Malta Tax Advisory Dresden: Why the Elbe Metropolis Is Your Perfect Starting Point for Malta

Living in Dresden and considering a Malta structure? Smart move. After two years of hands-on Malta experience, I can tell you: The Elbe city is actually one of the best German starting points for going the Malta route. Why? Here, you’ll find both tax expertise and that laid-back Saxon pragmatism—an ideal match for the Maltese mentality.

I’ll explain how to set up your Malta holding from Dresden, which tax advisors truly understand Malta, and what the whole process will cost you. Spoiler alert: It’s cheaper and more straightforward than you might think.

Why Dresden is the Perfect Starting Point for Your Malta Structure

Dresden and Malta – at first glance, the baroque city on the Elbe and the Mediterranean island republic have little in common. Look closer though, and you’ll discover some striking similarities that make Dresden the ideal launching pad for your Malta structure.

Dresden as a Business Location: Why It Matters for Malta Structures

Over the last 20 years, Dresden has become a real economic hub. The city is home to over 3,200 IT companies and more than 2,400 in mechanical engineering. Translation: There are already plenty of entrepreneurs here who could take advantage of Malta structures.

What I especially appreciate: Dresdeners are pragmatic. No fuss, no endless discussions. You say what you want, and it gets done. This mindset fits perfectly with Malta, where bureaucracy does exist, but with the right approach can be surprisingly efficient.

The Geographic Advantage: From the Elbe to the Mediterranean

Dresden is strategically placed for trips to Malta. While Dresden Airport doesn’t offer direct flights to Malta, you can get to Valletta via Munich or Frankfurt in 4–5 hours. That matters, because for Malta structures, you’ll need to be on site regularly—there’s more to it than just lounging on the beach.

Even better: The time zone. Malta is just one hour ahead of Dresden. If banks in Valletta open at 9 a.m., it’s only 8 a.m. in Dresden. Perfect for video calls with your Maltese tax advisor while everyone in Dresden is still asleep.

Saxony’s Tax Climate: Why Malta Is Especially Attractive

Saxony levies a trade tax rate averaging 410% (Dresden: 410%). Translation: As an entrepreneur you’ll pay around 14.7% trade tax, plus corporate tax, plus solidarity surcharge. That adds up to roughly 30% total tax load for corporations.

In Malta? With the right setup, your effective tax burden drops to 5%. That’s a 25-point difference. At €100,000 profit, that’s €25,000 you save every year. Well worth the effort.

What does this mean for you? Dresden offers the perfect mix: enough local expertise to plan your Malta move professionally, and a high German tax burden that makes Malta structures genuinely appealing.

Finding a Malta Tax Advisor in Dresden: My Experiences and Tips

This is where it gets interesting. According to my research, there are about 15 tax firms in Dresden that explicitly offer international structures. Caution though: International doesn’t automatically mean Malta-competent.

The Landscape of Malta Expertise in Dresden

I’ve spoken to five Dresden tax advisors who offer Malta structures. The outcome was sobering: Only two were actually up to date with Malta’s regulations. The others had pieced together their knowledge from random articles online.

Here’s my checklist for genuine Malta expertise:

• Malta Visits: Has the advisor been to Malta in person in the last 12 months?
• Current Legislation: Is he or she familiar with the Economic Substance Requirements (introduced 2019)?
• Practical Experience: How many Malta structures has he or she actually set up?
• Local Contacts: Do they work with Maltese lawyers and tax professionals?
• EU Law: Do they understand the ATAD Directive (Anti Tax Avoidance Directive)?

Fees: What Malta Advice Costs in Dresden

Prices vary widely. Here’s an overview based on real quotes from Dresden:

My Top 3 Advisor Recommendations for Dresden

No endorsements here, but I can recommend three types of advisors in Dresden:

1. The Malta Specialist: Smaller firm in Dresden’s Neustadt; the owner used to work at a Big Four firm and now focuses entirely on Malta. Knows every nuance of Maltese law.
2. The International All-Rounder: Medium-sized firm near the main train station, includes Malta as part of a broad international portfolio. Solid foundation, but less depth.
3. The Big Four Rep: One of the Big Four has a Dresden branch. Expensive, but offers direct Malta contacts and liability coverage.

What does this mean for you? Always ask for a concrete Malta reference from your advisor. Without genuine experience, your structure risks becoming a construction site.

Malta’s Tax Benefits: What They Mean for You as a Dresden Resident

Now, let’s get to the meat of it. Malta truly offers major tax benefits—but only if you understand and follow the rules. Here are the key takeaways from practice.

The Maltese Tax System Explained: Easier Than You Think

Malta uses what’s called a “full imputation system”. That means your Maltese company first pays 35% corporate tax on profits. So far, so standard.

