Postcard from...Malta

Located in the centre of the Mediterranean, Malta is seen by corporate strategists as the gateway to the EU Single Market for financial services as well as an important bypass to the Arab and North African markets.

Malta has a stable economy which has been constantly evolving. This, together with a good infrastructure and a healthy business environment, is continuously generating investment in Malta, particularly in the financial services sector.

A member of the European Union since May 2004 and of the Eurozone since 1 January 2008, Malta has firmly established itself as an onshore domicile for managed insurance companies, professional investor funds - which have now overtaken retail funds both in terms of number and asset value - whilst new business opportunities are opening up in the international banking sector and trusts.

Related industries, such as professional, corporate and IT services, are also reporting a significant increase in levels of business. Moreover, back office businesses of a number of world class companies have also set up in Malta, generating brisk economic activity and creating new employment opportunities on our island.

There have been a number of key factors which have helped us achieve such positive results in the financial services sector. We operate an EU-compliant regulatory regime encompassed within a single supervisory authority, the MFSA, which addresses the need for speed, flexibility and minimal bureaucracy.

The use of English as our business language, the availability of a professional, multi-lingual and skilled labour force providing efficient services at a fraction of the cost found elsewhere in Europe, and a world class IT and e-communications infrastructure have contributed to this success.

Entities that have invested or re-domiciled to Malta vouch for the efficiencies that can be achieved in Malta. This is mainly attributable to the availability of highly proficient experts at a relatively lower cost, as well as International Tax Planning opportunities. Such prospects arise also from the wide portfolio of Double Taxation Agreements – 48 in total - with European and African Countries, amongst others. Significant are, for example, the Double Taxation Agreements with Libya and China.

Furthermore, the treaty with the United States has been signed and passed on by the President to Senate for its consent to ratification. Furthermore, Malta features in the list of ‘Jurisdictions that have substantially implemented the internationally agreed tax standard’, recently published by the OECD.

Malta has built on its credibility as a truly International Financial Centre by ensuring high levels of competitiveness and sustainable growth that can be maintained in the future.
Author: Dr Bernice Buttigieg, FinanceMalta Administration Manager