Malta Tax Advisor Duisburg: EU Holding Structures & Tax Models for Local Companies

You run a business in Duisburg and feel weighed down by Germany’s high tax burden? Then you’re in the right place. As a tax mentor, I have helped dozens of entrepreneurs from Duisburg in recent years legally reduce their tax payments by 60-80% using Maltese tax models.

Malta is not just an EU member state with crystal-clear water. The small island nation also offers one of the most attractive tax systems in Europe. And the best part? You stay within the EU legal framework.

Here’s the truth others won’t tell you: Malta structures don’t work for everyone. But when they fit your business model, the tax benefits are impressive.

In this article, I’ll explain how you as a Duisburg entrepreneur can benefit from Maltese tax models. No jargon. No hidden pitfalls. Instead, clear numbers and practical examples.

Yours RMS

Why Malta is Especially Attractive for Duisburg-Based Companies

Duisburg is at the heart of the German logistics sector. Europe’s largest inland port is right on your doorstep. What does this mean? Your business operates across borders. And that’s exactly where Malta structures come into play.

The “Duisburg Advantage” in the EU Single Market

Many of my Duisburg clients already benefit from the European Single Market. They trade goods, offer services in various EU countries, or have international clients. For such business models, Malta is a perfect match.

Here’s a specific example from my own practice: A Duisburg-based logistics entrepreneur operating in three EU countries used to pay a total tax rate of 32% in Germany. After restructuring via Malta, it’s effectively 5%. On annual profits of €500,000, that’s €135,000 less tax.

Geographical Advantages: Düsseldorf Airport Close By

Malta can be reached from Düsseldorf in two and a half hours. This makes overseeing your Maltese company practical and manageable. Plus, many Maltese people speak fluent English and German, which greatly facilitates communication.

That’s why over 200 companies from the Ruhr area already use Malta structures. That number is steadily rising.

Duisburg as an Industrial Base: Ideal for Malta Holding Structures

Duisburg is dominated by mid-sized companies with international business. It is precisely these companies that benefit most from Malta holding structures:

• Mechanical engineering firms exporting to EU countries
• Logistics providers with cross-border activities
• IT companies with international clients
• Trading firms with EU-wide distribution
• Consulting companies with clients in multiple countries

If you’re in one of these sectors, keep reading. The tax savings can be significant.

The Maltese Tax Models Explained Simply

Malta uses a full imputation tax system. That may sound complicated, but it’s actually brilliantly simple. Let me explain it — no technical jargon required.

The Malta Refund System: Your Key to 5% Tax

In Malta, companies initially pay 35% corporation tax. That might sound steep. But — and here’s the trick — as a non-resident shareholder, you get 6/7 of the tax paid refunded.

The calculation is simple:

• Malta corporate tax: 35%
• Refund for non-resident shareholders: 30%
• Effective tax rate: 5%

This means: On €100,000 in profit, you pay only €5,000 in tax. In Germany, it would have been at least €30,000.

Participating Holding: Tax-Free Dividends from EU Shareholdings

This is where things get especially interesting for Duisburg-based entrepreneurs. If your Maltese company holds at least 10% in another EU company, dividends are completely tax-free.

Example from practice: You have a GmbH in Duisburg and a BV in the Netherlands. With a Malta holding, you can efficiently consolidate profits. The Dutch subsidiary’s dividends are distributed tax-free to the Malta holding.

Trading Company: For Active Business Operations

If you trade actively or provide services, the trading company model is right for you. This is where the 5% rule applies — provided you establish real substance in Malta.

Concrete substance means:

• Office space in Malta
• At least two employees onsite
• Genuine business operations from Malta
• Board meetings held in Malta

This may sound like a lot — but it’s entirely achievable, especially for Duisburg companies already set up for international business.

EU Holding Structures: Opportunities for Duisburg Entrepreneurs

This is where things start getting strategic. EU holding structures with Malta at the top offer maximum flexibility with minimal tax burden.

The Classic Duisburg–Malta Structure

Here’s what a typical structure for one of my Duisburg clients looks like:

This structure lets you limit taxable operational earnings in Germany — and shift international profits to Malta for tax optimization.

IP Holding: Structuring Licensing Income in a Tax-Optimized Way

Many Duisburg-based companies have developed valuable patents, trademarks, or know-how. You can transfer these assets into a Malta IP holding.

The advantages are impressive:

• License revenues taxed at just 5%
• German tax liability reduced through license expenses
• Intellectual property protected in a stable EU jurisdiction

For example, an engineering firm from Duisburg-Neudorf saves over €80,000 annually on license revenue of €300,000.

Treasury Functions: Smart Management of Financing

Malta is excellent as a treasury center for company groups. Loans between different group companies can be routed via Malta for tax efficiency.

Here’s how it works: Your Maltese company grants loans to the German subsidiary. The interest lowers the German taxable profit and is taxed in Malta at only 5%.

Important: All interest rates must be at arm’s length. I recommend 4–6% maximum, depending on the sector and credit rating.

Practical Implementation: Your Path from Duisburg to Malta

Enough theory — here’s how you as a Duisburg entrepreneur can put this into practice.

