Malta emerges as a prime destination for business and tax benefits

As South African entrepreneurs and individuals search for stability and global business opportunities, Malta has emerged as a strategic hub offering significant tax advantages and seamless European Union market access.

Credence, a leading corporate advisory firm based in Malta, is supporting South African clients who are exploring Malta’s potential as both a business and residency destination.

Dr James Muscat Azzopardi, director at Credence, highlights the benefits Malta offers for South African investors, including its Global Residence Programme, which features a favourable flat tax rate of 15% on foreign income remitted to Malta.

“Malta provides a strong framework for expatriates looking to optimise their tax position while retaining South African citizenship,” he says. “For South African business owners, relocating to Malta brings with it extensive tax benefits including exemptions from capital gains, wealth and inheritance taxes.”

Key benefits for South African business owners and investors:

• Favourable flat tax rate: The Global Residence Programme offers a flat 15% tax rate on foreign income, providing a tax-efficient structure for international earnings.
• Comprehensive exemptions: Malta offers relief from capital gains, wealth and inheritance taxes.
• Double taxation agreements: Extensive treaties ensure income earned abroad is not taxed twice, enhancing financial efficiency.
• Ease of retaining SA ties: South African residents are not required to relinquish their citizenship or property holdings, making it simple to retain connections to home.

Dr Muscat Azzopardi adds, “Unlike South Africa’s worldwide income tax model, Malta’s tax system can deliver substantial savings for expatriates, particularly for those with foreign investments or retirees drawing pension income. We work closely with our South African clients to simplify the residency and relocation process, offering tailored guidance and ensuring compliance with local regulations.”

In addition to tax incentives, Malta’s EU affiliation provides South African entrepreneurs with direct access to one of the world’s largest markets, simplifying cross-border operations. Credence has successfully assisted numerous South African companies in establishing a presence in Malta, where they can benefit from Malta’s stable business environment and its proximity to European markets.

Beyond its financial appeal, Malta provides an enviable lifestyle, excellent infrastructure and a secure environment. This unique combination has made Malta a popular choice among high-net-worth families and retirees from South Africa. “The growing trend of South Africans relocating to Malta reflects its suitability for those seeking both a favourable tax environment and a quality lifestyle,” notes Dr Muscat Azzopardi.

For South Africans interested in exploring these opportunities, find out more about meeting with the team from Credence when they are in South Africa at the end of November 2024.