MaltaBiz Solutions

THE 3 SUBSTANCE TRAPS
Most Italy-Malta structures don't fail because of the tax rate.
They fail because of substance.
Here are the 3 traps we see Italian entrepreneurs fall into - every single time.
Trap 1 - The director resides in Italy, not in Malta.
Your Malta company needs a genuine Non-Executive Director who is actually resident in Malta. Not someone who holds the title on paper from Milan. Key management and control must demonstrably happen in Malta. Without this, the structure has no substance.
Trap 2 - Nothing real is happening in Malta.
The Malta OpCo must actually operate. Invoice clients. Hold contracts. Make decisions. A registered address and a letterbox is not a company. Italian tax authorities know exactly what to look for.
Trap 3 - Decisions are still being made in Italy.
Board meetings, strategic decisions, key contracts - all must be documented as having been made in Malta. If the evidence trail points to Italy, the "Agenzia delle Entrate" can reclassify the entire structure as Italian. The legal term is esterovestizione. The consequence is significant.
Getting substance right is not optional. It is the structure.

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