Steady growth makes Malta a location of choice for investors Steady growth makes Malta a location of choice for investors

Steady growth makes Malta a location of choice for investors
31 Oct 2014

Malta has a booming financial services industry which is experiencing a steady growth. The International Monetary Fund (IMF) published a report in April 2014 showing predictions of a steady growth and low unemployment for Malta through 2014 and 2015. 

The IMF identified that the real GDP grew by 2.4 per cent in 2013 compared with 0.6 per cent in 2012. In 2014, the Maltese economy is expected to register a similar level of growth as that achieved in 2013.

The IMF also reported that Malta’s financial sector remained sound and resilient during 2013. The core domestic banks registered a strong profit performance which contributed to a further strengthening of their capital ratios. Liquidity in the banking market also remained stable.

In 2011, the Central Bank of Malta and the Malta Financial Services Authority set up a Joint Financial Stability Board (JFSB) to regularly discuss matters related to financial stability. The JFSB implemented measures aimed at tightening the rules of banks’ provisioning practices, ensuring a sustainable contribution of the financial sector to economic growth.

Malta has a robust and single regulator for financial services. The Malta Financial Services Authority (MFSA) is an autonomous public institution which allows investors the flexibility to operate keeping very minimal, if any, prescriptive regulations; it offers a risk-based supervision and regulation is proportionate to the size and nature of the business. It also offers direct contact with all licence holders and provides on and off-site supervision.

Corporates matter in Malta

Malta has a double taxation treaty with 27 EU countries, 13 other European countries and 27 countries from rest of the world.

In 2013 there was a record of new company registrations. The total number of companies on the register amounted to 63,605 Maltese registered companies.

 

December 2009

December 2010

December 2011

December 2012

December 2013

New

registrations

2,678

3,130

3,458

4,016

4,540

Companies on

the register

48,520

51,650

55,150

59,098

63,605

 

Malta: A high-profile business centre

Stability, flexibility, market growth and availability of professional service providers are among the driving factors making investors feel particularly comfortable and secure when doing business in Malta.

Malta’s reputation as a flexible and reliable centre for business has a proven track record for such success...
• First EU member state to introduce the legislation on remote gaming
• One of the largest ship and yacht registries in the world
• One of the most competitive fiscal regimes in the European Union
• An extensive network of 67 double taxation treaties, all of which are based on the OECD model
• The lowest effective tax rate in the EU • 100 per cent tax refund once the Participation Holding exemption criteria is satisfied
• Intellectual Property (IP) holding companies benefit from tax exemption on income derived from qualifying patents and income derived from qualifying copyright and trademarks
• No capital taxes
• No controlled foreign company (CFC) legislation
• No thin capitalisation legislation
• No withholding taxes on interest, royalties, dividend and proceeds from liquidation
• No transfer pricing legislation

 

By Elaine Scicluna Lewis, TMF Group’s head of accounting in Malta.

 

Malta has a booming financial services industry which is experiencing a steady growth. The International Monetary Fund (IMF) published a report in April 2014 showing predictions of a steady growth and low unemployment for Malta through 2014 and 2015. 

The IMF identified that the real GDP grew by 2.4 per cent in 2013 compared with 0.6 per cent in 2012. In 2014, the Maltese economy is expected to register a similar level of growth as that achieved in 2013.

The IMF also reported that Malta’s financial sector remained sound and resilient during 2013. The core domestic banks registered a strong profit performance which contributed to a further strengthening of their capital ratios. Liquidity in the banking market also remained stable.

In 2011, the Central Bank of Malta and the Malta Financial Services Authority set up a Joint Financial Stability Board (JFSB) to regularly discuss matters related to financial stability. The JFSB implemented measures aimed at tightening the rules of banks’ provisioning practices, ensuring a sustainable contribution of the financial sector to economic growth.

Malta has a robust and single regulator for financial services. The Malta Financial Services Authority (MFSA) is an autonomous public institution which allows investors the flexibility to operate keeping very minimal, if any, prescriptive regulations; it offers a risk-based supervision and regulation is proportionate to the size and nature of the business. It also offers direct contact with all licence holders and provides on and off-site supervision.

Corporates matter in Malta

Malta has a double taxation treaty with 27 EU countries, 13 other European countries and 27 countries from rest of the world.

In 2013 there was a record of new company registrations. The total number of companies on the register amounted to 63,605 Maltese registered companies.

 

December 2009

December 2010

December 2011

December 2012

December 2013

New

registrations

2,678

3,130

3,458

4,016

4,540

Companies on

the register

48,520

51,650

55,150

59,098

63,605

 

Malta: A high-profile business centre

Stability, flexibility, market growth and availability of professional service providers are among the driving factors making investors feel particularly comfortable and secure when doing business in Malta.

Malta’s reputation as a flexible and reliable centre for business has a proven track record for such success...
• First EU member state to introduce the legislation on remote gaming
• One of the largest ship and yacht registries in the world
• One of the most competitive fiscal regimes in the European Union
• An extensive network of 67 double taxation treaties, all of which are based on the OECD model
• The lowest effective tax rate in the EU • 100 per cent tax refund once the Participation Holding exemption criteria is satisfied
• Intellectual Property (IP) holding companies benefit from tax exemption on income derived from qualifying patents and income derived from qualifying copyright and trademarks
• No capital taxes
• No controlled foreign company (CFC) legislation
• No thin capitalisation legislation
• No withholding taxes on interest, royalties, dividend and proceeds from liquidation
• No transfer pricing legislation

 

By Elaine Scicluna Lewis, TMF Group’s head of accounting in Malta.

 

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