2010 2011 Investment Guide Final

www.financemalta.org

E f f e c t i v e I S e c u r e I S k i l l e d

2010/2011 Edition

Investment GuIde & BusIness dIrectory

Malta’s International Financial Centre: Built on stability,

managed effectively

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Financemalta 2010/2011 edition

Contents13

FinanceMaltaChairman’s MessageAbout FinanceMaltaMembers

IntroductionMalta: Financial CentreInterview: Prime Minister

Country OverviewIntroduction to MaltaHistoryMalta Fact FileDid you know?Interview: Minister of Finance

Financial Services SectorsBanking Capital MarketsFundsTrusts & FoundationsWealth ManagementFamily OfficeInsurance The Malta CompanyInternational PensionsMaritime and Aviation Business Process Outsourcing Knowledge Industries

182024

2638

4656586062

68788496

104108112118128132140146


Contents15

Regulation & LegislationRegulation & LegislationInterview: MFSA Chairman

Taxation

Business Operating Environment IntroductionWhy Malta?Business Culture & EnvironmentForeign Investment IncentivesAccess to MarketsProfessional Support ServicesFinancial ReportingBusiness CostsTransport and LogisticsICT and CommunicationsUtilitiesHuman ResourcesLabour RelationsEducation and TrainingCommercial and Residential Property

Malta LifeVisiting MaltaLiving in Malta

Business Service ProvidersCompany Profiles

152158

166

182184187187188188189189190190191193193194196

200204

212

◆ Company Formation ◆ Legal services◆ Vessel registration ◆ Vessel operation◆ Full Technical Shipmanagement ◆ Commercial Management◆ Ship inspection ◆ Repair and maintenance, ◆ Dry-docking ◆ new building supervision◆ Vessel purchasing and Sale ◆ Accountancy Administration◆ Taxation & financial consultancy ◆ Banking administration◆ Insurance ◆ Crew management

Palmali Shipmanagement Ltd - Villa Aurora, 14-16, Princess Elizabeth Street, Ta' Xbiex XBX 1102 - MaltaT: (+356) 2138 8344/5/6 • F (+356) 2138 8347 • E: [email protected] • W: palmali.com.tr

Palmali ShiPmanagement ltd

The Palmali Group of Companies, an international shipping organisation with its head office based in Istanbul, includes under its umbrella the expansive network of seventeen international offices, located all around Europe and Eurasia, Established in 1998, Palmali has grown rapidly from the initial service company offering agency services to

vessels passing through the Bosphorus and Dardanelles Straits on their way to Turkish ports, into one of the largest oil and dry cargo carriers across the Black, Caspian, Mediterranean and Baltic Seas, as well as the waters of the world’s oceans.

Palmali Ship Management Ltd established operations in Malta in 2006 to provide financial, technical, administrative and strategic services to our parent company fleet of ships. Malta’s location at the centre of the Mediterranean and the good reputation of its Maritime Authority has attracted the registration of most of the company’s fleet since 2001. Palmali Shipmanagement has been established to be a leading provider of ship management and related services to the shipping industry. Our primary objective as a service company is to add value to our clients by delivering quality services in a transparent, cost effective and consistent way.

At Palmali Shipmanagement we provide the full spectrum

of third-party ship management services. We pride ourselves on offering a flexible and customized approach to our ship management clients seeking global solutions for all vessel segments.

Supported by a team of highly experienced professionals Palmali Shipman-agement services cover all aspects of ship management including:

Shipmanagement EXCEEDING EXPECTATIONS

Nigar Aliyeva, Director - Palmali Shipmanagement Ltd.


FinanceMalta19




FinanceMalta21Financemalta 2010/2011 edition

FinanceMalta 20

Malta is rapidly gaining international recognition as a brand denoting excellence

in financial services. This is evidenced by the increasing number of reputable international financial services operators who have recognised the strengths that Malta has to offer and have consequently set up their operation in Malta.

Undoubtedly, the driver of these strengths is led by the presence of a well-trained and motivated workforce. In itself, this reflects the importance of Malta’s education system which needs to be continuously strengthened and broadened to ensure that the growth of the industry’s various sectors is constantly supported by the availability of skilled and knowledgeable human resources. The industry’s growth is also being driven by other equally important factors. These include the presence of a comprehensive legal and regulatory framework, as well as a competitive fiscal regime backed up by over fifty double taxation agreements. To these, I would also add a sophisticated ICT infrastructure, English as an official language, an enviable climate and Malta’s unique strategic location - an EU country with strong Mediterranean links. Moreover, the presence of a single efficient regulator, the Malta Financial Services Authority, which has built a reputation for being meticulous yet an accessible supervisory body, ensures that operators are fully compliant with EU regulations which of course is pivotal to Malta’s positioning as a reputable, effective, stable and skilled jurisdiction.

Malta’s thrust to position itself as an international financial services centre of repute, is not only evidenced by the compelling growth statistics particularly those achieved by the funds, insurance and banking sectors but also supported by a number of laudable international rankings issued by various international organisations. Just to mention a few, the

European Commission’s latest Internal Market Scoreboard published in January 2009 emphasised how Malta has been quick to embrace the opportunities offered by the EU single market. It ranked Malta in joint first position out of all EU countries for the implementation of internal market directives, demonstrating both Malta’s efficiency in transposing European rules into domestic law and that its economy is one of the most integrated in the Union. Moreover, according to The Global Competitiveness Report 2009-2010 issued by the World Economic Forum, Malta ranked 52 amongst 133 economies, in the global competitiveness table. In this report, Malta was also ranked as having the 13th soundest banking sector and again 13th in the financial sophistication category. Of interest was the CapGemini report prepared for the European Commission in 2009 which measured European EGovernment Services. Here again, Malta ranked 1st. Malta also ranked as one of the top five EU performers in terms of foreign direct investment inflows as a proportion of gross domestic product and was among 40 countries that were praised by the OECD for “substantially implementing” internationally agreed tax standards - a major achievement for Malta which has long fought for this recognition and which immediately placed it on the ‘white list’.

Within the context of the above and the internationalisation of Malta’s financial services industry, FinanceMalta’s main aim is to further strengthen Malta’s financial services brand through a comprehensive number of initiatives across various media. In the process, FinanceMalta is harnessing various resources to include those of the industry operators and practitioners, the regulator and Government such that the industry continues to grow and prosper in the years ahead. n

Chairman’s messagemr. Kenneth Farrugia,

Chairman – FinanCemalta


FinanceMalta 22Financemalta 2010/2011 edition

FinanceMalta23

FinanceMalta, a non-profit public private initiative, was formally set up on

the 21st May 2007 with the scope of promoting Malta’s international

financial centre, both within, as well as outside, its shores. It brings together,

and harnesses, the resources of the industry and government, to ensure that Malta

maintains a modern and effective legal, regulatory and fiscal framework in which

the financial services sector can continue to grow and prosper.

The founding associations are: the Malta Funds Industry Association, the

College of Stockbrokers, the Malta Bankers’ Association, the Malta Insurance

Association, the Association of Insurance Brokers, and the Institute of Financial

Services Practitioners. These associations, together with the Malta Insurance

Management Association which is also affiliated with FinanceMalta, represent

the financial services industry in Malta.




FinanceMalta25

FinanceMalta executivesDr. Bernice Buttigieg(head of administration)Mr. Bruno L’ecuyer (head of Business development)

Ms. Lindsey PiccininoMs. Lizianne GauciMs. Mary L. Darmanin

Contact information for FinanceMaltaFinanceMalta, Garrison Chapel, Castille Place, Valletta, VLT1063 - MaltaGeneral Mail: [email protected]: +356 2122 4525Fax: +356 2144 9212Website: www.financemalta.org



Board membersMr. Kenneth Farrugia (chairman) Prof Joe V. Bannister (vice chairman)Mr. Vincent CallusMr. Alan CaruanaMr. Albert P. MamoMr. Andrew ManducaMr. Alan RichardsDr. Michael Xuereb

Dr. Bernice Buttigieg (secretary to the Board)

Dr. Bernice Buttigieg(head of administration)

Mr. Bruno L’ecuyer (head of Business development)


FinanceMalta 26Financemalta 2010/2011 edition

FinanceMalta27

3A AccountantsAequitas LegalAkbank TAS Apex Fund Services (Malta) LtdAPS Bank LtdAreti Fiduciary Services LtdAtlas Insurance PCC LtdAvanzia Taxand LimitedBaker Tilly SantBanif Bank (Malta) plcBank Of Valletta plcBawag Malta Bank LimitedBDO Consult LtdButterfield Trust (Malta) LtdBusuttil & MicallefButtigieg, Refalo & Zammit Pace AdvocatesCalamatta Cuschieri & Co LtdCamilleri PreziosiCastille ResourcesCharts Investment Management Service LtdChetcuti Cauchi Ciantar AssociatesCitadel Insurance plcCitco (Malta) LtdCREDALTRUST Management LtdCredence Corporate & Advisory Services LtdCREDITINFO Malta LtdCSB GroupCurmi & Partners LtdCustom House Global Fund Services LtdDavid Griscti & AssociatesDeloitteDF AdvocatesDingli & Dingli Law FirmElmo Insurance Ltde-Management Ltd

EMCS InternationalERREMME Business AdvisorsEMD AdvocatesEquity Trust Malta LimitedErnst & YoungExco Services LtdFACT GroupFenci Consulting LtdFenech Farrugia Fiott LegalFenech & Fenech AdvocatesFenlex Corporate Services LtdFexco Financial Services (Malta) LtdFIMBANK Financial Planning Services LtdFinco Trust Services LtdFinisterre Malta LtdFirstUnited Insurance Management LtdFrancis J. Vassallo & Associates LimitedFrancis Zammit Dimech - AdvocatesGalea Salomone & Associates Ganado & AssociatesGanado Sammut AdvocatesGasan Mamo Insurance LtdGlobal Capital plcGonzi & Associates AdvocatesGrant ThorntonGriffiths & AssociatesGSB Services Heritage Insurance Management (Malta) LtdHSBC Life Assurance (Malta) LtdHSBC Bank Malta plcHSBC Securities Services (Malta) LtdHSBC Insurance Management (Malta) LimitedHSBC Global Asset Management LtdHugh Peralta & Associates Advocates


Members 2010


Nexia BTNorthway Broker LimitedNotabile Consulting Group LimitedOsiris Trust LtdOsprey Insurance Brokers Co LtdPanlegis (Malta) LtdPenderVille LtdPiscoPartnersPKF (Malta)Portman International Praxis Fund Services (Malta) LimitedPricewaterHouseCoopersQube Services LimitedQuest Investment Services Raiffeisen Malta Bank plcRizzo, Farrugia & Co (Stockbrokers) LtdRS Attard - Moore Stephens MaltaRSM MaltaSaad Group Bank Europe LtdSalt Partners (Malta) LimitedSGGG Fexco Fund Services (Malta) LimitedSimon Tortell & AssociatesSomerset Management (Malta) LtdSparkasse Bank Malta plcStivala & Stivala Corporate Management LtdSumma Fiduciary Services LtdTMF FundAdministrators (Malta) LimitedTW Management LimitedUHY Business Advisory Services LtdUnifin Services Limited Valletta Fund Services LtdVerdun Corporate Services LtdVolksbank Malta LimitedW & D Corporate Services Ltd W H LawZammit & Associates - Advocates

Integradvisory LtdInternational Insurance Management Services LtdInternational Management Services LtdInvestkredit International Bank plcIsland Financial Services LimitedIsland Insurance Brokers LimitedIsland Insurance Management Services LimitedITL Advisory Services LtdIzola Bank LimitedJACS International LtdJATCO Insurance Brokers LtdJesmond Mizzi Financial Services LimitedKamber Consultancy AGKPMGLombard Bank Malta plcLoyens & LoeffMaitland Malta LimitedMalta Institute of ManagementMalta Stock Exchange plcMamo TCV AdvocatesMdina Trust Services LimitedMecos InfocreditMediterranean Bank plcMediterranean Insurance Brokers (Malta) LtdMFSP Financial Management LtdMiddlesea Insurance p.l.cMiddlesea Valletta Life Assurance Co. LtdMifra Consultants LimitedMifsud & Mifsud AdvocatesMSS International Services LtdMuscat Azzopardi and Associates AdvocatesMZ Investment Services LtdNatixis Malta Investments LtdNBG Bank Malta Limited


Introduction 28Financemalta 2010/2011 edition

Introduction29

Building its reputation on sound fundamentals and excellent service, Malta is

today emerging as one of the fastest growing international financial services centres in the world.

Financial services has become one of Malta’s most important economic generators, registering impressive year-on-year growth and attracting ever-increasing international attention from practitioners across the world. Described as a well-diversified finance centre by the regulator, Malta has strong banking, insurance, investment funds and wealth management sectors, all of which are underpinned by universally-praised, EU-compliant legislation and regulation, a single regulator that has proved to be both flexible and accessible and a pool of highly-trained, experienced professional services providers to drive the business now flowing into the country. Staking Malta’s claim for pre-eminence on its reputation for stability and security, especially in the wake of the international financial crisis, the island’s leaders are busily expanding international connections across the five continents. Intent on enhancing the number and quality of double tax treaties and agreements with foreign governments, the Maltese authorities are working hard to position Malta as a global centre, serving global business.

Their efforts over the years have already borne abundant fruit. Malta’s resilience in the face of the international financial crisis served well to strengthen the island’s reputation as a stable and reputable international financial centre. With a banking system that has been praised internationally for its conservative approach based on sound fundamental banking business, Malta’s financial services industry continued to see growth through 2008 and 2009, as banks, collective investment schemes, insurance companies and other finance-related companies set up operations

malta FinanCial Centre

on the island. An article in February 2009 issue of The Banker entitled ‘Setting the Right Example’ captured the message that is doing the international rounds: Malta’s closely monitored yet flexible regulatory framework offers the ideal environment for financial services operators to conduct their business with confidence and advantage.

Indeed, Malta’s emergence as Europe’s most up-and-coming international financial centre has been ten years in the making. Now billed as a credible alternative to both Luxembourg and Dublin, the island’s flourishing financial sector has been experiencing unprecedented growth in recent years. Malta’s strength as a financial services centre is based on innovation and a strong desire to provide an optimum operating environment for business. The creation of a positive legislative framework that ensures strong compliance but also offers a non-standardised approach to dealing with its clients, where custom-made solutions can be delivered, has allowed Malta the chance to develop as a meaningful and reputable financial services centre, competing successfully against the most established locations in the business.

Europe’s Emerging Financial CentreEU Membership provided Malta with

the spur it needed to catapult it from nowhere to quite possibly Europe’s most dynamic and fastest growing finance centre. Malta started laying the foundations for its finance industry in1988 when government passed legislation establishing an offshore framework but by the early 1990s the island made the conscious decision to move onshore in recognition of a growing trend by the world’s financial industry to move more business onshore. At this time Malta was also seeking membership of the EU and in preparation for eventual membership in 2004, began to harmonise its legislation, enacting best practices and features from comparable centres such as Dublin’s IFSC.



Introduction31

The impact of joining the EU has been very positive for Malta; the financial centre enjoys greater credibility, state-of-the-art EU compliant legislation and direct writing and passporting rights to the entire European market, ensuring the island’s placement on the radar of the international finance industry.

Onshore DynamismMalta has received international

recognition for its EU compliant and sophisticated regulatory framework, which is described as modern and in touch with today’s operating environment. All financial services in Malta are now subject to one regulator, the Malta Financial Services Authority (MFSA), set up in 2002. The single regulator means companies benefit from streamlined procedures and reduced bureaucracy, leading to lower fees and compliance costs and a more consistent interpretation of the rules and legislation. Demanding in its compliance requirements, the centre nonetheless offers a non-standardised approach to dealing with its clients where custom-made solutions can be delivered. One of Malta’s most appreciated advantages is the flexibility and accessibility to the regulator. Effective, responsive and proactive is how the MFSA’s approach is described by the financial sector in Malta and it is this approach that makes Malta so appealing.

The Right StructureThe MFSA has also changed its

internal structure to be able to ensure more effective supervision. On 1st January 2010, the regulatory functions within the MFSA’s Supervisory Council were changed, providing greater integration and a high level of consistency in functions such as licensing and risk-based supervision. The reform will also improve co-operation and information-sharing across the Authority.

The new model consists of a single

Authorisation Unit, three Specialist Supervision Units – for banking, insurance and occupational pensions, and securities and markets – and a Regulatory Development Unit.

The Authorisation Unit will be responsible for licensing all financial services entities and handling all applications for authorisation to conduct regulated financial services business in Malta. The Regulatory Development Unit will co-ordinate the development of cross-sector policy initiatives and enable the MFSA to address market and regulatory developments as they arise. The Supervisory Units will have a more focused and coordinated, risk-based approach to supervision with retained specialisations.

Economic DriverA relatively new area for the Maltese

economy, the Maltese financial services sector is today fast becoming a cornerstone of the economy, broadly accounting for around 12 per cent of GDP and expected to contribute over 25 per cent by 2015. The sector has been experiencing tremendous growth, expanding by 30 per cent per annum in the last few years and with some 7,000 people (around 4 per cent of the workforce) already employed in the industry, the Maltese government has earmarked the sector for priority billing and are determined to develop and protect the island’s reputation as a world-class international finance centre.

The Malta AdvantageBeing small and able to adapt quickly

has given Malta a head start over many of its rivals; while many other international centres have become crowded and expensive Malta’s advantage is available capacity, low costs and a prompt and efficient regulatory process that allows quick turnaround times in getting product to market. The framework itself conforms to all international standards yet flexible enough to allow a variety of structures to be formed, and bridging the gap

The Maltese financial services sector is today fast becoming a cornerstone of the economy, broadly accounting for around 12 per cent of GDP and expected to contribute over 25 per cent by 2015.


Introduction 32

between Continental European Roman law and Anglo-Saxon common law traditions.

Malta’s additional advantages are its location as a Mediterranean hub with access to European, North African and Middle Eastern markets, its low-cost base (salaries are 3.5 times lower than in Luxembourg and 2.5 times lower than in Ireland), its European time zone location, its highly skilled, multilingual workforce (often speaking 3 languages: English, Italian and Arabic in addition to Maltese), and its back office and IT capabilities make it a natural choice. The well developed banking and finance sector already employs a pool of over 7,000 trained staff, and can support all international operations. Experienced lawyers, auditors, service providers and EU compliant legal and tax professionals support the Maltese financial sector in addition to an active stock exchange.

A significant advantage of Malta is the ability for companies to re-domicile

themselves into the finance centre, possibly winning EU-wide passporting rights. Furthermore, investment funds are exempt from tax, while Malta’s tax imputation system entitles operating companies to a 6/7ths refund of a 35 per cent corporate tax upon a dividend distribution. Malta has double taxation treaties with some 50 countries, including most of the major European trading nations, and is in the process of negotiating others. Income originating from overseas is not subject to double taxation, even if there is no double taxation agreement existing. Malta’s competitive attractions are being increasingly recognised internationally by blue chip operators and by growing word-of-mouth recommendations that are helped in no small measure by Malta’s heightened international profile.

The government is now seeking to further expand international business by increasing the number of double tax treaties


Introduction 34

and agreements with foreign governments, in order to facilitate more cross-border business out of, and into, Malta and to satisfy the requirements of Malta-based financial institutions and operators seeking to open up new markets. Memoranda of Understanding covering various aspects of financial services activities were signed with China and South Africa in 2009, and Malta’s regulator is actively pursuing further agreements, with South American countries such as Brazil, as well as Russia and India being mentioned as of particular interest.

Growth AreasMalta’s fund industry has continued

to grow over the last year, demonstrating a continued confidence in Malta as a fund domicile, despite the international financial crisis of the past year.

According to the MFSA, there are some 400 funds currently domiciled in Malta, around 100 of which were set up over the last year, and, as Malta promotes itself internationally as the ideal jurisdiction for the re-domiciliation of funds seeking a well-regulated, EU-based location, this sector is being seen as the most likely to expand significantly through 2010. While the combined net asset value of investment funds and collective investment schemes in Malta plunged between December 2008 and June 2009, in line with international developments, their performance began to improve in the second half of the year, with combined NAV growing by over 6 per cent between June and September 2009 to reach 6.6 billion euro in September 2009, up from 6.1 billion euro in June of 2009.

The insurance industry is also seeing a period of rapid growth, with the number of insurance companies registered in Malta now at 41, up from just eight in 2004. EU membership, bringing Single Passporting rights to Malta-domiciled companies, is credited with giving the sector

the impetus it needed. Also pivotal to this success is the island’s flexible legislative framework, with its attractive re-domiciliation potential, and the renowned excellence of the island’s financial services regulator, the MFSA. Captive insurance also remains a growing sector, with some 12 managers registered on the island, and 4 Protected Cell Companies, with some 12 registered cells, already based on the island. The MFSA also expects to publish regulations on International Cell Companies towards the middle of 2010, a vehicle that will allow separate cells within the same company to conduct business with each other, making it ideal for any type of insurance business.

The island’s banking sector has earned international praise for its robustness and resilience through the international financial crisis and the World Economic Forum’s Competitiveness Index 2009-2010 has ranked Malta’s banking system as the 13th soundest in the world. Though small by international standards, the island’s banking system is built on solid fundamentals and sound systems and the segment is growing fast: in just 15 years the island’s banking landscape has transformed itself from four retail banks serving the local population to an industry sector of world-class sophistication, with 24 foreign or privately-owned credit institutions and 15 financial institutions listed on the Malta Financial Services Authority website, while over 200 international banks and financial institutions have registered their intention to provide services in, or out of, Malta.

Company formation is another area doing exceptionally well. As a member of the European Union and the Eurozone, Malta offers international business significant advantages as a company domicile, offering fully EU-compliant, low effective tax rates, an excellent professional services infrastructure and a respected, well regulated legal jurisdiction. Malta’s Companies Act, which is based on UK legislation, is currently


Introduction 36

being upgraded and revised to reflect developments in this area and ensure the provisions of the Act continue to offer the most up-to-date standards and conditions for companies setting up on the island.

Making a MarkRecent years have seen a slew of

financial services companies setting up operations in Malta. These include insurance companies such as Munich Re, Aon, Marsh, JLT Insurance, Heritage and Willis; fund administrators such as Apex, TMF, Custom House and HSBC; banks such as Deutsche Bank, Credit Europe, Finansbank, Banif, the International Banking Corporation and Saadgroup Bank Europe as well as a selection of Fortune 100 companies who have structured financial operations on the island.

Indeed, since Malta’s entry into the EU in 2004, the financial services sector has been making significant inroads into

the European financial services scene, particularly in fund management, banking, trade finance, intra-group financing, back office operations, mergers and acquisitions, call centres and insurance industries. Malta’s reputation as a hedge fund domicile has increased significantly following the revamping of the entire legislative system catering for professional investor funds as well as flexible legislation for hedge funds and specialty funds. Malta Stock Exchange (MSE), once vying for business from family-owned companies on the island, is today listing equities, government paper and corporate bonds as well as a number of collective investment schemes. Although still relatively small in size, the MSE has large funds players among the funds listed on their boards. These include names such as Fidelity and HSBC among others.

The island also has a growing trust sector following a revision of the Trust Act: a new Trust and Trustees Act was introduced which removed the old cumbersome trust structure and replaced it with a more globally competitive product, while the inclusion of provisions for the setting up of Foundations, in which the person setting up the fund is able to maintain control of its operations, is expected to significantly expand this market with Malta’s European clients.

Operating in a Global ContextAt one time, Malta was described in

the financial world as one of the “best kept secrets”. That is no longer the case. FinanceMalta was set up by the government in 2007, made up of key stakeholders, to disseminate information about the jurisdiction. Once it overcome the original inertia, it has been trailblazing, organising numerous conferences and seminars, catering to elite audiences and finding that there are a reassuringly high percentage who are already acquainted with the country’s sound reputation, in spite of attempts in various British media a few years ago to


Introduction39

downplay the jurisdiction’s transparency and portray it as a de facto tax haven.

The long-sought for and hard-earned approval of the EU a few years ago put paid to most of this, allowing Malta to take its place among the second-tier, not aspiring to become the leader but happy to be the best of the rest.

Malta even earned the respect of the OECD when it was one of 40 jurisdictions that committed to transparent and effective exchange of information for tax purposes. The MFSA has in the meantime signed 20 bilateral and multilateral memoranda of understanding with overseas regulators, the most recent ones being with the China Securities Regulation Commission and the China Banking Commission.

The aim of these MoUs is to facilitate the exchange of information and to create a formal framework for regulatory collaboration and co-operation between various regulatory authorities, providing clearer channels for co-operation, the exchange of regulatory and technical information as well as investigative assistance between the signatory financial services regulators. These agreements also facilitate business between financial institutions in the respective countries.

And the government has been working in tandem, signing nearly 50 double taxation treaties – the most important of which was with the US, all of which adds to the attraction of the jurisdiction.

The World Economic Forum’s competitiveness index ranked Malta 13th out of 133 countries for financial market sophistication in its 2009/2010 report, with a banking system that is the 13th soundest in the world, while the Global Financial Services Index, published by the City of London in 2008 ranked Malta in 4th place as the centre most likely to increase in importance in the next few years.

In Sight of GoalThe financial services sector already

employs around 7,000 people, and the race is on to increase the significance of the sector to 25 per cent of GDP within the next few years. Malta is starting to take a tactical approach, targeting specific market segments where it has a competitive advantage. The promotion of the island as a dynamic financial services centre is certainly paying dividends, and Malta is now well placed to continue to attract business from across the world. Malta’s message to the financial services world is simple and straightforward: the regulatory system is world class, costs are comparatively low and the Maltese government and the industry are committed to putting Malta on the map as the foremost centre for financial services in the Euro-Med region. n


Introduction41Financemalta 2010/2011 edition

Introduction 40

Can you provide a brief overview of Malta’s International Finance Centre and highlight the key priorities of your government for the sector?

Financial services is a major pillar of the economy, one that has seen remarkable growth over the last few years, growth that continued even during the recession of 2009, and is an area that my government is fully committed to encouraging and facilitating. We have every intention of implementing policies that will help the financial sector to continue to grow in Malta. Our vision is to see the sector’s contribution to GDP double from 12 per cent to 25 per cent by 2015 and our priorities to achieve that will be to maintain Malta’s competitiveness.

To that end, we will continue to invest, in the education, infrastructure and IT sectors, because in order to be able to compete internationally, our services and facilities have to be cutting edge, they have to be among the best in the world. We already offer top quality infrastructure, IT and connectivity services and HR; our priorities moving ahead will be to invest further in all these areas in order to ensure we remain ahead of our competitors and that the overall package we are offering to investors is characterised by excellence.

What competitive advantage does Malta have over other jurisdictions, both well-established and emerging?

The resilience of Malta’s financial system in remaining relatively unscathed through the international financial crisis has given us a major advantage over competing jurisdictions where systems

collapsed in the crisis. Of course, elements such as our favourable taxation system, a system that has been certified by the OECD, the G20 and the EU, the excellence of our finance professionals, who are considered to be amongst the best in the world, and our world-class financial legislation and regulations, as well as the international reputation of the Regulator of the industry, the MFSA, have all contributed to Malta’s growth in this area. In addition, Maltese salaries and wages are more cost-effective than most other jurisdictions, meaning that in financial services, Malta can offer the best in all areas, from regulation to IT and HR, and all at very competitive prices.

How do you see Malta’s positioning, as a financial centre for the Mediterranean region, a European financial centre, or as a centre serving the European, African and Middle Eastern regions?

Malta is an international centre, and we have to ensure that we are globally competitive and not limit ourselves to just one region. We are moving in the right direction. This is evident in the results we’ve achieved so far with the businesses we’ve attracted to Malta. In addition, the accelerated growth we’ve seen, both in the good times and in the bad, proves the point that we have the ingredients in place for us to be internationally competitive.

