A Malta Company used as an Investment Vehicle can collect income, which can be a charge against high tax income in the investment country. Withholding tax is eliminated or reduced under double tax treaties or under EU Directives or under other reliefs of double taxation provided for by the Maltese government.

The rate of tax in Malta is the lowest in the EU and with the appropriate tax planning be reduced to 0% should the investment company have a participating holding investment, in most cases relating to investments if foreign dividends are exempt and capital gains are subject to conditions. The income can then be repatriated to any jurisdiction without withholding tax from the Malta company.

In Malta there are no investment activities which are considered as inappropriate, indeed holding a portfolio of investments with a Maltese participation exemption company if structured properly would help mitigate the tax exposure of the beneficial owner in certain instances.