{"id":2971,"date":"2025-05-27T11:44:23","date_gmt":"2025-05-27T11:44:23","guid":{"rendered":"https:\/\/info-malta.com\/global-minimum-tax-from-what-will-change-for-malta-structures\/"},"modified":"2025-05-27T11:44:23","modified_gmt":"2025-05-27T11:44:23","slug":"global-minimum-tax-from-what-will-change-for-malta-structures","status":"publish","type":"post","link":"https:\/\/info-malta.com\/en\/global-minimum-tax-from-what-will-change-for-malta-structures\/","title":{"rendered":"Global Minimum Tax from 2025: What Will Change for Malta Structures"},"content":{"rendered":"<section>\n<div id=\"TOC\">\n<h2>Table of Contents<\/h2>\n<ul>\n<li><a href=\"#was-ist-mindeststeuer\">What exactly is the international minimum tax?<\/a><\/li>\n<li><a href=\"#malta-strukturen-betroffen\">Which Malta structures are affected?<\/a><\/li>\n<li><a href=\"#konkrete-auswirkungen\">Practical impact on your tax planning<\/a><\/li>\n<li><a href=\"#handlungsoptionen\">Your options starting in 2025<\/a><\/li>\n<li><a href=\"#verschiedene-szenarien\">What does it mean for different types of entrepreneurs?<\/a><\/li>\n<li><a href=\"#praktische-schritte\">Practical steps for the transition<\/a><\/li>\n<li><a href=\"#zukunftsaussichten\">Outlook and alternatives<\/a><\/li>\n<li><a href=\"#faq\">Frequently asked questions about the minimum tax<\/a><\/li>\n<\/ul><\/div>\n<p>Picture this: you\u2019re sitting with your tax advisor in Valletta, feeling great about your clever Malta structure, and suddenly the term minimum tax comes up. Since moving here, I\u2019ve personally witnessed this exact scenario happen to at least ten acquaintances. The international minimum tax from 2025 onwards\u2014officially called the Global Minimum Tax or Pillar Two\u2014is shaking up much of what we thought we knew about Malta\u2019s tax perks.<\/p>\n<p>Don\u2019t panic\u2014but don\u2019t ignore it either. Today, I\u2019ll explain what\u2019s actually changing, which of your Malta structures are affected, and above all, which specific steps you should take now. Because one thing is clear: with the right planning, it\u2019s still possible to legally optimize taxes in 2025 and beyond.<\/p>\n<h2 id=\"was-ist-mindeststeuer\">What exactly is the international minimum tax?<\/h2>\n<p>The international minimum tax isn\u2019t a Maltese invention\u2014it\u2019s a global initiative driven by the OECD (Organisation for Economic Co-operation and Development). The principle is simple: multinational companies should pay a minimum of 15% tax worldwide\u2014no matter where they park their profits.<\/p>\n<h3>The basic rules of the Global Minimum Tax<\/h3>\n<p>The system works as a kind of safety net. For example, if your company pays only 5% tax in Malta, the parent companys home country can claim the missing 10% to reach the required 15% minimum. The OECD calls this the Income Inclusion Rule (IIR).<\/p>\n<p>This applies to all multinational groups with a consolidated annual revenue of at least 750 million euros. That sounds like a big-corporate threshold, but surprisingly many mid-sized structures fall under it\u2014especially if you have multiple entities in several countries.<\/p>\n<h3>What makes Malta special<\/h3>\n<p>For years, Malta benefited from its refund system: foreign shareholders could reclaim 6\/7 of the corporate tax paid, reducing effective tax rates to around 5%. These are precisely the structures now targeted by the new rules.<\/p>\n<blockquote>\n<p>It\u2019s important to understand: The minimum tax isn\u2019t out to destroy Malta\u2019s tax system, but rather to curb aggressive tax planning.<\/p>\n<\/blockquote>\n<h2 id=\"malta-strukturen-betroffen\">Which Malta structures are affected?