Malta Holding Company

Summary

A Malta holding company is commonly used by entrepreneurs, investors, and international groups to own shares, investments, and participations in a legally robust European Union framework. Malta offers a flexible corporate law system, an extensive treaty network, and well-established holding company rules that support both commercial structuring and long-term planning.

This solution page outlines when and why Malta holding companies are used, how they function in practice, and the types of clients who typically benefit from establishing a holding structure in Malta.

Who Is This For

A Malta holding company is typically considered by:

• Entrepreneurs and business owners holding interests in operating companies
• International groups structuring EU and non-EU subsidiaries
• Investors seeking a centralised EU holding platform
• Families and private clients consolidating ownership of business assets
• Advisors designing cross-border corporate or investment structures

Understanding Malta Holding Companies

A Malta holding company is a Maltese-registered company whose principal role is to own shares or participations in other entities, rather than to conduct trading activity itself. It may hold interests in operating companies, joint ventures, investment vehicles, or other corporate assets.

Under Maltese law, the holding company has separate legal personality, allowing it to own assets, receive income, and enter into legal relationships independently of its shareholders. This makes it suitable as a central ownership vehicle within wider corporate or investment structures.

Malta holding companies are commonly used at the top or intermediate level of a group, acting as a bridge between operating entities and ultimate owners.

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Malta is frequently selected as a holding jurisdiction due to a combination of legal certainty, EU status, and structural flexibility.

Key considerations include:

• A well-developed company law framework aligned with EU principles
• Recognition by international banks, investors, and counterparties
• Access to EU directives and Malta’s double tax treaty network
• Flexibility in corporate governance and shareholding arrangements

Importantly, Malta holding companies are widely regarded as mainstream European structures, making them suitable for long-term use by businesses and families that require durability and credibility.

 
• Any currency can be used for capital.
• Notary and court process are not required;

• Presence is not required;

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Malta Holding Companies are incorporated in terms ofthe Malta Companies Act, which is the principal piece ofcorporate law in Malta. The Act is predominantly basedon common law principles, and is also in line with EUDirectives. Holding Companies are onshore entities setup aspartnerships or limited liability companies - the latter beingthe most popular corporate entities, due to their flexibilityand tax efficiency.

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Tax Framework Applicable to Malta Holding Companies

Malta provides a clear and established tax framework for holding companies, particularly in relation to dividend income and capital gains derived from qualifying participations.

In appropriate circumstances, income received by a Malta holding company may benefit from participation exemption rules, subject to meeting statutory conditions. Where exemption does not apply, Malta’s full imputation system and tax refund mechanisms may be relevant, depending on the nature of the income and the underlying structure.

The application of these rules is fact-specific and must be assessed carefully in light of the company’s activities, the nature of the participation, and the jurisdictions involved.

Malta Holding Companies in Group and Investment Structures

Malta holding companies are commonly used within:

• International corporate groups
• Joint venture arrangements
• Private equity and investment holding structures
• Family-owned business groups

They may serve to centralise ownership, streamline dividend flows, or provide a stable legal platform for managing participations across multiple jurisdictions.

Where used within groups, the holding company typically performs a strategic ownership and governance role, rather than an operational one.

Legal and Commercial Considerations

While Malta holding companies offer flexibility, their effectiveness depends on proper structuring and governance. Key considerations include:

• The company’s role within the wider structure
• Board composition and decision-making processes
• Interaction with operating subsidiaries
• Compliance with Maltese corporate and tax law

A holding company should be established with a clear commercial rationale and aligned with the objectives of the group or family it serves.

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• Minimum initial share capital which should be paid up is €1,250;
• Appointment of the Malta local director and company secretary;
• Minimum number of shareholders should be 1;
• Applicant should have all company formation documents;
• Appointment of an auditor

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