Financial services is a global operation that requires a global approach; we should look beyond Europe and open up new markets, such as South America where Brazil is standing out as one of the emerging new superpowers and presenting an area of great potential. In addition,

interVieW With

laWrenCe gOnZiPrime minister



Introduction43

Malta has over 50 Double Taxation Agreements with various countries. We are constantly exploring the possibility of setting up new Agreements with new countries, while upgrading the existing Agreements in order to make them even more attractive to investors and businesses.

Malta’s finance industry has maintained a high level of growth over the last few years. What is your government’s commitment to the industry and how significant is it in terms of economic contribution?

The Financial Services sector was growing at a phenomenal rate prior to the financial and economic crisis, and regularly registered high levels of growth in the years leading up to 2009. In 2009 the growth slowed somewhat, but did not stall, and while employment in most other sectors was declining, in mid-2009 employment in financial services grew by four per cent year on year. All the major financial services firms and accountants such as KPMG and PWC tell me that business continued to flow in during 2009, though the volume was lower than in previous years.

What is your vision for the industry and what strategy is your government adopting in order to realise that vision?

We are still very much committed to our targets for 2015, which aim to double the contribution of this sector to GDP from 12 to 25 per cent. To achieve that we need to ensure we continue to be competitive. This, in turn, means we must continue to invest in our university, institutions and educational setup in order to be able to provide the best quality professional people at competitive conditions and salaries when compared to other jurisdictions.

We must continue to have a high quality regulatory authority. The MFSA has built an excellent reputation, so we have to continue to strengthen that. We

will continue to expand our package of Double Taxation agreements which we have signed with countries all over the world. We will continue to market Malta’s assets, highlighting the fact that Malta is part of the European Union internal market and that Malta’s set up is in accordance with European Code of Conduct rules and European Union directives, that Malta is also in line with OECD parameters as stated in the latest G20 meeting. And we will continue to ensure international investors know that doing business in Malta is doing business at the highest benchmarks in the highest standards possible.

What investment in the industry is the government planning, in terms of capacity building, promotion, education and infrastructure?

Specifically, the most important investment is education, and we have committed to increase education expenditure by 6 per cent, an additional 17 million euro, over last year.

This is an issue we are very aware of and addressing with urgency: for the finance sector to grow from 12 to 25 per cent of GDP we need to encourage more young people into the relevant studies.

One of our biggest challenges is that people don’t know enough about us, to the extent that an executive interviewed in the Ernst and Young competitiveness index described Malta as the ‘best kept secret in the Mediterranean’. So we are working hard to promote Malta internationally at every political level.

A third important area where we are investing heavily is in our IT infrastructure. The IT backbone is a crucial instrument for financial services, and I am very aware that the financial services sector cannot remain internationally competitive unless it is accompanied by a proportionate development in the IT facilities at the same time.

What are the biggest challenges facing the sector in Malta and how do you plan to address them?

In our view, the challenges are actually opportunities - the international recession has opened up opportunities for us. The international developments of 2008 and 2009 and those to come in 2010 have actually created an environment that will make Malta even more competitive than it already is today. This confirms that if we keep our focus on becoming more competitive, the opportunity for us to grow is definitely there.

Which areas of the financial sector do you feel offer the most opportunity for development?

The opportunities are there because we are more competitive than other jurisdictions in all areas of financial services. We are able to offer investors benefits such as our favourable tax structure, our competitive salaries and a reputation for very high efficiency. In the coming months, as certain countries have to introduce measures to bring their deficits and public sector finances back on track, measures that we do not have to take, we believe that if we are quick and proactive, we have the possibility to attract much more business here.

Specific areas of the sector that offer opportunity include insurance, which has been growing fast in recent years, and international banking, where I think our regulatory framework is second-to-none and is being very successful at attracting new business. Both these areas have seen significant growth in the last few years and there is certainly room for that to continue.

What is your view of the call for greater regulation that would include tougher capital rules for banks and capital and liquidity rules of previously unregulated institutions such as hedge funds?

I believe that there should be tougher rules and I believe that is one of the lessons that need to be learnt after what we’ve gone through in these past 18 months. We have to make sure that where people are risking taxpayer funds, there has to be full transparency, proper governance and proper regulation of the risks involved, so I am totally in favour of transparency and rules. These rules should continue to safeguard the flexible operation of the whole sector, but the danger of reducing the level of transparency and the level of control on the risks and exposure that are involved is that you risk another crisis such as the one caused by the subprime markets.

From a regulatory point of view, Malta has shown factually that where regulations are concerned we go for high levels, so we are not afraid of regulation once that regulation establishes the high standards that we want.

What personal message would you like to convey to the International business community about Malta and your vision for the financial services sector?

My message is one of welcome and invitation to come and do business in Malta - small is beautiful, as they will discover, and besides the business benefits this brings, such as accessibility of the authorities and regulator, small is also beautiful in terms of the quality of life they’ll enjoy here.

Beyond that however, it is important for business people to know that the growth of our financial services sector is a central part of our strategic economic development. Anyone investing in Malta in this area can be confident in the knowledge that the island has a government that places financial services at the heart of its economic strategy. Ours is a long-term and consistent strategy which aims to be a success story for everyone: for the country and for the investor. n


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Country OverviewIntroduction to MaltaHistoryMalta Fact FileDid you know?Interview Minister of Finance, the Economy and Investment

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Malta, a small island state at the heart of the Mediterranean, has been a

melting pot of civilisations for over 7,000 years. Dubbed Malat, meaning safe haven, by the Phoenicians, the island lies at the crossroads of north and south, a stepping stone between Europe and North Africa. An independent nation since 1964, Malta is proving to be a breeding ground for innovation and enterprise and the island is rapidly emerging as one of Europe’s most dynamic knowledge-based economies. Malta’s decisions to join the EU and adopt the euro have also strengthened its bid to become the foremost international business centre in the region.

Mediterranean IslandJust over 316 square km in area,

the Maltese islands, comprising Malta, Gozo and Comino, lie midway between Europe and North Africa, 93 km south of Sicily and 290 km north of Libya. Malta’s 413,600 inhabitants are among the most international of peoples, whose chequered history has seen a succession of foreign rulers from the Phoenicians, Carthaginians, Romans, Byzantines, Arabs and Spanish. In 1530 the islands passed to the Knights of St John, who ruled for 250 years before being ousted by the French in 1798. Their short-lived rule lasted until 1800, when the islanders asked the British for help in liberating the country from the French, which set the scene for 160 years of British rule until 1964, when Malta gained independence from Britain. Ruled for so long by so many different civilisations, the islanders have acquired a unique ability to adapt to new ideas and adopt, and improve, the best of them to their ultimate advantage.

The main island, Malta, is 27 kilometres long and measures 14.5 kilometres at its widest point. It takes just 45 minutes to

cross Malta, reducing commuting times and increasing leisure time, enhancing the island’s overall superior quality of life and making this one of the few places in the world where you can enjoy ‘eight hours of work, eight hours of play and eight hours of rest’. Gozo, with an area of just 67 square kilometres, is home to around 25,000 of Malta’s 413,600 inhabitants, and offers visitors and residents a less developed and more rural environment to live in.

Malta’s main towns include the capital city, Valletta, built by the Knights of St John in the 1500s, the popular sea-side towns of Sliema and St. Julians on the west coast, the inland towns of Mosta and Hamrun, and Paola, situated in the south of the island. While some 90 per cent of Maltese live in urban settings, there are numerous small villages that still evoke the traditional Mediterranean, rural way of life. These include Naxxar, Mgarr, Zebbug and Siggiewi, amongst others.

A rocky Mediterranean island with a dry and often windy climate, Malta enjoys 340 days of sunshine a year and the best climate in the world, according to International Living. Surrounded by some of the clearest and cleanest waters in the Mediterranean, the island’s countryside is characterised by the tiny terraced fields carved out of any available agricultural land, supported by laboriously constructed rubble walls, and utilising every available pocket of land, no matter how small. This delightful patchwork picture is enhanced by the wonderful play of colour and light: golden yellow limestone offsets the deep russet soil, the perfect azure of sea and sky and varying hues of green from the ubiquitous olive and carob trees.

Maltese LifestyleThe official languages are Maltese

and English, with 90 per cent of Maltese being totally bilingual. English is used predominantly in business, education, entertainment and newspapers, while

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Maltese is more commonly used between family and friends, though most people easily switch between the two languages. Maltese is a Semitic language believed to have developed during the Arab occupation of the islands (870 – 1090 AD), and it is still the only Semitic language to be written in a Latin script.

Most Maltese have a good command of Italian while French and German are also widely spoken. Most business correspondence is in English, which makes Malta an attractive place to conduct business. An added benefit derived from the Maltese’ excellent command of English is that Malta has become one of the most popular destinations for foreigners to study English.

The Church plays an active role in most communities on the islands. This is reflected in the large number of churches to be found in Malta – 365 in all; more than one church for every square kilometre of territory. Most Maltese are Catholic, but other religious denominations are also represented. The influence of religion is also felt in the country’s traditions with each town and village celebrating their patron saint’s feast day with great pomp and gaiety. The food is mostly European, with a strong Italian influence and Maltese bread is renowned to be excellent.

Government and International Relations

Malta’s population is one of the most politically active in Europe, with elections seeing voter turnout regularly exceeding 90 per cent and more. The island achieved independence from Great Britain in 1964 and inherited much of its political structure from its erstwhile colonists. Today the island is a parliamentary representative democratic republic, in which executive powers rests with the Prime Minister while the President fulfils the function of Head of State.

The last general elections were held in

March 2008, when the incumbent Nationalist Party, led by Prime Minister Lawrence Gonzi, won a third consecutive term by a narrow margin. The main opposition party is the Labour Party, led by Joseph Muscat, while the current President is George Abela.

As a member of the European Union, the Council of Europe, the United Nations and the Commonwealth, and a keen participant in the Euro-Med process, the cornerstone of Malta’s foreign policy is its membership of the European Union, which it joined on 1st May 2004. Malta is keen to see a further strengthening of the EU’s Common Foreign and Security Policy and supports the further enlargement of the EU. On defence matters Malta usually allies itself with its fellow neutral EU member states such as Ireland, Sweden, Finland and Austria. The island has good relations with the Arab world, particularly the countries of North Africa.

Creating an EconomyBefore Independence in 1964, Malta was

a Fortress economy, with a 150-year tradition of reliance on the British armed forces. The majority of the Maltese workforce was either employed directly by the British forces or in industries servicing the military machine.

In the four decades since Independence, Malta’s leaders have laid the foundations for a sustainable economy based on tourism, industry and services. Apart from the natural beauty of the islands, with their golden limestone, crystal clear sea and charming rural landscape, Malta has no natural resources bar its people. And, while from the mid-1960s to the mid-1980s, Malta sold itself as a manufacturing base for products like textiles and electronics, using low wages and plentiful supply of labour as its main selling point, by the end of the 1980s it was recognised that educating the workforce to include highly qualified professionals would attract higher value added products and services to the island.



Embracing ChangeTransforming the economy to

fit the vision was not always easy, especially post 2001. Privatisation of many government enterprises, radical restructuring of state-owned companies, tight control on government expenditure, higher effective taxation and a stringent tax compliance regime – all measures aimed at reducing the country’s deficit and establishing a stable fiscal platform for the island’s economy – delivered a series of challenging economic shocks.

However, the results of these policies reaped success for Malta, breathing new life into the nation’s economy and helping to boost its performance in the years between EU accession in 2004 and the onset of the recession in mid-2008. New industry sectors, knowledge-based activities that barely even existed two decades ago, such as: financial services; remote gaming; information and communication technologies; and aviation services, began to grow rapidly, competing with the upgraded traditional leading sectors of tourism and manufacturing for the title of fastest growing sector.

Euro AdoptionEU membership in 2004 and efforts to

meet the criteria for adoption of the euro in January 2008 meant Malta’s government had to introduce often unpopular measures to reduce the deficit to below three per cent of GDP, cut back levels of public debt to below 60 per cent of GDP, bring down inflation to below the EU’s two per cent benchmark and rein in unemployment. Euro adoption went ahead as planned on 1st January 2008 in a well-managed and stringently supervised transition that attracted the praise of EU leaders across the bloc.

In the last year, however, much of the progress registered in the run-up to euro adoption was eroded, with inflation rising through 2008 and only beginning to fall in the second half of 2009. Government

finances deteriorated through 2008, in tandem with many other European countries, and Malta ended the year with a deficit of 4.7 per cent of GDP. In late 2008 the government was forced to postpone its goal to achieve a balanced budget, but says it managed to bring the shortfall down to 3.8 per cent of GDP in 2009, and aims to further reduce it to below the European Union limit of three per cent by the end of 2012.

Moving AheadMalta’s strengths lie mainly in the

resilience and ambition of its people, qualities that are a direct result of the chequered history that makes Malta fascinating. Offering foreign investors the security and ease of operating within EU borders yet within easy reach of the emerging markets of North Africa and the Middle East, supported by a robust legislative framework, a stable political and economic environment, and a cost-effective, driven workforce, Malta is moving ahead rapidly. For foreigners working in Malta, the combination of an efficient business climate and excellent infrastructure enhanced by the relaxed Mediterranean environment in which they operate offer a unique and magical opportunity to do business in the sun.

Changing TimesThe island of Malta, with seven

thousand years of history, two hundred generations of civilisation and nine months of sunshine a year, was, up to just a decade ago, better known as a tourist destination for a mainly British and European market. But while tourism remains an important component of the island’s economic landscape, Malta’s traditional reputation as a sun and sea destination for holidaymakers is changing rapidly as the island adds weight to its claims for recognition of its distinctive role within the global business community.

Recognising the intrinsic value of its geographic location and its highly


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skilled, multilingual, flexible workforce, Malta is determined not to allow size to dictate success. A decade and a half of determined restructuring has turned Malta into one of the most attractive investment locations in the region, and the island is now well on its way to achieving its vision of becoming the regional centre of excellence. Now emerging as one of the fastest growing business centres in the world, Malta is recognised as a front-runner in the provision of business services and ICT in the Mediterranean region as well as a leading European and International Financial Services Centre.

Positioned strategically between Europe and North Africa, the island promotes itself as a stepping stone between the two continents, and is building aggressively on its strong reputation as the ideal regional hub for expansion-focused businesses. The island’s legislative and regulatory systems, formulated and implemented over the last fifteen years to create a solid yet flexible framework for business, its state-of-the-art telecoms infrastructure and wealth of highly skilled professionals in every field, plus the injection of EU structural funds accelerating the upgrading of the general infrastructure, combined with its central Mediterranean location and unique sun-kissed lifestyle are coming together to help Malta win both investment and international recognition.

The island’s economy, the smallest in the European Union, emerged from the international financial crisis relatively unscathed, with its financial system intact and winning international acclaim for the solidity of its banking system. Indeed, the World Economic Forum’s Competitiveness Index 2009-2010 has ranked Malta 13th (out of 133 countries) for financial market sophistication, with a banking system that is the 13th soundest in the world. Despite these accolades, Malta’s open economy was hit by the effects of the global recession in the second half of 2008, and the country

registered a Gross Domestic Product of 5.7 billion euro in 2008, an expansion of just 2.5 per cent in 2008, down from growth of 4.2 per cent in 2007. Preliminary figures for 2009 show a contraction of 1.9 per cent for the year, though positive growth of around 1.1 per cent is expected in 2010.

Attracting InvestmentMalta offers a low-risk, pro-business

environment that allows investors to establish operations quickly and efficiently. To support the high performance industries locating in Malta, government has introduced business friendly policies and invested heavily in infrastructure. Apart from a full package of incentives, ranging from fiscal benefits to the provision of custom built, specialised factory space, Malta has also built up an advanced infrastructure that encompasses everything from state-of-the-art IT and telecoms facilities and logistics management to well-developed, sophisticated banking, financial services and professional business services sectors. Government investment in this area has continued at an accelerated pace over the years, and projects currently in the pipeline include a new multi-million euro research and development building at the University of Malta as well as a 20 million euro biotechnology park to be built over the next few years.

Malta offers an all-round favourable environment to investors, and is now considered one of Europe’s most profitable investment locations: the island was ranked in 4th place globally for inward investment performance in UNCTAD’s World Investment Report 2008.

Attractive Base Malta is attracting FDI from sectors

where new technologies are driving production innovation and leading to new manufacturing processes. Today Malta offers an attractive environment to companies that focus on the manufacture of medium and

high-technology products requiring special skills, the manufacture of semi-customised small batch products requiring just-in-time delivery, those requiring a significant degree of quality control, value-added, fast response operations and Research and Development operations. Companies involved in electronics, automotive components, engineering, medical devices, chemicals and pharmaceuticals find Malta particularly attractive; as designated priority sectors, incentives and facilities for these activities are highly developed and extremely advantageous.

Investing for ProgressEuro anticipation and adoption can be

credited with at least part of this success, but other essential elements have also been instrumental in ensuring the steady stream of investment into the country. These include massive investments in infrastructure, including the construction of a state-of-the-art telecoms system, a modern Freeport, airport and power-station, dedicated and sophisticated legislative and regulatory systems, and, very significantly, human resources.

Most investors and business operators already based in Malta cite their staff as being the main reason they keep their investment in Malta: highly educated, multilingual and extremely flexible as well as cost-effective, Malta’s workforce is one of its greatest strengths. As government and education authorities step up their efforts to marry the output of educational institutions with industry needs, working in tandem with the business community to create courses of study that correspond to specific industry HR requirements, Malta’s university and vocational colleges are producing an ever-increasing stream of qualified professionals to service the growing financial services, ICT and the expanding health, pharmaceutical and electronics-related manufacturing sectors.

Leading Industry SectorsTourism remains a cornerstone of

Malta’s economy, contributing some 25 per cent of GDP. Other leading sectors include financial services, high-end manufacturing, pharmaceuticals, ICT, aviation and maritime activities as well as professional services. All of these industries have shown growth since Malta’s accession to the EU in 2004. Indeed, joining the EU brought significant sector-specific advantages that have led to considerable expansion over the years. In efforts to ensure these areas continue to grow, Malta is investing heavily in educating its young people for careers in these sectors, often designing specialised courses in conjunction with industry representatives in order to ensure that future growth is not hindered by a shortage in qualified personnel.

In financial services, a sector that has seen 30 per cent growth per annum in the last three years, one of the main reasons for Malta’s attractiveness as a domicile for financial services operators is the passporting rights firms enjoy to other EU and EEA areas, which has led to Malta becoming a magnet for banking, insurance and fund management firms. This growth has been internationally recognised and the 2008 Global Financial Services Index, published by the City of London, ranked Malta in 4th place as the Centre most likely to increase in importance in the next few years, and in 5th place as the Centre where most organisations are likely to begin new operations in the next two to three years.

Other areas are also showing similar growth. Remote gaming is fast becoming a major revenue earner and employer, again driven for the most part by effective regulation, and the sector now comprises well over 300 licensees operating online gaming sites from Malta, up from just 20 in 2005. This growing sector, which contributed 19 million euro to government finances in 2009, now employs over 2,300 people. The ICT sector is also on a roll, with Malta-based


Introduction to Malta 56

firms enjoying success on an international stage, while Malta-developed software is making substantial leaps forward.

Future OutlookWhile Malta’s banking system emerged

relatively unscathed from the international financial crisis, the effects of the global recession began to hit the island in mid-2008. Malta’s performance began to show increasing evidence of the consequences of declining international demand, as lower tourist arrivals and a sharp downturn in international orders hit both the service and the industrial sectors of the economy. The island’s high exposure to external influences caused these difficulties to intensify through 2009, and the island finished the year in negative growth, contracting by 1.9 per cent, according to preliminary figures released by the National Statistics Office, though the Maltese government expects the economy to pick up speed again and return to positive growth of 1.1 per cent in 2010.

Despite the country’s current disappointing performance, its government remains confident that Malta’s diversified economy based on new, knowledge-based industry sectors such as IT, financial services and professional services as well as high

value added manufacturing and tourism, is resilient enough to withstand the worst of the effects of the international recession. Some areas, such as financial services in particular, have continued to show growth despite the slowdown, and the authorities are working hard to ensure the island remains attractive to practitioners and continues to offer the most favourable environment in the European Union. Initiatives to assist industries struggling to survive have been implemented, with strings attached that commit companies benefiting from state assistance to increasing the size of their investment and their employment levels in the country over the next couple of years.

Best of Both WorldsBusiness and pleasure coexist happily

in Malta, helped along by the islanders’ knack of mixing the businesslike British character adopted from their former colonisers with their own, more relaxed Mediterranean characteristics. Maltese hospitality is legendary – a long history of greeting visitors and adapting to the demands of the less welcome has left the Maltese with a truly international attitude characterised by openness, tolerance, friendliness and a zest for life. n


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Malta’s chequered past is evident in the wealth of historical sites and monuments that

have survived hundreds, and in some cases thousands, of years, the remnants of a history spanning 7,000 years

Malta’s colourful and diverse history has its roots in the island’s location, at the heart of the Mediterranean. Ever since the dawn of history Malta has been a coveted possession to the dominant nations of the region, and the structures, buildings and monuments they left behind form the backdrop to a story as fascinating as it is long. Indeed, Malta’s magnificent megalithic temples, evidence that the island has been inhabited since prehistoric times, rank among the oldest free-standing structures in the world. These exceptional prehistoric sites, together with the baroque city of Valletta, built by the Knights of St John, and the old medieval capital, Mdina, are all designated UNESCO World Heritage Sites.

Mediterranean Trading PostThe first recorded people to

have settled in Malta were the Phoenicians. For the next two millennia, the islands were colonised by a succession of peoples. Throughout history, Malta’s fortunes in peace and war were intrinsically linked to its strategic location at the confluence of shipping routes, with its deep natural harbours making Malta ideal for trade and defensive purposes.

The Phoenicians were followed by the Carthaginians, but after the destruction of Carthage, Malta was absorbed into the Roman Empire. St Paul the Apostle was shipwrecked on the islands in A.D. 60, converting the country to Christianity under the Roman governor Publius. In the later years of the Roman Empire, Malta formed part of the Byzantine bloc.

Arab Colony to Knight’s DomainThe Arab expansion reached Malta

in A.D. 870 and the country remained under Arab domination until 1090, when Count Roger of Normandy added Malta to his conquest of Sicily. Malta shared in the fortunes of Sicily until 1530, when, in an attempt to strengthen the southern frontiers of his domains against Islam, Charles V of Spain offered Malta to the Knights of St John of Jerusalem, an international order of chivalry founded in the early years of the Crusades. For the next three centuries, the destinies of Malta and the Knights of St John were linked.

The Path to IndependenceThe Knights of St John were

driven out of Malta by Napoleon in 1798, and the French ruled

for two years. Malta became a British Crown Colony in the early nineteenth century and remained so until 21st September

1964, when it became an independent sovereign state.

In 1974, Malta was declared a republic. Malta is a member of the Commonwealth and of

the United Nations. Soon after independence Malta was admitted to the Council of Europe. In December 1989 Malta hosted the Bush-Gorbachev summit that sealed the end of the Cold War.

EU MembershipIn 1990, Malta applied for European

Union membership. Accession negotiations were concluded in December 2002 and the accession treaty signed in April 2003. Malta became a member state of the European Union on 1st May 2004 and adopted the euro as its currency on 1st January 2008. Malta joined the Partnership for Peace (PfP) in March 2008 and is a keen participant in the European Union’s Euro-Med process. n

histOrY:

7,000 Years OF histOrY


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Malta Fact File 2010

Located in the centre of the Mediterranean, the Maltese islands consisting of Malta, Gozo,

Comino and two uninhabited islands, lie midway between Europe and North Africa, 93 km south of Sicily and 290 km north of Libya. Malta’s 7000-year history has seen a succession of foreign conquerors ruling the island until 1964, when Malta gained independence from Britain after 160 years. Malta, with its 413,609 inhabitants, is the smallest of the 10 countries that joined the EU in May 2004 and adopted the euro as the national currency in January 2008. Since independence Malta has transformed its economy to become a leading centre for financial services, ICT, container and freight transhipment, high value manufacturing and tourism.

Official name: Republic of Malta (Repubblika ta’ Malta)Form of State: RepublicHead of State: President George AbelaHead of Government: Prime Minister Lawrence GonziCapital city: VallettaPopulation: 413,609 (2009)Official languages: Maltese and EnglishEU Membership: 2004Currency: EuroReligion: 98% Roman CatholicLocation: 93 km south of Sicily and 288 km east of TunisiaInternational dialling code: +356Internet domain: .mtArea: Malta is composed of three major islands (and 3 minor): Malta Island 246 sq km (94.9 square miles) Gozo 67 sq km (25.9 square miles) Comino 3 sq km (1.1 square miles)

Terrain: Mostly low, rocky, with dissected plains and many coastal cliffsClimate: Mediterranean with hot dry summers and mild winters. Average temperature Dec - Feb 13.2°c June - Aug 25.8°cAdministrative Centre: VallettaUnemployment rate: 6.9% (2009)GDP (euro billions): 5.7 (2009)Real GDP growth rate: - 1.9% (2009)Inflation rate: 1.8% (2009)

Business HoursOffices are usually open 08.30 - 13.00 and 14.00 - 17.30 Monday to Friday. Most offices are closed on Saturdays and Sundays. Shops are open 09.00 - 13.30 and 16.00 - 19.00 Monday to Saturday. Shops are generally not open on Sundays and public holidays though certain businesses are open in the main tourist centres.

Business EtiquetteSimilar etiquette to that of the UK prevails. Business cards should always be presented and appointments kept with punctuality. Business people should be formally addressed, especially those in senior positions, and first names should be used only after a good relationship has been established.

Public HolidaysNew Year’s Day (1 January)Ship Wreck of St Paul (10 February)St Joseph’s Day (19 March)Good Friday & Easter SundayFreedom Day (31 March)Labour Day (1 May)Sette Giugno (7 June)St Peter and St Paul (29 June)Assumption (15 August)Victory Day (8 September)Independence Day (21 September)Immaculate Conception (8 December)Republic Day (13 December)Christmas Day (25 December)

The Malta FlagThe Malta flag was officially adopted on 21st September 1964. The flag of this island nation uses the traditional red and white colours of the Knights of Malta. The George Cross (upper left), outlined in red, was added to the flag in the 1940s, as King George VI of Britain presented it to the islanders for outstanding gallantry during World War II.


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1 Malta is the smallest EU country by both population and size. Malta has 413,600 of the EU’s 495 million people, and is

316 square kilometres in size, out of the EU’s total size of 4,324,782 square kilometres

2 Malta is the most densely populated country in the EU and one of the most densely populated

countries in the world, with about 1,265 inhabitants per square kilometre

3 Malta has the fifth highest car ownership in the world, with two cars for every household. The total

amount of passenger cars during 2006 in Malta was 525 cars per 1,000 inhabitants

4 Malta was Vodafone’s first foreign venture outside the UK. The mobile phone giant’s Maltese company

was set up in 1990, and Vodafone Malta is now both the smallest and the oldest foreign subsidiary in the Vodafone Group

5 Malta is visited regularly by high profile super yachts, including Pelorus, Roman Abramovich’s 377- foot US$100

million dollar super yacht, and the 289-foot US$100 million sailing yacht, Maltese Falcon

DiD YOu KnOW?