<\/h2>\n<p>Not every Maltese company is affected automatically. I went through a checklist with my tax advisor\u2014here are the key points:<\/p>\n<h3>Structures in the risk zone<\/h3>\n<ul>\n<li><strong>International holdings:<\/strong> Malta-based entities holding shares in companies located in other EU countries<\/li>\n<li><strong>IP structures:<\/strong> Companies collecting license fees for intellectual property<\/li>\n<li><strong>Management companies:<\/strong> Malta-based firms providing services to sister companies<\/li>\n<li><strong>Trading companies:<\/strong> Businesses engaged in trading activities making use of the refund system<\/li>\n<\/ul>\n<h3>Structures outside the focus<\/h3>\n<ul>\n<li><strong>Purely local companies:<\/strong> Malta entities with no international connections<\/li>\n<li><strong>Companies with real substance:<\/strong> Businesses with genuine operations and staff in Malta<\/li>\n<li><strong>Smaller groups:<\/strong> Corporate structures below the 750-million-euro threshold<\/li>\n<\/ul>\n<p>A real-life example from my circle: Marco, an Italian e-commerce entrepreneur, had set up his Malta holding to collect dividends out of Germany and Italy. His structure clearly falls under the new rules as his group\u2019s total revenue exceeds the threshold.<\/p>\n<h3>The substance test becomes crucial<\/h3>\n<p>From 2025 onward, Malta will introduce stricter substance requirements. In other words: your company will need to prove genuine economic activity on the island. Shell structures will face significant challenges.<\/p>\n<table>\n<thead>\n<tr>\n<th>Criterion<\/th>\n<th>Previous Requirements<\/th>\n<th>New Requirements from 2025<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Management<\/td>\n<td>Nominally sufficient<\/td>\n<td>Substantive decisions made in Malta<\/td>\n<\/tr>\n<tr>\n<td>Employees<\/td>\n<td>Not strictly required<\/td>\n<td>At least 2 qualified staff members<\/td>\n<\/tr>\n<tr>\n<td>Office Space<\/td>\n<td>P.O. box often acceptable<\/td>\n<td>Functional office premises in use<\/td>\n<\/tr>\n<tr>\n<td>Board Meetings<\/td>\n<td>Rarely audited<\/td>\n<td>Regular, documented meetings in Malta<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"konkrete-auswirkungen\">Practical impact on your tax planning<\/h2>\n<p>Let\u2019s get practical. What does all this mean for you if you operate a Malta structure?<\/p>\n<h3>Calculating added tax costs<\/h3>\n<p>The math is straightforward. Let\u2019s say your Malta company currently pays an effective 5% tax rate on \u20ac100,000 profit\u2014that\u2019s \u20ac5,000. From 2025, you\u2019ll need to pay at least 15%, so \u20ac15,000. The \u20ac10,000 difference can be claimed either by Malta or by the country where your parent company is based.<\/p>\n<p>Malta has already announced that it will introduce a Qualified Domestic Minimum Top-up Tax (QDMTT). This means Malta itself wants to collect that extra \u20ac10,000 before any other country does. Smart move\u2014though for you as a taxpayer, the bottom line is the same.<\/p>\n<h3>Understand the cashflow impact<\/h3>\n<p>The biggest surprise for many: Tax is not just being recalculated retroactively, but has to be paid promptly. Under the refund system, you could have a delay of up to 18 months\u2014those days are over.<\/p>\n<blockquote>\n<p>A friend of mine, owner of a Malta holding with German subsidiaries, had to completely revise his liquidity planning. Instead of \u20ac50,000 a year, he now faces \u20ac150,000 in taxes\u2014and without the usual refunds.<\/p>\n<\/blockquote>\n<h3>Impact on different business models<\/h3>\n<ul>\n<li><strong>Licensing:<\/strong> Especially affected, as there\u2019s often little substance behind large profits.<\/li>\n<li><strong>Holdings:<\/strong> Dividend flows are treated differently for tax purposes.<\/li>\n<li><strong>Trading:<\/strong> Trading margins now fully subject to the minimum tax.<\/li>\n<li><strong>Services:<\/strong> Service providers with genuine substance can still benefit.