Tax Structuring
Across the Mediterranean
Three German-speaking experts from Germany, Malta,and France. Three jurisdictions, one coordinated overview — for DACH clients with cross-border advisory needs..
Three nodes. One network.
The forum connects Malta, France and Germany — coordinated advice for DACH clients with Mediterranean exposure.
Three practitioners. Three jurisdictions.
All content is drawn from real client situations — no textbook answers.
Alfons
Schwarte
Managing Partner · Series founder
Prof. Dr.
Adrian Cloer
Partner · Honorary Professor of Tax Law
Sabine
Leuschner
RA / StB / Avocat à la Cour
What you take away
Five core findings — directly applicable for DACH clients with Mediterranean exposure.
Malta's fundamentals are compelling
+6.7% GDP growth, 3.1% unemployment — Malta offers an EU-compliant tax system with a clear competitive position.
Structure before acquisition
The tax structure must be determined before purchase. Post-acquisition restructuring is costly and often ineffective.
Substance is non-negotiable
Whether Malta or France — genuine economic substance must exist. Shell structures face increasing scrutiny from tax authorities.
France: new risks from 2026
The 20% holding tax on luxury assets requires urgent action for clients with passive structures above €5m.
Coordination is everything
No jurisdiction can be advised in isolation. DACH clients with Mediterranean exposure need an integrated, multi-jurisdiction approach — from day one.
Why Malta stands out
Location factors, tax framework and practical considerations for DACH investors — presented by Alfons Schwarte, Euro Tax Consulting.
Key advantages
Political & social stability · Geostrategic Mediterranean location · EU member (Single Market & EEA access) · Transparent legal & regulatory environment · Well-educated workforce · Business-friendly tax system · High quality of life
Strong fundamentals
Key sectors: manufacturing (Playmobil), aviation (Lufthansa Technik), ICT, bio & medical sciences, maritime economy. GDP growth +6.7% vs Germany −0.3% (2023). Unemployment 3.1% vs 6.3%.
Non-negotiable
Genuine economic substance on the ground is essential. Transparent dealings with authorities and regulators. KYC requirements must be fully met. Cross-border situations require holistic international advice.
Inheritance & banking
Inheritance and succession tax aspects should be reviewed early. Banking relationships and account opening require careful preparation. EU support programmes (Malta Enterprise) available.
France, the DTA & new risks
French real estate, structuring questions and new tax risks from 2026 — presented by Sabine Leuschner, LeS-Legal Paris.
Source jurisdiction decides
Real estate is always taxed where it is located — regardless of whether it is held directly or through a corporate structure. A French property is taxed in France, full stop.
Direct ownership
Rental income and capital gains are taxable in France. Social charges of 17.2% apply (reduced to 7.5% for EU non-residents after the de Ruyter ruling). Tax returns required in both France and Germany.
SCI structure
Civil partnership for joint property holding. Pass-through taxation is the default (IR regime). The corporate tax option (IS) is possible but irreversible. Well suited for succession planning through share gifting.
GmbH & Co. KG
German partnership structures face a qualification problem in France (Artémis, 2014). The KG is treated as an SCS, creating dual-regime risk. Structures that are purely tax-motivated carry an abuse-of-law risk.
IFI — French Real Estate Wealth Tax
Applies to net property wealth above €1.3m per household on 1 January. Progressive rate: 0.5% (from €800k) up to 1.5% (above €10m). Primary residence: 30% discount. Also applies to SCI shares. DTA prevents double taxation — but filing obligations in both countries remain.
20% Holding Tax on luxury assets
Annual 20% tax on the fair market value of luxury assets held in passive holding companies. In scope: real estate, yachts, jets, luxury cars, precious metals, wine. Triggered when assets ≥ €5m + passive income > 50% + natural person holds ≥ 50%. ⚠ Scope expansion possible in Finance Act 2027 — act now.
Request a Personal Consultation
For clients with cross-border structures, we recommend an individual initial assessment.