The kicker comes with distributions: As a non-Maltese shareholder, you get 6/7 of the tax back. Math: 35% × 6/7 = 30% refund. Effective tax rate: 5%.

An example from my consulting practice: Your Maltese company makes €100,000 in profit. It pays €35,000 in Maltese tax. When the profit is distributed to you (as a Dresden resident), you get €30,000 back. Amount paid: €5,000. Tax rate: 5%.

Requirements for the Tax Benefits: What You Need to Know

The 5% doesn’t happen automatically—you have to meet certain conditions:

• Economic Substance: Your Maltese company needs real substance in Malta
• Management: Key decisions must be made from Malta
• Minimum Presence: You or your managing director need to be in Malta regularly
• Accounting: Full accounting must comply with Maltese standards
• Bank Account: Company account at a Maltese bank

So what does this mean in practice? You’ll need to visit Malta around 6–8 times a year. Every trip should be documented (flight tickets, hotel bills, meeting minutes).

Double Taxation Treaties: Germany–Malta in Detail

Germany and Malta have a Double Taxation Agreement (DTA). It governs which country gets to tax what. The principle: Profits are taxed where the company is resident for tax purposes.

Your Maltese company is taxable in Malta if:

• It was established in Malta (which it is)
• Management takes place from Malta
• Its administration is based in Malta

The DTA protects you against double taxation. Germany can’t tax your Maltese company’s profits—as long as the substance requirements are met.

Personal Tax Liability: What Changes for You as a Dresdner

You remain taxable in Germany. This is important: The Malta structure does not impact your personal tax residency in Dresden.

What changes: The nature of your income. Instead of business income from a German partnership, you now have capital income from a Maltese company. That can mean major tax savings, especially on the trade tax.

What does this mean for you? You save taxes at the company level (5% instead of 30%), but still owe German personal income tax on distributions. The trick is in timing those distributions.

EU Holding via Malta: Why Dresden Entrepreneurs Benefit

This is where things get really interesting. Maltese companies are perfect for EU holding structures. That means your Maltese company holds shares in other European companies—and takes advantage of EU-wide tax benefits.

The EU Parent-Subsidiary Directive: Your Tax Saving Advantage

The EU Parent-Subsidiary Directive is your best friend for international structures. It states: Dividends between EU companies are generally tax-free if the parent holds at least 10% of the subsidiary.

Example: You have a GmbH in Dresden making €200,000 profit. Instead of distributing profits directly (for which you’d pay 26.375% capital gains tax), the GmbH distributes tax-free to your Malta holding. The Maltese company then distributes to you—at just 5% effective tax rate.

Typical Holding Structures for Dresden Entrepreneurs

Among my Dresden contacts, I see mainly three holding models:

1. Operating GmbH + Malta Holding: Your German GmbH continues operations in Dresden, the Malta company becomes the shareholder
2. Malta Operating Company + German Distribution GmbH: Core business runs via Malta, Germany only handles local distribution
3. International Holding: Malta company holds shares in multiple EU countries

The most popular option is model 1. Why? You keep running your Dresden business—while reaping Malta’s benefits.

Tax Optimization: The Dresden–Malta Trick

Here’s a real example from my consulting practice. A Dresden IT entrepreneur had this setup:

• GmbH in Dresden with €500,000 annual profit
• German tax burden: €150,000 (30%)
• Desired personal withdrawal: €200,000 per year

The solution: Malta holding acquires 100% of the Dresden GmbH shares. The GmbH distributes €300,000 tax-free to Malta. Malta distributes €200,000 to the entrepreneur (€10,000 Malta tax). Savings: €50,000 a year.

Compliance Requirements: What to Watch Out For

EU holding structures are under special scrutiny. Key compliance points:

• Substance Requirements: Malta company must have genuine business activity
• Transfer Pricing: All transactions between companies must be at arm’s length
• CRS Reporting: Automatic information exchange between Germany and Malta
• Beneficial Ownership: You must be registered as the beneficial owner

What does this mean for you? EU holding structures using Malta work brilliantly—but only with professional oversight. Improvising is not an option.

Step by Step from Dresden to Malta: The Practical Guide

Enough theory. Now I’ll take you through the exact steps—from idea to a functioning Malta structure. These are the same steps I took myself and have recommended to dozens of entrepreneurs.

Phase 1: Preparations in Dresden (4–6 weeks)

Before you ever set foot in Malta, do your homework in Dresden:

1. Find a Tax Advisor: Find a Dresden-based advisor with Malta expertise (see my tips above)
2. Structure Design: Plan your optimal setup with your advisor
3. Due Diligence: Have your existing structures checked
4. Financial Planning: Set a budget for incorporation, ongoing expenses, and taxes
5. Timing: Decide on the best moment for the restructuring

Important: This step costs €2,000–5,000, but saves you five-figure hassle later on.

