Tax Advisor Bremen Malta: Your Path to Optimal EU Holding Solutions

Malta Tax Consulting in Bremen: Why Local Expertise Matters

Bremen is different. As a city-state with a unique economic structure, Bremen companies have special conditions that need to be factored into Malta tax planning.

Here are the most important specifics:

Understanding the Bremen Business Landscape

Medium-sized companies from trade, logistics, and maritime industries dominate Bremen. These sectors have specific requirements for international tax structures. A logistics company from Bremen North needs different Malta solutions than a trading company from the Überseestadt district.

There’s another aspect: Bremen, as a city-state, faces a different tax landscape than other federal states. Local business tax varies by municipality between 14% and 17.15%. That significantly impacts whether a Malta structure is worthwhile.

Why You Need a Malta Advisor with Bremen Expertise

Every time a business owner from Bremen tells me, I’ve already spoken with a Malta advisor but they didn’t know much about Bremen, I know: this is going to be expensive.

Here’s what matters:

• Bremen Permanent Establishment Issues: Anyone conducting business in Bremen must comply with Germany’s permanent establishment rules
• Regional Tax Offices: The Bremen North tax office evaluates Malta structures differently from Bremen Mitte
• Bremen Chamber of Commerce Requirements: Certain industries require CCI certificates which need to be considered with Malta structures
• Port Industry: Bremen port companies benefit from special privileges that must be included in tax planning

The Malta-Bremen Axis: Leveraging Geographic Advantages

Bremen is optimally located for Malta business. There’s no direct Bremen-Malta flight, but via Frankfurt or Munich you can reach Malta in under four hours. That makes essential business trips much easier.

Plus, Bremen has always been internationally oriented. As a former Hanseatic city, Bremen entrepreneurs understand international business. That definitely helps when it comes to implementing Malta structures.

A Bremen trading company with €2.5 million in annual profits was able to save €180,000 per year in taxes thanks to a well-planned Malta structure. Taking Bremen’s peculiarities into account was the decisive success factor. – Insights from my consulting practice

Maltese Tax Models for Bremen Companies: Key Options

Malta offers various tax models. Not all are suitable for Bremen companies. Here are the three main options with concrete numbers.

The 6/7 System: Classic for Bremen SMEs

The Maltese 6/7 system works like this: your Malta company pays 35% corporate tax. On dividend distribution, you get back 6/7 of the tax paid. Effectively, you only pay 5% corporate tax.

Example calculation for a Bremen business:

But beware: these savings only apply if you meet the substance requirements. More on this later.

Holding Structures: Optimized Dividend Taxation

Bremen companies with multiple investments may benefit from a Malta holding. Dividends between EU entities are tax-free under certain conditions.

Practical example from Bremen:

A Bremen investor holds stakes in three companies: a logistics business, a trading company, and an investment property GmbH. Through a Malta holding, dividends can be transferred tax-free between companies and only attract the low Malta tax rates at the final payout.

Savings on €300,000 annual dividends: approx. €75,000 in taxes.

Malta Company vs. German Branch

This is especially interesting for Bremen business owners. You can choose between:

1. Standalone Malta company: Full relocation of certain business segments
2. Malta branch: Your Bremen company establishes a branch in Malta
3. Hybrid model: Combination of both approaches

For most Bremen SMEs, I recommend the hybrid model. Why? You retain your Bremen roots and use Malta only for specific, clearly definable areas of business.

Finding the Best Malta Tax Advisors in Bremen and Surroundings

Finding a qualified Malta tax advisor in Bremen isn’t easy. Most tax consultants lack expertise with international structures. Here’s my checklist for choosing the right advisor:

Check Qualifications and Certifications

Look for these qualifications:

• Certified specialist lawyer for tax law with international specialization
• Master’s in International Tax Law or equivalent qualification
• Membership in the Malta Financial Services Authority (MFSA)
• Proven experience with Bremen-Malta structures (minimum of 20 cases)
• Current training on EU directives (ATAD, DAC etc.)

Ask directly: “How many Bremen companies have you advised on Malta structures?” If the answer is vague, keep looking.

Regional Presence vs. International Expertise

Basically, you have three options in Bremen and the surrounding area:

My recommendation for Bremen companies: choose an advisor authorized in both Bremen and Malta. That saves time and avoids misunderstandings.

Fees and Pricing Models in Bremen

Costs for Malta tax consulting in Bremen vary significantly:

• Initial consultation: €300–800 per hour
• Structure planning: €15,000–50,000 (depending on complexity)
• Company incorporation: €8,000–15,000
• Ongoing support: €2,000–5,000 per month

Be wary of bargain offers! A cheap €5,000 Malta structure will cost you far more in the long run than professional planning for €30,000.

