MALTA
Maltese Tax Law leading to
Opportunities to Invest via
Malta
ACEE
4 June 2010
Session Agenda
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Country background and business environment
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Taxation of Companies / Individuals on operations run via Malta
► Key characteristics of a private company
► Holding regime - participation exemption
► Full imputation and tax refundable system
► Planning opportunities
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Taxation of individuals
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Permanent Resident Scheme
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Expatriates working in Malta
VAT Yacht Leasing Scheme
Page 2
Country background and
business environment
Country Background
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Malta is a small and densely-populated island comprising an archipelago of three
islands in the Mediterranean Sea. A country of Southern Europe, Malta lies south of
Sicily, east of Tunisia, and north of Libya. This strategic position has allowed Malta to
develop as an important trading post. Indeed, the Malta Freeport is one of the
Mediterranean’s leading ports for container transhipments.
Malta, in the heart of the Mediterranean, is a melting pot of civilisations with a history
stretching back thousands of years and has been inhabited since around 5200 BC.
Malta became independent in 1964 and joined the European Union on 1st May 2004.
Although it is the smallest member in size and population, it is well placed to reap the
benefits from EU accession and embark on a path of rapid growth. Its human capital
and geographical location place it in a favourable position in this regard. Malta joined
the Eurozone on 1st January 2008.
Valletta, the capital, is the cultural, administrative and commercial centre of the
archipelago. Malta is well served with harbours, chief of which is the Valletta Grand
Harbour. Malta’s international airport is situated five kilometres away from the capital.
The last census held estimated a resident population of Malta of around 410,000. The
national language is Maltese but English is recognised as an official language. Italian is
also fluently spoken and written while French, Spanish and German are also spoken by
a substantial number of people.
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Business environment
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Malta joined EU on 1 May 2004.
Maltese tax laws are in full
compliance with the EU rules on
harmful tax practices and illegal
state aid.
Part of the European Monetary
Union as of 1 January 2008
having Euro as its official
currency
No exchange control restrictions.
Taxation of Companies / Individuals
on operations run via Malta
Summary of Main Advantages
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No withholding taxes (D, I & R);
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Flexibility
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Participation exemption (ncludes local PE too);
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Refund based on Malta tax not Malta tax paid;
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Various refunds (Full, 6/7ths, 5/7ths, 2/3rds)
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Benefits apply to branches
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Benefits apply to certain types of partnerships
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Remittance basis of taxation for Companies / Individuals
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Wide definition of ‘trading activities’
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Wide treaty network (57),10 treaties in pipeline.
System is not complicated
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No thin capitalization rules
No debt to equity ratios
No complex transfer pricing rules
No CFC rules
Taxation of corporations (general)
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Malta levies tax on any income accruing or derived from Malta or elsewhere (worldwide
income) on resident companies.
Definition of tax residency under domestic law: An incorporation test is applied for
companies registered in Malta. A management and control test is applied for companies
registered abroad. Management and control from Malta implies that all important decisions
must be taken from Malta. Substance requirements should be considered from the angle
of the other jurisdictions involved. As a minimum, the directors’ meetings should take
place in Malta and the majority of directors to be residents of Malta or physically present.
Standard (Corporate) Income Tax at 35% for all corporate taxpayers.
Basis of determining taxable income of tax residents: worldwide income from business
activities based on financial statements (IFRS based). Income is allocated to different tax
accounts.
All business expenses incurred to generate taxable income deductible (provided at arm’s
length basis).
Income Tax on capital gains (one law for both IT and CG) at the rate of 35% on certain
capital gains.
Malta operates a full imputation and refundable system of taxation. Participation
exemption rules are also in place.
Tax losses may be carried forward indefinitely. No carry back of tax losses is allowed.
Group loss relief is available between Maltese tax resident companies provided that a
number of conditions are met.
No other state or local taxes.
Maltese resident companies eligible to apply EU Directives on direct taxation.
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Taxation of corporations (general)
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No withholding taxes on dividend payments to non-residents.
No withholding taxes on interest or royalty payments to non residents provided that the
foreign company receiving the dividend does not have a permanent establishment in Malta.
