ARTICLE · 17 JUNE 2024

What Makes The Malta Participating Holding The Popular Choice

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In the world of international business and tax planning, Malta has emerged as a popular choice for multinational companies looking to optimise their tax structures through an efficient holding structure.

MaltaTax

Chris Armstrong

In the world of international business and tax planning, Malta has emerged as a popular choice for multinational companies looking to optimise their tax structures through an efficient holding structure. One of the key reasons for this is the Malta Participating Holding regime. This feature of Maltese tax law offers significant advantages to holding companies, making it a popular choice for businesses worldwide.

What is a Malta Participating Holding?

A Malta Participating Holding refers to a shareholding in a non-resident company that meets certain criteria that allow it to qualify for Malta's Participation Exemption regime. There are several conditions that should be satisfied but one of the most popular is that the Maltese company holds at least 5% of the equity shares of another entity such as a company, body of persons or CIS directly. Alternatively, if the shareholding is less than 5%, it may still qualify if the Maltese company satisfies one of the

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