6 A live Maltese Falcon was the yearly symbolic rent at which Emperor Charles V ceded the

Maltese islands to the Knights of St John in 1530, after they were defeated by the Ottoman Turks and expelled from Rhodes, which they had ruled from 1309

7 The artist Michelangelo Merisi, better known as ‘Caravaggio’, spent a year and a half in Malta in 1606 – 1607.

His greatest masterpiece, The Beheading of St John, was painted during his brief stay in Malta and is still on display in the Museum of St John’s Co-Cathedral in Valletta

8 Malta’s sister island Gozo is thought to be the mythical island where the nymph Calypso seduced Ulysses

9 Malta has the highest number of churches per square kilometre in the world – 365 in

all; more than one church for every square kilometre of territory.

10 Malta hosted the famous Bush-Gorbachev summit in December 1989 where the

end of the Cold War was finally sealed


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Can you provide a brief comment on the current performance of the Maltese economy and highlight your key priorities to bring the economy back into positive growth?

We are starting to look at signs of recovery and we expect that 2010 will show an improvement in the performance of a number of sectors. The economy shrank by 1.9 per cent in 2009, according to National Statistics Office preliminary figures, and we know that the last quarter of 2009 was more positive on all fronts especially when compared to the last quarter of 2008. The perception now is we are doing better in those hardest-hit sectors such as manufacturing and tourism and we expect to start seeing a regeneration of jobs, as well as new jobs being created.

The financial services sector itself continued to grow in 2009 and we saw a strong rise in interest in Malta as a jurisdiction. This was especially evident in areas such as the funds industry, professional investor funds and other areas, which are clearly making Malta an interesting location.

Unemployment is now at around 6.9

per cent, slightly higher than we’re used to, and the 2010 budget was specifically aimed at the creation of jobs. The tax credit scheme for small businesses that we introduced to encourage small firms to invest and employ people has the potential to make a big impact on this area if these companies take up the challenge.

Malta’s deficit is running above EU limits of 3 percent of GDP. How do you plan to bring it in line by the EU’s target date of end 2011?

The European Commission has recognised that Malta’s deficit is intrinsically linked to the crisis and that it is not a question of government not controlling its expenditure. The EC recognised that it was caused by the significant impact of the recession on our revenues and by the fact that we took measures to boost the economy, such as participating in the European-wide stimulus package and initiating active measures to support companies. That is an important statement by the Commission, which believes Malta should reduce the deficit sufficiently in

interVieW With

tOniO FeneChMINISTER OF FINANCE, THE ECONOMY AND INvESTMENT


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time for 2011. Our figures are slightly divergent in that we believe we should reach the target by end 2012, though by end 2011 we should reach around 3.2 per cent and under the present scenario we expect to be able to meet the targets.

But let me be frank, closing 2009 with a deficit of 3.8 per cent in the circumstances is a very good level for investor confidence when compared to the situation in other countries.

Tourism and manufacturing were hardest-hit by the international recession. What is the government doing to facilitate the recovery in these two sectors?

In tourism the measures we took included marketing and advertising and investing in new routes, both initiatives that help influence demand for our product and that give returns which will be spread across the sector. In addition, we offered support to the industry in terms of soft loans and joint marketing initiatives with the hotels themselves to generate more activity in 2009.

In the manufacturing sector our efforts focussed on supporting specific companies, some of which are the largest employers in Malta. We did this by creating the necessary incentives for them to invest and innovate in this period. In this way they were also able to gear themselves up better for the recovery period, ensuring they would be better placed to enter the market more quickly with newer products and more activity.

In addition, the government also made specific investments in other sectors to inject more activity into the economy. These included more road-works and projects with local councils which created economic activity which would not have been generated so immediately had there not been a government demand for goods and services.

Attracting FDI to Malta is crucial to the country’s economic progress - how much

investment came into Malta in 2009?We continued to attract investment in

2009, with better results even than 2008 - in fact, the total investment in the Maltese economy in 2008 was 346 million euro (for the period January to September) and for 2009 in the corresponding period it was 457 million euro.

The 2009 investments included 12 new foreign manufacturing projects, with a collective investment of 57 million, as well as six foreign expansions of manufacturing concerns, with 27 million euro further investment.

The financial services sector is clearly contributing significantly into the investment figures, particularly in the number of funds registered in Malta. While I haven’t seen a detailed break-down of the figures yet, I think the increase in FDI is due to the strong contribution from financial services.

Financial services have been showing rapid growth in recent years. How did the sector fare through 2009 and what are your projections for the sector in 2010?

The direct contribution of the sector to the global GDP figure is 6 per cent, while indirect contributions bring the number up to 12 per cent. But the sector itself, in terms of business activity, has grown by 30 per cent per year over the past few years. We do not have 2009 figures yet, but it was clear that growth continued, with around 100 new funds registered last year.

Malta is an attractive jurisdiction. Firstly because our tax system is very good; it is a transparent system accepted in the EU and approved by the OECD. Next, we have an excellent regulator, business-friendly regulations and the skills base to be able to service financial companies. And, as investors consistently tell us, we are able to provide the staff and expertise they need, at much cheaper rates than other places in Europe and of a very good quality.

Indeed, for 2010 my information is that

we are doing better - enquiries are coming in and the MFSA is very busy. Also certain agreements we signed recently, for example the Memorandum of Understanding with China, have now opened up more opportunities for the financial sector. Thanks to this agreement, Chinese investors can now invest in Maltese funds and investors of funds domiciled in Malta can invest in China. We are now working aggressively on reaching similar agreements with South American countries, such as Brazil and Uruguay. We believe that in order to operate as an international financial centre, we need to have all the routes open for cross-border business to happen.

What is your vision for the industry and what strategy is your government adopting in order to realise that vision?

Government’s vision is to make Malta a centre of excellence for financial services by 2015. We see a solid, well-diversified and competitive financial services industry built around a core of strong and forward looking institutions.

This requires strong collaboration between government, the regulator and all the stakeholders in the industry. The formula is already working and delivering results. It is a matter of strengthening what is already in place and making sure this remains on track.

What are the biggest challenges facing the sector in Malta and how do you plan to address them?

The international markets are still far from stable and Maltese firms have to be careful not to lower their guard. The sector is very well regulated by the Malta Financial Services Authority which has always ensured that new operators go through a rigorous ‘fitness and properness’ test and adhere to stringent prudential and ongoing obligations. Even as the world emerges from one of the worst financial crises it has ever seen, the risk of relapse in one or another of the global

financial system is always a possibility. Companies will have to be very vigilant and make sure they have systems in place to detect and avoid these risks. For this reason, my ministry meets regularly with the MFSA and the Central Bank to assess the stability of the market and we are always ready to take action should this be necessary.

Which areas of the financial sector do you feel offer most opportunity for development?

The sector is a diversified one and includes some 24 banks, around 400 funds, over 50 insurance operations and 70 trustee services companies. All sectors are growing and new areas of business keep developing. QROPS recognition by the UK authorities has reignited interest in the setting up of occupational pension funds under the EU Pensions Directive, while recent Memoranda of Understanding between the regulators, including the one signed recently with China, and the double tax treaty with the United States, will open up new markets.

What is your view on the call for greater regulation that would include tougher capital rules for banks and capital and liquidity rules of previously unregulated institutions such as hedge funds?

Malta is in favour of measures that are intended to mitigate risks in the financial system as long as these are proportionate to the situation being addressed. Regulation in Malta has never been ‘light touch’. That is one of the reasons why our banks have emerged from the turbulence of the past year relatively unscathed. Hedge funds also have always been regulated in our case, unlike most European and global financial centres. I am confident that any tightening of regulation that may take place internationally, provided this is well considered and sensibly implemented, will not come as a shock to local operators. n


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Financial Services SectorsBankingCapital MarketsFundsTrusts & FoundationsWealth ManagementFamily OfficeInsurance The Malta CompanyInternational PensionsMaritime and Aviation Business Process Outsourcing Knowledge Industries

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Banking71Financemalta 2010/2011 edition

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Malta’s ambitions to become a leading international banking centre are based on solid

foundations that were paradoxically strengthened by the international financial crisis that devastated banking systems across the developed world. Indeed, the island’s entire financial sector is underpinned by its motivated and resilient banking sector, which won international acclaim for having emerged from the financial crisis relatively unscathed.

Small by international standards, Malta’s banking industry is built on solid fundamentals and sound systems, and in weathering the global financial crisis, Malta suffered no systemic shocks or banking failures and to a large degree escaped the worst effects of the economic recession. Malta’s banking leaders now believe the sector is primed for significant growth, an opinion strengthened by the findings of the City of London’s Global Financial Centres Index, which ranked Malta fourth out of 66 jurisdictions as a centre “that is most likely to increase in importance over the next few years”, behind only Dubai, Shanghai and Singapore. It also ranked Malta fifth in “top financial centres, where organisations may open new operations in the next two to three years”, behind Dubai, Luxembourg, Singapore and Mumbai.

A More Conventional ApproachThe banking sector remains one of

the most interesting economic drivers in Malta, with analysts pointing to the sector’s continued robustness during the crisis as being a key indicator for the future performance of the industry. While Maltese banks had some write-downs of the assets they held, they did not hold so-called toxic assets. They were market- driven write-downs, which it is expected will be recovered as the economy recovers, rather

than real losses that would have had a more permanent impact on the institutions.

Malta has a deep-rooted conservative approach to banking; bank funding in Malta depends on retail deposits not wholesale borrowing and has over the years stuck to the conventional banking approach based on old fashioned intermediation between retail depositors and borrowers. It has not relied on wholesale funding to support lending and maintains substantial liquidity, adequate capital and prudent lending policies. A sentiment echoed by the island’s leading bankers is that while the global and European economic downturn will leave its mark on Malta, the well-regulated nature of the market and the lower gearing of Maltese banks should protect it from the worst of the direct consequences of the financial crisis. This has brought welcome recognition to the Maltese banking sector, which is starting to attract attention as a secure location to manage wealth and assets. Indeed, the World Economic Forum’s Competitiveness Index 2009-2010 has ranked Malta’s banking system as the 13th soundest in the world.

Significant ProgressThe Maltese banking sector has

changed significantly over the last 15 years, having been transformed from a tightly controlled publicly owned sector into one of liberalization and foreign ownership. The banking landscape has developed from four retail banks serving the local population to an EU compliant industry sector of world-class sophistication, with 24 foreign or privately-owned credit institutions with total assets of 41 billion euro as of December 2009.

The finance sector as a whole currently employs some 7,000 people and accounts for 12 per cent of the country’s gross domestic product with the government’s declared ambition being to see this figure rise to 25 per cent by 2015. Having established itself as

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a small but vibrant financial centre, Malta’s membership of the European Union in May 2004 and successful adoption of the euro in January 2008 have inspired further confidence in the finance centre, and protected it against exchange risks and capital flights to safer currencies.

EU Regulatory and Legislative Framework

Malta’s international financial centre has developed a highly reputable and regulated environment where the level of regulation and investor protection is equivalent to the world’s main international banking centres. The Malta Financial Services Authority (MFSA) is the country’s single regulator for all banking, investment and insurance business. Its high regulatory standards are modeled on EU legislation and best practice, whilst at the same time allowing for the flexibility necessary in a modern and dynamic banking environment. Malta’s financial services legislation has been hailed by many as being among the best in world for clarity, stringency and flexibility without imposing excessive bureaucratic burdens on operators.

Banking LandscapeMalta’s retail banking sector is one of

the most consistently profitable sectors of the Maltese economy. With Maltese domestic deposits of some 10 billion euro for a population of 413,600, the Maltese are extremely cash rich. The domestic banking landscape in Malta is dominated by the Bank of Valletta and HSBC Malta, who between them control extensive branch networks across the Maltese islands and account for around 80 per cent of the consumer banking market. In addition, the sector includes APS Bank, which is owned by the Church, and Lombard Bank, whose largest shareholder is Marfin Bank from Cyprus, both operate a small number of branches on the island. Among the more

recent newcomers is the Portuguese retail bank, Banif Bank, which in January 2008 launched its entrance onto the domestic retail and commercial market with the intention of competing fully with the leading retail banks, and Mediterranean Bank, which is targeting high net worth wealth management, savings and investments.

An International Window Malta’s international banking centre

has been gaining considerable ground in establishing itself as a finance hub in the Mediterranean region and this has drawn some of the most highly respected names in institutional finance to establish operations in Malta and use the island’s strategic location as a springboard for future development into Europe, Africa and the Middle East.

Over the past decade or so, institutions from some 15 countries including Australia, Austria, Bahrain, Belgium, Greece, Portugal, Turkey, Cyprus, Finland, Italy, Kuwait, Saudi Arabia, Switzerland, and the UK, have set up operations in Malta, with the most recent arrival being the German giant, Deutsche Bank. This influx, which includes several leading banking groups such as Volksbank, BAWAG, Sparkasse, National Bank of Greece (NBG), Fortis Bank, Raiffeisen, Saadgroup Bank, Turkiye Garanti Bankasi, CommBank, Akbank and FIMBank, have established international operations that add dynamism to Malta’s thriving financial services industry and the expectation is that many other banking institutions will follow this lead.

Growth and Expansion The number of banks based in

Malta has risen from 16 in 2004 to 24 in 2010. The first wave of foreign banking institutions to come to the island focused on bringing specific types of operations to Malta, mainly the handling of their parents’ investment needs, and those of their larger domestic clients. They undertook what were essentially back-office roles. But over the


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years these activities expanded into a more proactive role and most of these banks now hold executive responsibility for specialised areas of their group’s global operations.

As growth continues, so does the range of products and services being offered in and from Malta. These include commercial banking, wealth management, private banking, trust business, investment banking, treasury operations, syndicated loans and trade finance. The continued expansion and growth of other international services offered from Malta have contributed greatly to the further expansion of the banking sector. The island is also home to the second largest international ship registry in Europe. The funds industry which has

climbed from 48 investment funds in 2003 to over 400 today, with some 6 billion euro under management, partly reflects the growing stature of Malta’s international finance centre. The insurance sector, which has seen Malta become one of Europe’s primary international insurance domiciles, has doubled in size over the past three years, with 670 million euro in premiums in 2009, mainly generated through increased international and captive insurance business.

The Right Environment for Growth Malta’s international banking centre

has been gaining considerable ground in establishing itself as a finance hub for Europe, the Middle East and Africa. Malta


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provides a tax-efficient and relatively low-cost base for foreign banks and other financial firms looking for an EU compliant yet flexible domicile. The reasons drawing banking institutions to Malta mirror those for the rest of the financial services sector: Malta’s EU and eurozone Member status allows operators easy access to European markets as well as establishing a high level of confidence. At the same time, the island’s strategic location in the centre of the Mediterranean makes it a convenient gateway to North African markets, and an ideal base for financial institutions wishing to tap into the ever-increasing wealth being generated in the region. The regulatory framework is rigorous yet flexible, and skilled personnel are available.

In addition to this, the role of the single regulator, the MFSA, in the industry has been crucial, winning a reputation for being prompt, efficient and accessible. Other advantages Malta offers as a domicile for international banking business include its well-stocked pool of highly-skilled personnel and a cadre of qualified professionals in law, accounting, taxation, IT and other disciplines required by the financial services industry. The workforce possesses good language skills – English is an official language – and a positive work ethic prevails. Costs are also measurably lower than in other European centres, with salaries averaging one-third to one-half of the EU Level. Other operating costs are likewise competitive, and excellent office space and housing are available at reasonable rents.

Return on InvestmentThe Maltese fiscal regime has also

been one of the main drivers in creating an attractive investment environment. With a network of over 50 tax treaties in place and the most attractive tax system in the European Union that has been deemed by the European Commission to be compliant with EU non-discrimination principles,

and with proper planning and structuring, investors can achieve considerable fiscal efficiency using Malta as a base.

E-Money InstitutionsMalta is considered one of the EU

front runners in terms of IT adoption and sophistication and provides a very favourable regulatory framework for electronic money and electronic institutions, with the Banking Act giving licensed banks the scope to offer electronic banking under their banking licence. It also however, makes provision for so-called ‘stand-alone’ electronic money institutions, which are regulated by the Electronic Commerce Act of 2001 and the Electronic Money Institutions Directive. Malta leads many of its competitors in the areas of e-commerce regulation and facilitation. E-Money institutions set up in Malta are able to benefit from Malta’s favourable tax regime, relatively low cost base and experienced qualified personnel as well as the island’s strategic location midway between Europe and Africa. The Maltese authorities believe that entities such as online stockbrokers, credit card companies, and other money institutions can locate operations to Malta and gain significant benefits.

Continued GrowthBanking and finance provide the

lifeblood of any economy, and just as EU membership has validated a whole host of financial service offerings in Malta, so too is the banking industry contributing enormous value to the overall economic performance of the island. Given Malta’s numerous strengths, including its strategic location at the heart of the Mediterranean, Eurozone membership, relatively low costs, attractive fiscal regime, excellent lifestyle, rich heritage and highly professional operating environment, it is no surprise that Malta is being ranked among emerging global heavyweights such as Dubai, Shanghai, Singapore, Luxembourg and Mumbai. n


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The Banking ActThe setting up of banks in Malta is

regulated by the Banking Act (Cap 371 – Laws of Malta). The Act has adopted European Union Directives as the main reference for the regulatory concepts and supervisory practices which it introduced.

Alongside the Banking Act are also the applicable Banking Rules on licensing, capital requirements, large exposures, own funds, etc. Full details can be accessed on the website of the Malta Financial Services Authority (MFSA) at www.mfsa.com.mt

Style of Regulation and SupervisionThe MFSA requires the highest

standards of probity and honesty. Every licence is issued subject to standard conditions which may be adapted to suit certain circumstances so long as standards are not compromised.

LicensingAny undertaking which intends to

carry out the business of banking in Malta is required to file an application for a licence with the MFSA.

The application must be accompanied by a full set of supporting documentation (as detailed in Banking Rule BR/01/2008), including a business plan identifying the type and volume of business to be undertaken and the structure, organisation and management systems of the prospective bank.

A credit institution licensed or holding an equivalent authorisation in a Member State or EEA State shall be entitled to exercise its rights under the European Community law.

Licence ConditionsA licence shall be granted only if:• the applicant’s own funds amount

to not less than €5,000,000;• there are at least two individuals

who will effectively direct the business of the bank in Malta;

• all qualifying shareholders, controllers and all persons who will effectively direct the business of the bank are suitable persons to ensure its prudent management;

• the MFSA is satisfied that the applicant fulfils the minimum criteria relating to prudent conduct, fit and proper persons, integrity and professional staff and safety of depositors;

• the bank’s directors will include non-executive directors as the MFSA considers appropriate having regard to the nature and scale of the bank’s operations; and

• the MFSA is satisfied that the institution or the group to which the applicant belongs could be subject to consolidated supervision.

Setting up a Bank in Malta


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There are advantages to being small, as the Malta Stock Exchange (MSE) is proving.

Employing innovative ideas and a proactive attitude to ensure it remains relevant to the domestic market, the MSE is also determined to see it fully realize its international ambitions of becoming a gateway for small cap and non-European issuers to tap into the wider EU capital market. Indeed, EU accession in 2004 and euro adoption in 2008 have created fresh opportunity for Malta to transform its stock exchange from a purely domestic affair to a creditable European listing location. With the majority of its business to-date stemming from and serving the local market and investor base, its ambitions for the future are firmly focused on international expansion and aimed specifically at attracting new listings with promises of individual attention and mentoring through the listing process.

Strong PerformanceThe Malta Stock Exchange has been

a key component of the island’s thriving financial services sector for the past 17 years. Established in 1992, the Exchange has been experiencing a significant increase in listings, with 2009 marking a major milestone, by local standards, when it attracted a record 12 corporate bonds, one equity issue, two roll-overs and 11 issues of Government stocks raising more than 800 million euro. This was excluding government T-Bills, which alone accounted for 1.6 billion euro. Given that Malta is a small island state of only 413,600 people and the world has been in a major economic and financial crisis, this result is a significant achievement and a mark of confidence from investors in the Maltase capital market.

Malta’s stock exchange may be small by international standards, with a capitalisation of just over 7.6 billion euro and a trading

CaPital marKets

turnover of 553 million euro up 13.3 per cent year on year, but it has been growing steadily. The MSE Index climbed by just under 8 per cent in 2009 and with 70,000 registered holders of financial instruments, equivalent to 18 per cent of the population, the MSE is clearly a meaningful force in the country’s financial infrastructure. While investor confidence has been falling in many European countries, it has not waned in Malta. The MSE has been taking advantage of the tough conditions and changing dynamics in the local market to strengthen its position and maintain momentum: according to the MSE the Exchange has a healthy listing calendar for 2010 and the pace of listings that was witnessed in 2009 will continue through 2010.

New MomentumWhile 2009 marked a major change in

the fortunes of the Malta Stock Exchange, the MSE senses there is now a new momentum in the Exchange and they are taking a more proactive role in promoting the Exchange to both issuers and investors alike. Meanwhile, there is a mix of factors driving more business to the Exchange. Greater investor confidence has certainly been one of them, as has the fact that Malta has exceptional high levels of liquidity. When this is coupled with the current low interest rates savers are receiving, it creates the ideal situation to encourage investors who are looking for greater returns to put their capital to more productive use by investing in listed instruments. Issuers, who ordinarily resorted to bank finance, are now looking to the Exchange as an effective alternative means to raise capital.

The Exchange has seen a slow but steady rise in private sector participation. The bond market has been the main attraction for domestic companies entering the market. Many of Malta’s largest corporations are third or fourth generation family businesses, and the MSE believes that


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a number of these businesses which are large enough to meet listing requirements are in fact ripe for a listing, thereby providing an exit route to dormant family shareholders. The Exchange now lists 59 company instruments, counting both equity and corporate debt listings, on both the main List and the second tier Alternative Companies List. Some of those companies have more than one instrument listed, 18 of which are equities. In addition to government bonds and treasury bills, it has some 300 funds listed on its boards, amongst which are various large international players such as Fidelity, HSBC and Lloyds TSB.

Positive OpportunitiesEU accession in 2004 and the island’s

introduction of the euro in 2008 created positive opportunities for the MSE to expand further. The MSE is seeking to take full advantage of all the opportunities being offered by the Markets in Financial Instruments Directive (MiFID) and other international and national developments. The MSE has not only been proactive in attracting new domestic listings but has also been seeking to develop its service offering. The Exchange launched an international tender to replace its trading system and is looking at providing a cutting edge technology infrastructure that will act as a business enabler. In addition, the MSE is seeking to expand the services provided by the Central Securities Depository enabling it to move from a purely registrar service base to also encompass custodial and related services.

The MSE is taking its cue from the Shareholders Directive and will shortly launch a new product that will allow shareholders of listed companies to take part in AGM’s electronically. The strategy is to offer these services on a domestic level to listed companies at first, and then on to non-listed companies who need to maintain company records and a company

share registry, such as fund managers and administrators. White labelling of this service to other stock exchanges internationally is also envisioned.

EU AdvantageAlthough the Maltese internal market

is restricted by the island’s small size, the MSE has sought to counter its natural limitations through innovative and ambitious plans aimed at broadening its relevance on both a regional and an international level. EU membership in 2004 gave a further boost to these efforts, and the MSE is keen to maximise the opportunity membership presents to encourage companies from other EU and non-EU member states to list on the MSE. The inclusion of Malta’s equity market within the FTSE’s Global Equity Index Series (GEIS) is considered a positive factor to the Exchange’s internationalisation by placing it on the radar and opening it to a greater pool of investors. The MSE want to build on this and improve its connectivity with other exchanges to develop alliances. The small size of the Malta exchange means it is able to provide a more intimate, flexible and fast service at very competitive fees, particularly to companies which might be too small to list on a larger exchange. These companies can look to Malta as a first step towards seeking an eventual listing on the larger exchanges. The MSE is also looking to issuers outside the EU to use Malta as a gateway to European investors by using the EU Prospectus Directive to tap into the wider EU capital market.

FundsThe fund industry has been one of the

major success stories in Malta’s financial centre and the Malta Stock Exchange is keen to play a more aggressive role in attracting them to seek a listing on the Exchange. While the MSE has been successful in listing retail collective investment schemes, it has not seen the same interest from the hedge


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and alternative fund sector. The MSE believes this may soon change as fund promoters seek to widen their investment base and says that listing a fund on the Exchange adds an enhanced layer of credibility and regulation to that fund. As a large number of institutional investors operate under investment restrictions that dictate that a portion of their fund goes into listed products, from a fund perspective, listing increases the range of prospective investors a fund promoter can target.

Full Range of ServicesThe MSE is a fully-fledged securities

market, which means all the necessary services – sponsors, banks, lawyers, accountants and so on are available. Thus, in Malta it is possible to go through the preparation for an IPO with a lot more support than on a larger exchange, and once the IPO is completed there is a keen, receptive market for the company’s shares. Recent upgrades to the MSE’s entire IT infrastructure, including both the trading and depository operations, provide added functionality for the MSE to have a technical infrastructure capable of supporting all these changes. The Malta Stock Exchange is an active member of important standard-setting international organisations such as the International Organisation of Securities Commissions, the World Federation of Exchanges, the Federation of European Securities Exchanges and the European Central Securities Depositaries Association.

Adding New InstrumentsThe MSE’s management has been

actively seeking out companies and funds to extol the benefits of being listed on the Exchange. The MSE also plans to take full advantage of Malta’s new Securitisation Act to promote Malta as a specialist centre for securitised vehicles and structures. Furthermore, the MSE is

adding new instruments, such as Exchange Traded Funds and Sharia funds, to the equities and bonds currently listed on the MSE boards. Pension reform is also seen as a source of future opportunity; when personal pension funds become compulsory, locally managed pension funds should continue to add liquidity to the Exchange’s instrument volume.

Moving forward In tandem with the rest of Malta’s

financial sector, the Malta Stock Exchange proved adept in navigating through the last couple of years without suffering major setbacks, and indeed, in finding the advantage in the international situation to press forward with its case for cross-border expansion. Promoting itself as the gateway to the European capital market, the MSE continues to seek creative solutions to increase its level of business and raise its international profile. As new strategies and policies are laid out by the management, all indications are that the proactive character of the MSE will continue to deliver solid and tangible results. n


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Malta’s international reputation as a European fund domicile is rising fast as an increasing

number of funds choose to set up on the island. Malta’s upbeat and dynamic environment is proving ever more attractive to fund managers, and as the trend to move onshore into well-regulated jurisdictions accelerates, many in the industry expect Malta’s rapid pace of expansion in this area will continue to accelerate. Now securely established as a prime onshore domicile, Malta offers the fund industry an advantageous, EU and Eurozone location with access to markets across the European Union.

As Malta’s international profile rises, the number of investment funds and collective investment schemes registered on the island is growing rapidly, with more than 100 new funds setting up during 2009 alone, bringing the total to just over 400, with a combined net asset value of 6.5 billion euro, by the end of 2009. This demonstrates continued confidence in Malta as a fund domicile, and represents a growth registered across the entire scope of fund business in Malta, from retail funds marketed to domestic savers to the rapid development of Professional Investor Funds, a diverse class including hedge funds. In step with this, Malta has seen the development of a dynamic fund administration and management sector catering to the needs of foreign investors.

EU MembershipUndoubtedly, EU membership in 2004

and subsequent adoption of the euro in January 2008 provided the crucial catalyst in the development of Malta’s financial services industry. Accession brought the EU stamp of approval to Malta’s financial legislation, a body of laws that had been crafted and honed over the preceding ten years with the specific aim of creating a world-class regulatory regime that would

FunDsform the basis of the island’s financial services sector. With the advent of EU legislation establishing passporting rights for UCITS certified funds, meaning that appropriately licenced funds can be freely distributed in other EU jurisdictions, Malta is now well positioned as a serious contender for cross-border and international business.