I once had a Bremen entrepreneur who paid €40,000 for a ‘bargain’ Malta structure that wasn’t even legally valid. Fixing it cost another €60,000. – RMS

EU Holding Solutions from Bremen: Step by Step to Success

Creating an EU holding structure with Malta as your base requires careful planning. Here’s my proven 5-phase model for Bremen companies:

Phase 1: Analyze Your Bremen Starting Position

Before you even think about Malta, we need to analyze your current Bremen setup:

1. Business model analysis: Which parts of your business can realistically be relocated to Malta?
2. Current tax position: What is your present tax burden in Bremen?
3. Substance requirements: Can you create the needed economic substance in Malta?
4. Compliance check: Are all current tax obligations in Bremen fulfilled?

This analysis takes time, but it’s essential. I see business owners skipping this step almost daily, and paying dearly to correct it later.

Phase 2: Structure Optimization and Planning

Now we develop your optimal structure. For Bremen companies, I usually recommend the following framework:

• German operating company (remains in Bremen for local business)
• Malta holding (holds participations and manages licenses)
• Malta service company (provides international services)

This setup works especially well for Bremen’s trading and logistics companies because it leaves your local operations unaffected.

Phase 3: Dealing with Authorities in Bremen and Malta

You’ll need to take action in both countries in parallel:

In Bremen:

• Notify Bremen tax office about the planned restructuring
• Consult Bremen CCI (for certain industries)
• Prepare articles of association amendments in the Bremen commercial register

In Malta:

• Malta Financial Services Authority (MFSA): Set up the company
• Malta Enterprise: Check for possible incentives
• Inland Revenue Department: Tax registration

The whole process takes 3–6 months. Prepare for this timeline.

Phase 4: Implementation and Go-Live

The critical phase. This is where it’s decided whether your Malta structure will actually work:

1. Incorporate in Malta (4–6 weeks)
2. Open Maltese bank accounts (2–4 weeks)
3. Transfer initial business activities (step-by-step over 6 months)
4. Build up Maltese substance (offices, staff, ongoing operations)

The development of real substance is especially critical. You need to prove there’s genuine business activity in Malta.

Case Studies: Bremen Companies with Malta Structures

Theory is one thing. Reality is another. Here are three anonymized examples from my consulting work in Bremen:

Case 1: Bremen Trading Company (Automotive Sector)

Initial situation: Family-run business with €3.2 million annual profits, trading in automotive parts across Europe.

Problem: High tax burden (42% total tax rate in Bremen), international clients wanted better prices.

Malta solution:

• Operating company remains in Bremen (German business)
• Malta company takes over EU-wide operations
• Licence fees for trademarks flow to Malta

Result: Annual tax savings of €380,000, better competitiveness on the EU market.

Case 2: Bremen IT Service Provider

Initial situation: Software development for international clients, €1.8 million annual profits.

Challenge: Digital services are difficult to limit geographically.

Malta structure:

• Development remains in Bremen
• Malta company holds software licences
• Licence payments optimize overall tax burden

Special aspect: Close coordination with the Bremen tax office to avoid permanent establishment issues.

Case 3: Bremen Consulting Firm

Situation: Management consultancy focused on logistics with international client base.

Malta approach:

• German consulting for the German market
• Malta company for international projects
• Know-how transfer via licence agreements

Tax savings: 45% reduction in total tax burden on international projects.

What all three cases have in common: thorough upfront planning and clear separation between German and Maltese business activities.

Legal Pitfalls and Compliance Requirements

Malta structures are legal. But only if you follow all the rules. Here are the most common mistakes I see with Bremen companies:

Permanent Establishment Issues in Germany

The number one mistake: you set up a Malta company but management remains in Bremen. This creates a German permanent establishment and negates all tax benefits.

Checklist to avoid a German permanent establishment:

• Management must be mainly from Malta
• Key business decisions are made in Malta
• Bookkeeping and administration based in Malta
• No Bremen offices for the Malta company

Meeting Substance Requirements in Malta

Malta demands real economic substance. Shell companies are no longer an option. You’ll need:

These substance requirements cost money. Budget €50,000–80,000 per year for proper Maltese substance.

Avoiding Controlled Foreign Company (CFC) Taxation

Germany can subject Malta profits to German tax if certain conditions are met. This happens when:

• Passive income (interest, dividends, royalties) is generated without real business activity
• Transactions between related parties
• Artificial arrangements without genuine economic purpose

The solution: Ensure genuine business operations in Malta and document every decision meticulously.