Phase 2: Malta Reconnaissance Trip (1 week)

Now it’s time to head to Malta. But not for a vacation—this is business. My tip: Plan a busy week packed with these appointments:

• Days 1–2: Meet with 2–3 Maltese tax advisors
• Day 3: Visit banks (Bank of Valletta, HSBC Malta, MeDirect)
• Day 4: Lawyer appointments for company formation
• Day 5: Office viewings (for economic substance)
• Days 6–7: Make your decisions and sign initial contracts

Pro tip: Book everything before you fly. Maltese service providers are helpful, but rarely available on short notice.

Phase 3: Incorporation (2–4 weeks)

The actual company formation happens remotely. You can handle everything from Dresden:

1. Memorandum & Articles of Association: The corporate charter is drafted by the Maltese lawyer
2. MFSA Registration: Registering with Malta’s Financial Services Authority
3. Tax Registration: Registering with the Maltese tax office
4. Bank Account Opening: Usually possible via video call
5. Registered Office: Arrange a business address in Malta

Timeline: 14–21 days if handled professionally. Costs: €3,000–8,000 in total.

Phase 4: Building Substance (ongoing)

Now comes the most crucial phase: establishing real economic substance in Malta. This is not optional—it’s absolutely essential.

Minimum substance requirements:

• Office in Malta: Can be shared, but must be accessible
• Malta Director: Usually a local service provider
• Accounting: Full accounting according to Maltese standards
• Board Meetings: At least 2–4 per year in Malta
• Business Operations: Real decisions must be made in Malta

Phase 5: Integration into Your Dresden Structure (2–3 months)

The final step: Your Malta company is integrated into your existing business setup.

Typical process:

1. Share Transfer: Your Dresden GmbH shares are transferred to Malta
2. Tax Restructuring: New tax filings, new structures
3. Compliance Setup: CRS notifications, transfer pricing documentation
4. Operational Adjustments: New contracts, new workflows

What does this mean for you? The complete process takes 3–6 months and costs €15,000–30,000 upfront. Afterwards, you can save €20,000–100,000 in taxes every year.

How Much Does the Malta Route Cost from Dresden? My Cost Breakdown

Let’s talk numbers. Malta structures aren’t cheap, but pay off fast. Here’s my detailed cost calculation based on real-life projects.

One-Off Setup Costs: The Realistic Overview

Annual Ongoing Costs: The Reality

After setup, you’ll face yearly costs. I’m erring on the high side here to avoid unpleasant surprises:

• Malta Tax Advisory: €4,000–8,000
• Dresden Tax Advisory: €2,000–5,000
• Malta Accounting: €3,000–6,000
• Registered Office: €1,200–2,400
• Malta Director: €2,000–4,000
• Compliance & Reporting: €2,000–4,000
• Travel Expenses (4x Malta): €3,000–6,000
• Bank Fees: €500–1,500

Annual total costs: €17,700–36,900

Break-Even Analysis: When Malta Becomes Worth It

Here’s the key question: At what level of profits does Malta make sense?

My rule of thumb: With a 25% tax saving (30% Germany vs. 5% Malta), you need at least €100,000 of annual profits for Malta to pay off.

Sample calculation:

• €100,000 profit: €25,000 tax saved minus €30,000 Malta costs = –€5,000 (not worth it)
• €200,000 profit: €50,000 tax saved minus €30,000 Malta costs = +€20,000 (worthwhile)
• €500,000 profit: €125,000 tax saved minus €30,000 Malta costs = +€95,000 (very worthwhile)

Hidden Costs: What’s Often Overlooked

In practice, these costs are often forgotten but can add up fast:

• Currency risk: Malta uses euros, but exchange rate fluctuations matter for international business
• Time commitment: You’ll spend 20–40 hours a year on Malta matters
• Later optimizations: Structure changes cost €5,000–15,000
• Exit costs: If you dissolve the structure: €10,000–20,000
• German tax audit: Extra consulting fees if audited

What does this mean for you? Malta starts to make sense at around €150,000 annual profit. Below that, the costs outweigh the savings.

Mistakes You Should Avoid as a Dresdner

After two years of Malta consulting I’ve seen every mistake imaginable—especially among Germans keen to export Saxon perfectionism to Malta. Here are the biggest pitfalls from my experience.

Mistake 1: Malta Romance Instead of Business Reality

The most common mistake: Falling in love with the Malta idea without checking the hard facts. I remember a Dresden mechanical engineer who was set on Malta—with a GmbH making €80,000 in profit.

The calculation: €20,000 tax saving minus €25,000 Malta costs = €5,000 loss. He did it anyway, and folded a year later. Total bill: €40,000 for nothing.

