERSHIP in 2004, interest from Swedish and foreign companies to form holding companies in Malta has increased dramatically. Two essential advantages when forming a holding company in Malta is that the company tax rate is 4.17 percent if the owner is

domiciled outside Malta and the country has a double taxation agreement with several countries - including Sweden. If the holding company in Malta owns more than 10 percent of the subsidiary in Sweden for at least a year, funds can be transferred tax-free to the Maltese company. Royalties and financial income streams like interest can be transferred with no Swedish tax but favourable Maltese tax rates instead.

– A photographer may get royalties from a paper for pictures published. Rather than paying 30 percent taxes in Sweden, by forming a holding company in Malta, you only pay 4.17 percent, says Thomas Eriksson, Client Manager Sweden at Certus Corporate Service.

CERTUS CORPORATE SERVICE, founded in 2003, specializes in assisting Swedish and foreign companies with company solutions when setting up business abroad.

– We assist companies by setting up the company and everything associated with this process. Legal assistance, opening bank accounts, tax advice, establishing a professional board in the holding company and much more.

 

THE NUMBER ONE BUSINESS in Malta is the online game business. Close to 85 percent of companies formed in Malta are in this line of business.

– Malta is the best country in Europe if you want a fast and easy gaming licence, says Thomas Eriksson.

            A 4.17 percent company tax rate and one of the best
            legislations in the EU. These are two reasons why Maltese  
            holding companies are attractive. Photo: Martin Pettersson

Malta’s legislation is hard to beat and fiscal regulations are very favourable. In Sweden, all online profits have to be declared, but if the game company has a gaming license in another EU country, there is 100 percent tax exemption on all profits.

– Compared to the cost for forming a holding company in Sweden, it is a little more expensive in Malta. But if the company is a game company, receives large interest income or has substantial royalties, Malta is it, without a doubt.

 

AN ADVICE FROM Thomas Eriksson is to choose your company consultant carefully and make sure you get assistance with everything.

– A common mistake is to choose a company consultant that only assists with purchasing a holding company but not everything around it, like the legal matters. Compare this to giving car keys and a car to someone who doesn’t know how to drive. Who needs a holding company if you don’t know how to run it? Pay a little extra to get full assistance.

 

Emelie Ring