No tax in Malta on profit arising on the sale of shares in a Maltese company provided that the
assets (of the company whose shares are sold) do not consist wholly or principally (>50%) of
immovable property situated in Malta.
Exemption from tax when there in an approved reorganisation and transfer of assets within a
>50% group provided that there is no change in the ultimate shareholders.
Stamp duty (2%) only on instruments/ agreements relating to the transfer of real estate
situated in Malta or transfer of shares in companies whose assets consist wholly or
principally of real estate situated in Malta.
Interest expense associated with the financing of investments would not be deductible if the
dividend income qualifies for participation exemption. However, a company engaged in both
holding and financing activities would reasonably be able to set-off interest expense without
restrictions (i.e. even if no profit margin is left in the Maltese company). A Letter of
Understanding is recommended.
No anti-tax haven legislation - back-to back loan arrangements with low or zero tax
jurisdictions is possible (safe harbor rule 3% - 5% on gross income). It is recommended to
confirm this with the Maltese authorities by obtaining a Letter of Understanding.
Page 9
Incorporation of a (private) company
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Registration fees (capital duty) are payable only on registered nominal/authorized
share capital (i.e. for authorized share capital up to €1,500, the registration fee is
€245). There is also an annual fee (i.e. for authorized share capital up to €1,500, the
annual fee is €100). Any capital contribution through other ways (like share premium
contributions) will not be subject to registration fees.
Set-up a newly incorporated company (15 to 20 working days)
Purchase an existing (of the shelf/empty) company (4-5 working days) (not usual)
Detailed client identification information to be provided
Completion of company formation questionnaire
Approval of Registrar of Companies required
Appointment of local representative (trust company/corporate service provider)
Registered office must be in Malta
Limited liability company with a minimum capital requirement of €1,165
Capital may be denominated in any currency;
‘One stop shop’ ensures a quick registration process.
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Filing Requirements
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Accounts kept in same currency in which share capital is denominated;
Audited financial statements to be submitted to Registrar of Companies and tax
authorities;
Companies with a December year end must submit the tax return by September
of the following year (October if filed electronically);
Tax payment and refund effected in same currency;
Refunds effected within 14 days from end of month in which it becomes due.
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Holding Regime
Holding regime - Participation exemption
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Participation exemption was introduced as of January 2007 and extended to local
companies in March 2010.
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Dividend income and capital gains from “participating holding” are subject to tax but
completely exempt if certain conditions are met - see later.
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Should be subject to tax as this is a prerequisite to apply the Parent-Subsidiary
Directive.
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Participation exemption is optional. A company which is eligible to benefit from the
PE may opt to pay tax on income/gains from the participating holding and the
shareholder claims a full refund of the tax (when Malta HoldCo pays a dividend).
Will depend on the tax jurisdiction of the parent (its CFC rules and how they treat
refund of tax).
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Holding regime - Participating Holding
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What is a “participating holding”?
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Foreign dividends received by Malta Holdco from a ‘‘participating holding’’ are
treated as exempt if Malta Holdco satisfies one of the following conditions:
1.
owns directly at least 10% of the equity shares of the subsidiary; or
is an equity shareholder in a company and has an option to call for and acquire
the balance of the entire equity shares of that company; or
is an equity shareholder in a company and is entitled to first refusal over the
balance of the equity shares of that company; or
is an equity shareholder of the subsidiary and is entitled to either sit on the Board
of Directors or appoint a person to sit on the board of that company; or
acquired the company for a cost which exceeded circa €1,165,000 and holds the
equity for an uninterrupted period of not less than 183 days; or
is an equity shareholder in a company and the shareholding is held for the
furtherance of its own business and not as trading stock.
2.
3.
4.
5.
6.
Equity holding means (any two of) the right to vote, to profits available on
distribution to shareholders and to assets available on winding up of that
company.
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Holding regime - Participating Holding (cont’d)
Anti-abuse provision only for dividends (and not for capital gains) was introduced that
provides that the PE would apply if the company in which the participating holding is
held satisfies any one of the following conditions:
(1) it is resident or incorporated in a country or territory which forms part of the
European Union; or
(2) it is subject to any foreign tax of at least fifteen per cent (15%); or
(3) it does not have more than fifty per cent (50%) of its income derived from passive
interest or royalties.
