Maltese holding companies are excellent tax planning tools as they enjoy low effective tax rates on worldwide profits including:
0% on dividends received from a participating holding; that is where the parent company holds at least 10% of the equity in the subsidiary, or holds an investment of at least €1.5 million in the subsidiary for more than 183 days
0% on capital gains made from the disposal of a participating holding company
5% on dividends from non-participating holdings
10% on passive income, such as interest, royalties, etc.