Cost-Benefit Analysis: Is Malta Worthwhile for Your Bremen Business?

Now for the crucial question: At what profit level does a Malta structure pay off for Bremen companies?

Cost Block 1: One-Off Establishment Costs

• Consulting and planning: €25,000–50,000
• Malta company formation: €8,000–15,000
• Legal support: €10,000–20,000
• Restructuring in Bremen: €5,000–10,000

Total one-off: €48,000–95,000

Cost Block 2: Recurring Annual Costs

• Maltese substance (office, staff): €50,000–80,000
• Tax advice and compliance: €24,000–40,000
• Malta bookkeeping: €12,000–18,000
• Travel Bremen–Malta: €8,000–15,000

Total annually: €94,000–153,000

Break-Even Calculation for Bremen Companies

With typical tax savings of 25–30%, you need at least the following profits:

My rule of thumb: Malta is worthwhile for Bremen businesses from €600,000 annual profit. Below that, costs usually outweigh benefits.

Consider Non-Monetary Factors

Besides the numbers, there are other aspects to consider:

• Time investment: 2–3 extra days per month required
• Complexity: Your accounting becomes much more complicated
• Loss of flexibility: Fast changes will be harder
• Reputation risk: Some customers view Malta structures critically

On the other hand:

• International reputation: An EU structure appears more professional
• Competitive advantage: Cheaper prices thanks to lower taxes
• Flexibility: Easier to enter new EU markets

Frequently Asked Questions about Malta Tax Consulting in Bremen

Is a Malta structure legal for my Bremen-based business?

Yes, Malta structures are completely legal if you comply with all regulations. The key is establishing genuine economic substance in Malta and avoiding artificial arrangements. Malta, as an EU member, benefits from legal certainty and EU directives.

Which Bremen companies benefit most from Malta structures?

Especially suitable are: trading businesses with EU-wide activities, IT service providers with international clients, consultancies, and companies with valuable licenses or trademark rights. Annual profits should be at least €600,000.

How long does it take to set up a Malta company from Bremen?

The company incorporation itself takes 4–6 weeks. For a fully functional structure with bank accounts and substance, allow 3–6 months. Upfront planning can take an additional 2–3 months.

What ongoing obligations come with a Malta company?

You must file annual tax returns in both Malta and Germany, submit quarterly VAT reports, provide annual accounts under Maltese law, and maintain economic substance in Malta. Regular business trips to Malta are also necessary.

What happens to my Malta structure if I move away from Bremen?

Moving within Germany does not affect your Malta structure. An international move requires a new assessment of the tax implications. The Malta company remains, but your German tax situation may change.

Can I integrate my existing Bremen GmbH into a Malta structure?

Yes, there are various possibilities: you can establish a Malta holding company above your Bremen GmbH, spin off certain business units, or set up license agreements between companies. The optimal structure depends on your business model.

What’s the real tax rate for a Malta company?

With the 6/7 system, you pay an effective 5% corporate tax on distributed profits. Additional German taxes on dividends apply (26.375% withholding tax). With skilled planning, an effective total tax burden of 15–20% is achievable—much lower than the 30–35% in Bremen.

How important is the Bremen tax office for Malta structures?

The Bremen tax office checks whether there’s a German permanent establishment and if CFC rules apply. Open communication and good documentation are crucial. As many tax officers are unfamiliar with Malta structures, professional advice is important.

Do I need to live in Malta for my company?

No, you don’t need to be a Maltese resident. However, you must be regularly present in Malta (at least 90 days per year) and conduct genuine business operations there. Keeping your German residence is no problem for Malta structures.

How much does professional Malta consulting cost in Bremen?

Initial consultations cost €300–800 per hour. Complete structure planning costs €25,000–50,000, with implementation another €20,000–40,000. Ongoing support is €2,000–4,000 per month. Don’t skimp—bad advice will be much more expensive in the long run.

What alternatives to Malta exist for Bremen businesses?

Other EU options include Cyprus (12.5% corporate tax), Ireland (12.5%), or the Netherlands (25%). Outside the EU, Dubai (9%) or Singapore (17%) are interesting. Malta, however, offers the best mix of low taxes, EU benefits, and geographic proximity to Bremen.

How does Brexit affect Malta structures?

Brexit has actually strengthened Malta structures, as many companies have moved from London to Malta. As an EU member, Malta benefits from all EU directives on double taxation. For Bremen businesses with UK operations, Malta can act as an EU bridge.