Regulation and LegislationMalta’s single regulator for the financial

services industry is the Malta Financial Services Authority (MFSA). The main legislation regulating the funds industry is the Investment Services Act and subsidiary legislation. This legislation provides for the setting up of UCITS and non-UCITS retail funds as well as Professional Investor Funds (PIFs). The MFSA has the power to issue Investment Services Rules regulating, amongst others, hedge funds, private equity funds, property funds and other funds that pursue alternative investment strategies. Membership in the EU, as well as the MFSA’s membership in the Committee of European Securities Regulators, guarantees a sound regulatory and legislative framework and Malta has been prompt in transposing European Directives into Maltese law, which now incorporate all EU directives such as the Markets in Financial Instruments Directive (MiFID), the Third EU Money Laundering Directive, the Capital Requirements Directive and UCITS III.

Preparing for Change The European Union published

the UCITS IV Framework Directive in November 2009, with the new directive scheduled to come into force in July 2011. The new regime, which is intended to strengthen the degree of harmonisation across all EU member states, is expected to give the Maltese financial services sector further impetus for growth, and the MFSA is following developments in this area closely. The Authority is also


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keeping the industry regularly updated, providing both an overview of the principal elements of the directives as well an outline on how the transposition into Maltese law and implementation of the directive will be handled.

StructuresThe basic structure used for collective

investment schemes is the SICAV, which is uniquely suited to its purpose. In many ways it is a company, albeit a holding company with the specific aim of owning shares, bonds and other securities. As such, it can be listed on the Malta Stock Exchange (there is a separate list dedicated to this type of security, which allows for liquidity).

The variable capital nature of the SICAV means that new investors can be added simply and easily, without having to wait for an existing investor to decide to liquidate his holding. It is also a structure that allows sub-funds, or segregated cells, to be

established within the SICAV, so that each may pursue a range of specialised strategies, investing in distinct asset types and classes.

Professional Investor Funds (PIFs) are a new variety for the Maltese domicile, seeking progressively lighter regulation for funds targeted at increasingly financially literate investors.

PIFs are not retail funds. This means that the level of oversight and protection offered to investors is limited, the assumption being that the professional investor is well aware of the risks involved in investment markets and is in a position to take a decision to participate on well-founded grounds. This implies a level of knowledge that the regulator believes cannot be taken for granted for the bulk of savers and investors, who therefore require the authorities to establish much clearer rules for retail funds.

The PIF opens the door to hedge funds, pursuing a wide range of sometimes creative strategies which also includes property funds.


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This is reflected in the regulations: PIFs come in three main categories, each with a different target market and distinct rules.

The more stringently regulated of the three are the PIFs targeting Experienced Investors. These require the investor to have worked in financial services, to have made a number of substantial investment transactions or to have experience in the type of property or investment the fund will be investing in. With one little codicil: the investor can satisfy this requirement by ‘providing any other relevant justification.’

To enter a scheme for experienced investors, a minimum entry stake of 10,000 euro is required. The bar is not set very high for this sort of fund: yes, it will invest in less mainstream assets, but marginally so. But the fund is limited to borrowing no more that its NAV for investment purposes. This includes leverage through derivative investment products. The two other fund classes have no effective limit on the leverage

they can apply, assuming of course that they can persuade lenders they are a good bet.

The remaining two classes of PIFs – the PIFs targeting Qualifying Investors and the so-called Extraordinary Investors – raise the bar for participation while lowering the degree of regulation. Qualifying Investors are required to have net assets worth 750,000 euro, with an entry threshold of 75,000 euro. There are other ways to become a qualifying investor: for example, if the total number of investors in the fund is limited to 10, being a relative or close friend of the promoter is one way of making the grade. Working for a fund administrator is another. But in each case, the principle remains clear. The investor is expected to have an understanding of investment markets, and having sufficient capital is assumed to be a proxy to that.

The Extraordinary Investor, as the name implies, has a much higher bar to leap. The minimum capital required is 7.5 million euro; the minimum investment is


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750,000 euro. And the investor needs to sign a disclaimer stating that he is aware of the risks involved in participating in the scheme.

Excellent RegulatorRegulating this burgeoning sector, the

Malta Financial Services Authority (MFSA) is confident that business will continue to grow. Hailed for its prompt responsiveness to industry needs, many operators already in Malta cite the licencing process as being quick, thorough and efficient - promising ‘in principle’ approval within one week and full licencing process within six weeks. In addition, the cost of high quality staff and office space is still well below Western

European levels and professional and supervisory fees are also significantly lower. According to Malta’s fund managers the island’s main advantages lie in the proximity and access to the regulator, the swift decision making process, the level of service and the speed-to-market advantage that registering a fund in Malta allows.

Another advantage the island holds over established domiciles is that funds registered in Malta, while required to appoint at least one resident director, are not required to appoint a local administrator. The existence of locally-based administrators such as Valletta Fund Services (VFS), HSBC, Apex, Custom House, Praxis and Dutch Administrator TMF


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all offering fund administration services could be seen as a more convenient option, however the regulation ensures flexibility and choice. Fund administrators – of which, besides the big players there are now 16 – are now well established. Many of them administer the domestic market funds. Some, like VFS and HSBC’s operations, grew out of a desire to extend the expertise built up with in-house fund products to third parties.

It helps, of course, that the tax regime is welcoming. Income derived from a Malta-registered collective investment scheme is not normally taxed, and there are tax concessions on dividends from securities listed on the Malta Stock Exchange.

Administrators based in Malta are not limited to servicing funds domiciled in Malta; they can also administer funds authorised in other domiciles, provided this is allowed under the laws of the domicile concerned. On the other hand, as a general rule Malta allows funds based on the island to be administered by overseas fund

administrators, provided these in turn are based in an EEA or recognised jurisdiction.

Redomiciliation of FundsAs the industry consolidates the trend

away from offshore jurisdictions and towards well-regulated, onshore locations, Malta has seen a significant migration of funds into the island. Maltese legislation has provided for the redomiciliation of various types of companies since 2002, when the legal framework for ‘the continuation of companies’ was put in place. This allows for companies to relocate from one jurisdiction to another with minimum time and cost investment, while the management, ownership, structure and assets of the company, or fund, are largely unaffected. The MFSA issued new Guidelines to Redomiciliation of Offshore Funds to Malta in December 2009, in order to highlight the advantages of redomiciling foreign funds in Malta as well as to inform and facilitate the


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procedures for inbound redomiciliation of funds. Various factors contribute to the attractiveness of Malta as a location for redomiciliation. These include the regulator, the MFSA, which is renowned for its efficiency, approachability and commitment to the maintenance of high standards, and the fact that Malta is a low-cost jurisdiction that offers a highly favourable system of taxation for investor funds as well as its network of 50 double taxation treaties.

Investor ProtectionMalta’s tight legislation and highly

personalised approach offers no loopholes for less-reputable funds to use Malta as a ‘back-door’ into the EU. Funds looking to redomicile in Malta have to be able to show they have been operating for at least one year in their current home before applying to move, and Malta has turned away various funds which did not satisfy Malta’s strict standards for authorisation.

For reputable funds, of course, this stringency is a key advantage, often cited

by fund managers in tandem with the regulator’s efficiency as the motivation behind their decision to move to Malta. While this is valid across the financial services industry, in the fast-moving arena of fund management, with its acute level of responsibility to investors, it is a crucial factor.

Ideal LocationMalta is flexible and business friendly, say

the professionals in the business. The island’s high standards of regulatory oversight and processes, its dedicated customer-service ethos, highly qualified and multilingual staff and lower all-round costs are establishing its reputation and steadily building up its attractiveness as an international fund centre. As more offshore funds choose to move into regulated onshore jurisdictions, Malta is poised to win a significant share of the business seeking an EU location. Expectations are that this sector will continue to grow through 2010 and Malta’s government, regulator and industry are well placed to ensure that its potential is fulfilled. n


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Flexible, secure and confidential, the Malta trust is the ideal financial instrument for those

seeking solutions to their wealth management requirements. Skillfully comprising all the features of the Anglo-Saxon trust concept within a civil law framework, the Malta trust is an effective and trustworthy vehicle that provides both certainty and security.

Malta, a civil law country within the European Union, offers a highly-regulated, well-respected, sophisticated EU environment and the island is fast becoming the trust jurisdiction of choice. Internationally the island’s reputation as a location to establish and manage private and commercial trusts is increasing significantly as the demand for secure solutions to wealth management issues increases.

Peace of MindThe Malta trust offers a useful and

practical vehicle for the fulfilment of these requirements, giving settlors the peace of mind that comes with a highly-regulated, EU environment, while remaining faithful to the original concept of a trust. With legislation now in place to regulate the setting up of Foundations, through which founders are able to maintain a level of control on the direction of the estate, Malta is ideally placed to answer the most of diverse of needs. In addition, Malta’s lower set-up and management costs are proving attractive to both corporate entities and high net worth individuals from across the world looking for ideal vehicles for financial planning in a reputable, EU-based financial centre.

Trust LegislationA key instrument in the attraction

of wealth management activities to Malta has been the Maltese Trust and Trustees Act, which came into force

in January 2005 as part of the revision of the legislative landscape. The act creates a more streamlined and simplified trust regime, and makes Malta much more attractive to international clients, by offering greater flexibility and high standards of certainty. The act permits the holding of any property for any person eliminating ring fencing and discrimination based on residence and nationality.

The trust law identifies a number of commercial situations within which the use of trusts would attract more favourable treatment. These include security trusts, unit trusts or collective investment schemes and securitisation, amongst others.

One of the great attractions of the trust for the transaction planner designing a business deal is the convenience of being able to absorb into the ground rules for the business deal, those fundamental and well-articulated principles of fiduciary law that protect trust beneficiaries of all sorts. These attractions have made the trust a reputable alternative to other devices, such as contract and incorporation, whenever the relationship to be established is too delicate or too novel.

Malta’s advantageous taxation regime also enhances the attractiveness of this financial instrument, though naturally, the actual impact of taxation on trusts depends on a number of issues, including the type of assets and the status of residence of the beneficiaries. However Maltese tax law states that income attributable to a trust is not charged to tax in the hands of the trustee if it is distributed to a beneficiary but is charged directly to the beneficiary on distribution of income. Provided all the beneficiaries of a trust are not resident in Malta and provided all the income attributable to a trust does not arise in Malta, this means there should be no tax due by the trust or by the beneficiary in Malta because non-residents are not subject to tax in Malta on income not arising in Malta.

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FoundationsMalta’s legislation now also caters for

the setting up of foundations, (or private foundations), which continental Europeans generally prefer to trusts because they allow the founder to continue to maintain a level of control on the direction of the estate. Unlike trusts, foundations have a legal personality and the foundation itself becomes the legal owner of the foundation estate. Based on Maltese company law principles and Italian and French civil law provisions, Maltese foundations require the appointment of administrators, who are responsible for the administration of the foundation’s property, and these are regulated under the trustees act.

A relatively new concept for Malta, foundations provide an alternative structure to the trust institute and have proved a popular vehicle with the island’s Continental clientele. An interesting aspect of the legislation is that it allows for the conversion of a trust into a foundation and vice versa, a facility which adds even further flexibility to financial management undertaken in Malta.

The Malta AdvantageOffering a high level of protection and

regulation, Malta trusts and foundations benefit from a number of advantages when compared to traditional trust jurisdictions such as Switzerland, Lichtenstein, Luxembourg and the United Kingdom. These include Malta’s specific trust legislation that creates a highly regulated environment for the set-up of a trust, which offers settlors a higher degree of assurance. For example, in Malta a trustee has to be licensed by the Malta Financial Services Authority, and is highly regulated, with audits of all trustees taking place at least once a year. In addition, Malta’s trust law offers a security that other trust jurisdictions do not: in the case of any conflict between the trust and any other Maltese law, trust law prevails, thus making

it more impermeable to breaches. Furthermore Malta, as a civil law

country, offers a more familiar legal terrain to people from other civil law countries, which include all mainland European countries. While the Maltese trust is based on the Anglo-Saxon concept of trusts and incorporates all the features and flexibility of such a structure, in Malta it is also given legal recognition in relation to other areas of the law and is created with sufficient legal powers to be able to manage conflicts between the two systems of law, without invalidating the trust.

Re-domiciliation into and out of MaltaMalta caters to the Re-domiciliation

of trusts; the legislative framework that regulates both the inward and outward continuation of foreign and local companies is the Continuation of Companies Regulations which provide existing trust companies with a particularly attractive incentive to apply to be registered as being continued in Malta, hence allowing a trust company to re-domicile without the need of dissolution in its jurisdiction of incorporation and be re-incorporated in the jurisdiction of choice (in this case, Malta). Re-domiciliation allows continuation of legal personality from one jurisdiction to another, thereby eliminating the need to transfer all the trust business and trust assets to a new entity in the chosen jurisdiction. Conversely, a trust company set up in Malta can always have the option of continuing outside of Malta.

Cost EffectiveMalta offers another key attraction

to people choosing where to set up a trust: significantly lower set up and administrative costs. On average, setting up a trust in Switzerland will cost a minimum of 5,000 euro; in Malta the cost of setting up a fully fledged trust is around 1,500 euro. Professional fees


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in Malta, including trust management fees, legal fees and audit fees, are also significantly lower than other jurisdictions, while the international reputation of the island’s professional classes is internationally renowned to be excellent.

EU JurisdictionAs an EU member state with EU

approved laws and regulations, Malta offers settlors a reputable jurisdiction in which to establish a trust. While historically a trust has been seen as an instrument designed to maintain discretion, it has also been associated with tax avoidance structures. This means that Europeans setting up trusts in offshore centres, for whatever reason, run the risk of raising suspicion with their country’s tax authorities. Europeans choosing Malta, which is an EU country that is fully compliant with EU law, are able to avoid this scenario.

Tailor-Made SolutionsThe legal framework surrounding

Malta trusts allows for the creation of customised solutions for each individual trust set up. Malta does not offer ‘off-the-shelf ’ trusts: each one is structured carefully to reflect the requirements of the settlor, to ensure a set-up which is both flexible and responsive to any changes. This includes the option to have the trust governed by the laws of a country other than Malta. Indeed, while a European may be happy to have his trust governed by Malta, a civil law country, an Australian, for example, might prefer to have his trust governed by a common law country, such as the United Kingdom. Maltese law permits the trust to choose to be governed by the laws of another jurisdiction provided this is specified in the trust deed.

Trust AccountsWhile trusts are generally seen as an

instrument used only by high net worth

individuals, a Maltese trust account offers the possibility to enjoy certain trust related benefits on a bank account. A trust account is basically a deposit account based on the concept of a trust. The account is opened in the name of the bank which is responsible to hold the funds for the benefit of the named beneficiary. The advantages of the trust account include; the fact that it is not frozen in the event of a death and does not form part of succession proceedings; it offers an element of asset protection from creditors; it ensures confidentiality; and, for non-resident beneficiaries, it is tax exempt. A trust account can be set up with a minimum deposit that is different for each bank, but ranges from 5,000 to 12,000 euro. The concept has gained considerable momentum and while it was initially deployed by the island’s two leading banks Bank of Valletta and HSBC for the local market, the concept is now being exported by HSBC to non-traditional trust markets where the local banking officers can offer the product to their customer base and have the trust account administered from Malta by HSBC.

Powerful InstrumentA Malta trust or foundation offers

security, assurance and flexibility, while maintaining the principle of confidentiality that settlors expect. With over 100 Maltese and international fiduciary companies licenced to offer trust and trustee services on the island, including organisations such as Maitland Group, Sovereign Group and Dominion, this is a growing segment of the financial services offered by Malta, and one that is expected to continue expanding rapidly. With cost effectiveness, tax advantages and the benefit of being based in a fully approved EU jurisdiction, Malta trusts have become a powerful instrument in wealth management and financial planning. n



Setting Up a Trust Business in Malta

The Trusts and Trustees Act provides authorization for the holding of any property for any person, eliminating discrimination based on nationality and residence.

The Act provides that a person licenced in terms of the Banking Act, Investment Services Act or Insurance Business Act, or a foreign person with an equivalent licence, acting as a trustee, not in the course of ordinary business for which they are licenced, must notify the MFSA of their intention to act as a trustee in Malta at least 45 days prior to commencing activities in Malta.

This notification procedure also applies to a person having a licence or authorization to act as a trustee issued by the relevant regulatory authority in an approved jurisdiction. This enables a foreign licenced trustee from an approved jurisdiction to establish operations in a rather simplified manner.

New Set UpSetting up a new trust company depends

on various factors, however, initially all will depend on the reputation and qualification of the promoters. If the MFSA deems that sufficient experience and qualifications are held, the authorization will be obtained within a matter of a few weeks.

Other considerations:• Minimum capital of

approximately EUR1,200.• At least 2 shareholders and 3 directors,

all of whom must be approved persons.

It is also possible to set up a branch of a foreign trust company, thus leaving its nationality and place of incorporation stable.

Redomiciliation of Existing Trust Company

It is also possible to continue a trust company from another jurisdiction to Malta.

Advantages of redomiciliation:• Trustee remains the same, only

its nationality will change.• Trusts remain fully intact.• No need to transfer trust assets.• A Maltese trustee can hold property

under foreign law trusts.• Can possibly obtain EU-

wide passporting rights.• Investment funds are exempt from tax.• Malta’s tax imputation system

entitles operating companies with foreign shareholders to a 6/7ths refund of a 35 percent corporate tax upon dividend distribution.

• Income originating from overseas is not subject to double taxation, even if there is no double taxation agreement existing.

Impact on foreign law trusts:• Hague Convention – Malta has

implemented the appropriate rules into its law so as to ensure that any foreign law trust will be fully recognized in Malta.

• Civil Law Jurisdiction – Although Malta is a civil law jurisdiction, it fully recognises trusts as part of its domestic law and has several provisions of law in its civil code relating to trusts.

• The Legitim Issue – Maltese rules of legitim will apply to a disposition under trusts only if the settlor is domiciled in Malta at the time of the disposition.

• Immovable Property in Malta – Article 958G of the Maltese civil code states that where the settlor is not domiciled in Malta but holds immovable property in Malta under a foreign law trust, no provision relating to inheritance or succession to such property will apply to this trust property, even if the settlor later changes his domicile to Malta.

• Domiciliaries in Civil Law Countries – if, at the time of settlement, the settlor

was domiciled in a civil law country, the law of his domicile will usually apply and so it is possible that some legitim rules will be applicable.


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Offering the right balance between vigilant regulation, seasoned professionals

and discretion, Malta provides advantageous wealth management solutions in a Eurozone location.

Malta’s key location at the centre of the Mediterranean has made it a natural hub for wealth management and family offices in the region, as well as for high net worth individuals, ex-pats and pensioners seeking an advantageous residency location. Having won international respect for the excellence of its financial services industry and established itself as one of the safest and best run financial centres in Europe, Malta is emerging as one of the leading wealth management and residency centres of the region.

Driving Malta’s success as a wealth management location is its ability to attract wealthy private clients to the island. High net worth individuals, globe-trotting professionals and retirees from Europe and beyond are attracted by Malta’s favourable residency and tax planning solutions. At the same time, Malta’s attractiveness as a corporate location is also creating its own demand from high-earning executives based on the island, leading many to believe Malta could well repeat the success of other regional financial hubs like Dubai and Hong Kong, albeit on a much smaller scale.

Tax ResidencyMalta offers one of the most attractive

solutions in Europe to people seeking a tax-advantaged residency. Endowed with a balmy Mediterranean climate, excellent quality of life and relatively low cost of living, Malta is attracting foreign residents with a combination of fiscal benefits and lifestyle advantages. Acquiring Permanent Resident status is a simple and efficient procedure, which is open to foreigners of any nationality. The resident enjoys complete

freedom of movement and there are no annual minimum stay requirements. In terms of tax benefits, the resident benefits from a low tax rate of 15 per cent on all income received in or remitted to Malta, subject to a minimum payment of 4,230 euro per annum, the exemption of import duty on personal belongings, the repatriation of your capital and income and no death duties payable in Malta.

Innovative Investment vehicles Malta’s strengths as a wealth

management centre lie in its solid fundamentals; the financial centre offers a wide range of investment vehicles including specialist funds regimes, trust companies, and a positive tax regime. In addition the island offers an excellent physical and legal infrastructure which is bolstered by tried and tested professionals with a track record in structuring customised solutions and offering innovative approaches. The island offers a widely respected regulatory regime, skilled multilingual talent pool, and is an EU member state with a politically stable, low-risk environment that offers a very attractive international lifestyle – all within easy access of most European and Mediterranean capitals.

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Strong Banking InfrastructureThe island’s strong banking

infrastructure caters to all levels of wealth from the mass affluent to the ultra high net worth individual requiring the more personalised services of a private banker. Malta has been experiencing a steady increase of banks specifically set up to offer investment banking, private banking and wealth management services to their wealthiest clients. Specialist wealth managers such as Mediterranean Bank are offering Swiss-style private wealth management, while foreign banks such as Sparkasse, Volksbank, BAWAG and Raiffeisen all offer management solutions from Malta. Concurrently, retail banks like Bank of Valletta, Banif and HSBC also offer wealth management services, as do a host of international asset management firms, consultants and other

professional institutions offering personalised services to individuals or companies.

Sophisticated Solutions Maltese professionals such as tax

advisors, lawyers and accountants are recognised to be among the best in the world, and this excellent reputation is helping to expand the Maltese product offering as a wealth management centre. Across the globe, the wealth management industry is both expanding rapidly and increasing in complexity, as client expectations grow more sophisticated and competition intensifies. Malta, offering solid fundamentals, an excellent reputation for high standards of regulation and supervision, competitive costs and a highly-educated workforce, is proving to be one of the most interesting up-and-coming wealth management centres in the region. n


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Family offices and multi-family offices managing the wealth and lifestyles of the world’s most

influential business families are starting to find Malta a compelling alternative to traditional wealth management centres in big city environments. Malta’s emergence and development into a respected international financial centre within the European Union, coupled with its established infrastructure and experienced professional advisors are now beginning to draw families to structure investments and hold and manage family assets from the Malta jurisdiction. Already a strategic port of call for super yachts crossing the Mediterranean, Malta’s traditional image as a safe harbour for super yachts is fast becoming the recognised trademark of its growing finance sector too.

Multiple Benefits Malta’s credentials as a family office

location are compelling. The island’s EU-harmonised legislation provides an advantageous operating framework for family offices, offering an EU and OECD-approved competitive fiscal framework combined with over 50 double taxation agreements, plus access to a solid and sophisticated banking sector. The island’s holistic set-up is proving highly attractive for holding and trading activities. Its trust law is innovative, flexible and secure, and, as the fastest growing fund centre in Europe, Malta offers a comprehensive and beneficial package to family offices.

Innovative Investment vehicles Malta’s financial centre offers a

wide range of investment vehicles including specialist funds regimes, trust structures and Malta companies, all of which have been designed to provide family planners the security of an EU

jurisdiction coupled with flexible business entities that can accommodate the most complex of corporate structures. An important instrument for managers of family wealth on the island is Malta’s trust legislation, built upon the key concepts of certainty, security and confidentiality.

Malta’s trust law combines all the features of the Anglo-Saxon trust within a civil law framework, and the recent addition of new legislation on private foundations, the preferred structure for continental Europeans, allowing a higher level of control on the direction of the estate, means Malta is able to offer flexible and practical solutions to most requirements.

Other key vehicles include investment funds, which range from retail funds to professional investor funds (PIFs), a diverse class including hedge funds, each of which carries its own particular advantages, but all of which benefit from the island’s key advantages: proximity and access to the regulator; the swift decision making process; the level of service; and the speed-to-market advantage that registering a fund in Malta allows. In addition, a Malta-licensed collective investment scheme is exempt from tax. All relevant European Directives have been transposed into Maltese law, including the Markets in Financial Instruments Directive (MiFID), the Third EU Money Laundering Directive, the Capital Requirements Directive and UCITS III, providing extra oversight and security to funds set up on the island.

Setting up a Malta company through which to structure family office business can also prove highly advantageous. As a company domicile, Malta offers fully EU-compliant, highly competitive effective corporate tax rates, an excellent professional services infrastructure and a respected, well regulated legal jurisdiction. The Maltese legal structure, a hybrid system of Civil and Anglo-Saxon law, is based on the civil law pattern of continental Europe, whilst


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most administrative and fiscal legislation is constructed on the British model. Now a valuable tool for many international corporate planners and investors in the structuring of cross border investments, holdings and mergers and acquisitions, the benefits of the Malta company are based not only on fiscal advantages, but are also firmly rooted in the ability and expertise of the island’s top-flight contingent of legal and consulting professionals.

Professional Support Services Maltese professionals such as tax

advisors, lawyers and accountants offer both expertise and experience and the island’s service providers are fast building a track record in structuring customised solutions and offering innovative approaches. Most of the leading international accountancy and auditing firms are represented on the island, while many of the larger firms also offer back office, payroll and accounting services amongst others. As the demands of family offices handling single or multi-family fortunes increase in complexity, Malta’s professional services providers are ideally placed to meet the most challenging of client expectations.

Tax Residency Malta offers one of the most attractive

solutions in Europe to people seeking a tax-advantaged residency. Endowed with a pleasant Mediterranean climate, excellent quality of life and highly competitive cost of living, Malta is attracting foreign residents with a combination of fiscal benefits and lifestyle advantages. Acquiring Permanent Resident status is a simple and efficient procedure, which is open to foreigners of any nationality. The resident enjoys complete freedom of movement and there are no annual minimum stay requirements. In terms of tax benefits, the resident benefits from

a tax rate of 15 per cent on all income received in or remitted to Malta.

Strong Banking InfrastructureOperating on conservative banking

principles, the Maltese banking system emerged practically unscathed from the international financial crisis and was ranked as the top 13 soundest systems in the world in the World Economic Forum’s Competitiveness Index 2009-2010. With around 25 banks now registered in Malta, including HSBC, Deutsche Bank, Volksbank, BAWAG, Sparkasse, Fortis Bank, Raiffeisen, Saadgroup Bank, Turkiye Garanti Bankasi, CommBank, and Akbank, the sector is well set up to provide the full range of personal, commercial and trade services to its clients, including commercial banking, wealth management, private banking, trust business, investment banking, treasury operations, syndicated loans and trade finance.

Sophisticated Solutions Across the globe, the concept of family

offices is expanding rapidly and the search for innovative solutions is intensifying. Malta now offers an attractive alternative to established family office centres such as Geneva or London; its dynamic and flexible approach to business, respected regulatory regime and pleasant Mediterranean lifestyle make a winning combination, whether serving as a base for a family office, a residency option for the family itself, or a location offering partner services and facilities to family offices situated in other locations. Offering solid fundamentals, an excellent reputation for high standards of regulation and supervision, competitive costs and a highly-educated workforce, Malta is proving to be a keen contender for family office business in the region and fast developing its reputation as one of the leading wealth management centres in the Mediterranean. n


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Malta’s multilingual workforce, lower costs and full complement of professional

services add impetus to the island’s bid to become one of the leading captive insurance domiciles in the European Union. A major success story of the Maltese economy, the captive insurance industry has been one of the star performers of the island’s financial services industry. Building on the country’s EU membership and a carefully crafted programme of legislative and regulatory reform, Malta’s insurance industry has been growing steadily over the past couple of years.

Malta is proving increasingly attractive to insurance firms seeking a reputable and well-regulated jurisdiction from which to operate. With the island’s numerous other advantages, including its EU-approved tax system, its proximity to both the European mainland and North African cities and its wealth of highly-qualified insurance professionals, Malta is fast attracting businesses from across the world.

The country has recorded steady progress as global giants such as AON, Marsh, and Munich Re choose the island as both a captive and reinsurance location, Indeed, overall trends continue to show acceleration in the Maltese insurance industry, with the number of registered captives and PCC companies domiciling in Malta now at over 41 up from 22 in 2007, including six Fortune 100 companies. The total gross premium written by these insurance companies in 2009 amounted to around 670 million euro a 23.6 per cent rise on the previous year.

