European Business Account Recommendations for Malta company

[Vince]

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.

 

[Martin Everson]

Did you just setup a company without looking at the banking options first in 2019?‌

 

[Vince]

the original plan was to move my residency there,‍ but if I can find somewhere not in Malta to bank, than I wont need⁠ to and save a good amount of money.

 

[Vince]

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.

 

[Marzio]

Forget that in Malta.

For everything else read this post.

 

[Vince]

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.

 

[Martin Everson]

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.

 

[Vince]

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 chastising︀ me for no reason?

 

[Martin Everson]

Why wouldn't they????...lol oh boy⁤ 🙄. 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 now︀ defunct satabank.

I think Euro Pacific Bank have︂ 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]

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 that︁ had no problems opening accounts there.

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

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

 

[Martin Everson]

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]

you clearly don't understand Malta structures. Using a holding company, the effective tax rate is⁤ 5% Corporate Tax in Malta

 

[Martin Everson]

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 🙄. Hint hint.....why you think⁤ I mentioned "full imputation won't work" in my last post to you? 🙄 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.

https://www.offshorecorptalk.com/th...alta-full-imputation-refunds.24387/post-84060
Your a active member on here but︀ 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]

the setup you are trying to shut down is used by︁ thousands of companies in Malta with shell holding companies elsewhere. There is an entire subset︂ of the Malta economy of companies forming and providing financial services to these companies. It's︃ a huge part of the Maltese economy.

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

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

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

Since my residence country taxes dividends around 30%, my plan is︍ to keep most of the business profits in the business bank account and eventually physically︎ move to Malta to then switch them to a personal account. This plan has been️ 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]

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]

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 with︀ no substance in BVI...no difference just one is EU company and the other not...lol. The︁ argument of everyone does it does not make it right.

You do understand that for tax purposes in︅ some EU countries offshore shell companies with no substance are tax transparent. That means your︆ taxed on offshore companies as if you earned the money personally in your name i.e︇ the offshore company is invisible...lol. They do not care you did not get money in︈ your name and that money is sat in company name as offshore company is transparent︉ and is in your name to them...lol. If it was so easy no one would︊ owe tax for an offshore company with no substance just by keeping money in the︋ account...lol

Move your residency asap. You think you got hassle now wait until your tax man︎ leans on you. Could be in 1 year time or 5 but back taxes will️ be owned if in 5 eek¤%&

 

[Martin Everson]

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]

I know you are right in theory, however there are so many people operating companies︀ from elsewhere that I personally don't think this is really an issue at least in︁ most countries.

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

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

 

[Martin Everson]

So do people drive and break the speed⁠ limit every day with no issues and then one day........

The problem is not offshore companies. The problem︀ is incorrect use of offshore companies. If you live in a country with no CFC︁ rules then your good. Some territorial tax systems also allow you to have an offshore︂ 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 free︄ status while living in Gibraltar as long as it doesn't trade in Gibraltar. Also if︅ you live in a tax free country like UAE/Monaco/Bahamas etc then your also good. Believe︆ me having an offshore company outside my tax free home country can be a blessing.︇

Most people love to believe they︉ are smarter than the taxman so I can't imagine most would want to post a︊ failure like that. That' would be like making a post about erectile dysfunction.

 

[Tax Cow]

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.

Also if you live outside EU, the DTA︃ rules (if one exists) are most likely the same or substantially the same. With or︄ without CFC rules in your country of residence, you can get on the hook just︅ as hard if a DTA exists.