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In the latest episode of the Ganado Meets IP podcast, Paul Micallef Grimaud, partner at Ganado Advocates, speaks to Simon Schembri and Kris Bartolo, partners at Ganado Advocates and Zampa Partners...

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Paul Micallef Grimaud

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In the latest episode of the Ganado Meets IP podcast, Paul Micallef Grimaud, partner at Ganado Advocates, speaks to Simon Schembri and Kris Bartolo, partners at Ganado Advocates and Zampa Partners, respectively, on the attractiveness of Malta to IP-centric industries and the services generated by these industries.

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Tax Incentives

Bartolo explains that taxation is one of the main reasons why Malta has attracted a significant portfolio of IP companies. Malta's tax framework ensures that companies holding intellectual property can significantly reduce their tax burden. While royalties are initially taxed at 35%, various fiscal incentives bring this rate down dramatically. For instance, passive royalty income can qualify for a 5/7 tax refund, resulting in a 10% effective tax rate. For trading royalty income, the refund increases to 6/7, lowering the effective rate to just 5%.

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