Where none of the conditions set out before are satisfied, then both of the following two
conditions must be satisfied:
(1) the equity holding by the company registered in Malta in the body of persons not
resident in Malta is not a portfolio investment, For this purpose, the holding of shares by
a company registered in Malta in a body of persons not resident in Malta which derives
more than fifty per cent of its income from portfolio investments shall be deemed to be a
portfolio investment; and
(2) the body of persons not resident in Malta or its passive interest or royalties have
been subject to any foreign tax at a rate which is not less than five per cent (5%).
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Holding regime - refunds
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Where the investment held does not meet the definition of a “participation holding”
(or when a company is engaged in trading in investments), a 6/7th refund of the
Malta tax paid would be payable to the shareholder upon payment of a dividend
by MaltaCo. The refund is reduced to 2/3rd of Malta tax paid when the Maltese
company has availed itself of any form of double tax relief.
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Where the participating holding fails to meet the anti-abuse provisions, a 5/7th
refund of the Malta tax paid would be payable to the shareholder upon payment of
a dividend by MaltaCo. The refund is reduced to 2/3rd of Malta tax paid when the
Maltese company has availed itself of any form of double tax relief.
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Exit strategies
(a) Sale of shares by non-residents in Malta HoldCo - No tax in Malta unless Malta
HoldCo assets consist (directly or indirectly) wholly or principally of real estate situated in
Malta. No stamp duty liability.
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(b) Sale of shares in Malta OpCo – No tax in Malta via the local participation exemption
unless Malta OpCo assets consist (directly or indirectly) wholly or principally of real estate
situated in Malta. No stamp duty liability.
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(c) Sale of shares in foreign subsidiaries - No adverse tax consequences in Malta
provided that the foreign company qualifies as a participating holding. Tax-free
distribution of gain.
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(d) Voluntary liquidation of Malta HoldCo - There would be no adverse tax
consequences in Malta provided that the shares of Malta HoldCo would be held directly or
indirectly by a non-resident and the Maltese company’s assets do not consist wholly or
principally of real estate located in Malta.
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(e) Transfer of registered office out of Malta - No adverse tax consequences provided
no real estate is held in Malta – as mentioned above.
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Full imputation system
and the tax refundable
credit system of taxation
Full Imputation System
►Company
distributes profits in the form of dividends;
►Company
issues dividend warrant to shareholder;
►Company
pays income tax to Inland Revenue;
►Shareholder
declares dividend gross of income tax;
►Self
assessment;
►Full
credit for tax at source;
►Excess
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tax is refunded to shareholder.
Full Imputation - an example
Malta operates both a territorial system of taxation as well as a residence based
system of taxation thus dividends paid by a Maltese company are subject to tax
in Malta. However, Malta operates the full imputation system.
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Company
PROFIT BEFORE TAX
1,000
TAX THEREON AT 35%
350
PROFIT AFTER TAX
650
GROSS DIVIDEND
TAX @ 35 %
Shareholder
CREDIT FOR T.A.S.
TAX PAYABLE
Page 20
1,000
350
(350)
0
Distribution of profits – Refund of tax
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Shareholders are entitled to a refund of Maltese tax whenever a Malta company makes an
actual distribution. The following refunds are available:
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6/7 refund provided that double tax relief is not claimed;
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5/7 refund if dividend consists of “passive interest or royalties” and provided double tax
relief is not claimed;
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5/7 refund when the participating holding does not satisfy the anti-abuse provisions;
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2/3 refund when income (source of income paid as dividend) has been allocated to the
Foreign Income Account and has availed itself of any form of double tax treaty relief.
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Refunds effected within 14 days from end of month in which it becomes due.
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Refunds to shareholders
Full refund
COMPANY
SHAREHOLDER
1000
1000
1000
Tax @ 35 %
350
350
350
Profit After Tax
650
650
650
Gross dividend
1000
1000
1000
Tax @ 35%
350
350
350
(350)
(350)
(350)
0
0
0
(350)
(300)
(250)
350
1000
350
(350)
(300)
(250)
0
50
100
Credit for tax at source
Refund of company tax
Tax paid by the company
Refund received by
shareholder
Effective tax paid in Malta
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5/7 refund
Profit Before Tax
Balance refundable
SUMMARY
6/7 refund
Double Taxation Relief
1
Treaty relief
2
Commonwealth relief
3
Unilateral relief
4
Flat rate foreign tax credit
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Relief by way of credit
 Credit cannot exceed Malta tax on
the foreign income
 Bilateral relief - based on treaty
(some treaties provide for both
withholding and underlying tax relief)
 Unilateral relief on foreign
withholding tax as well as underlying
tax on tax suffered on profits.