Malta’s insurance industry is now beginning to develop fast as insurers from across the world recognise the unique benefits of relocating to Malta. After ten years of meticulous preparation, Malta’s captive insurance industry is now growing

rapidly; EU membership bringing single passporting rights to Malta-domiciled companies giving the sector the impetus it spent ten years waiting for. Pivotal to this success is the renowned excellence of the island’s financial services regulator, the Malta Financial Services Authority (MFSA) and the islands flexible legislative framework, with its attractive redomiciliation potential, which has already seen the transfer of AON subsidiary White Rock (Europe) to Malta from Gibraltar.

RedomiciliationThe Continuation of Companies

Regulations provide that insurance companies (captive or otherwise) may, subject to approval of the home regulator, be allowed to redomicile BOTH in and out of Malta as companies registered under the laws of the receiving country. Similarly to the PCC Regulations the Continuation Regulations are applicable to all insurance companies, insurance managers and insurance brokers.

Insurance ManagersThe first two international insurance

managers to establish a presence on the island were AON and Marsh, two market leaders that collectively manage more than half the captives registered across all domiciles. The big international managers did not have the field to themselves, however. Smaller players on the international captives market also joined the fray, as did a number of local insurers and insurance brokers. From June 2005, when the first of Malta’s captive insurers had been established, the number of insurance companies domiciled in Malta grew fast: there were more than 20 registered by the end of March 2008, with more in the pipeline. However the majority of these have not been captive, or affiliated insurers at all. After the first five were established, the next 15 were all

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direct writers, selling insurance beyond the confines of the parent group.

Since that first batch of five, the parents included RWE and BMW with a reinsurance captive, this trend has changed. It is no longer just the majors bringing in the business; the smaller managers, both local and foreign, are also finding clients. In 2009, there were some 41 insurance companies being managed by a list of 12 insurance managers. The top three international managers, AON, Marsh and Willis, all participate in the market, along with HSBC. But a number of mid-tier operators, JLT and Heritage, are also attracting their fair share of business, in partnership with Maltese insurers and brokers. And the local operations including International Insurance Management Services Ltd, FirstUnited, Ark, Abacus and Island Insurance, are also winning clients and business.

Ideal LocationThis bodes extremely well for Malta’s

future aspirations to take a leading role in this expanding international industry. The island’s geographic position at the heart of the Mediterranean with easy access to Europe, North Africa and the Middle East is of particular advantage and means the island offers the advantages of an EU domicile to the larger captive players as well as the personal service of protected cell company legislation to the smaller insurers.

Direct WritingAs the number of licenced captive

insurance companies increases steadily, Malta is also developing itself as a centre for ‘direct writers’, attracting fully-fledged insurance companies writing third party business throughout Europe from Malta. The EU single passporting regime which allows insurance companies established in any member state to offer

services ‘crossborder’ into any other EU country, has opened previously inaccessible avenues of opportunity to Malta and over the past few months the MFSA has licensed at least two motor insurers and one life insurer, all currently writing business in the UK, Ireland and other EU countries.

Protected Cell CompaniesAs the only EU domicile with enacted

protected cell company (PCC) legislation, Malta offers cells and their owners the opportunity to write EU based risk at lower costs and with full protection of cellular assets from any liabilities of the PCC’s core or of other cells in the structure. Malta’s first PCC attracted significant interest when it was launched in November 2006: Atlas Insurance PCC is one of very few EU domiciled PCCs. Atlas Insurance, a Maltese underwriter converted to this highly flexible structure in 2007. The cellular structure allows companies smaller than the typical captive owner to benefit from self-insurance, and the company has been successfully marketing the benefits. Other registered PCCs include Axeria Life International PCC and AON’s White Rock Insurance (Europe) PCC. AON has the lion’s share of the international cell company market and the company expects to repeat that performance in Malta.

A major new development in this area is the introduction of International Cell Companies, a structure in which each cell is licenced separately. The advantages of this new structure include the facility to do business with the other cells in the group, which is not possible in the PCC structure, and allows for each cell to carry out different types of business. The legislation should be in place during 2010, according to the Malta Financial Services Authority, and this will allow the ICC to be used for a variety of insurance-related activities.


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Insurance BrokersFollowing the implementation of

the EU Insurance Mediation Directive it is now possible for brokers and other intermediaries to avail themselves of the European single passport in much the same way as insurers. This has added to Malta’s attraction for European intermediaries, seeking international growth in a competitive jurisdiction and non-EU (including US based) intermediaries seeking to tap into the EU insurance market. The regulatory, fiscal and company laws are all conducive to growth in this area, particularly since they are modelled on UK statutory and regulatory rules and thus familiar to all major financial services players.

EU OpportunitiesAll indications show that Malta

is also aiming to position itself as an ideal EU home state for reinsurance companies outside the EU looking for a European foothold in the wake of the EU’s Reinsurance Directive. It is expected that Malta’s tried and tested redomiciliation legislation will be well placed to offer reinsurance captives sitting outside the EU the opportunity to establish an EU domicile. This is where Malta’s growing reputation for excellence will kick in with maximum effect: not attempting to compete with the established giants of the Cayman Islands, Bermuda or its larger European rivals, the island is focusing on promoting its excellence and accessibility as a jurisdiction, its state-of-the-art legislation and its uniquely cost-effective, custom-tailored solutions in order to win investment from EU and globally-focused companies. Quantity matched by quality is the MFSA’s guiding principle for this industry, a philosophy that looks set to put Malta firmly on the global captive insurance map. n

The Insurance Licence Application & Ongoing Regulatory Requirements

Application ProcedureThe MFSA encourages all applicants

to engage in informal discussions before finally submitting a final application in the prescribed form with the necessary accompanying documentation. The insurance licence application consists of a formal application form, due diligence on all ultimate beneficial owners, directors and other functionaries of the insurer, as well as a business plan or scheme of operations of the insurer’s proposed business. The statutory maximum period for processing is 6 months for insurance companies with a reduced period of 3 months for captives and reinsurance companies although in practice applications are processed in a much shorter time-frame.

Minimum Own Funds, Solvency Margins and Technical Provisions• Insurance companies are required to

have minimum own funds amounting to not less than the following:

• General Business - €2.3 million (€3.5 million for liability)

• Long-term Business - €3.5 million• Pure Reinsurance - €3.2 million• Captive Reinsurance - €1.1 million

Insurance companies are also required to maintain a minimum margin of solvency calculated in accordance with EU Directives as well as to establish and maintain adequate technical provisions. Assets covering such technical provisions are subject to detailed valuation rules including asset exposure limits relating to counterparties and asset types.


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As a member of the European Union and the Eurozone, Malta offers international

business significant advantages as a company domicile, offering fully EU-compliant, low effective tax rates, an excellent professional services infrastructure and a respected, well regulated legal jurisdiction. An ideal vehicle for international business, investment and financial services, a Malta company can be used for a variety of activities, as holding or trading companies, ranging from property ownership and management to e-commerce activities and licenced financial services provision. Regulated by the Companies Act 1995, a Maltese company can be a valuable international tax planning tool, offering an effective tax rate in the EU.

Setting up a companyMalta companies come in various

forms, including Limited Liability Companies, General Partnerships, Co-operatives and Limited Partnerships, while the most commonly used vehicles for international business are the International Trading Companies (ITC) and International Holding Companies (IHC). While an IHC is formed in order to hold shares in foreign companies as well as to own and manage other overseas assets and investments, an ITC is an onshore company that can be used for a variety of purposes, including licenced financial services activities, e-commerce and consultancy. Both vehicles offer the possibility of minimising tax leakage: an IHC pays tax at the normal corporate rate of 35 per cent, but shareholders enjoy a full refund of the Maltese tax paid on the distribution of dividends. The ITC enjoys a similar set-up, paying the corporate rate of 35 per cent, though also benefitting from a substantial refund to shareholders.

Mergers and AcquisitionsAs the volume of Mergers and

Acquisitions (M&A) activity structured through Malta increases dramatically, firms and corporations involved in international M&A are beginning to pay more detailed attention to what the island can offer them. High on the check list of any company selecting Malta for this purpose are the island’s attractive corporate law and regulatory environment as well as the advantageous fiscal treatment of locally registered companies used as vehicles for cross border acquisitions. Malta’s positive reputation amongst M&A advisors internationally is strengthened by the country’s savvy practitioners, who are able to consistently deliver innovative solutions in the most complex of corporate transactions at the pace and service delivery levels demanded by international players.

Favourable Tax RegimeThe last few years have seen a wave

of companies being structured from Malta which, according to practitioners in the industry, has been driven principally by the robust attractiveness of the fiscal rules in Malta, which allow for favourable treatment of taxable profits distributed to shareholders from income arising to the Maltese companies outside Malta.

Equally importantly, the minimal tax leakages mean bidders using a Maltese company to launch an offer for a foreign firm are able to put in a more attractive bid in an auction process. Malta’s favourable fiscal regime – a regime that has been approved by both the European Commission and the OECD – is giving Malta’s financial services centre its cutting-edge advantage over competing locations, and continues to be instrumental in bringing large volumes of new business and investment into the island.

the maltaCOmPanY



Effective RegulationThe past ten years have witnessed

the creation and consolidation of Malta’s reputation as a centre for financial and international business. This reputation is solidly underpinned by a regulatory framework aimed at attracting reputable players in the international market, and fuelled by the relentless commitment of the regulator, the Malta Financial Services Authority, and practitioners alike to retain a quality of service and high standards of business regulation. The efforts of the regulator to keep the Maltese regulatory framework in sync with the changing demands of the industry and in line with the requirements laid out at EU level translate to constant vigilance of market requirements and developments and prompt and proactive updating of the regulatory regime to ensure it retains maximum relevance, effectiveness and attractiveness to the international financial community.

The Maltese legal structure is a hybrid system of Civil and Anglo-Saxon law. While it is based on the civil law pattern of continental Europe, most administrative and fiscal legislation is constructed on the British model. This offers Malta a particular advantage in company formation and M&A as practitioners have a cultural affinity to both systems and can easily bridge the gap between continental European and Anglo (UK) legal frameworks.

Experienced ProfessionalsMany of Malta’s law firms have

extensive knowledge and experience in company formation and are able to provide clients with the full range of services. As in all the financial services segments, the availability of skills is an important industry driver, as is the reputation of the Maltese jurisdiction. This is a crucial factor that allows firms to establish or carry out any acquisition as efficiently as possible: with the experience and in-depth knowledge of

handling company formations that comes with frequent exposure to international transactions. Many Maltese law firms are in a unique position to service their worldwide clients. Maltese professionals now enjoy a firm reputation for being sophisticated, capable and familiar with the requirements of working on the international stage.

High Profile ClienteleAs more international advisers perceive

Malta as a stable and attractive base in which to establish a company or undertake cross-border acquisitions, the activity in this sector is poised to grow at the same pace as the island’s international reputation. With its constantly updated regulatory framework, its confirmed and favourable tax regime and the easy access to EU markets conferred by Malta’s accession to the European Union in 2004 as well as an increasing number of successful transactions for high-profile clients under the belts of the country’s practitioners, Malta is an attractive jurisdiction for company formation, mergers and acquisitions and corporate restructuring. The island’s high level of continued commitment to the financial services industry and the ability to react to market demands have rendered Malta ideally placed to adapt to the stringent demands of the corporate industry and the island is fast cementing its position as a base for international acquisitions and corporate re-structuring.

Corporate Business Structures Malta offers investors an EU-compliant

yet flexible, tax-efficient domicile for business entities or corporate structures. Business may be conducted in Malta in a variety of forms: a sole proprietorship, a partnership, a limited liability company (private or public), a branch or subsidiary of a foreign company, a trust, a cooperative, an investment company with variable capital (SICAVs) or a Protected Cell Company.



Malta’s proposition to overseas investors is enhanced by its supportive, sophisticated legal structure, its strong institutional framework and the tax efficiency of different types of corporate vehicles. The island also excels in the speed and efficiency with which investors can set up a company: once the Registrar of Companies has all necessary documentation and information in hand, the process may take as little as 24 hours. For financial services firms the approval of and licensing by, the Financial Services Authority (MFSA) is required before commencement of operations; this process can typically be concluded within three weeks.

• Allformsof businessset-up available: many offer tax-efficient structures

• Speed&efficiency:registrationcan take as little as 24 hrs from submission of documents

• Sophisticated,supportivelegal framework

Setting Up a Company The principal legislation covering

companies and partnerships is the Companies Act (1995), modelled on the UK Companies Act and European law, and every company registered in Malta must have a registered office on the island.

Companies and other forms of partnerships are required to submit a valid memorandum and articles of association or deed of association normally subscribed by at least two persons. Under certain conditions, it is also possible to register single member companies. Companies and partnerships are registered with the Registry of Companies which is based at the Malta Financial Services Authority, and, if documentation is in place, this process can take as little as 24 hours to complete. A certificate of registration is then issued by the Registrar of Companies.

Main Types of Corporate Forms

Limited Liability Company (private&public)

A Limited Liability Company (a company) is formed by means of subscription to capital divided into shares. The liability of the shareholders is limited to the amount, if any, unpaid on the shares held.

The minimum share capital required to set up a private company is euro 1200 with 20 per cent paid up and subscribed to by at least two persons except in the case of single member companies, with restricted objects. In the case of a public company, the minimum share capital requirements is euro 46,600, with 25 per cent paid up and subscribed for by at least two persons.

SICAVUnder Maltese law, Collective

Investment Schemes may be set up as SICAVs (Société d’Investissement À Capital Variable) which is a type of open-ended investment vehicle.

The amount of capital in a SICAV varies according to the number of investors. Each individual shareholder is entitled to voting rights and has the right to attend the annual general meetings. A SICAV is formed under the Companies Act (1995), but as a partnership limited by shares (Societe en Commandite Limitee par Actions), and is used by mutual funds. Alternatively Collective Investment Schemes may take the form of a limited liability company with fixed share capital, limited liability partnership or investment trust. Such Schemes may also be set up by private contract.

Malta-domiciled funds are, as a general rule, exempt from Maltese income and capital gains tax. Capital gains made by non-Maltese investors when redeeming or transferring their units in a Collective Investment Scheme are not subject to any withholding tax and are automatically exempt from tax. Schemes are not subject to


The Malta Company127

any duty on the issue of shares. Similarly, share transfers are not subject to any duty.

Branch of an Overseas CompanyAll bodies corporate constituted

or incorporated outside Malta may establish a place of business in Malta. Overseas companies establishing a place of business in Malta should, within one month of the establishment of the place of business, deliver to the Registrar a number of documents. The documents to be submitted to the Registrar include an authentic copy of the charter of the company, a list of the officers of the company, and the names and addresses of one or more individuals resident in Malta authorised to represent the overseas company in Malta. Branches carrying out operations in or from Malta are subject to tax in the same manner as a limited liability company.

TrustsThe principal Maltese law on trusts is the

Trusts and Trustees Act which opened the Trust concept to residents and non-residents. The Trusts and Trustees Act and the Civil Code (as recently amended) recognises Constructive Trusts, Discretionary Trusts, Fixed Interests Trusts and Purpose Trusts.

In normal circumstances, trusts are considered transparent for tax purposes. Income attributable to a trust is not charged to tax in the hands of the trustee if it is distributed to a beneficiary. In addition, if all the beneficiaries of a trust are non-resident and when all income attributable to a trust does not arise in Malta, there is no tax impact under Maltese tax law. Other laws and regulations may have an impact on the taxation treatment of trusts and trustees. Malta is a signatory to a number of Double Tax Treaties that may apply in some circumstances.


The Malta Company129

Protected Cell Companies Malta’s company framework also

allows for the formation of protected cell companies (PCC). Maltese law introduced regulations which allow the PCC model to be adopted by regular Insurance Companies, Insurance Brokers and Insurance Managers alike. In terms of the PCC regulations a ‘Cell Company’ is a company constituted or converted into a cell company having within itself one or more ‘cells’ for the purposes of segregating and protecting the cellular assets of the company in accordance with the Regulations. A cell company is a single legal person.

A ‘Cell’ is in turn a class of shares within a cell company designated as a cell and created for the purpose of segregating and protecting cellular assets belonging to the company in the manner provided by the Regulations. A cell is not bestowed with separate legal personality.

Redomiciliation of Foreign Companies to Malta

The Law caters for the concept of redomiciliation of foreign companies to Malta. Companies that are incorporated outside of Malta may change their domicile to Malta under certain terms and conditions. Foreign companies that wish to register in Malta now need not wind-up their foreign business and reincorporate in Malta, but can instead move their domicile to Malta, while the former company set-up remains in existence. This can be a great advantage as it means that the same company continues to exist, so that, any contracts or obligations it has entered into do not need to be reinstated. In Maltese law, this is called the continuation of companies. It can be used either to move to, or from, Malta. There are conditions and limitations, however.1. It is only possible when the

other jurisdiction has regulations allowing the practice.

2. The company structure outside Malta must fit into the pattern of Maltese corporate structures.

3. The foreign jurisdiction should authorise the redomiciliation.

4. The company’s regulations should allow it to transfer to a new domicile

The net effect of a redomiciliation is to allow the company to retain its legal personality while it moves to a different country. In essence it is the same company; all that has changed is its address and, of course, the laws that govern it and the authorities to which it pays tax.


International Pensions131Financemalta 2010/2011 edition

International Pensions 130

Malta’s bid to become a key player in the provision of international pensions is starting to attract

considerable industry attention following HMRevenue&Customs’confirmationthat retirement schemes established in Malta and regulated by the Malta Financial Services Authority may be considered on a case-by-case basis for Qualifying Recognised Overseas Pension Schemes (QROPS) under UK Law.

Having attracted the major players in the international captive management and fund management industries, the island’s dynamic financial services industry is now aiming to become a leading jurisdiction for the provision of international pensions and retirement schemes to multinationals, high net worth individuals and wealthy expatriates. Malta’s development of its international pension scheme legislation, combined with its EU membership, has already resulted in a number of overseas service providers establishing internationally based pension schemes in Malta. Malta’s robust onshore regulatory framework, proactive regulatory approach and EU membership are seen as the key attractions.

Special Funds ActInternational pension schemes set up in

Malta are currently regulated by the Special Funds Act, 2002. Originally drafted to develop a regulatory framework covering domestic occupational schemes in Malta, the Special Funds Act’s aim is to create a modern system of governance designed primarily to protect the interests and rights of members with pension rights in Malta. This regulatory framework, which requires the registration and ongoing supervision of pension schemes, as well as service providers such as scheme administrators, investment managers and custodians, lends itself to personal pension type schemes registered under the Act, such as a QROPS, and makes Malta an attractive safe haven destination for accrued pension

funds for expatriates living around the globe, especially those living or working in countries with exchange control regulations or little domestic regulatory framework.

Introducing New LegislationWhile international pension schemes

are to-date set up under the Special Funds Acts, the Maltese authorities have prepared new legislation, currently under review by the government, which caters specifically to the regulation of retirement schemes. This new legislation, the Retirement Schemes Act, an extension of the Special Funds Act, was drafted by the Malta Financial Services Authority, that described it as ‘more user-friendly’, and sets out a framework for pension schemes that will go further to attract multinationals, high net worth individuals and wealthy expatriate individuals to base their pension provisions in Malta and benefit from a well-regulated, cost-competitive structure within a tax efficient framework.

The new pension regulations will allow for the establishment of cross border occupational pension schemes in fellow member states subject to a minimum standard framework for the regulation and supervision of such schemes that must be applied in each state. In addition, as part of the islands’ reform processes, the authorities are implementing regulations that will allow international occupational pension schemes set up in Malta to be passported to other EU and EEA member states. This allows a pension scheme authorised in Malta to receive contributions from employers located in fellow member or EEA states and to provide benefits to the employees of the employer.

Malta Gains QROPSPivotal to the further development

of the sector was the announcement in late 2009 that Malta had been accepted as a QROPS jurisdiction by Her Majesty’s Revenue and Customs. These schemes,

internatiOnalPensiOns


International Pensions 132

which are aimed primarily at highly mobile expatriates who have secured benefits under UK registered pension schemes, allow individuals to transfer their accrued benefits out of the UK private pension system into overseas pension schemes which are accepted by HMRC. With this development, the robust domestic pension regulation and regulatory oversight of pension schemes by the Malta Financial Services Authority, together with Malta’s standing within the EU, provide a firm foundation for the ongoing recognition of QROPS in Malta and for growth of the financial services sector in this hitherto undeveloped area.

While QROPS established in Malta appeal particularly to expatriates wishing to transfer pension benefits established under UK registered pension schemes, membership is specifically open to local inhabitants who, in turn, can make arrangements to contribute to the scheme should they wish. In keeping with the tenet that benefits under a retirement scheme should be sufficient to support the member throughout retirement, Maltese regulation introduces the concept that a Scheme Administrator must ensure that assets of the scheme are invested in order to ensure security, liquidity, quality and profitability of the portfolio as a whole.

Favourable ConditionsThis gives a QROPS established in Malta

the ability to offer a number of investment options to members which range from discretionary managed bespoke portfolios, tailored to individual investment objectives and risk profiles to allowing individual members the ability to make specific investments from a platform of collective investment schemes, which will be considered under the watchful eye of the Administrator’s internal Investment Committee in line with the member’s recorded investment objectives. While assets remain within a QROPS, Maltese income tax legislation provides generous exemptions from tax, allowing for tax efficient roll up

of income within the registered scheme. Malta has an extensive tax treaty

network with more than 50 countries including major EU Member States and G20 countries. Treaties provide for pension benefits from a QROPS to be taxable only in the country in which the member is tax resident, thereby eliminating a charge to Maltese income tax altogether. In addition, the treaties also provide protection against tax discrimination. This means that a country which has entered into a treaty with Malta cannot impose a greater tax charge to tax on Maltese source pension income than it can on that which is domestically sourced.

Solutions for MultinationalsFor major multinationals, administering

pension schemes in multi jurisdictions can be an expensive and highly complex process and with executives consistently on the move it can place a major burden on time and resources. This presents a key opportunity to introduce an international pension solution that enables multinationals to use Malta as a centre from which to manage and centralise their retirement benefits schemes and consolidate their employee pension schemes benefiting from greater economies of scale, while achieving sizeable cost savings by operating from one jurisdiction under one regulatory regime. The main aims of the new legislation are to ensure good corporate governance, afford high levels of protection for the pension members while also allowing the maximum flexibility for the employer.

As a member of the EU Malta provides a pan European platform that is secure, well regulated, and innovative. Backed up by a professional support structure and experienced skills base, Malta’s anticipated new pensions legislation is widely expected to be well received internationally and industry insiders are keeping a sharp focus on the provision of international pensions as the next major development in the island’s financial services offerings. n


Maritime and Aviation135Financemalta 2010/2011 edition

Maritime and Aviation 134

Malta’s international ship register has earned the plaudit ‘Flag of Confidence’ through years of

determined commitment to reaching and surpassing international standards, and the island is now reaping the benefits of these hard-won achievements. Long seen as a global leader in ship management services, Malta is today home to one of the largest merchant fleets in the world. And while the shipping sector has long been flying the Malta Flag on the high seas, Malta’s authorities are now seeking to repeat this success with Malta’s aviation register and has presented ambitious plans to establish Malta as a successful international aircraft register for private and corporate jets. This ties in neatly with the island’s ambitions to excel across the transport industry, offering a full range of ship and aircraft repair and maintenance services, a strong IT support service sector as well as management and administration support services.

Transport MaltaMalta’s maritime sector has long

been the jewel in the crown of the island’s international business centre and counts as one of Malta’s most successful export services. In addition to the island’s key role in the global maritime industry, over the past 10 years Malta has emerged as one of Europe’s fastest growing international finance centers. A dynamic and forward looking business centre, Malta is now making a strong bid to further internationalize its business proposition and has set its sights on becoming a player of significance within the global aviation industry. To realize this vision the island’s government has consolidated the functions and responsibility for the entire transport sector to one government agency.

Transport Malta is a new government authority established in January 2010 to assume the functions previously exercised

maritime anD aViatiOn

by the Malta Maritime Authority, the Malta Transport Authority and the Department of Civil Aviation. The vision for Transport Malta is to promote Malta as a centre of excellence in the transport industry. This new organizational structure, the authorities believe, will enhance Malta’s capability to further the potential opportunities the island offers as a service centre of the global maritime and aviation industry.

Thriving Maritime IndustrySafe ships and clean seas are the priority

for the growth of Malta’s maritime industry. With a centuries’ old tradition that dates back over 4,500 years, Malta has been a maritime centre for most of its history and offers a world class maritime infrastructure and business environment which continues to go from strength to strength. This history has left a strong maritime culture and a legacy of well-established networks of shipping professionals and maritime lawyers servicing the international shipping trade, and a state-of-the-art maritime legal framework with deep roots.

Despite the island’s long and colourful maritime past, the Malta flag is relatively young: the register was only opened in the early 1970s. Since then, however, it has gone from strength to strength and is now home to the second largest merchant fleet in Europe, after the Greek flag, and the 8th worldwide. Malta is also home to the Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea, the IMO International Maritime Law Institute, and the International Ocean Institute.

The Malta FlagSince accession to the European

Union in 2004, the pace of development in the industry has picked up considerably. According to Transport Malta, which regulates the sector, the fleet expanded in 2009 by 8 per cent, with just over 36




million tons of shipping registered under its flag. At the end of 2009 the number of ships registered on the Malta Flag stood at 5,249 vessels. Dedicated legislation, tighter registration criteria and improved regulation, all in line with EU Directives and IMO conventions, have spearheaded Malta’s determination to protect the reputation and reliability of the register.

White List FlagSubstantially reduced detention rates

have been achieved as a result of increased inspections and tighter documentation processes and in July 2006, Malta was recognised as one of the flag States with a high quality ranking by the Paris Memorandum on Port State Control. Since 2006 Malta has been on The Paris MoU ‘White List’, which represents quality flags with a consistently low detention record.

A significant development over the last few years has been the introduction of a ‘sliding’ fee structure that provides a reduction on registration fees and tonnage tax to young vessels, while a surcharge is applied to vessels over 15 years of age. This policy is now paying dividends with the average age of vessels being registered reduced to just over 7 years old.

Ship RegistrationAll types of vessels, from pleasure yachts

to oil rigs, may be registered in the name of legally constituted corporate bodies or entities, irrespective of nationality, or by European Union citizens; there are neither trading restrictions nor age restrictions. However, ships of 15 years and over, but under 20 years, must pass an inspection by an authorised flag State inspector before or within a month of provisional registration; while ships of 20 years and over but less than 25 years must pass an inspection by an authorised flag State inspector prior to being provisionally registered. As a rule trading ships of 25 years and over are not registered.

Maltese law provides both for bareboat charter registration of foreign ships under the Malta flag and also for the bareboat charter registration of Maltese ships under a foreign flag. Vessels so registered enjoy the same rights and privileges, and have the same obligations as any other ship registered in Malta.

Superyacht IncentivesThe superyacht market (vessels over

30 metres in length) has been undergoing considerable evolution. In 1984, there were approximately 200 super yachts over 30 metres in the entire world. By last year, there was a worldwide fleet of 7,000 boats and 580 superyachts in build. The fleet spends some 8 billion euro a year on maintenance and operations. These figures make the superyacht market an attractive one. A number of superyachts have chosen Malta as their base in order to take advantage of the location of the island and the cost-effective services provided by marinas and ancillary companies, as well as the favourable tax regime for boat ownership, which makes registering a new yacht over 10 metres in length under the Malta flag an attractive proposition.

vAT CertificatesIn addition, two new incentives were

introduced by means of legislation in early 2006. The first is the provisions of the Commercial Yacht Code and the second is the guidelines issued by the VAT department regarding yacht leasing. The commercial yacht code gives superyacht owners the opportunity to have their yachts registered as commercial vessels, meaning that they pay an annual tax on the tonnage of their yacht instead of income tax on earnings. As far as yachts, which are not commercially registered, are concerned, the Maltese guidelines provide for the payment of VAT on the lease of the yacht which is considered as a supply of services.




