What Is a Holding Company in Malta?

A holding company in Malta is a corporate entity primarily established to own and manage shares or assets of other companies, rather than to conduct direct commercial operations. These companies serve as strategic vehicles for investment, corporate structuring, and tax optimization, making Malta a highly attractive jurisdiction for international investors and multinational groups.

The main role of a Malta holding company is to bring together the ownership of the subsidiaries, manage the assets of the group, and make it easy and efficient to allocate capital and profits. Besides, by having one entity control all the other companies, businesses are in a position to simplify management, cut down on the operational complexity, and improve corporate governance.

One of the major benefits that comes with it is the taxation of the Malta holding company. Through Malta’s participation exemption and tax refund system, qualifying dividends and capital gains may be effectively taxed at 0%, while trading income generally results in an effective tax rate of around 5% after refunds.

The Malta holding company structure is highly flexible:

• A Malta company requires at least one shareholder and one director, with no nationality restrictions, although having local substance or a resident director may be advisable for tax and compliance purposes.
• Share capital requirements are low, with a minimum authorised share capital of €1,165 for a private limited company, of which at least 20% must be paid up.
• Companies can hold various assets, including shares, intellectual property, real estate, and other investments.

Malta’s regulatory stability and EU membership make it a suitable jurisdiction for regional or international investment structures.

Establishing a Malta holding company is particularly beneficial for multinational groups, investment funds, and private wealth planning, offering both operational efficiency and robust asset protection.

Entrepreneurs and investors who require professional advice on Malta holding company formation, taxation, and compliance can turn to Offshore Company Services for expert help in ensuring that their setup is smooth and fully compliant.