 10% minimum shareholding
requirement for underlying tax relief .
 Flat Rate Foreign Tax Credit
(FRFTC)- deemed credit given on
foreign income even if not subject to
tax. The credit is limited to 85% of
Malta tax payable (examples given
later).
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Tax Treaties in Force
Albania
Australia
Austria
Barbados
Belgium
Bulgaria
Canada
China
Croatia
Cyprus
Czech Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Georgia
Greece
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Hungary
Iceland
India
Ireland
Isle of Man *
Italy
Jordan *
Korea
Kuwait
Latvia
Lebanon
Libya
Lithuania
Luxembourg
Malaysia
Montenegro
Morocco
Netherlands
Norway
Pakistan
Poland
Portugal
Qatar
Romania
San Marino
Serbia *
Singapore
Slovak Republic
Slovenia
South Africa
Spain
Sweden
Switzerland *
Syria
Tunisia
United Arab Emirates
United Kingdom
USA *
Flat Rate Foreign Tax Credit - FRFTC
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FRFTC is equal to 25% of the income or capital gains before any
expenses;
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Income or gains which the company is specifically empowered to
receive and are attributable to the foreign income account;
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Certificate issued by a certified public accountant (auditor) that income
or gain falls to be allocated to the FIA is sufficient;
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FRFTC is added to income or gain and given as a credit against the
Malta tax;
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Credit is limited to 85% of Malta tax payable.
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FRFTC / 2/3 refund- an example
COMPANY
INCOME / GAINS
1000
FLAT RATE FOREIGN TAX CREDIT
250
TAXABLE PROFIT
1250
TAX THEREON AT 35%
437,5
FLAT RATE FOREIGN TAX CREDIT
(250)
TAX PAYABLE
187,5
GROSS DIVIDEND
1000
TAX @ 35%
350
CREDIT FOR TAX AT SOURCE
SHAREHOLDER
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TAX PAYABLE
(350)
0
TWO THIRDS REFUND OF COMPANY TAX *
(125)
TOTAL REFUND
(125)
EFFECTIVE TAX PAID IN MALTA
62,5
Advance Revenue Ruling
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An advance revenue ruling may be obtained from the tax authorities on the
following matters:
►participating
holding;
►tax
treatment of a transaction which concerns any financial instrument or other
security;
►tax
treatment of any transaction which involves international business.
An advance revenue ruling is:
►given
►valid
within 30 days;
for a period of 5 years;
►renewable
►binding
for a further period of 5 years;
for 2 years from any change in the legislation.
The above do not apply to a letter of understanding but a letter of
understanding would create a right to legitimate expectations.
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Planning Opportunities
Financing/Royalty
Structures
Financing / Royalty activities
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A Maltese company may carry out other activities in addition to the holding of
a participation such as intra-group financing
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5/7th refund
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What is “Passive interest or royalties”? No detailed interpretation but NOT
passive if:
- Foreign withholding tax on interest/ royalties received is at least 5% OR
- Interest or royalty is not derived, directly or indirectly, from a trade or business.
(If from trade or business 6/7th refund applies)
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Letter of Understanding is definitely recommended
No complex transfer pricing legislation
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Interest margin arising in Malta can be very low on back to back financing
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Interest-free loans are likely to be challenged by the tax authorities
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Intra-group Financing
Expected outcome
Loans provided to overseas subsidiaries of
Foreign groups can be made at minimal tax
burden.
Application of the structure
Foreign
Group
Equity
► MaltaCo is established and capitalised via
Distribution
MaltaCo
Loan
Sub A
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Loan
Sub B
equity to provide loans to the Foreign Groups’
foreign subsidiaries (may be based in high-tax
jurisdictions).
► ETR of 5% in Malta after distribution of
dividends to Group.
