European Business Account Recommendations for Malta company

Vince

Active Member
I'm looking for a solid bank for my new Malta corporation, preferably a bank account that can be opened online. Opening a business account in Malta is not an option as they require residence.

No special requirements except it should be a solid bank, easy to use, low fees, debit card and so on.

Preferably inside the EU or SEPA transfers zone.

appreciate any recommendations.

already checked this thread List of Banks, EMI's, Payment processors and BTC to FIAT institutions. but could only find 2 or 3 that fit the bill, would like some more recommendations.
 

Vince

Active Member
plus Malta is a EU country, not considered a tax haven. If you can find banking for BVI companies and the likes of that, it should be much easier to find for Malta.
 

Vince

Active Member
Forget that in Malta.

For everything else read this post.
thanks but that article talks about personal accounts and about someone who just moved to Malta.

my case is the exact opposite, I have a business in Malta, and do not wish to move there, so I'm looking for another European bank to take my business money.
 

Vince

Active Member
Even if you moved to Malta do you think you could have easily opened a business account. My question stands what banking options have you looked at before opening the company?



You've just wasted your time.
of course, why wouldn't they open a Malta business account for a Malta business, owned by a Malta Resident? It's not hard to open an account in Malta, but they need the owner of the business or a director to be a resident of Malta, which I'm trying to avoid.

with that said are you going to help, or are you just chastising me for no reason?
 

Martin Everson

Offshore Consultant
Business Angel
of course, why wouldn't they open a Malta business account for a Malta business, owned by a Malta Resident? It's not hard to open an account in Malta, but they need the owner of the business or a director to be a resident of Malta, which I'm trying to avoid.
Why wouldn't they????...lol oh boy :rolleyes:. I guess opening a business account for a Malta resident and Malta company is an obligation for Malta banks...never mind your activity, nationality etc etc and countless ex-pats in Malta who have trouble even opening a personal account and ended up at the now defunct satabank.

with that said are you going to help, or are you just chastising me for no reason?
I think Euro Pacific Bank have a future customer bla-"!.

P.S What do you consider a solid bank to I understand. Give me examples of banks you consider solid?
 

Vince

Active Member
Why wouldn't they????...lol oh boy :rolleyes:. I guess opening a business account for a Malta resident and Malta company is an obligation for Malta banks...never mind your activity, nationality etc etc and countless ex-pats in Malta who have trouble even opening a personal account and ended up at the now defunct satabank.



I think Euro Pacific Bank have a future customer bla-"!.

P.S What do you consider a solid bank to I understand. Give me examples of banks you consider solid?
My business is fully legit and I'm a EU citizen, so yes there's no reason why they wouldn't. I'm sure of this since I have friends in the same line of business that had no problems opening accounts there.

I'm looking for a bank hopefully in the SEPA area and that is guaranteed by the European fund protection of 100k (in case the bank goes bust)

I already worked with Europacific bank for other businesses and wouldn't deposit $1 there, they are terrible.
 

Martin Everson

Offshore Consultant
Business Angel
I'm looking for a bank hopefully in the SEPA area and that is guaranteed by the European fund protection of 100k (in case the bank goes bust)
Ok I see now what you define as "a solid bank".

With CFC rules across the EU what is your purpose of using a Malta company with a 35% tax rate. I am failing to understand the benefit and choice when full imputation won't work. Finding a bank is the least of your worries.
 

Vince

Active Member
Ok I see now what you define as "a solid bank".

With CFC rules across the EU what is your purpose of using a Malta company with a 35% tax rate. I am failing to understand the benefit and choice when full imputation won't work. Finding a bank is the least of your worries.
you clearly don't understand Malta structures. Using a holding company, the effective tax rate is 5% Corporate Tax in Malta
 

Martin Everson

Offshore Consultant
Business Angel
you clearly don't understand Malta structures. Using a holding company, the effective tax rate is 5% Corporate Tax in Malta
Unfortunately I 100% do understand it firsthand ;) and in great detail and I have discussed it many times on here i.e in the link below in relation to another question :rolleyes:. Hint hint.....why you think I mentioned "full imputation won't work" in my last post to you? :rolleyes: Sadly you have no clue about CFC rules and its impact on what you are trying to do with a shell Malta company in EU....lol.


Your a active member on here but setup a Malta company with no credible banking options identified in advance...I say no more. You not read anything posted on the forum...lol.
 

Vince

Active Member
Unfortunately I 100% do understand it firsthand ;) and in great detail and I have discussed it many times on here i.e in the link below in relation to another question :rolleyes:. Hint hint.....why you think I mentioned "full imputation won't work" in my last post to you? :rolleyes: Sadly you have no clue about CFC rules and its impact on what you are trying to do with a shell Malta company in EU....lol.


Your a active member on here but setup a Malta company with no credible banking options identified in advance...I say no more. You not read anything posted on the forum...lol.
the setup you are trying to shut down is used by thousands of companies in Malta with shell holding companies elsewhere. There is an entire subset of the Malta economy of companies forming and providing financial services to these companies. It's a huge part of the Maltese economy.

Companies whose owner is resident elsewhere have to hire some random person to be director of their company in Malta in order to bank in Malta. This is one option.