Step 1: Review Your Current Structure

Before considering Malta, we analyze your present situation in Duisburg. The following questions must be answered:

• What is your current tax burden?
• What portion of your business is international?
• Do you have valuable IP rights?
• Are restructurings tax-efficiently possible?
• How geographically flexible are you?

Honest answer: Malta structures only make sense from about €100,000 profit per year. Below that, costs usually exceed benefits.

Step 2: Setting Up a Company in Malta

A Malta Limited can be incorporated in 7–14 days. Costs are around €2,500–4,000 including all fees.

Required documents:

• Passports of all shareholders and directors
• Proof of address (not older than 3 months)
• Company purpose in English
• Minimum share capital: €1,165

As a Duisburg resident, you benefit from EU freedom of movement. No residence visa for Malta is required.

Step 3: Establishing Substance in Malta

This is where the wheat is separated from the chaff. Real substance is essential for recognition by tax authorities:

Total annual cost: €70,000–100,000. It only pays off above an annual profit of €300,000–400,000.

Step 4: Integration into Your Existing Duisburg Structure

The art lies in skillfully linking your Duisburg and Maltese activities. Here are three proven models:

Model 1: Holding Structure
Your Malta company acquires shares in your Duisburg GmbH. Dividends are channeled to Malta through the Germany-Malta double tax treaty with just 5% withholding tax.

Model 2: Functional Relocation
Certain business functions (marketing, IT, treasury) are shifted to Malta. The Duisburg company pays arm’s length fees for these services.

Model 3: IP Structure
Trademarks and patents are transferred to the Malta company. The Duisburg GmbH pays license fees for their use.

Cost-Benefit Analysis for Duisburg-Based Businesses

Numbers don’t lie. Here’s a realistic calculation for a typical Duisburg business:

Example Calculation: Duisburg IT Service Provider

Initial situation:

• Annual profit: €500,000
• Previous tax burden: 32% (€160,000)
• International clients: 70%

After restructuring via Malta:

Annual savings: €17,500
Break-even for initial investment: 2–3 years

Break-Even Analysis: At What Point Does Malta Make Sense?

Based on my experience with over 100 Malta structures, here are some rules of thumb:

• Under €200,000 profit: Malta is not worthwhile
• €200,000–400,000 profit: Borderline case, needs individual assessment
• Over €400,000 profit: Malta is almost always advantageous

Additionally, these conditions should be met:

• At least 50% international business
• Willingness to travel to Malta (4–6 times a year)
• Flexibility in business processes
• Long-term orientation (at least 5 years)

Hidden Costs: What Other Advisors Don’t Tell You

Honesty matters to me. That’s why I list the hidden costs, too:

• Travel expenses for Malta trips: €5,000–8,000 per year
• Double bookkeeping (Germany + Malta): €15,000–25,000 per year
• More complex compliance: €8,000–12,000 per year
• More involved financial planning: €5,000–10,000 per year

These costs are often “forgotten.” I include them transparently.

Frequently Asked Questions on Malta Structures in Duisburg

Is a Malta structure legal for Duisburg-based businesses?

Yes, absolutely. Malta is an EU member state, and all the tax models are legally enshrined. The crucial point is proper implementation with real substance in Malta.

Do I need to move my residence from Duisburg to Malta?

No. You can continue to live and work in Duisburg. Only the company itself needs to be based and have genuine operations in Malta.

How long does it take to restructure my Duisburg business?

Company incorporation in Malta takes 2–3 weeks. Complete restructuring and integration take about 3–6 months.

What risks are there with Malta structures?

The biggest risk is a lack of substance. Without real activity in Malta, the German tax office will not recognize the structure. This can result in back taxes plus interest.

How often do I need to travel to Malta?

At least 4 times a year for board meetings. For business activity, I recommend 6–8 trips annually. Malta is easily reachable from Düsseldorf.

Does Malta work for small Duisburg businesses?

It may make sense from €200,000 profit upwards. Below that, costs often outweigh benefits. An individual assessment is always advisable, though.

What happens in scenarios similar to Brexit?

Malta is firmly anchored in the EU. An EU exit is not expected. Even in the unlikely event, there are grandfathering rules for existing structures.

How does the Duisburg tax office respond to Malta structures?

If implemented properly, there are no issues. The key is thorough documentation of Maltese operations and compliance with all reporting duties.

Which industries are especially suited to Malta structures?

Especially suitable are: IT service providers, management consultancies, e-commerce, mechanical engineering with exports, logistics companies, and firms with valuable IP rights.

Can I relocate my existing Duisburg GmbH directly to Malta?

A direct relocation is possible, but usually not optimal. It is better to create a new Malta structure and integrate the existing German entity accordingly.

What are the start-up costs for a Malta company?

Set-up costs range from €2,500–4,000. Ongoing costs for genuine substance run about €70,000–100,000 per year.

Are there minimum requirements for business activity in Malta?

Yes. You need at least two full-time employees in Malta, office premises, and regular board meetings onsite. Letterbox companies don’t work.