► The provision of loan finance by MaltaCo
treated as a trading activity by Malta Tax
Authorities.
Example of Tax Refund Mechanism
6/7 Ref
2/3 Ref
1,000
1,000
N/A
250
1,000
1,250
TAX THEREON AT 35%
350
437,5
FLAT RATE FOREIGN TAX CREDIT
N/A
(250)
TAX PAYABLE
350
187,5
1,000
1,000
350
350
(350)
(350)
0
0
6/7 or 2/3 REFUND
(300)
(125)
TOTAL REFUND
(300)
(125)
50
62,5
INCOME / GAINS
COMPANY
FLAT RATE FOREIGN TAX CREDIT
TAXABLE PROFIT
GROSS DIVIDEND
TAX @ 35%
SHAREHOLDER
CREDIT FOR TAX AT SOURCE
TAX PAYABLE
EFFECTIVE TAX PAID IN MALTA
If no expenses: 6/7 (5%) is better than 2/3 (6,25%) which is better than 5/7th (10%)
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Example of Tax Refund Mechanism with B-t-B
Low Tax FinCo grants a loan of €1 million to Malta FinCo at interest rate of 5%.
 Malta Fin Co grants loan of €1 million to subsidiaries at an interest rate of 5.25%.

6/7 Refund
2/3 Refund
52,500
52,500
Gross up [(52,500 – 50000) x 0.4235 ]
N/A
1,059
Gross Interest Income
N/A
53,559
(50,000)
(50,000)
2,500
3,559
Malta Tax at 35%
875
1,245
FRFTC
N/A
(1,059)
Tax payable in Malta
875
186
Tax refund (6/7 or 2/3)
750
122
Tax suffered in Malta
125
64
0.24%
0.12%
5%
1.75%
Interest Income
Interest Payable
Chargeable Income (allocated to FIA)
Effective Tax rate on Interest Income
Effective Tax rate on Chargeable
Income
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Dual – resident
Taxation on a receipt basis
“In the case of income
arising outside of Malta to a
person who is not ordinarily
resident in Malta or not
domiciled in Malta, the tax
shall be payable on the
amount receivable in Malta”
► “ No tax shall be payable
on capital gains arising
outside Malta to a person
who is not ordinarily
resident in Malta or not
domiciled in Malta”
► Applies to Companies
incorporated outside Malta
but managed and controlled
from Malta.
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Substance requirements
► Maintain an office, books and
records, directors, bank account,
board meetings etc.
Should be explored from the
angle of the other jurisdictions
Dual - resident company
Foreign
Parent
Equity
IP Contribution
• Company incorporated in
Ireland but M&C from Malta
•Financing / Royalty company
taxed only on income received
in Malta
Malta
• No tax in Ireland since not
Ireland
considered resident.
Loan &
License
• Letter of Understanding should
be obtained
.
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EU
Interest &
Royalties
FOREIGN
BANK
ACCOUNT
Trading Activities
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A Maltese company may be used to carry out trading activities in and
outside Malta.
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Income from trading activities outside Malta is allocated to the Foreign
Income Account.
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6/7ths / 2/3rds refund upon re-distribution.
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0% WHT on any outbound distributions.
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Trading Activities
Foreign Co
No WHT in Malta
Distribution
Equity
Malta
HoldCo
Distribution
Equity
Malta OpCo
Foreign branch
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6/7ths / 2/3rds
refund upon
re-distribution to
Malta HoldCo
ETR 5%/6.25%
Taxation of individuals
Maltese Permanent Residence Scheme
Conditions
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Income Qualification
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An annual income of circa €23,500; or
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A proven Capital of €150,000. (This Capital need not be brought into Malta.)
Annual Income Remitted to Malta
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Acquisition / Rental of Property
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The minimum is circa €14,000 per person plus circa € 2,400 per dependent.
PRs must either own a residence valued at not > €116,500 for a house or €70,000
in the case of an apartment, or
alternatively, may lease or rent premises for not > € 4,200 per annum.
No Business / Political engagements in Malta
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may not work or otherwise engage in business in Malta, and
may not be involved in political activities in Malta.