The other option is to move to Malta and be the director of your own company, hence a big part of the Malta official population does not actually live there, they just have a dummy address and pretend to.

However if you do not wish to bank in Malta, there is nothing stopping you from not living there, and not having a director there, unless obviously your country of residence goes after you for being the "real place where you conduct business", however from my experience this is very unlikely, as long as you are paying some taxes on dividends and such.

Since my residence country taxes dividends around 30%, my plan is to keep most of the business profits in the business bank account and eventually physically move to Malta to then switch them to a personal account. This plan has been reviewed by accountants in both countries and makes sense to them. If it doesnt to you, please come forward and say why not instead of just pooping on it without actually being specific :)
 

Vince

Active Member
Your a active member on here but setup a Malta company with no credible banking options identified in advance...I say no more. You not read anything posted on the forum...lol.
regarding this, I'm okay about moving my residence to Malta immediately, just looking for options so I don't have to, because it's a hassle.
 

Martin Everson

Offshore Consultant
Business Angel
the setup you are trying to shut down is used by thousands of companies in Malta with shell holding companies elsewhere. There is an entire subset of the Malta economy of companies forming and providing financial services to these companies. It's a huge part of the Maltese economy.
These people tend to have substance in Malta i.e staff, local director and offices etc. The other people who use Malta companies as a shell company with no substance in Malta fall into a different category....i.e the idiot category due to CFC rules. Same people that use BVI companies in EU with no substance in BVI...no difference just one is EU company and the other not...lol. The argument of everyone does it does not make it right.

Since my residence country taxes dividends around 30%, my plan is to keep most of the business profits in the business bank account and eventually physically move to Malta to then switch them to a personal account.
You do understand that for tax purposes in some EU countries offshore shell companies with no substance are tax transparent. That means your taxed on offshore companies as if you earned the money personally in your name i.e the offshore company is invisible...lol. They do not care you did not get money in your name and that money is sat in company name as offshore company is transparent and is in your name to them...lol. If it was so easy no one would owe tax for an offshore company with no substance just by keeping money in the account...lol

regarding this, I'm okay about moving my residence to Malta immediately, just looking for options so I don't have to, because it's a hassle.
Move your residency asap. You think you got hassle now wait until your tax man leans on you. Could be in 1 year time or 5 but back taxes will be owned if in 5 eek¤%&
 

Martin Everson

Offshore Consultant
Business Angel
Here is some basic CFC taxman questions to determine if the company should be taxed as a local company in your home country or whether its a real Malta company with substance. Any one of these answered wrongly and its good night Vienna conf/(%.

1. Where do the majority of the directors live?
2. Where are the major contracts based?
3. Where are company decisions made?
4. Where are company meetings held?
5. Where are company records kept?
6. Where do most employees live?
 

Vince

Active Member
Here is some basic CFC taxman questions to determine if the company should be taxed as a local company in your home country or whether its a real Malta company with substance. Any one of these answered wrongly and its good night Vienna conf/(%.

1. Where do the majority of the directors live?
2. Where are the major contracts based?
3. Where are company decisions made?
4. Where are company meetings held?
5. Where are company records kept?
6. Where do most employees live?
I know you are right in theory, however there are so many people operating companies from elsewhere that I personally don't think this is really an issue at least in most countries.

if that list was really applied then this forum would have no reason to exist as offshore companies would be deemed useless, and countries like BVI and Belize that live just from offshore money would go bankrupt.

Are there actually been people here complaining on the forum about the IRS going after them for no substance?
 

Martin Everson

Offshore Consultant
Business Angel
I know you are right in theory, however there are so many people operating companies from elsewhere that I personally don't think this is really an issue at least in most countries.
So do people drive and break the speed limit every day with no issues and then one day........

if that list was really applied then this forum would have no reason to exist as offshore companies would be deemed useless, and countries like BVI and Belize that live just from offshore money would go bankrupt.
The problem is not offshore companies. The problem is incorrect use of offshore companies. If you live in a country with no CFC rules then your good. Some territorial tax systems also allow you to have an offshore company even with CFC rules i.e Gibraltar Category 2 residency (i.e non resident domicile status) allows you to be director of a Gibraltar exempt company and keep its tax free status while living in Gibraltar as long as it doesn't trade in Gibraltar. Also if you live in a tax free country like UAE/Monaco/Bahamas etc then your also good. Believe me having an offshore company outside my tax free home country can be a blessing.

Are there actually been people here complaining on the forum about the IRS going after them for no substance?
Most people love to believe they are smarter than the taxman so I can't imagine most would want to post a failure like that. That' would be like making a post about erectile dysfunction.
 

xzars

Trusted Member
Business Angel
OP do you live in EU?

If you do, your country of residence probably has a DTA in place with Malta which explicitly makes that holding structure irrelevant. It will certainly not stand the test of a court room.

Skim through the DTA, and you will most likely see a line or two about Permanent Establishment and Business Profits.

For example, this is from Malta - Germany DTA.

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes especially:

a) a place of management;
...

Article 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein
Also if you live outside EU, the DTA rules (if one exists) are most likely the same or substantially the same. With or without CFC rules in your country of residence, you can get on the hook just as hard if a DTA exists.
 
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