Family Business Transfer of Ownership
Introduction on Family Business Transfer of Ownership Incentive
The purpose of the incentive is to assist and facilitate family businesses to transfer their business from one generation to the next by providing benefits including governance and fiscal benefits for the better management and organisation within the family and the business.
Duration of the incentive
This scheme will remain ongoing until 31st December 2020.
This incentive is available to all undertakings registered as a Family Business. A Family Business is an undertaking as defined in Article 3 of the Family Business Act that is duly registered as a Family Business and holds an updated certificate issued by the Regulator for Family Businesses.
The incentive consists of a reduced rate of stamp duty on the following transfers:
Stamp duty payable on the transfer of immovable property that had been used for a period of at least three (3) years;
Stamp duty payable on the transfer by an individual of shares or interest in a partnership, trust or foundation to family members.
Duty shall be charged on the first €500,000 of the value of the property transferred at the rate of €3.50 per €100.
With respect to the transfer of shares or interests in a partnership, a trust or a foundation held in a family business which carries on a business, no account shall be taken of the first €150,000 or such other greater amount as may be prescribed of the value of shares, or interests in a partnership, trust or foundation transferred.
In line with the De Minimis Regulation, the total amount of de minimis aid granted to a single business shall not exceed the amount of €200,000 over any period of three (3) consecutive fiscal years.
De minimis aid
The total value of de minimis aid granted to a single undertaking may not exceed the amount of €200,000 over any period of three consecutive fiscal years.
How can we help?
For further information, please contact either Stephen Balzan on [email protected] or Elaine Camilleri on [email protected]. ACT can help you understand the various schemes managed by Malta Enterprise and how you can benefit from such schemes.
Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria. For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]
This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.
16th January 2017
Maltese companies are subject to tax at the rate of 35% on their world wide income and capital gains. Malta grants various fiscal incentives to both companies and their shareholders upon distribution of a dividend. Malta is a membe...Learn More
Setting up a Company
Setting up a company in Malta is a relatively straight forward procedure and can be set up within 2 working days, provided we are in receipt of all the information, funds and due diligence documentation we need. The Act that regulates Malte...Learn More
Taking up Residence
Warm climate, friendly people, excellent communication infrastructures, low criminality and many other features of the Maltese islands have made Malta an excellent destination for people to take up residence in. Moreover low rates of taxati...Learn More
Malta was the first EU Member State to specifically regulate the remote gaming industry in 2004 and has ever since established itself as one of the prime jurisdictions for remote gaming operators. The Malta Gaming Authority (“MGA”) is the regulatory of gaming in Malta. The success o...Learn More
Malta has become a destination of choice for the setting up of Payment Institutions (also referred to as Payment Services Providers or PSPs). A number of advantages has contributed to this success, mainly but not limited to the fiscal incentives granted not only to the payment institutions ...Learn More
Electronic Money Institutions
Malta has recently seen an increase in the number of Electronic Money Institutions (EMIs) looking to set up their operations in Malta. This has been largely due to the growth in the e-commerce and the i-gaming industries. Such EMIs are regulated by the Financial Institutions Act and t...Learn More
Initial Coin Offering (ICO) Services
Malta has always been on the forefront of technology and innovation. In the past months, a number of initiatives have been launched, aimed at establishing an innovative and attractive regulatory framework for entities operating in blockchain (and distributed ledger technologies), virtual cu...Learn More
Prospects – Services of a Corporate Advisor
‘Prospects’ is a new platform set up by the Malta Stock Exchange in line with its commitment to open up new capital market opportunities, create economies of scale and to afford businesses more competitiveness and sustainability. Through ‘Prospects’, SME’s wil...Learn More
Assistance to Family Businesses
Malta has recently introduced legislation to encourage good governance in the management of family businesses, to assist family businesses to operate their business in an efficient way and to assist such family businesses to transfer their business from one generation to the other. Malta is...Learn More