The amount of VAT that is payable in relation to this supply of services is calculated on the basis of the percentage of time spent by the yacht in EU waters – based on the assumption that the larger the yacht, the less time it stays there – and enables owners to receive a VAT paid certificate at the end of the process provided that all the conditions established by the VAT department have been satisfied. For example, a 24 metre sailing boat or motor yacht is presumed to spend only 30 per cent of its time in EU waters and thus VAT (at 18 per cent) should only be calculated at 30 per cent of the lease fee paid.

The guidelines relative to yacht leasing allow the yacht to be bought by a Maltese company with a VAT number, which is the owner/lessor of the yacht. If the purchase is made from an EU supplier, no VAT is paid on the purchase of the vessel since that purchase would amount to an intra community acquisition. The Maltese company is then free to lease the yacht to a Maltese or foreign person, the lessee, who pays for the lease in instalments, at the end of which time the lessee has the option to buy the yacht at one per cent of the declared value. At the end of the lease, a VAT paid certificate is issued by the VAT department of Malta which is valid all across the EU.

Safeguarding FinanciersMalta also made important changes

to its legislation in January 2009 to protect superyacht financiers from defaulters. These enable any person with an executive title to obtain a court-approved sale. The Merchant Shipping Act also entitles the mortgagee to take possession of the yacht and to sell it privately to a third party – usually for much more than he/she would get from a judicial sale. Vessels/yachts have been sold by mortgagees in a matter of a few weeks from the date of the arrest. With these measures in place and building on Malta’s well regarded reputation as a service centre

and port of call for superyachts crossing the Mediterranean, the island’s maritime sector is confident that Malta is now an even more competitive proposition.

24/7 One Stop ShopOffering a 24/7 service for registration,

Transport Malta has technical staff on hand to guide ship owners and managers through whatever problems might arise and ensure that vessels are not delayed longer than necessary. A select number of international classification societies and a worldwide network of appointed flag State inspectors extend the technical arm of the Maltese administration to practically all ports in the world. In addition ship owners benefit from attractive tax incentives, a flexible approach to crewing and preferential treatment at many ports.

Efficient and EffectiveMalta is regarded as an efficient

jurisdiction in which to establish ship management operations. The island provides a convenient base for shipping companies that take advantage of the low costs involved in operations from Malta, and from the beneficial financial structures which exist, and is able to provide a wide variety of quality financial and corporate services. The development of the shipping register has encouraged the establishment of several Malta-based international ship management and ship-owning companies, which activity is supported by numerous shipping-related service providers, including maritime lawyers, accountants and banks offering comprehensive services to the owners and operators of ships worldwide. Malta’s shipping industry now ranks among the world’s best. Ship and yacht owners and operators around the world have recognized that the island is an economic and efficient centre for the ownership and management of their vessels.



Malta Aircraft Register Building on the continued success

of Malta’s ship and yacht registration centre, Malta is pressing ahead with plans to establish the island as a successful aviation register. The authorities recognized that by introducing cutting edge regulation, strengthening the support infrastructure for the operation of aircraft and leveraging off the island’s well established and highly regarded business infrastructure, they could successfully target the ever increasing number of private and corporate business jet owners who are seeking a European base. The island is already a thriving aircraft maintenance location, hosting facilities for major international companies such as Lufthansa Technik and SR Technic, and this fact, together with the considerable fiscal benefits associated with the setting up of Maltese companies, plus the island’s reputation among European aviation circles for top professional safety under European Aviation Safety Agency standards, give Malta a collection of compelling advantages over competing destinations.

New LegislationWhile Malta already has an EU

compliant aircraft registry, listing some 81 aircraft as of September 2009, new legislation is being passed to update the current framework and meet the requirements of this growing industry sector. The new ‘Aircraft Registration Act’, which incorporates the implementation of the Cape Town Convention, now widely recognized as a market standard in aircraft finance transactions, is designed to facilitate the registration of aircraft, facilitate aircraft financing and safeguard aircraft owners’ and operators’ interests, according to the Ministry of Transport. Updating and widening the scope of the regulation, while introducing innovative

concepts, the new laws are intended to make Malta even more attractive to the aviation industry, the ambition being that Malta becomes the first consideration for aircraft registration in Europe.

Aerospace and Aviation ServicesMalta has been fostering an aerospace

and aviation sector for many years. Small yet diverse, the sector offers airline registration as well as a host of airline services ranging from maintenance, repair and overhaul (MRO) of aircraft, engines and components to airline call centres, financial services, software development, aircraft management and support services. Companies already present in Malta include Lufthansa Technik, a global leader in the maintenance, repair and overhaul (MRO) industry, and SR Technic, the Swiss-based company that provides MRO services to all 157 of easyJet’s aircraft. The government’s efforts to promote the industry include offering both fiscal and non-fiscal incentives, as well as ongoing investment in sector-specific education and workforce training.

Transport Hub in the MediterraneanMalta’s reputation as a maritime and

shipping centre, along with its growing recognition as a provider of aviation services such as MRO and IT support, give it the right credentials to press forward with its ambitions to expand across all areas of the transport sector, including its aircraft register. With the new legislation set to accelerate the island’s competitiveness in this area, the measures taken to enhance the shipping register and the incentives introduced for superyacht registration, as well as its EU member status, its EU and OECD approved tax regime and its well established international business and finance centre, Malta has succeeded in positioning itself at the forefront of an industry that remains one of the most fast moving and dynamic in the world. n


Business Process Outsourcing 142Financemalta 2010/2011 edition

Business Process Outsourcing143

One of the reasons Malta’s financial services centre has developed so rapidly is the fact

that the island was also concurrently racing ahead as an ICT centre. Having recognised that the way forward for Malta was to focus on creating a knowledge-based economy, Malta’s government invested heavily in building a state-of-the-art telecommunications infrastructure and investing in leading edge technology and innovative industry sectors. This led to a number of IT and telecommunications-enabled services and business opportunities growing up in parallel with the advances being made.

As it became clear that financial services was going to be one of the most important industries on the island, specialised support service companies focused on the finance industry began to flourish. Specialist software providers servicing the finance industry were set up, call centres and outsourced customer service centres serving banks and financial institutions began to emerge: marrying the robustness of the IT and telecommunications infrastructure to the innate skill set of the Maltese workforce to offer international businesses an efficient, stable and cost-effective environment for their business requirements.

As one of the most steadily growing success stories to emerge in Malta, business process outsourcing offering high-quality, multilingual services to the financial services industry, as well as others ranging from remote gaming to airline reservations, have been enjoying significant success, and areas such as shared services, data processing and management services are quickly gaining ground.

Why Malta?With the expansion of the European

Union, demand has increased for pan-

European business centres that offer not just English but a multitude of other languages most notably Italian, German and French as well as Spanish. The success of Malta’s growing BPO industry is constructed on some of Malta’s most fundamental strengths: the fact that English is an official language of the island, plus near universal fluency in Italian and widespread knowledge of at least one other European language, in addition to the availability of highly-skilled, professional personnel. The island’s open business environment and flexible, can-do attitude, as well as its wide range of targeted incentives make it one of the most competitive locations for international service companies and outsourcing services.

Reliable Near-Sourcing LocationIndeed, in the last few years Malta

has emerged as a reliable IT nearshore outsourcing location and alternative to outsourcing locations like India for more specialised high value development projects. Situated within a couple of hours flight from most major European cities, as opposed to a ten hour flight from Europe to India, with a highly qualified, multilingual workforce and with operational costs significantly lower than most other European locations and direct labour costs at around 50 per cent of the average in Western Europe, Malta is increasingly promoting itself as the ideal location for companies looking for a base for outsourcing activities.

Financial SpecialistsA steadily growing number of software

development companies have migrated to Malta over the last ten years. Industry giants such as Oracle, Microsoft, HP and SAP have all established operations on the island, while more specialised software developers such as SCL, Crimsonwing, Megabyte, Uniblue, GFI, Anvil, 2i and RS2 are lining up to provide specialist software and services to the financial industry. RS2 Software

Business PrOCess OutsOurCing


Business Process Outsourcing 144Financemalta 2010/2011 edition

Business Process Outsourcing145

Group, for example, is the developer of the card payment software BankWorks, while 2i Limited specialises in providing custom built software for organisations ranging from insurance companies to banks.

All have equally found the island to be a profitable and productive location. Malta has now set its sights on attracting business such as disaster recovery, data processing, data storage, payment gateways and database management. While costs may not be as cheap as Asia, many European companies that are outsourcing work to Malta comment that the island offers better all-round value for money.

Back Office ServicesMalta’s forward-looking professional

service providers have recognised the value of offering back office services such as payroll, bookkeeping and accounting both to companies located on the island and those situated elsewhere. The high standard of service offered by Maltese professionals, coupled with the significantly lower costs (as compared to other Western European locations) mean clients enjoy significant cost and quality benefits by engaging Maltese firms to handle their back office requirements.

As this sector expands, Malta is seeking to encourage the set up of operations offering back office services such as administrative and clerical services including processing and recording of invoices and sales transactions, and accounts management information reporting. In financial services, such as banking, insurance and investment services, this could include any routine or administrative task such as form-filling work in support of trust services, shipping and maritime trade, processing and filing of insurance claims forms, repetitive administrative work involved in fund administration business and other professional services. One of the most prominent international names to establish

operations in Malta is Salt Partners, which provide multi-jurisdictional corporate, trust and accounting support to legal and financial institutions across the world.

All the big international accounting and auditing firms are represented in Malta, while most of the smaller outfits are also affiliated with international networks, meaning that customers are able to access the company or network of their choice, even in Malta. The same holds for legal services, with many of the island’s more prominent legal firms also affiliated with international practices. Malta’s lawyers and accountants have a reputation for professionalism, expertise and know-how in a wide range of different speciality areas and are renowned for the excellence of their services.

Call CentresCall centres are one of the most

successful areas of business process outsourcing in Malta and some of the first to take advantage of the development of the sector were companies from the financial services sector, as for example when Malta in 2006 beat India in the bid to host HSBC’s 200-person global call centre to handle ‘high-value’ English-language calls. Today the centre has 520 employees and handles 18 per cent of all HSBC UK customers’ telebanking calls. Other sectors soon followed suit, and in addition to in-house deployments such as HSBC, there are a number of independent outsourcers established on the island, such as Besedo, Avail-a-call and 24i Contact Centres, providing a range of services that include technical help, order taking, information lines, telesales and customer support services to a range of industries including financial services, travel and tourism and telecoms.

The industry is growing fast, with new call centres being set up and existing companies expanding, even through the recession-hit first half of 2009. Besedo, a Swedish company providing support in 14

different languages to online companies, including those in the finance sectors, announced in May 2009 that it would be doubling its workforce in Malta to handle the surge in demand for their services. Besedo’s success, after just one year in operation, has highlighted the potential of Malta as a call centre location: multilingual staff, located close to the European mainland and offering high quality, cost effective telecommunications that enables companies to offer the highest level of quality service.

In addition, with an increasing number of companies now migrating back to Europe from Asia in search of higher quality levels and increased service, Malta’s excellent language skills, its close cultural affinity with the UK and Europe and its strong work ethic give the island a significant advantage across sectors. This in turn strengthens Malta’s bids for investment and business on the international market, giving the island a sharp competitive edge over competing

e-business locations such as India, Eastern Europe and others who can offer only one or two of the required specialist services.

Multilingual WorkforceThe quality of contact centre services

rests firmly on the calibre of its staff: the Maltese workforce is highly educated, multilingual and reasonably priced, with salary levels at around 25 to 50 per cent cheaper than in Western Europe. Most Maltese are bilingual, with 88 per cent of the Maltese population fluent in English as well as Maltese, and many also speak a third language, with 66 per cent of the population speaking fluent Italian and 17 per cent speaking French. Other languages are also available, including German, Spanish and Russian, and this, in addition to Malta’s cultural affinity with the countries of the European, Mediterranean and Middle Eastern regions, gives the island a distinct advantage in the industry.


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Call centres offer ongoing training to agents, starting with initial training in telephone etiquette, handling calls and irate customers and other general issues. That is followed by tailored, company-specific training, which is generally either carried out by the company using the call centre services or guided by them. This is followed by on-going training as products are upgraded or changed or new products introduced. Some companies, which either require a high level of technical skills such as software companies, or which see a very high volume of calls such as banks or large airlines, will have specialised agents that service only the one company. Others, such as smaller eGaming or eCommerce companies, where volumes are lower, would ‘share’ agents, something that call centre managers say actually improves the service to customers.

ICT InfrastructureMalta has a fully digitalised, state-of-

the-art telecommunications infrastructure, put in place through continuous investment and upgrading of the system over the last 15 years. The island offers a reliable and highly sophisticated framework for call centres to operate within, and boasts large bandwidth networks providing high capacity international connectivity. The three main international gateways, via submarine fibre-optic cables, are operated by Vodafone, Go, and Melita. In addition satellite links and digital microwave links provide further international connections. Mobile telephony operators provide wireless internet connections based on GPRS technology and VOIP services are widely available, enabling companies to significantly control telecommunications costs.

ICT Centre of ExcellenceMalta’s ambitions to become the

regional centre for IT excellence and eBusiness are barely more than ten years old, yet today, with the US$300 million

SmartCity project underway and headed for the completion of its first phase at the end of 2010 and a host of new ICT sub-sectors and ICT-dependent sectors already contributing significantly to the country’s economic transformation, the island is well on its way to achieving that ambitious goal.

Underpinning the success of the sector, Malta’s state-of-the-art ICT infrastructure has been key to the rapid development of various eCommerce services, including financial services and international services such as business process outsourcing and call centres, all areas that are particularly dependent on reliable and sophisticated technology and international connectivity. With a steady stream of IT professionals graduating from the University of Malta, vocational colleges and private educational establishments every year, the industry is able to access a workforce sharply tuned to its requirements.

All-Round CentreWhile call centres may be the

most visible and successful sector of the BPO industry other areas of Malta’s service economy are equally gaining a foothold in providing high performance services. A broad range of service areas from consulting, back office services, shared services, data processing, data storage, digital media and software development projects are being delivered from Malta, offering companies significant cost reductions and improved operational effectiveness.

Malta has proved itself a dynamic, on-the-ball player in the international services market. With its highly qualified, multilingual workforce, advanced telecommunications structure, favourable business environment and strategic location in the centre of the Mediterranean, it has the potential to offer measurable added value to projects and operations that choose Malta as their preferred location. n


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Flexibility, innovation, competitiveness and adaptability have been key elements of

Malta’s economic strategies since the island began to fend for itself after Independence from Britain in 1964. These traits have helped the islanders adjust to changes in domestic realities as well as to the fluxes in international business requirements. This ability to accommodate necessity has seen the island transform its economic profile over the last two decades, taking it away from labour-intensive industries and turning it into a knowledge-based, technology-driven economy ideally suited to address the challenges of the future.

Smart Island Dubbing itself the ‘Smart Island’, Malta

has invested heavily in its infrastructure, in creating a state-of-the-art IT and telecommunications framework and in higher education for its workforce over the last two decades. Combined with the formulation of leading edge, EU harmonised legislation and regulation in areas such as financial services and remote gaming, these efforts have succeeded in transforming the island into one of the most interesting investment locations in the region today. The transition is best reflected in the type of investment coming to Malta today: software developers, financial services providers, eGaming operators, aviation companies, precision engineering plants, pharmaceutical companies, manufacturers of high value electronic components and R&D, particularly in the medical, bio-tech and pharmaceutical industries.

Diverse Industrial LandscapeToday Malta offers a highly competitive

investment location for niche industries, particularly in the following sectors; financial services, medical, bio-tech, pharmaceutical, automotive, film, maritime activities, contact

centres, aviation services, eBusiness, eGaming, back office services, electronics and software. Companies who specialise in short runs of complex high value items find Malta a particularly advantageous location. A new 20 million euro bio-technology park, or Life Science Centre, to be built in a central location within easy access of the university and scheduled for completion in 2013, will add impetus to this specialist industry segment, and is expected to continue to enhance the island’s already compelling attractiveness to international investors.

Malta’s commitment to establishing the island as a centre of excellence in the ICT, financial services and high value added industry sectors is paying off rapidly. Two internationally renowned industry leaders have chosen this Mediterranean island as the location for key multi million dollar projects that constitute the largest individual investments ever made in Malta: Germany’s Lufthansa Technik and Dubai’s Tecom, developers and operators of Dubai Internet City, are firmly cementing Malta’s claim to priority billing on any investor’s agenda.

High Profile InvestmentsJust less than two decades since Malta’s

government took the strategic decisions to transform the island’s economy by shifting the focus away from low-cost manufacturing and package tourism to knowledge-based industries and high-end manufacturing, the declared vision of seeing Malta take the lead as the regional centre for ICT excellence is becoming a reality. Tecom Investments are investing US$300 million on developing SmartCity, an IT village that is planned to begin operating in 2010, with full completion scheduled for 2021. The significance of this development, in light of Tecom’s experience with Dubai Internet City, is underlined by Malta’s Prime Minister, Dr Lawrence Gonzi, who described the project as being: ‘destined to become

KnOWleDgeinDustries

Artist’s impression of SmartCity Malta


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the European outpost for global ICT and media firms who want to establish a presence in Europe as well as Africa’.

Concurrently, Lufthansa Technik has invested €60 million in new aircraft maintenance facilities to handle the Airbus A330 and A340 aircraft. Its Malta subsidiary, which currently employs 150 workers, already carries out C-checks on smaller A320 and Boeing 737 planes. A new hangar, expected to be among the first in the world able to take the new Airbus A380, has been built for the company, and the expanded operation, inaugurated in April 2009, will create over 500 new jobs for specialised personnel.

In the meantime, SR Technic, the Swiss-based aircraft maintenance company that services all easyJet aircraft, announced in November 2009

that they would be setting up operations in Malta in 2010. Their 11 year, 1.6 billion euro contract with easyJet will see the company servicing all 157 aircraft in Malta, and they are planning to employ over 350 people by 2014.

HR to Drive IndustryMalta’s flexible and highly trained,

multilingual workforce is the island’s most valuable asset. Wages in Malta remain below Western European average, and the island is ranked as one of Europe’s most profitable investment locations, according to Eurostat. The Maltese workforce has over the years proved itself to be hard working, diligent and highly productive. Foreign companies based in Malta all comment favourably about their experiences with the local employees

in terms of productivity, profitability, dependability and rapid response times.

The high educational standard of Maltese workers is fruit of the diversification strategy of the Maltese government, who recognised that higher value added products required better and more flexible skills. The authorities have done their utmost to encourage students to take up technology related subjects, particularly at tertiary level. This strategy resulted in the creation of a dedicated college (MCAST) offering vocational courses tailored to meet the requirements of industry, as well as a greatly expanded University, which grew from under a thousand students in the mid-1980s to over 11,000 today, and many other specialist institutes offering post-secondary education. Industry has become deeply involved in the process of selecting courses of study to offer new students, thus aiming to ensure that graduates with the right qualifications are available when needed.

Right Time, Right PlaceMalta’s key location mid-way between

Europe and North Africa gives the island added advantage as an investment location. Malta’s proximity and cultural links to the Middle East and North African markets such as Libya, Egypt and Tunisia is attracting companies that are using Malta as a stepping stone for trading, distribution and marketing for their international operations in Southern Europe and North Africa. With its Western European business environment, sophisticated infrastructure, excellent telecommunications, comprehensive incentive package, competitive labour costs, highly skilled and educated workforce and truly enviable quality of life, Malta is targeting investment from high value added industries and service providers - and it is succeeding. Inward investment into Malta has continued to grow steadily over the last few years.

Diverse ProductsOther companies present in Malta

include Trelleborg Sealing Solutions, Baxter, Methode Electronics, Bavarian Technology Systems, Seifert mtm systems, Metalform, Lufthansa Technik and Brandstatter, which all have major production plants in Malta. Recent investors include Italian plastic card manufacturer, Bryvarc; Indian Pharma group, Aurobindo; building and design firm, MTS-Operon; international power and automation technologies group, ABB; Dutch software provider, ASPIDER Solutions and Italian engineering company, Olivibra amongst others. The range of activities reflects the strategic focus on high value added activities: Products made in Malta and exported worldwide include semi conductors, electrical components and sub-assemblies, pharmaceuticals and medicinals, rubber and plastics, fabricated metal products and machinery, software, food products and consumer goods.

PharmaceuticalsA relatively new sector in Malta,

pharmaceuticals is also one of the island’s greatest success stories. Today’s thriving generics pharmaceutical industry is just over five years old, yet already employs well over 1000 people and has attracted a cluster of pharmaceutical manufacturers to the island. Attracted primarily by the island’s legal framework that allows the development of generic drugs in advance of patent expiry, companies migrating to Malta also benefit from a well-stocked pool of qualified personnel, a modern infrastructure, EU membership and direct access to markets in mainland Europe and North Africa. Pharmaceutical exports continued to grow in 2008, going up from €152 million in 2007 to €168 million in 2008 and pharmaceutical companies continue to set up facilities in Malta, with the most recent, in May 2009, being India’s Aurobindo Group.



Information and Communication Technology

Malta offers one of the most progressive environments in the world for IT, eGaming and eBusiness activities. Investment in this area is increasing at a rapid pace, attracting significant foreign investment from around the world. 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 research and development testing ground for eGovernment solutions. Concurrently, the US$300 million investment by Tecom to set up SmartCity is expected to establish Malta firmly as the European outpost for global ICT or media companies that want to establish a presence in Europe and North Africa.

Financial ServicesFinancial Services is growing to be one

of the most significant economic drivers on the island, offering investors a stringent yet flexible operating environment within the Eurozone in banking, financial planning, fund administration and management, insurance and captive insurance. Financial institutions present in Malta include HSBC, Deutsche Bank, Volksbank, BAWAG, Sparkasse Bank

and FIMbank amongst others, and most cite the excellence of Malta’s legislative infrastructure, the accessibility and responsiveness of the regulator and the high quality of qualified staff available as the main reasons for investing in the island.

Stability and ProfitabilityCharged with the task of attracting

foreign investment to the island, Malta Enterprise is a government agency that offers assistance to foreign investors thinking of setting up in Malta. The island offers investors a comprehensive package of incentives under the Malta Enterprise Act. Incentives include soft loans, investment allowances, training grants, tax incentives and the provision of ready built specialised factory space. New provisions provide incentives for those industries demonstrating growth and employment potential that are engaged in manufacture, repair, improvement or maintenance activities, and there are specific incentives aimed at encouraging activities in the growth-targeted sectors such as pharmaceuticals, plastics, biotechnology, electronics, electrical equipment and IT-enabled services.

Complete PackageImportant as they may be however,

it takes more than financial incentives to attract foreign investment and over the years successive Maltese governments have done their best to ensure that the whole environment is conducive to FDI. The island’s infrastructure is of a world standard and can cater to all investors’ requirements. At the same time, living in Malta offers an excellent lifestyle in a glorious Mediterranean climate, the island is politically stable and within a few hours flying time of most major European cities. These combined advantages make Malta one of the most attractive investment locations in the region, and international attention is fast being drawn to the island and its potential. n


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Malta’s rapid development as an international financial services centre has won the

island international acclaim, both for its success in attracting business and for its reputation for stability and reliability. The foundation of these achievements lies firmly in the legislative and regulatory framework that the island has developed over the two decades since it set out to create a financial services industry practically from scratch. The legislation governing Malta’s financial services activities has been described as sophisticated, innovative and comprehensive, and combined with efficient and responsive regulation and supervision, makes for an operating environment that offers certainty and flexibility in equal measures. Firm but open-minded is the way many stakeholders describe the Maltese jurisdiction, cementing both the island’s reputation and its international credibility.

With financial services now generating some 12 per cent of GDP, Malta looks set to meet its ambition of raising that contribution to 25 per cent by 2015. The sector now encompasses 566 regulated companies, up from 236 in 2007, and is represented by 24 banks, 41 insurance companies, 13 insurance managers and over 400 investment funds. The sector is well-diversified, registering steady growth across all activities, and includes international banking, insurance and captive insurance, investment funds and trust and fiduciary business, as well as a strong professional and legal services segment offering company formation, wealth management, trustee services and back office and accounting services. The island’s practitioners are renowned for the excellence of their services, and proactive in exploring areas of potential expansion, such as Islamic finance.

regulatiOn &legislatiOn

Key to this development has been the role played by the island’s single regulator, the Malta Financial Services Authority. The MFSA established the quality of Malta’s financial services activities by setting in place a regulatory regime that is firm but flexible and providing operators with a finely-tuned balance between close supervision and business-friendly openness.

Building up a Regulatory FrameworkThe banking sector was originally

regulated by the Central Bank of Malta, through the Banking Act of 1970, and later as the supervisor of the Malta Stock Exchange in terms of the Malta Stock Exchange Act, 1990.

The years following this were marked by radical overhaul of the financial services sector, with extensive revision of existing laws complemented by new legislation. Malta was set up as an offshore financial centre in 1988 but it moved onshore in the early 1990s. Following the enactment of a new Banking Act and a Financial Institutions Act in 1994, the Central Bank was the competent authority responsible for the supervision of credit and financial institutions.

In 2002, the Malta Financial Services Authority (MFSA) was established and it took over the supervisory functions previously carried out by the Central Bank of Malta, the Malta Stock Exchange and the Malta Financial Services Centre, creating a single regulator and supervisor for financial services. The MFSA licenses, regulates and supervises investment services providers, funds, credit, e-money and financial institutions, trustees, and insurance undertakings and intermediaries. It also acts as the Registrar of Companies, as the competent authority for Recognised Investment Exchanges and as the Listing Authority. With the MFSA structured in line with world best practice, Malta is considered a leading force in the


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development of regulatory policy and is fully involved with the OECD, the EU and the Commonwealth in policy development.

The MFSA is an independent public body and has supervisory authority over all banking, investment and insurance business. It regulates the Malta Stock Exchange and manages the Companies Registry. The MFSA is an active member of the Committee of European Securities Regulators (CESR), the International Organisation of Securities Commissions (IOSCO), the Banking Advisory Committee (BAC), the Committee of European Banking Supervisors (CEBS) the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) and the International Association of Insurance Supervisors (IAIS).

Malta is now established for fund management, banking and trade finance. It has developed a burgeoning trust sector and is an up-and-coming hedge fund domicile.

Front-runner in RegulationThe key to the MFSA’s approach

is innovative in two ways. It is based on communication with the industry, something viewed with scepticism by those who believe that talking with stakeholders implies weakness; and a risk-based approach which is able to distinguish between the high risk – and high stakes – of an institution, compared with the lower risk – but untried and untested aspect – of an operator like a fund manager.

The MFSA believes in talking to stakeholders to anticipate problems, understand them and find solutions, MFSA Chairman Joe Bannister has said, making it clear, that talking to the industry works as long as it is done in an atmosphere of mutual respect.

Communication has helped Malta to keep one step ahead, identifying niche areas where it can offer advantageous legislation, drawing up an extraordinarily carefully crafted fiscal regime based on a full imputation system that has been

approved by both the EU and the OECD.Communication has also enabled the

MFSA to adopt a role in ensuring that the sector has the right resources, conducting its own skills-needs analysis and making itself available to ensure that all training sessions and conferences have the best possible speakers and the most accurate information.