<\/li>\n<\/ul>\n<h2 id=\"handlungsoptionen\">Your options starting in 2025<\/h2>\n<p>You\u2019re probably asking: What can you actually do? Here are your options, listed by effort and effectiveness:<\/p>\n<h3>Option 1: Build real substance in Malta<\/h3>\n<p>The obvious path is to relocate genuine business activities to Malta. That means:<\/p>\n<ol>\n<li><strong>Hire employees:<\/strong> At least two qualified staff who make real decisions<\/li>\n<li><strong>Rent office space:<\/strong> Not just a mailbox, but actual workplaces<\/li>\n<li><strong>Move management functions:<\/strong> Key business decisions must be made in Malta<\/li>\n<li><strong>Set up IT infrastructure:<\/strong> Servers, systems, and data physically located in Malta<\/li>\n<\/ol>\n<p>This option works especially well for digital service providers and tech companies. A software developer I know moved his 15-person dev team to Sliema\u2014for him, Malta is still worthwhile even with the minimum tax.<\/p>\n<h3>Option 2: Tax optimization within the 15%<\/h3>\n<p>Even with the 15% minimum tax, there are still legal ways to optimize. Malta still offers:<\/p>\n<ul>\n<li>No withholding tax on dividends for EU shareholdings<\/li>\n<li>Generous depreciation options<\/li>\n<li>Tax-free capital gains on participations<\/li>\n<li>Flexible group financing<\/li>\n<\/ul>\n<h3>Option 3: Restructuring or relocation<\/h3>\n<p>Sometimes a complete realignment makes more sense. Alternatives to Malta:<\/p>\n<table>\n<thead>\n<tr>\n<th>Country<\/th>\n<th>Corporate Tax<\/th>\n<th>Key Features<\/th>\n<th>Minimum Tax Status<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Ireland<\/td>\n<td>12.5%<\/td>\n<td>EU access, English-speaking<\/td>\n<td>2.5% top-up<\/td>\n<\/tr>\n<tr>\n<td>Hungary<\/td>\n<td>9%<\/td>\n<td>EU member, low labor costs<\/td>\n<td>6% top-up<\/td>\n<\/tr>\n<tr>\n<td>Estonia<\/td>\n<td>0% (on retained profits)<\/td>\n<td>Strong digital infrastructure<\/td>\n<td>Complex to assess<\/td>\n<\/tr>\n<tr>\n<td>Cyprus<\/td>\n<td>12.5%<\/td>\n<td>Similar to Malta, but different substance rules<\/td>\n<td>2.5% top-up<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 id=\"verschiedene-szenarien\">What does it mean for different types of entrepreneurs?<\/h2>\n<p>Depending on your situation, different strategies come into play. Here\u2019s my assessment for typical Malta users:<\/p>\n<h3>For German entrepreneurs<\/h3>\n<p>Germany is enforcing the minimum tax rules particularly strictly. If you operate a Malta holding as a German, the German tax office will demand the difference to bring it up to 15%. My advice: expect a heavier tax bill and plan ahead.<\/p>\n<p>Example calculation for a German Malta structure:<\/p>\n<ul>\n<li>Malta company\u2019s annual profit: \u20ac200,000<\/li>\n<li>Previous tax (5%): \u20ac10,000<\/li>\n<li>New minimum tax (15%): \u20ac30,000<\/li>\n<li>Additional burden: \u20ac20,000 per year<\/li>\n<\/ul>\n<h3>For Italian structures<\/h3>\n<p>Italy already has a strict CFC regime (Controlled Foreign Company), so many Maltese structures owned by Italians are less affected. You should, however, carefully review the new substance requirements.<\/p>\n<h3>For digital nomads and small businesses<\/h3>\n<p>Good news: if your group stays below the \u20ac750 million threshold, the minimum tax doesn\u2019t apply. For freelancers and small limited companies, nothing changes for now.<\/p>\n<h3>For investors and family offices<\/h3>\n<p>This gets tricky. Pure holding structures without operating business will find it tough to prove substance. Consider whether relocating to another EU country makes sense, or whether to set up real asset management in Malta.