My tip: Run the numbers honestly. Malta is no miracle cure for small profits.

Mistake 2: Underestimating Substance Requirements

Many think Malta is just a letterbox solution. Maybe once—but since 2019, that’s history. Economic Substance Requirements are strict and thoroughly enforced.

What I see again and again: Entrepreneurs set up the Malta company but never visit. Two years later, the bad news arrives: Malta revokes the tax benefits retroactively.

Minimum substance that must be genuinely maintained:

• 6–8 Malta trips per year
• Real business decisions on site
• Local accounting meeting Maltese standards
• Board meetings in Malta—with documentation

Mistake 3: Choosing Tax Advisors by Price Instead of Competence

Malta setups are complex. Still, many pick the cheapest advisor. It always backfires.

Dresden case: An IT entrepreneur had his Malta structure built for €8,000 (market price: €15,000). Result: Faulty articles of association, incomplete substance documentation, incorrect tax filings.

Repair costs: €25,000 plus two years of hassle with the authorities.

Mistake 4: German Bureaucracy Mentality in Malta

Germans love rules, deadlines, and perfectionism. Malta operates differently. Everything takes longer, schedules are more relaxed, and tomorrow can mean next week.

Classic case: German entrepreneurs insist their Malta bank opens their account within 48 hours. Maltese banks actually take 2–6 weeks. Result: Frustration, delays, and strained relationships with local partners.

My tip: Build in plenty of buffer time. Malta’s pace is Mediterranean, not German.

Mistake 5: Underestimating Compliance Workload

Malta structures mean double compliance: both German AND Maltese requirements. Many people seriously underestimate the workload.

What to expect:

• Two tax returns (Germany + Malta)
• CRS notifications (automatic information exchange)
• Transfer pricing documentation
• Economic substance reports
• Beneficial ownership registry entries

Time required: 30–50 hours per year. Costs: €15,000–25,000 annually.

Mistake 6: Forgetting the Exit Strategy

No one likes thinking about the end—but you must have a clear exit strategy for Malta structures. What happens if you get sick, retire, or change direction?

Without exit planning, winding down turns into a nightmare: tax snarls, Malta-Germany double taxation, and high liquidation costs.

What does this mean for you? Plan the ending from the very beginning. A clean exit strategy will save you time, nerves, and money later on.

Malta Tax Advisory Dresden: Frequently Asked Questions

Can I just transfer my existing Dresden GmbH to Malta?

Theoretically yes, but in practice it’s complicated. Moving a company’s seat from Germany to Malta has been possible since 2019, but is often tax-inefficient. Better: Set up a new Malta company and have your German GmbH as a subsidiary or transfer the shares.

Do I have to relocate my place of residence from Dresden to Malta?

No. You can keep living in Dresden and still benefit from Malta’s tax advantages. Only the company needs to meet Maltese substance requirements—not you personally.

How often do I need to travel to Malta for substance requirements?

At least 6–8 times per year for 2–3 days each trip. Most important: Documentation—each trip should involve genuine business decisions and be properly recorded.

Which Maltese banks accept German customers?

Bank of Valletta, HSBC Malta, and MeDirect are the go-to options for German entrepreneurs. Opening an account usually takes 2–6 weeks, often possible via video call from Dresden.

What happens in a German tax audit with a Malta structure?

German auditors scrutinize Malta setups closely. The key: seamless documentation of the Maltese substance. With good records, no problem—without them, it gets expensive.

Can I place several German companies under a Malta holding?

Yes—it’s actually very efficient to do so. One Malta holding can own several German subsidiaries and benefit from EU-wide dividend exemptions.

How long does it take to set up a complete Malta structure?

Realistic timeline: 3–6 months from first consultation to a fully operational structure. That’s 4–6 weeks of prep in Dresden, 2–4 weeks for setup in Malta, 2–3 months for integration.

How much does it cost to wind down a Malta structure?

Liquidation costs: €10,000–20,000 plus possible additional taxes. That’s why it’s important to have a clear exit strategy from the outset.

Are there minimum capital requirements for Malta companies?

Minimum capital: €1,165 for a Malta Ltd. For substance purposes, though, I recommend at least €25,000–50,000 share capital.

Can I use a Malta structure to expand into other EU countries?

Yes, Malta is an excellent base for EU-wide business. The Malta company can receive and redirect tax-free dividends from all EU countries.

Which industries benefit most from Malta structures?

Best suited: IT services, online business, consulting, holding structures, licensing. Less suitable: manufacturing, local services, regulated industries.

How does Brexit affect Malta structures?

Malta remains an EU member, so there are no direct Brexit effects. For UK business, though, new compliance requirements apply.