Digital currencies such as bitcoin, have made a lot of buzz in the media over the past few years. However, it is only now that these cryptocurrencies have begun to be understood by ordinary citizens let alone to be trusted. Malta has not chosen to fall behind in accommodating the new currency. The state already set up a tax scheme for revenues that involve cryptocurrency investments.
Value added tax is the tax that is charged progressively according to the increase in product value. It is important to note that all entities in Malta, partnerships included and natural persons are obliged to register with the VAT office in order to comply with the Maltese VAT legislation of 1998.
The EORI is a system that was designed with a mandate to make the identification of traders who interact with the Authorities much easier. This was done for all states in the EU and it involves the assignment of a reference number to each trader who is considered to do business wherever in the EU region. Thus business people can be identified in any member state through this unique number. This identification system, allows authorities of EU to share information with other entities. The EORI system also solved the problem of reference number mix-up whereby traders often registered their businesses too many times — by linking reference numbers with VAT numbers. This saves everyone extra work and time needed to adjust the systems constantly.
A vast majority of investors doing business in Malta opt for a private limited liability business entity. This is the most widely used company type in Malta, for good reasons — it’s quite flexible and offers the most benefits for foreign investors.
One of the most widespread and most preferred company types in Malta is the limited liability entity. This is attributed majorly to the increased level of flexibility and numerous tax benefits that this company type brings to non-residential investors. It’s also the most ideal legal structure for foreign companies who want to establish subsidiary branches in Malta.
The "en nom" collectif in Malta, popularly known as a general partnership all over the world is very easy to set up and requires fewer formalities compared to a limited liability company. The upside to investing in partnerships in Malta is that even if you are a foreign investor, you will enjoy the same rights as Maltese investors.