The MFSA does not like to take chances, a conservative outlook that mirrors that of the local banking sector, whose main players rode out the financial storm because they have such envious liquidity ratios. It prefers to feel in control of the sector – even in areas where other jurisdictions may turn a blind eye. One example is service providers domiciled in unregulated jurisdictions. These are not allowed to operate in Malta. The rule is simple: If you are not established in Malta, then you have to be established in a regulated jurisdiction.

The MFSA has also won plaudits for its “one-stop-shop” approach, easing the way for everything from visas for non-EU citizens to advice on schooling for expatriate children. Operators also marvel at the accessibility of the regulator, with the ability to get information directly from key personnel in record speed clinching many deals.

The Right StructureThe MFSA has also changed its

internal structure to be able to ensure more effective supervision. On 1st January 2010, the regulatory functions within the MFSA’s Supervisory Council were changed, providing greater integration and a high level of consistency in functions such as licensing and risk-based supervision. The reform will also improve co-operation and information sharing across the Authority.

The new model consists of a single Authorisation Unit, three Specialist Supervision Units – for banking, insurance and occupational pensions, and securities and markets – and a Regulatory Development Unit.

The Authorisation Unit will be responsible

for licensing of all financial services entities, handling all applications for authorisation to conduct regulated financial services business in Malta. The Regulatory Development Unit will co-ordinate the development of cross-sector policy initiatives and enable the MFSA to address market and regulatory developments as they arise. The Supervisory Units will have a more focused and co-ordinated, risk-based approach to supervision with retained specialisations.

The value of Strong Legislation Malta has developed a comprehensive

legislative and regulatory framework to accommodate the financial services sector and to ensure adequate investor protection. After the exercise of turning Malta into an onshore jurisdiction in 1994, the country’s accession to the European Union in 2004 brought about a new wave of legislative and regulatory changes in the field of financial services, in particular with regards to banks, UCITS, investment firms and insurance undertakings. Malta has aligned its legal framework with the relevant acquis communautaire, which has created new opportunities for local and overseas businesses in terms of freedom of establishment and to provide cross-border services or “passporting”.

The primary legislation governing financial services includes the Banking Act; the Financial Institutions Act; the Insurance Business Act; the Insurance Intermediaries Act; the Investment Services Act; the Special Funds Act; the Trust and Trustees Act; the Malta Financial Services Authority Act; and the Central Bank of Malta Act. Supporting legislation includes the Companies Act; the Netting upon Insolvency Act; the Securitisation Act; the Prevention of Financial Market Abuse Act; the Professional Secrecy Act; and the Prevention of Money Laundering Act. These individual pieces of legislation come together to create a comprehensive and forward-looking legal

framework in which financial operators are able to operate with confidence and security, in the knowledge that one of the main tenets of the MFSA’s philosophy is the “Avoidance of Prescriptive Regulation to allow promoters the flexibility to operate.”

In addition to the above-mentioned legislation, Malta also honed its competitive advantage by adopting specific features to complement standard ones like the right to “passport” financial products and services originating from any member state. When it comes to investment services – retail or aimed at professional investors – the strength lies in the framework that has been developed under the Investment Services Act which is flexible enough to adapt to different business models within the parameters set by Maltese and EU legislation. For example, schemes may be set up with any number of segregated sub-funds or managed accounts catering for different types of investment strategies. A variety of legal structures can also be adopted depending on the nature of the scheme. These include the open- and closed-ended investment company, investment partnerships, unit trusts and contractual funds. Furthermore, schemes can be self-managed or third-party managed, and can re-domicile into and out of Malta.

In addition to these possibilities, the framework regulates schemes depending on the target investor and level of protection required. Retail schemes are classified as UCITS (which may be distributed across the EU) and non-UCITS (which are authorised to be sold locally). Both types are highly regulated in view of the fact that they are sold to the general public. Professional Investor Funds are in turn classified into experienced, qualifying and extraordinary investor funds, allowing for customised regulation depending on the level of sophistication of the professional investor and hence more flexibility in setting up of the fund.

The same philosophy underpins other laws that regulate financial services. Thus for



example, while credit institutions (banks) are regulated under the Banking Act, for certain banking activities that are not combined with the acceptance of deposits from the public, they may opt for a relatively simpler and more customised type of licence under the Financial Institutions Act.

Operating in a Global ContextAt one time, Malta was described in

the financial world as one of the “best kept secrets”. That is no longer the case. FinanceMalta was set up as a public private partnership by the government and finance industry in 2007, made up of key stakeholders, to disseminate information about the jurisdiction. The organisation has since been highly active in promoting the island’s finance centre, organising numerous conferences and seminars, catering to target audiences across the world.

Concurrently, Malta’s government won valuable, and hard-fought, EU approval of its fiscal regime, a full imputation system in which tax paid by companies is refunded to shareholders on distribution of dividend. At the same time, Malta also earned the respect of the OECD when it was one of 40 jurisdictions that committed to transparent and effective exchange of information for tax purposes.

The government has also put in place a wide network of double taxation treaties with 50 countries, including most European states, the United States, China, India, Libya and South Africa. The MFSA has in the meantime signed 20 bilateral and multilateral memoranda of understanding with overseas regulators, the most recent ones being with the China Securities Regulation Commission and the China Banking Commission. The aim of these MoUs is to facilitate the exchange of information and to create a formal framework for regulatory collaboration and co-operation between various regulatory authorities, providing clearer channels for co-operation, the exchange of regulatory and technical information as well as investigative assistance between the signatory financial services regulators. These agreements also facilitate business between financial institutions in the respective countries.

The World Economic Forum’s competitiveness index ranked Malta 13th out of 133 countries for financial market sophistication in its 2009/2010 report, with a banking system that is the 13th soundest in the world, while the Global Financial Services Index, published by the City of London in 2008 ranked Malta in 4th place at the centre most likely to increase in importance in the next few years. With €9.3 billion worth of investment funds and collective investment schemes as at the end of November 2008, up from €8.1 billion 15 months before, and new banks and insurance companies setting up regularly, Malta is certainly growing fast in terms of volume of business. And with the Maltese government’s commitment to the industry and the proactive determination of the MFSA and the legislators to remain in step with innovations in the industry and proactive in introducing ground-breaking legislation and regulation, Malta’s financial services centre is well-positioned to meet its ambitious aspirations for global relevance. n


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Can you provide a brief overview of the key developments and milestones in the financial services sector of the past five years?

The most significant development was entry into the European Union because it brought recognition of our financial services centre and also ensured that we had to keep continuously upgrading our structures to bring them in line with European rules and standards. In addition, we recently implemented a major review of our internal structures, in order to give our operations a stronger accent on supervision, in line with the new European model. Our new internal structure, which will be finalised and in place by the end of the first quarter of this year, now features three major units: authorisation, regulatory development and supervision.

Malta’s international finance centre has grown rapidly over the last few years. What has been the average rate of growth and what are the key drivers of this growth?

In total, financial services contribute some 12 per cent to Malta’s GDP; 5.4 per cent from direct financial intermediation and 6 per cent from indirect contributions, such as accountants and lawyers doing back office operations and treasury operations. Annual growth in the industry reached 30 per cent between 2007 and 2008, while jobs increased by around 1000.

The drivers of this growth are various and include the accessibility of the regulator, which is unusual in other financial centres and offers operators a sense of openness and transparency they appreciate. In addition, our initiatives on training, to ensure practitioners find the staff they require, and our initiatives on writing appropriate legislation and promoting it with the government, have been highly significant to encouraging the rate of growth in the industry.

How do you see Malta’s international positioning and what developments are expected in the next few years?

Having established Malta’s positioning in Europe and brought all our structures and legislation in line, we are now preparing a new strategic plan aimed at expanding on a global level. We are seeking to establish more agreements with other countries outside Europe, such as we did with the MOUs (Memoranda of Understanding) signed recently with China and South Africa, in particular looking at emerging markets, such as South American countries, Russia, India and others. The idea is to set up regulatory contact with the authorities, in order to facilitate business and allow Malta-based companies to expand into that country or for business in that country to come here.

What have been the most important developments in Malta’s financial legislation and regulation of the last few years and what new developments are in the pipeline?

Our new, three-year strategic plan will be published around the middle of this year. Beyond that, apart from establishing more regulatory contacts at the international level, we will be revising any legislation that is no longer serving a useful function and generally cleaning it up. The Companies Act is being revised, the Trust Act is being revised, and we’re also looking at upgrading the rules on investment funds, and discussing whether we should have specific legislation to govern funds, as in the Luxembourg model or have specific regulation, as in the English model. Those are the main issues in this area, apart from the continuous implementation of European directives and regulations.

Malta has attracted significant investment in financial services over the last few years. In which area is the country attracting most investment?

Malta has always aimed to establish a

interVieW With

PrOFessOr JOe BannisterCHAIRMAN OF THE MALTA FINANCIAL

SERvICES AUTHORITY



diversified financial services centre, which means having a number of banks, a number of insurance companies, funds, service providers and reinsurance companies. This has been achieved and what we see is a certain balance, or evenness, in the Maltese financial sector, unlike other centres which may be concentrated on one area. Thus, Malta is a diversified centre, which also means we see certain activities and sectors expanding or contracting at different times.

Last year, for example, I would have said insurance was the main area of activity in Malta. In 2010 it is going to be the funds business. Having said that, funds are not the only area in which we are seeing expansion this year. There are also applications for banks and insurance companies. Our financial centre is very well diversified and that in itself brings resilience in terms of keeping the activity and the growth going.

How did the banks fare over the last couple of years and what is attracting foreign banks to Malta?

The local banks did well through the financial crisis largely because they didn’t borrow to lend so they had no large exposures. In addition, Malta was given a very high rating in the world economic forum report: in 2008/2009/2010 Malta is one of the highest ranking for the soundness of its banking system, placing among the top ten each year, with those countries in 7th to 13th place all having the same rating. This international recognition that Malta is very sound has been extremely positive. This has doubtlessly helped attract banks to Malta. Today there are about 24 licenced banks in Malta, two of which have set up since the financial crisis, and another major institution is coming this year.

What impact is the publication of new guidelines on redomiciliation of offshore funds to Malta having on efforts to attract more fund management and administration business to Malta?

There are some 400 funds set up in Malta now, about 100 of which set up over the last year. Redomiciliation of offshore funds is one area where we are seeing a lot of business. Our rules were first established in 2003, and were used mainly for trading companies and insurance companies. Now we have seen that the rules could also be used for funds, especially funds that want to have a base in Europe.

Malta does offer a distinct advantage which the other jurisdictions don’t offer, in that funds can come to Malta and keep the same administrator even if he is not located in Malta, while other jurisdictions insist you have the administrator in their jurisdiction.

How is Malta performing as a trust jurisdiction and what is being done to attract the leading international trust and fiduciary services companies to Malta?

Attracting business in this area is up to the practitioners - but we have managed to attract some major trust management companies to Malta, such as Maitland, for example, and Dominion, so this area is developing nicely.

Our legislation now also caters for the setting up of foundations, which Europeans generally prefer to trusts because they allow the person setting it up to remain in control of the property. Foundations still require trustees, and these are regulated under the trustees act. This is a new concept for Malta, so now that the legislation has been put in place, the last task is to bring the taxation of foundations in line with the taxation of trusts. This is currently being done and the legal notice should be issued shortly.

Malta has attracted some of the leading international insurance companies to set up in Malta. What is bringing these companies to Malta?

Insurance companies set up in Malta include Nissan insurance company, PSA, the German electricity firm and the water



firm, BMW, Heidelberg Cement (Palatina), Vodafone (Multirisk) the reinsurance firm, Munich RE, and the French group, April (Axeria Re). Malta also has a number of big insurance managers like Marsh, Aon and Heritage, about 12 or 13 managers in all, who are all bringing in significant business. Their reasons for setting up here include the European passporting rights, but also pressure from their clients who are attracted by the regime in Malta as a whole, not by just one element of it.

Apart from the introduction of European Solvency II, developments in this area include the introduction of ICCs (International Cell Companies) later this year. PCCs (Protected Cell Companies) have been successful, but the advantage of an ICC is that the cells are licensed separately, so cells can do business with each other - which is not possible for individual cells in PCCs. This means the ICC can contain cells doing different types of business, but only needs one board secretary, etc., thus keeping costs down and making it more viable for small companies. The ICC should be ready to be announced by April and is ideal to be used for a variety of insurance related business.

What new developments are in the pipeline and what would you see as the key attractions of establishing a Malta company?

The Companies Act, which was based on English company law, is being revised, in line with changes that have taken place in the UK legislation. It’s a huge Act and we’ve been working on the revisions for a year already, so we’ll have to wait and see what the proposed changes are. We’re also looking at tightening up the listing rules and conditions in order to continue to ensure we have a properly regulated market. Of course, the market is already properly regulated, but one of the issues of the financial crisis was that innovation

overtook regulation, so we’re laying down the rules so anyone seeking a listing or issuing a bond will have clearer policy guidelines. I believe that by the middle of the year there should be new policies on bond issues and admissibility to listing.

What is the situation with Islamic Finance in Malta and how feasible is the idea of introducing the relevant legislation in Malta?

Islamic Finance has to be looked at as two separate concepts, banking and investments. In terms of investments, such as Shariah Funds, our legislation on funds already allows for it. With Islamic banking we have a different scenario, as there are some major policy issues that are being examined by the Central Bank of Malta. The main issue is that the Banking Act contains an article prohibiting banks from owing property except for their own use. Given that Islamic banks don’t give mortgages, but instead buy and own the property themselves, the bank essentially becomes a property dealer. In this small country, that would be a problem which could become a threat to financial stability. It is a highly complex issue and clearly we have to protect financial stability, so we must be very careful.

What are the main developments in the area of international pensions?

We have prepared new legislation, an extension of the special funds act which caters for the regulation of retirement schemes, which is being reviewed by government. We need this because there are a number of international pension providers who want to set up business here. Recently there was the announcement of the QROPS recognition by Her Majesty’s Revenue, which is a very positive development, and I believe we are processing about six applications for companies to work internationally, to manage QROPS.


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Taxation169Financemalta 2010/2011 edition

Taxation 168

taXatiOn

The Maltese fiscal regime has been one of the main drivers in creating an attractive environment

for foreign investors. Since joining the EU in 2004, Malta has become an attractive jurisdiction for tax planning and corporate structures. An agreement with the EU preserves the competitive Maltese full-imputation tax system and has been deemed by the European Commission to be compliant with EU non-discrimination principals.

Income Tax in Malta is charged on income from all sources and capital gains on the transfer of immovable property, securities and certain intangible assets. Companies are taxed at a flat rate of 35 per cent which is also the maximum rate for individuals. Other taxes include VAT, stamp duty and customs and excise duty.

One of the key advantages of the Maltese income tax system is the full imputation system that applies to the taxation of dividends. The full imputation system has formed part of Maltese law since 1948 when income tax legislation was first enacted, and Malta is the only EU member state with a full imputation system of taxation in force. As with all imputation systems, shareholders are entitled to a credit for the company tax paid on distributed

profits and will qualify for a refund when the credit exceeds their tax liability.

In terms of domestic legislation, no tax is imposed on dividends, interest and royalties paid to a non-resident, as long as the recipient is the beneficial owner of the income and does not carry on a trade or business in Malta through a permanent establishment. In addition, no Maltese tax is imposed on gains realised from transfers of corporate securities by a non-resident, again, as long as the recipient is the beneficial owner of the gains, and the securities are not held in a company whose assets consist principally of immovable property in Malta.

Malta grants relief from double taxation under the credit method on source-by-source and country-by-country bases. The Maltese tax regime governing double taxation relief includes not only treaty relief but also unilateral relief and the flat rate foreign tax credit, and thereby ensures that income arising from overseas is not subject to double taxation, even if there is no double taxation agreement in existence. Malta has a wide double tax treaty network and the combination of Malta’s tax system and its extensive double tax treaty network means that, with proper planning and structuring, investors can achieve considerable fiscal efficiency using Malta as a base.


Taxation171Financemalta 2010/2011 edition

Taxation 170

All companies resident in Malta are subject to income tax on company profits at a rate of 35 per cent.

There is no separate corporation tax, and the companies’ liability to tax arises under the same charge that imposes a tax on individuals. Companies incorporated in Malta are considered to be ordinarily resident and domiciled in Malta and are consequently subject to tax on their world-wide income and capital gains. Companies incorporated outside Malta are considered residents of Malta if their management and control is exercised in Malta, but as they are not domiciled in Malta they are subject to tax on income arising in Malta and on foreign income (but not capital gains) that they receive in Malta. Companies that are not incorporated nor managed and controlled in Malta are subject to income tax only on income and capital gains arising in Malta.

DividendsUnder Malta’s full imputation system

the shareholder will, upon a distribution of dividends, be entitled to a refund of in part or in full of any advance tax levied on the distributing company. A resident shareholder will be taxable in Malta on the dividend income, including the refund, at personal tax rates. The amount of the tax refund is set at 6/7ths of the advance corporation tax paid by the company (5/7ths in the case of passive interest and royalties). The refund is reduced to 2/3rds where the distributing company claims double taxation relief.

With respect to participating holdings a full (100 per cent) refund applies. A participating holding ‘arises where a company holds directly at least 10 per cent of the equity shares of a non-resident company’, or meets certain other criteria set out in the law. With acquisitions of participating holdings made on or after 1st January 2007, where the non-resident

company, having mainly passive income, is not resident or incorporated in an EU Member State or is subject to tax at a rate which is less than 15 per cent, the following additional conditions must be satisfied: the shares in the non-resident company must not be held as a portfolio investment, and the non-resident company or its passive income must have been subject to tax at a rate which is not less than 5 per cent. When dividends received from a participating holding are distributed by a Maltese company to its shareholders such shareholders are entitled to claim a refund of 100 per cent of the advance corporation tax paid on the distributed profits.

As from 1st January 2007 a participation exemption was introduced which exempts dividends derived from participating holdings and gains derived from the disposal of such holdings. The participation exemption is also subject to the anti-abuse provisions described above for participating holdings. Where the participation exemption applies obviously the refund system in respect of participating holdings will not apply. If the conditions to qualify as a participating holding or for the participation exemption to apply are not met the normal general tax system including the normal tax refunds will apply.

Tax ReturnsThe fiscal year in Malta is the calendar

year. Malta operates a self-assessment system. Taxpayers are required to declare their income and calculate their tax, taking into account payments in advance and any other tax credits. The tax payable must be settled at the time that the self assessment is filed. For individuals, the self assessment must be filed by 30th June. Simple declarations may be filed in lieu of the self assessment by employees and pensioners. For companies, the tax return date is nine months after the financial year end, but not earlier than the 31st March of each year. This return has to be accompanied by an auditor’s certificate. Revenue assessments


Taxation 172

may be raised when a return is not filed or where the Commissioner of Inland Revenue disagrees with the self-assessment. Penalties may be levied for omissions and incorrect declarations of income while interest of 1 per cent per month is charged for late payment of tax. Revenue assessments are subject to objection and appeal.

Payment of TaxThe tax due by employees is payable

under the Final Settlement System. The employer has the obligation to deduct FSS from the wages and to remit it monthly to the Inland Revenue Department. Companies and self employed persons pay tax under the provisional tax system. Payments of provisional tax are due every three months. Where the tax liability of a person is not fully covered by the FSS or the PT and by any other advance payments, the balance must be paid at the time that the relative tax return is filed. Special rules apply to tax due by companies on foreign income.

Export of CapitalThere are no restrictions on external

transactions, i.e. capital and current transactions involving operations between resident and non-resident persons or other entities, whether in or outside Malta, also including operations involving foreign exchange by a resident or between residents.

However, effecting external transaction entails certain reporting requirements. Institutions licensed to deal in foreign exchange must observe the External Transactions Circulars issued by the Central Bank of Malta. These Circulars stipulate the directions and procedures, of a general or specific nature, that must be followed by such institutions when effecting external transactions on behalf of their customers.

Any person entering or leaving Malta and carrying a sum equivalent to 11,656.87 euro or more in cash is obliged to declare that sum to the Comptroller of Customs,

who will pass this information to the Central Bank of Malta. The Central Bank of Malta maintains a database of such declarations.

Customs & Excise DutiesAs an EU member state, Maltese

customs regulations follow European Union Customs Procedures. In general, goods from other EU member states are subject to VAT, while goods from outside the EU are subject to Customs and Excise rules. For full information please visit the Malta Customs Portal at http://ces.gov.mt/index.

vATValue-added tax (VAT) applies to

supplies of goods and services that take place in Malta, intercommunity acquisitions and imports. The standard rate is 18 per cent and a 5 per cent rate applies to the supply of holiday accommodation, electricity, printed matter and confectionery. Zero rating applies to exports and intra-community supplies, international transport, domestic passenger transport, food, pharmaceuticals, and the supply and repair of ships and aircraft. Exemptions from VAT include the sale and leasing of immovable property, banking and insurance services, health, education and broadcasting. Registration is compulsory for suppliers of goods with annual turnover over 28,000 euro and suppliers of services over 18,700 euro.

Social SecurityMalta has a comprehensive social

security system that practically covers a person from the cradle to the grave. This system is financed through social security contributions paid by each employee and employer. All employed and self-employed persons are required to pay Social Security Contributions. The amount of Social Security Contribution (SSC) payable by employees amounts to 10 per cent of the basic wage, subject to a minimum linked to the national minimum wage and a maximum


Taxation175

linked to the maximum pensionable income. An equivalent amount is payable by the employer in respect of each employee. The SSC amounts to 10 per cent of the gross salary with a minimum of 14.23 euro per week and a maximum of 31.56 euro per week, to be paid by both the employee and the employer. The employer must deduct the employee’s contributions from the wages and must remit the amount due, including the employer’s share, to the Commissioner of Inland Revenue by the end of the month following the month in which the wages or salaries are paid. Self employed persons pay contributions at 15 per cent of their profits, subject to a minimum and a maximum. Payments by self-employed persons are made to the Commissioner of Inland Revenue every three months in arrears.

Personal Tax RegimeA person who is ordinarily resident

and domiciled in Malta is subject to tax on his worldwide income and capital gains. A person who is resident but not domiciled in Malta is taxed on income and capital gains arising in Malta and on foreign income (but not foreign capital gains) received in Malta. Non-resident individuals are subject to tax on income and capital gains arising in Malta. There is no strict definition of residence, but residence will be based on where a person effectively lives and has a home. Staying in Malta for six months in a year would imply residence. Tax is charged at progressive rates up to a maximum rate of 35 per cent. There is a favourable residency scheme for those individuals seeking to move their tax residency status to Malta.

Residence & Domicile CriteriaSection 4(1) of the Income Tax Act

lays down the principle that everyone is subject to taxation, however a proviso to this section restricts the imposition of income tax by the notions of domicile and ordinary residence. Broadly, a person is considered to

be ordinarily resident in Malta if he resides in Malta regularly. A person who is physically present in Malta for 183 days (not necessarily consecutive) in a tax year is generally considered to be resident in that particular year, irrespective of such person’s nationality.

Unlike residence, the concept of domicile is not defined in the statute, and in practice Malta has adopted the English definition of domicile. Individuals are normally regarded as domiciled in the country that they regard as a permanent home. An individual who is both ordinarily resident and domiciled in Malta is subject to tax on a worldwide basis, that is on income and capital gains arising in Malta or abroad whether received in Malta or not. An individual, who is either ordinarily resident in Malta or domiciled in Malta, but not both, is subject to tax on income arising in Malta, on income arising abroad but received in Malta, and on capital gains arising in Malta. Individuals who are neither resident nor domiciled in Malta are subject to tax on income and capital gains arising in Malta only.

Permanent ResidentsPermanent residents are persons who

satisfy certain high net worth requirements, are not citizens of Malta and satisfy further criteria. They are taxed at a flat rate of 15 per cent on income remitted into the country (not on capital) the minimum tax liability for these residents, after double tax relief, is 4,193 euro for each year of assessment. No tax is chargeable on foreign source income that is not received in Malta. Foreign residents who work in Malta only pay tax on the income they earn in Malta.

Temporary ResidentsTemporary residents are persons

who reside in Malta for some temporary purpose only and not with the intention of establishing residence in Malta. Temporary residents must not have resided in Malta at one or more times for a period equal to six months. Temporary residents are not


Taxation 176

liable to tax on any income arising outside Malta. Temporary residents and individuals who are not ordinarily residents in Malta but have earned income from Malta are taxed at the normal rates applicable to individuals who are ordinarily residents and domiciled in Malta. Foreigners holding a work permit in Malta are subject to tax on income arising in Malta.

Returned MigrantsAn individual born in Malta who, after

emigrating, returns as a resident of Malta after 1st January 1988 is subject to tax at normal rates. However, the individual may opt to be taxed at the rate applicable to a permanent resident if certain conditions are met, including a specified period of residence outside Malta, specified income remitted to Malta, and other conditions applicable to permanent residents. If taxed as a permanent resident, a returned migrant is taxed on all his or her income, except employment income and income from a trade, business, profession or vocation, with a minimum tax liability amount of 2,325 euro after any applicable double tax relief.

Financial Reporting The fiscal year in Malta is the calendar

year. Each year of assessment a company has to file a tax return declaring its income for the year ended during the previous calendar year. This return has to be accompanied by an auditor’s certificate. Corporate profits are assessed on the basis of the accounting year immediately preceding the year of assessment. Companies make three advance payments of tax at four monthly intervals during the accounting period, and must typically file a tax return within nine months from the end of the accounting period. A final tax payment is due by the date the tax return is submitted. Maltese incorporated companies are required to have their financial accounts audited by a registered auditor.

Other key features of Malta’s corporate tax law

In addition to the considerable benefits of the full imputation system and the extensive network of double taxation treaties, Malta offers businesses other key benefits under its tax legislation, including the following aspects:• As an EU member state, entities

have access to the Parent-Subsidiary, Interest & Royalties, and Mergers Directives

• Participation exemptions• An exemption from tax on

income derived by collective investment schemes

• Advance rulings issued by the Maltese Commissioner of Inland Revenue on international transactions that guarantee the tax position for a minimum of five years and may be renewed for a further five year period

• An absence of “thin capitalisation” rules and no anti-controlled foreign corporation legislation

• No capital duty on share issues and exemption from duty on transfers of shares in, by or to companies having the majority of their business interests outside Malta

• The possibility for companies to denominate their share capital and their accounts in any convertible currency with the chosen currency then being used for payment of tax and tax refunds (where applicable) thus minimising exchange risks

• The possibility of migrating companies to and from Malta

• Relative ease of incorporation for non-regulated entities

• Competitive registration and maintenance costs

• A taxation scheme for groups of companies allowing offset of losses between group companies


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Married couplesThe income of a married couple is

treated as the income of a single person and is to be declared in one tax return. However, the tax is calculated either on the total income at the married couples’ rates or, if the married couple so elects and subject to certain conditions, on the income of each spouse separately at the single persons’ rates.

Taxable Income

Part-time Income Employees, pensioners and students engaged in part-time work may benefit from a special rate of tax. Income derived from part time employment is taxed at a flat rate of 15 per cent, which is withheld at source by the employer. Employees who carry on a part time self employment may also benefit from this reduced rate of tax.

Wealth Tax or Net Worth TaxThere are no such taxes in Malta.

Capital Gains Any capital gains derived by an individual are added to all other income earned during the basis year and taxed at normal rates.