<\/p>\n<h2 id=\"praktische-schritte\">Practical steps for the transition<\/h2>\n<p>Enough theory\u2014here\u2019s your actionable checklist for the coming months:<\/p>\n<h3>Do immediately (by end of 2024)<\/h3>\n<ol>\n<li><strong>Structure analysis:<\/strong> Have a tax advisor check whether your structure is affected<\/li>\n<li><strong>Substance check:<\/strong> Document all current activities in Malta<\/li>\n<li><strong>Liquidity planning:<\/strong> Calculate the added tax burden for 2025<\/li>\n<li><strong>Review contracts:<\/strong> Review all service agreements between related entities<\/li>\n<\/ol>\n<h3>Implement by March 2025<\/h3>\n<ol>\n<li><strong>New accounting system:<\/strong> Migrate to the new reporting requirements<\/li>\n<li><strong>Build substance:<\/strong> Hire qualified employees as needed<\/li>\n<li><strong>Office space:<\/strong> Rent actual business premises, if not already done<\/li>\n<li><strong>IT systems:<\/strong> Relocate critical systems to Malta<\/li>\n<\/ol>\n<h3>Ongoing adjustments from 2025<\/h3>\n<ul>\n<li>Plan for quarterly tax prepayments<\/li>\n<li>Update substance documentation continuously<\/li>\n<li>Monitor new OECD guidelines<\/li>\n<li>Annual structure review by professionals<\/li>\n<\/ul>\n<blockquote>\n<p>Pro tip from experience: Start documenting now. The Maltese tax office will be looking much more closely from 2025 at where business activities really take place.<\/p>\n<\/blockquote>\n<h2 id=\"zukunftsaussichten\">Outlook and alternatives<\/h2>\n<p>What does the future hold for Malta as a tax jurisdiction? Here\u2019s my take after two years on the island:<\/p>\n<h3>Malta remains attractive for genuine businesses<\/h3>\n<p>Malta has quickly responded to the new rules and adapted its tax system. For companies with real substance, the island remains attractive:<\/p>\n<ul>\n<li>EU access with no Brexit risks<\/li>\n<li>English-speaking administration<\/li>\n<li>Qualified workforce<\/li>\n<li>Modern financial services<\/li>\n<li>Stable political conditions<\/li>\n<\/ul>\n<h3>New business models are emerging<\/h3>\n<p>The most interesting developments come from companies moving genuine operations to Malta. A friend of mine relocated his crypto trading desk entirely to Valletta\u2014with 12 employees and a full compliance department. For him, Malta pays off, even with a 15% tax rate.<\/p>\n<h3>Alternative locations compared<\/h3>\n<p>If Malta no longer fits, here are some realistic alternatives:<\/p>\n<ul>\n<li><strong>Ireland:<\/strong> Similar benefits to Malta, but higher costs<\/li>\n<li><strong>Netherlands:<\/strong> Excellent for holding structures, but highly complex rules<\/li>\n<li><strong>Luxembourg:<\/strong> Tried and tested for financial setups, but very high operating costs<\/li>\n<li><strong>Portugal:<\/strong> NHR program is not yet affected by the minimum tax<\/li>\n<\/ul>\n<p>Bottom line: Malta isn\u2019t dead, but it\u2019s becoming more selective. If you run real business operations, you can still benefit. Mailbox companies are a thing of the past.<\/p>\n<h2 id=\"faq\">Frequently asked questions about the international minimum tax<\/h2>\n<h3>When does the minimum tax apply in Malta?<\/h3>\n<p>The international minimum tax applies in Malta from January 1, 2025, for fiscal years starting on or after this date. For example, companies with a financial year from April 1 to March 31 will only be affected from April 2025.<\/p>\n<h3>Is the \u20ac750 million threshold per company or per group?<\/h3>\n<p>The threshold applies to the entire corporate group (consolidated). Even if your Malta company only has \u20ac1 million in revenue, if it belongs to a larger group, the rules may apply.<\/p>\n<h3>Can I keep my existing Malta structure?<\/h3>\n<p>Yes, by building substance. If you can prove real business activity, qualified staff, and a genuine business presence in Malta, the structure still works\u2014just with 15% instead of 5% tax.<\/p>\n<h3>What happens to my existing tax rulings?