Maltese Permanent Residence Scheme
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A very low income tax rate
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Double Taxation Relief
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(15% on remittances – subject to a minimum of €4,200 pa);
(close to 50 Treaties concluded);
Exemption from Customs Duty on the Importation of Household Effects (6 months);
Exemption from Customs Duty and VAT on the Importation of certain vehicles;
A low VAT Rate (18%);
No Estate Duty, Mortgage taxes, Provincial Taxes, Land Duty and Property Taxes.
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The Maltese taxation system does not envisage Estate Duties, Mortgage Taxes, Provincial
Taxes, Municipal taxes, Net Worth or Wealth taxes and Property taxes, but incorporates duty on
certain documents and transfers.
A Duty on Documents and Transfers, amounting to 5% of the market value, is payable on the
transfer of immovable property. Duty of 2% is payable on the transfer of shares in a Maltese
limited liability company. Duty on Documents and Transfers is also due by heirs upon
inheritance of immovable property and shares. Duty will be due at the rate of 5% in the case of
immovable property and 2% in the case of shares.
VAT Yacht Leasing Scheme
Yacht Finance Leasing Scheme - Conditions
In order for these guidelines to apply the following conditions must be
satisfied:
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The Operating Company purchases the Yacht.
The Yacht is leased via a finance lease.
The boat must come to Malta, preferably at the start of the lease agreement;
The lessor must be a Maltese company;
The lessee may be an individual or a company.
Prior approval from the Commissioner of VAT is required. The Commissioner
will confirm the rate applicable as well as the acceptability of the value of the
craft as declared. A valuation certificate of the yacht must be submitted with
the approval application;
Page 41
Yacht Finance Leasing Scheme - Conditions
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The lessee must pay to the lessor an initial contribution of 50% of the value of
the yacht;
The lease instalments are payable each month up to a maximum of 36
months;
Monthly lease charges by the lessor to the lessee are subject to VAT at rates
ranging from 5.4% - 18% depending on deemed use within / outside EU
territorial waters.
The lessor is expected to make a profit from the lease agreement;
The final purchase value of the yacht, if purchased, must be at least equal to
1% of the original value of the pleasure craft and this will be subject to the full
18% VAT rate.
At the end of the lease period, the lessee may opt to purchase the craft at a %
of the original price.
The VAT Dept will issue a VAT paid certificate.
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Yacht Finance Leasing Scheme
Length of Yacht/
Sailing/Motor Boats
Over 24m
Between 20.01m & 24m
Between 10.01m & 20m
Sailing boats up to 10m
Craft Permitted to sail in
protected waters only
Page 43
% of lease
subject to VAT
30%
40%
50%
60%
100%
Effective
Rate of VAT
5.4%
7.2%
9.0%
10.8%
18%
Summary of Main Advantages
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No withholding taxes (D, I & R);
►
Flexibility
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Participation exemption (now includes local PE too);
►
Refund based on Malta tax not Malta tax paid;
►
Various refunds (Full, 6/7ths, 5/7ths, 2/3rds)
►
Benefits apply to branches
►
Benefits apply to certain types of partnerships
►
Remittance basis of taxation for DRC’s / Individuals
►
Wide definition of ‘trading activities’
►
Wide treaty network (57),10 treaties in pipeline.
System is not complicated
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Page 44
No thin capitalization rules
No debt to equity ratios
No complex transfer pricing rules
No CFC rules
PRACTICAL APPLICATION
BANKING
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the number of banks based in Malta has risen from 16 in
2004 to 24 in 2010. From the back office roles in the
beginning now foreign banks in Malta seek to run
specialised aspects of the group's global operations.
the Electronic Money legislation enables the setting up of
online stockbroking, credit card companies and other
money institutions.
Page 46
FUNDS INDUSTRY
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reputation as a European fund domicile is rising fast as the funds industry has climbed from 48
investments funds in 2003 to over 400 today, with some Euro6 billion under management.
As part of the declared Vision 2015, Malta is experiencing growth in the fund business of 36% per
annum.
Malta is securely established as a prime onshore domicile with a sophisticated regulatory regime
practical enough to suit Hedge Funds. This coupled with passporting rights for UCITS certified
funds makes Malta a serious contender for cross-border and international fund business. The
UCITS IV Framework Directive provides the Maltese Financial Services sector with an impetus for
growth.