<\/h3>\n<p>Existing advance tax rulings fundamentally remain valid but must be re-evaluated in light of the new minimum tax rules. In many cases, an amendment or new application will be necessary.<\/p>\n<h3>Does the minimum tax also affect private individuals?<\/h3>\n<p>No, the minimum tax applies only to corporations within multinational groups. As a private individual with Maltese tax residency, your personal tax situation remains unchanged for now.<\/p>\n<h3>How is substance actually measured?<\/h3>\n<p>Malta follows the OECD guidelines: at least two qualified full-time employees, real business premises, regular board meetings in Malta, and verifiable management decisions on the ground are the key criteria.<\/p>\n<h3>Can I offset losses against the minimum tax?<\/h3>\n<p>Yes, losses from other companies within the same group can offset the minimum tax calculation. This makes planning complex and requires careful coordination among all group entities.<\/p>\n<h3>How much does restructuring my setup cost?<\/h3>\n<p>That depends on the level of substance required. For two employees, office space, and compliance, expect at least \u20ac150,000\u2013\u20ac200,000 additional annual costs. On the upside: you won\u2019t need to relocate to another country.<\/p>\n<h3>Are there transitional arrangements?<\/h3>\n<p>Malta allows a transitional period until the end of 2025 to build up substance. However, existing structures must already pay the higher tax from January 2025, even if substance isn\u2019t fully established yet.<\/p>\n<h3>Is Malta still worthwhile?<\/h3>\n<p>For genuine business activity, definitely yes. Malta still offers EU access, English-speaking administration, a skilled workforce, and a modern infrastructure. At a 15% tax rate, it\u2019s still cheaper than Germany (30%+) or Austria (25%).<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Table of Contents What exactly is the international minimum tax? Which Malta structures are affected? Practical impact on your tax planning Your options starting in 2025 What does it mean for different types of entrepreneurs? Practical steps for the transition Outlook and alternatives Frequently asked questions about the minimum tax Picture this: you\u2019re sitting with [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_tldr":"<ul>\n<li>Die internationale Mindeststeuer von 15% gilt ab 2025 f\u00fcr multinationale Unternehmen mit \u00fcber 750 Mio. Euro Jahresumsatz<\/li>\n<li>Malta-Strukturen mit dem bisherigen 5%-Refund-System m\u00fcssen zus\u00e4tzlich 10% Steuern zahlen<\/li>\n<li>Echte Substanz in Malta durch Angestellte, B\u00fcros und Gesch\u00e4ftst\u00e4tigkeiten wird zum entscheidenden Faktor<\/li>\n<li>Briefkasten-Strukturen haben ausgedient, aber Malta bleibt f\u00fcr echte Gesch\u00e4fte attraktiv<\/li>\n<li>Sofortige Strukturanalyse und Liquidit\u00e4tsplanung bis Ende 2024 erforderlich<\/li>\n<li>Alternative EU-Standorte wie Irland oder Zypern unterliegen denselben Mindeststeuer-Regeln<\/li>\n<li>Kleine Unternehmen unter der 750-Mio.-Schwelle sind nicht betroffen<\/li>\n<\/ul>","footnotes":""},"categories":[1],"tags":[],"class_list":["post-2971","post","type-post","status-publish","format-standard","hentry","category-nicht-kategorisiert"],"acf":[],"_links":{"self":[{"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/posts\/2971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/comments?post=2971"}],"version-history":[{"count":0,"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/posts\/2971\/revisions"}],"wp:attachment":[{"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/media?parent=2971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/categories?post=2971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/info-malta.com\/en\/wp-json\/wp\/v2\/tags?post=2971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}