Complete flexibility of fund administration. Presence of 16 Funds administrators in Malta including
Customs House, Praxis, Apex. However funds registered in Malta need not use the services of
locally based administrators. Administrators based in Malta are not limited to servicing funds
domiciled in Malta.
As the funds industry consolidates the trend away from offshore jurisdictions and towards wellregulated, onshore locations Malta has seen a significant migration of funds into the island. This is
facilitated by the island's eight year old company redomiciliation legislation which practically leaves
management, ownership, structures, assets of the company (fund) largely unaffected and at
minimum time and cost.
A number of large MNC already have a presence in Malta – largely through treasury, insurance or
holding companies
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TRUSTS AND FOUNDATIONS
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Malta is a most effective civil law wealth management jurisdiction as the
growing number of wealthy continental business families registering their
trusts in Malta can prove.
Through Trusts legislation one can set up an Anglo Saxon type of trust which
predominantly detaches the owner from involvement in the trust's direction.
The Foundation legislation offers a good alternative to wealthy people from
Continental civil law jurisdictions who wish to maintain a level of control on
the direction of the estate.
Regulation of both Trusts and Foundation is sophisticated which affords our
clients trustworthy vehicles which provide both certainty and security.
There is also effective re-domiciliation legislation which facilitates the smooth
transfer of trusts from offshore jurisdictions to onshore EU Malta.
There are over 100 Maltese and International companies licenced to offer
trust and trustee services in Malta including Maitland Group, Sovereign
Group, and Dominion.
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INSURANCE
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Malta offers a prime international domicile. The insurance
sector in Malta has doubled over 3 years with Euro670
million in premiums in 2009 mainly generated through
increased international and captive insurance business.
Malta has attracted global giants such as AON, Marsh
and Munich Re as both a captive and reinsurance
location.
Passporting rights through EU membership and Redomiciliaition provisions facilitate setting up in Malta.
Presence of renowned Insurance managers on the island
such as AON, Marsh, Willis, Heath Lambert and Heritage.
Protected Cell Company legislation.
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MARITIME AND AVIATION
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Malta is home to the second largest international ship
register in Europe.
Superyacht Incentives and VAT certificate legislation
With the presence of Lufthansa Technic and SR Technic
Malta is gaining a reputation for aircraft maintenance
Following on from the maritime register, Malta is
confidently moving into aircraft registration to participate in
the ever increasing number of private and corporate
business jet owners who are seeking a European base.
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KNOWLEDGE INDUSTRY
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A new biotechnology park, or Life Science Centre, is to be built close to the
the University of Malta and is scheduled for completion in 2013
Dubai Tecom are investing USD300 million on developing a Smart City, an IT
village which is to commence operating in 2010 and scheduled for completion
in 2020
Pharmaceutical companies setting up in Malta now export Euro168 million
In ICT, Malta is considered as one the EU front runners in terms of IT
adoption and regulatory framework for electronic money and electronic
institutions
Malta's IT industry is dominated by software activities and Microsoft, Cisco
and Oracle have all established a significant presence on the island with the
aim of using Malta as a R & D testing ground for eGovernment solutions
Last year alone, around €1 billion were invested in ICT businesses
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TOURISM AND REGENERATION
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By 2015, the tourism industry will be facing fresh
challenges, competing with new destinations and product
offerings, and dealing with new operators and customer
trends. There will be strong investment in tourism areas
and in the restoration and upkeep of heritage sites such
as The Grand Harbour and Marsamxett harbour projects,
Dock No. 1 in Vittoriosa. and others. Incidentally this dock
belonged to the Malta Drydocks which has recently been
rationalised and privatised and acquired by the Italian ship
repair company Palumbo S.p.a
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MANUFACTURING
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Malta is moving in the direction of high-value-added
production, which offers higher pay for greater skills, in
sectors that include pharmaceuticals, biotechnology and
sophisticated technology.
Incentives, Grants,
EU Schemes
Rented premises and factories
Page 53
www.ey.com/lu
Thank you
Mario P. Galea
In case of questions please contact me on
Tel
: + 356 2134 2134
E-mail : mario.p.galea@mt.ey.com
Happy to meet your clients about a Malta
solution anywhere.
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