Income Tax on Property Sales Persons who transfer immovable property situated in Malta are liable to pay income tax based upon the sales value. This tax is calculated at the rate of 12 per cent of the

market value of the immovable property (exemption from sales tax are envisaged). A Duty on Documents and Transfers tax amounting to 5 per cent on the market value of the property is levied on the purchaser when buying real estate in Malta. Such tax is withheld by the notary who publishes the deed of transfer and paid to the Commissioner of Inland Revenue. Residents buying real estate as their first residence will pay duty at the rate of 3.5 per cent on the first 69,881.20 euro. Such tax is levied on the market value of the property and not on the actual transfer consideration.

Investment Income Investment income includes: bank interest, discounts or premiums payable by the Government of Malta interest, discounts or premiums payable by a corporation or authority established by law interest, discounts or premiums payable in respect of a public issue in Malta by a company, or other legal entity whether resident in Malta or otherwise capital gains arising on the disposal of shares or units in a collective investment scheme licensed under the Investment Services Act, where the collective investment scheme redeems, liquidates or cancels such shares or units capital gains arising on the surrender or maturity of units and such like instruments relating to linked long term business of insurance. Resident individuals may opt to pay a 15 per cent final withholding tax on investment income.

The income tax bands for individuals and married couples 2010

Single Rates Married Rates

chargeable income € rate deduct € chargeable income € rate deduct €

0-8,500 0 0.00 0-11,900 0 0.00

8,501 -14,500 0.15 1,275.00 11,901 -21,200 0.15 1,785.00

14,501 -19,500 0.25 2,725.00 21,201 -28,700 0.25 3,905.00

19,501 & over 0.35 4,675.00 28,701 & over 0.35 6,775.00


Taxation 180

Dividend Income Malta operates a full-imputation system and accordingly tax paid by a company is imputed as a credit against the tax due by the shareholders upon a dividend distribution.

Directors’ Fees Fees received as well as remuneration to persons sitting on boards of directors of a body corporate are also subject to tax on such income at the normal rates of tax.

Duty on Documents (Stamp Duty) A tax is charged under the Duty on Documents and Transfers Act on the transfer of immovable property and securities. The tax on property is 5 per cent. The tax on securities is 2 per cent but is increased to 5 per cent in the case of shares in property companies. The Act also imposes tax on emphyteutical grants, auction sales, credit cards and insurance policies.

Inheritance and Gift Taxes There is no inheritance or gift tax in Malta. The transmission of property and company shares is, however, subject to tax under the Duty on Documents and Transfers, tax is due by heirs upon inheritance of real estate and shares. Duty will be due at the rate of 5 per cent in the case of real estate and 2 per cent in the case of shares.

Double Taxation Agreements Individuals who are residents of Malta are eligible to benefit from Malta’s double taxation treaty network. Please refer to the list of countries with which Malta has concluded double taxation treaties. Individuals resident in Malta may also benefit from other methods of double taxation relief, including Commonwealth relief and unilateral relief. n

Double Taxation AgreementsThe forms of relief available under Maltese laws are: (a) Double taxation relief (b) Commonwealth income tax relief (c) Unilateral relief (d) Flat rate foreign tax credit

Malta’s double taxation treaty networkAlbania

Australia

Austria

Barbados

Belgium

Bulgaria

Canada

China, P.R.

Croatia

Cyprus

Czech Republic

Denmark

Egypt

Estonia

Finland

France

Germany

Georgia

Greece

Hungary

Iceland

India

Ireland

Italy

Korea (Rep. Of)

Kuwait

Latvia

Lebanon

Libya

Lithuania

Luxembourg

Malaysia

Montenegro

Morocco

Netherlands

Norway

Pakistan

Poland

Portugal

Qatar

Romania

San Marino

Singapore

Slovakia

Slovenia

South Africa

Spain

Sweden

Switzerland*

Syrian Arab

Republic

Tunisia

United Arab

Emirates

United Kingdom

United States

of America

note: usa: double taxation between malta and the united states agreed - treaty awaiting ratification

through a united states senate for Foreign relations review. countries awaiting signature or further

negotiation Bosnia and herzegovina, isle of man, Jordan, serbia, thailand, turkey and ukraine.

*agreement limited to profits derived from operation of ships or aircraft in international traffic


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Business Operating Environment IntroductionWhy MaltaBusiness Culture & EnvironmentForeign Investment IncentivesAccess to MarketsProfessional Support ServicesFinancial ReportingBusiness CostsTransport and LogisticsICT and CommunicationsUtilitiesHuman ResourcesLabour RelationsEducation and TrainingCommercial and Residential Property

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187

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Few investment locations in the world can offer the same high standard of service, opportunity,

stability and security as Malta does. With its combination of pleasant Mediterranean lifestyle and British-influenced work ethic and ambition, the island is fast becoming one of the most sought-after business centres in the region. Malta’s all-round operating environment offers businesses the ideal combination of a reliable yet flexible legal framework within the European Union, highly qualified and experienced professional service providers and personnel and cost effective rates on everything from taxation and salaries to utilities and real estate. While Malta is an EU location with a sophisticated professional and business infrastructure, the island remains highly cost effective as a base to do business from.

Cost-Effective BaseOperational costs in Malta are generally

estimated to come in at around a half of those prevailing in the UK or mainland Europe, a calculation that applies to salaries as well as general business costs such as office space, services and utilities. But while costs may be lower, the level of service provided remains of the highest standard, and Malta’s highly respected legal framework, fully compliant with EU laws, professional service providers, telecoms infrastructure and business service suppliers are regarded as being world class.

This combination of cost-effective operation with top-class service makes Malta one of the most favourable locations in Europe for international businesses. Equipped with a thriving international finance centre, the island’s service providers have accumulated a broad expertise in the requirements and processes involved in setting or structuring the most complex business structures from Malta. Experienced legal firms, business consultants and industry specialists are available to handhold operators through the entire process, from setting up an operation in Malta to applying for a licence from the Malta Financial Services Authority, locating suitable office space, recruiting staff and offering out-sourced accountancy and administrative services.

Top Class ReputationMalta’s international reputation as

a finance centre is growing fast and the island’s business centre is expanding rapidly as continued policies of investment in infrastructure and education give the island a leading edge. Malta’s business legislation and tax systems are considered among the most favourable in Europe while concurrent nationwide projects to improve the standard of roads and the construction of appropriate property continue to improve the physical infrastructure of the island. All of which come together in a demonstrable commitment to progress that is today powering every aspect of the island’s thriving economy.

intrODuCtiOn



Ideal Launching PadMalta’s geographical position in the

centre of the Mediterranean has always played a pivotal role in influencing the country’s destiny and prosperity. Situated between North Africa and Europe, historically Malta has been the link between the two continents. For European companies wishing to enter the untapped markets of North Africa, or Asian and North American companies wishing to enter European and North African markets, Malta can provide the ideal launching pad and hub for finance in the region.

Productive and CompetitiveThe Maltese government’s rigorous

restructuring process over the past decade has given birth to a streamlined, results-orientated public sector and a productivity-focused private sector, raising Malta to the top ranks of international agencies’ most competitive locations lists. Malta’s committed pro-business government has taken a series of decisive steps to enhance Malta’s competitiveness while business costs remain among the lowest in Europe and the island boasts a multilingual, highly qualified workforce. In addition, the island has developed an extremely favourable fiscal regime, making the operating environment on the island one of the most advantageous in the world.

Pro-Business AttitudeLow costs and high service levels

give Malta a leading edge over other jurisdictions. Combined with the island’s excellent telecoms and IT systems, the availability of highly skilled and qualified professionals and a reliable yet flexible legal infrastructure with state-of-the-art legislation and regulatory regime, the advantages Malta offers in terms of all-round operating environment are both numerous and compelling. This is proven by the large number of finance operators already working out of Malta, and, as the sector heads for further growth and expansion in the future, it is clear that the island’s pro-business attitude has gone a long way towards cementing its position as one of the leading international business centres in the region.

Why Malta?• Consistently pro-business

government policies• Easy access to decision makers • Exceptionally high productivity levels • A ‘can do’ business environment • Excellent telecommunications • Competitive corporation tax • Sophisticated international

financial centre• Strategic location and

marketing advantages • State-of-the-art transhipment

and distribution facilities • Social and economic stability • Multilingual and highly

skilled workforce • Dedicated, competitively

priced human resources • Growing markets, quickly

accessible from Malta • Attractive package of

business incentives • A safe, secure and pleasant lifestyle



Business Culture anD enVirOnment

A combination of strict work ethics, Mediterranean informality and a deeply entrenched respect for

the rule of law characterise the workings of Maltese business. Accustomed to hosting people from around the world, either as welcome visitors or tolerated conquerors, the Maltese have developed a highly international outlook, able to adapt easily to different practices and attitudes, and are as comfortable dealing with major multinational companies as with the local manufacturer around the corner.

Up until 1964 Malta was a British colony, and most find that British culture still underpins the Maltese way of doing business. At the same time, business meetings are much less formal and things tend to get done in a more leisurely manner than in Northern Europe. However, punctuality is expected and appreciated.

LanguageEnglish is one of the country’s two

official languages, Maltese being the other. Many Maltese also have a good command of a third language, usually Italian, German or French. Most business correspondence is carried out in English.

Business HoursOffice hours are generally 8.30 am

– 1 pm and 2 pm – 5.30 pm, Monday to Friday. The climate also plays its part, and some government offices still work half days in summer. However, many have adapted to ensure offices are manned throughout normal business hours, and the private sector continues to operate normally throughout the year. Factories usually start at 8 am and run to 5 pm.

Most banks open from 8 am – 2 pm

Monday to Friday and Saturday until 12 pm.Shops open from 9 am to 7 pm

Monday to Saturday. Most retail and commercial shops are closed on Sunday.

Time ZoneThe time zone is GMT +1

(2 hours ahead in summer)

FOreign inVestment inCentiVes

An open economy with a long-established history of trade, Malta has always actively

sought foreign investment, both in existing companies and in the set up of new entities. In support of this effort, Malta has been proactive in offering incentives to attract investors, a package which has recently been updated to reflect the island’s status as a member of the Eurozone. This package is coordinated by Malta Enterprise, the main government agency promoting and facilitating inward investment across a wide range of sectors.

Malta’s recently updated industry incentives are generally aimed at specific sectors, predominantly ICT and other industries the island is keen to promote. Published under the Malta Enterprise Act (ME Act) in early 2008, this set of incentives is aimed at foreign direct investors and local enterprises demonstrating commitment towards growth and increase in value added and employment. Offering a combination of structured schemes as well as access to EU-funded programmes, Malta Enterprise incentives include:• Tax credits on capital investment

and job creation • Grants to assist in the creation and

development of innovative start-ups and small and medium-sized enterprises

• Low interest loan financing


Business Operating Environment191Financemalta 2010/2011 edition


standing repute. Many firms specialise in key areas of law which are relevant to Malta’s economy, location and infrastructure.

Similarly, accountancy and related services such as business consultancy are well represented and leading international firms are all present in Malta. The accountancy profession is regulated by the Accountancy Board which oversees all professional conduct and standards and other aspects of practices and individuals operating in the profession. It has close, consultative links with the Ministry of Finance, the Economy and Investment. The business community in Malta is strongly supported by a large range of accounting and auditing practitioners ranging from small boutique practices to the global Big Four accountancy firms.

Malta’s professional service providers are generally well versed in dealing with international issues and customers: the island’s professional services attract clients from across Europe who are drawn to their growing reputation for excellent quality of services and value for money. Professional services such as accountancy, business consultancy and legal service costs are generally more cost effective than in other Western European locations.

FinanCial rePOrting

The fiscal year in Malta is the calendar year. Each year of assessment a company has to file

a tax return declaring its income for the year ended during the previous calendar year. This return has to be accompanied by an auditor’s certificate. Corporate profits are assessed on the basis of the accounting year immediately preceding the year of assessment. Companies make three advance payments of tax at four monthly intervals during the accounting period, and must typically

• Loan guarantees • Loan interest subsidies • Training grants • Research and development grants • Provision of premises finished

to the applicant’s requirements at competitive rates of rent

For more details of the incentives offered visit: www.maltaenterprise.com

aCCess tO marKets

Malta’s strategic Eurozone location at the centre of the Mediterranean, straddling the

busiest shipping lanes in the region and connecting Southern Europe and North Africa via regular sea and air links, has always been one of the key advantages of doing business in or from the island. As an EU member state within the Eurozone, Malta offers instant access to both the EU’s massive internal market of over 500 million people and the growing markets of the North African and Middle Eastern countries bordering the southern coast of the Mediterranean basin.

Malta’s geographical position in the centre of the Mediterranean has always played a pivotal role in influencing the country’s destiny and prosperity. Situated between North Africa and Europe, historically Malta has been the link between the two continents. It is this principle of linking and the Maltese ability to reach across the cultural and business divide between North Africa, the Middle East and Europe that is helping pave the way for the country’s future prosperity. The concept is already gaining significant momentum in diverse sectors such as ICT, maritime, financial services and banking.

Malta’s information and communications infrastructure is among the most enabled in the European Union, giving the island

excellent virtual communications. At only two to three hours’ flying time from most major European cities, Malta has direct, scheduled flights throughout Europe and the island is well connected for onward, long-haul destinations. Thanks to growth in its tourism source markets, Malta now also has a growing number of air links to Europe’s second cities and the newer EU accession states.

Malta’s aspirations to become a turnkey business centre for the Mediterranean is proving to be both successful and profitable, as scores of foreign investors in financial services, ICT, maritime, tourism and across all other sectors use the island to reach the European, North African and Middle East markets.• Short travel times: By air, Malta is 2-3

hours from main European hubs• Excellent ICT connections: Satellite

technology and high capacity fibre optic submarine cables linking Malta with Europe

• Major transshipment centre: Malta Freeport is a main regional hub

• Access to European Union: The EU is Malta’s major trading partner

• Regional ties: Cultural and historic connections to North Africa and the Middle East make Malta the ideal English-speaking base in the Mediterranean

• CET time zone: One hour ahead of GMT

PrOFessiOnal suPPOrt serViCes

Malta has a long history of excellence in the professions and today the island

has a large pool of professional support services to business.

A large number of law firms operate on the island, and all the leading, international firms have a presence in Malta through associate links with local firms of long-

file a tax return within nine months from the end of the accounting period. A final tax payment is due by the date the tax return is submitted. Maltese incorporated companies are required to have their financial accounts audited by a registered auditor.

Business COsts

While Malta is an EU location with a sophisticated professional and business

infrastructure, the island remains highly cost effective as a base to do business from. In fact, operational costs in Malta are generally a half to two-thirds of those prevailing in the UK. This applies to salaries as well as general business costs such as office space, services and utilities. In terms of cost of living, Malta remains one of the most advantageous places to live, with daily running costs remaining relatively low in comparison to other European locations. Costs for visiting clientele are low as hospitality, hotels and ancillary services are highly competitive.

Salary costs in Malta are 40-50 per cent of those in Ireland, the UK, France, Belgium, the Netherlands and Luxembourg. When social security costs and other employment taxes are factored in, Malta’s total labour costs are also competitive when compared to the newer EU member states and significantly lower than other established members of the European Union.

In recent years Malta has seen a surge in high quality office space as a result of the growth of its services sector, and at the top end of the market, commercial space in prestige developments comes in at around €300 - €420 per sq.m. a year. Mid-market, smart office blocks in the central Malta areas of Sliema, Gzira and Ta’Xbiex cost around €58 - €116 per sq.m. a year.


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transPOrt anD lOgistiCs

Malta is uniquely located on the main east-west trade routes through the Mediterranean

from the Suez Canal to Gibraltar. This is the route chosen by many of the liner services from the Far East to Europe, and makes the island a key player in the global warehousing and logistics chain. Equally well placed between Europe and North Africa, its central location makes it an ideal base for transshipment services around the Mediterranean.

Malta’s ports are serviced by many of the world’s major shipping lines. Maltese businesses benefit from the large and growing international shipping business building up at the Malta Freeport: any exports or imports can easily be piggybacked onto the large mainline vessels on the intercontinental transshipment services.

Malta has two main commercial ports: the Port of Valletta, traditionally known as Grand Harbour, and the Malta Freeport, situated at Marsaxlokk Harbour in the

south of the island. The latter is one of the largest free ports and transshipment hubs in the Mediterranean Sea, and caters for intercontinental cargo needing distribution throughout the Mediterranean basin. There are regular, passenger and cargo ferries to mainland Italy, France and the North African coast. Within the Grand Harbour, the cruise liner terminal services a number of ferry services as well as the cruise liner industry itself.

Most passenger traffic goes through the Malta International Airport (MIA), which is connected by direct flights to most major European and regional cities with the majority of destinations less than three hours flying time away. Malta is also increasingly served by low-cost carriers, primarily to second cities and the main, source markets for incoming tourists.

The proximity of the airport to the ports means that multimodal freight services and distribution are easily managed. MIA has recently inaugurated a new specialized freight village offering excellent air cargo links through Air Malta, Lufthansa and Emirates, well developed airfreight handling capability and smooth customs clearance.

Malta has a network of some 1,500 kilometres of roads. An intensive programme of road repair and rebuilding, funded largely by EU structural funds, is currently underway. Daily commuting times within Malta are negligible compared to most similar urban-style areas on continental Europe, giving Malta even greater appeal to professionals relocating to the island.

iCt anD COmmuniCatiOns

Malta has seen huge public and private sector investment in ICT over the past 15 years and

today the island boasts a truly modern infrastructure with one of the highest

broadband access rates in the EU; around 66 per cent of all connections are broadband enabled. Mobile phone usage stands at 94 per cent of the population. As the infrastructure has opened up to market forces, access rates have increased and tariffs have lowered.

Malta has one of the most sophisticated telecommunications infrastructures in the world, with large bandwidth networks providing high capacity communication to and from the island. Networks are completely digital and international connections have been significantly expanded through satellite technology and high capacity fibre optic cables linking Malta with Europe.

The three main telecoms service providers are GO, Melita Cable and Vodafone. Virtually all homes are linked to the fixed-line telephone network while the cable network passes through 98 per cent of all properties with 67 per cent of all businesses and household actually using such service. Mobile services are provided by GO Mobile, a Go subsidiary, and Vodafone Malta. Both mobile providers have introduced 3G services besides their GSM service.

Internationally, Malta is connected through two satellite stations (one to the Atlantic Ocean region and the other to the Indian Ocean region) and four submarine fibre-optic links to mainland Europe, two of which are operated by GO and the others by Vodafone and Melita respectively.

utilities

The energy and water requirements of the islands are catered for by the local, public sector power

generating company, Enemalta, and the Water Services Corporation respectively. Huge investment in this area over the past 20 years means that supplies are stable and regular, and though costs have been rising dramatically due to

increases in international oil prices they still remain below the EU average.

Malta has no natural, domestic energy sources and depends totally on oil imports. Oil is so far the only type of energy used for electricity generation in Malta. All electrical energy required is generated in Malta by Enemalta Corporation, the national provider of oil, gas and petroleum. At present, Enemalta operates two power stations, which supply all the electrical power needs of the islands of Malta and Gozo. The supply is at 240V, and is steady.

Recent years have seen a move towards alternative sources of energy. People and companies installing photovoltaic cells or micro-wind generators can feed their excess production back into the national grid, and get paid for every unit. In addition, the Government plans to link Malta to the European electricity grid via a submarine cable to Sicily. Malta is also looking at developing at least one offshore wind farm and the expectation is that this project, if completed, would contribute 10 per cent of Malta’s electricity needs.

Enemalta has been the sole importer of petroleum and natural gas, though this situation is changing. Petrol, diesel, kerosene and LPG are all widely available. Malta has a network of independent petrol stations for transport fuels, but other fuels – LPG, kerosene and light fuel oil – are delivered to the end user by licensed distributors.

Malta’s Water Services Corporation produces and distributes potable water in the Maltese Islands. It is responsible for the whole water cycle from its production to its safe disposal. Some thirty-one million cubic meters of good quality water are produced annually to cater for the needs of Malta’s 413,609 inhabitants as well as the one million tourists who visit each year. Just over half the water is produced at the Corporation’s three reverse osmosis plants with the remainder coming from groundwater sources such as boreholes and pumping stations.



human resOurCes

Diligent, enthusiastic and quick to learn, the Maltese workforce is the island’s greatest strength

and most valuable asset. Highly educated, most Maltese speak at least three languages, Maltese, English and Italian or French. The exceptional quality, flexibility and work ethic of the Maltese have attracted numerous international companies to Malta not only to provide support for overseas bases, but also as fully-fledged companies with their own operations.

Malta boasts the oldest university in the Commonwealth outside the UK and has a tradition of academic excellence and research. Some 60 per cent of students (18-24 year olds) continue in education to tertiary level in some 85 or more institutes.

Malta ranks very favourably as a value-for-money location in which to do business. In particular, Malta’s value added/hourly labour cost ranks Malta ahead of the UK, Ireland, France and Italy and ahead of all of the established EU economies. It has low minimum wage and compensation costs relative to the EU-15 and provides the best value for money compared to other EU countries when productivity is compared to labour costs incurred.

Salary costs in Malta are 40-50 per cent of those in Ireland, the UK, France, Belgium, the Netherlands and Luxembourg. When social security costs and other employment taxes are factored in, Malta’s total labour costs are also competitive when compared to the newer EU member states and significantly lower than other established members of the European Union.

Traditionally, Malta has always had a large pool of professional support services covering accountancy, law, and financial and management consultancy. Many firms are affiliated to international organisations and therefore have a worldwide

network of resources to draw upon if required. Most legal firms have specific expertise in sectors such as financial services, commercial law, corporate tax, maritime law, property and insurance.

• Highly-educated, skilled people• 60% of students continue to tertiary level • Flexible and motivated workforce• English-speaking nation:

English an official language• Excellent work ethic• Low wage costs: around 40-

50% of original EU 12 states• Stable employee-employer relations• Relaxed living, professional outlook• Education and training focused

on ICT and services• An open, cosmopolitan culture

laBOur relatiOns

Employment relations are governed by the Employment &IndustrialRelationsAct(Act

22 of 2002). Some 230 collective agreements regulate the conditions of employment of around 25,000 employees in the Maltese private sector – around a third of the total gainful employment in this sector. Most of these agreements are enterprise specific.

The Employment and Industrial Relations Act deals with conditions of employment, termination of contracts of service and the organisation of workers and employers. A basic feature of this law is that it prohibits discrimination, whether on sexual, social or other considerations, in connection with recruitment, pay, or dismissal.

The Occupational Health and Safety Authority Act places obligations on employers to grant protection against risks and accidents at work and its provisions are deemed to form part of the conditions of services of all


Business Operating Environment 196Financemalta 2010/2011 edition


employees. Other laws may apply to certain categories of workers, such as port workers and seamen. The Employment and Training Services Act regulates training schemes and apprenticeship.

Two major trade unions dominate the Maltese union landscape, alongside a number of smaller sector-specific unions. The General Workers Union, is the island’s largest, with the UHM (Union of Maltese Workers) a close second.

Collective bargaining is common and agreements reached between employers and unions are binding at law. Collective agreements are normally drawn up for a period of three years. Employment in professional and managerial grades is usually regulated by individual contracts of service. Trade disputes can be referred to the Arbitration Tribunal.

Employers are organised into employers’ associations, the most important being the Association of General Retailers and Traders Union (GRTU), the Employers’ Association and the Union of Self-Employed. The Federation of Industries (FOI) plays an important role in bringing managements together. Malta has a Chamber of Commerce with a large, active membership.

eDuCatiOn anD training

Education is provided by a number of government and private schools in Malta and school attendance

is compulsory up to the age of 16. Over 60 per cent of secondary school leavers continue with their education to tertiary level at the University of Malta and in a range of technical and vocational institutes. At present, more than 10,000 students attend the University of Malta, including some 750 international students from 80 different countries.

Malta’s long-standing educational

system includes free education up to tertiary level and provides for a number of vocational and training schemes. There is close partnership between industry, the university and training colleges on Malta, which helps to ensure that the workforce is equipped with the required skills. Malta is also home to some 85 local and international commercial schools and tuition centres covering areas such as fire and safety training, ICT, engineering, insurance, commercial activities, aviation, language, and the arts.

Malta’s public employment and training service, the Employment and Training Corporation (ETC), is primarily responsible for providing a public employment service, managing state-financed vocational training schemes and maintaining labour market information, though it is also responsible for the processing of work permits issued to foreigners.

There are various training incentives available to established companies and new-start ups on the island and sources of funding for various aspects of training, such as life-long learning and the development of key skills, come on stream continually, many as a result of initiatives sponsored by EU funds.

The Employment and Training Corporation is responsible for the administration of many training incentives aimed at encouraging employers to train, retrain, and actively engage various categories of personnel within the labour force. For full details visit www.etc.gov.mt



COmmerCial anD resiDential PrOPertY

Despite the limited land area available, Malta offers a wide range of both commercial and

residential property, in very distinct locations. Office space comes in many forms: a firm can choose between purpose built office blocks, converted houses or flats or a location within some of the new, large mixed use areas currently under development.

Malta offers exceptionally good value in terms of its commercial real estate in comparison to similar urban areas in the EU. It also offers enviable locations with sea views and marinas as well as prestigious landmark office complexes within easy commuting of residential areas. Overall, rentals are around two-thirds to half of those charged for comparable commercial spaces on continental Europe.

Industrial rentals are exceptionally good value for money. Malta Enterprise, the government agency assisting incoming investment firms, can provide industrial property to prospective investors at highly competitive rates. Malta’s average industrial

property rate of €10/m2 compares favourably relative to the secondary rental markets in Italy, Austria, France, Luxembourg, Ireland and the UK. Malta has 10 industrial zones offering industrial property at these competitive rates.

Malta’s residential property prices are competitive in comparison to those in urban areas in most of the rest of Europe. Housing prices and rentals are around half to two-thirds of the price of similar property categories on continental Europe and even more competitive in relation to the UK market.

Malta has always had a thriving real estate market; now, purpose-built developments are coming on stream which can be deemed ‘lifestyle’ complexes and ideal for investment. Developments in recent years include marina and coastal complexes at the top-end of the market. There is a wide range of mid- to lower end apartments across the Islands as well as individual, unique properties such as farmhouses, palazzos and villas with swimming pools. Gozo’s property tends to appeal to the holiday rental or second home market and is dominated by rustic-style farmhouses and modern apartments.


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Malta LifeVisiting MaltaLiving in Malta

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A trip to Malta offers the chance to explore some of the island’s most beautiful

treasures and experience the charms of a truly Mediterranean lifestyle

Blessed with delightful natural scenery, magnificent architecture, warm and friendly people and a leisurely Mediterranean lifestyle, Malta enjoys 300 days of sunshine a year and, according to international living magazine, has the best climate in the world. The island’s balmy weather and sparkling blue seas make for a holiday or business environment that is virtually second to none, while the island’s relaxed lifestyle and Mediterranean cuisine bursting with natural sun-ripened flavours has enchanted visitors for centuries.

So Much MoreSun and sea may be what most people

come to Malta to find, but this island nation is much more than a simple beach resort. Blue skies and azure sea frame a vibrant island, rich with art, history, architecture and culture, forming the backdrop to a laid back Mediterranean lifestyle at times sparking with energy, at times languid with leisurely indolence.

Mediterranean IslandThe Maltese islands consist of Malta,

Gozo and Comino (all inhabited) and the uninhabited islets of Cominotto and Filfla. Anchored in the crystal clear waters of the central Mediterranean, the Maltese archipelago is situated just 93 km south of Sicily and 290 km north of Africa.

Malta’s strategic position midway between Europe and Africa made it a key possession for the many different conquering nations that ruled it throughout its 7,000 years of history: from Neolithic man to the Ancient Romans, the Byzantines, the Moors, the Normans, the Knights of St John, the French and the British, all of whom have left a wealth of architectural and cultural treasures.

Rich in History and CultureFrom the Baroque city of Valletta, a

UNESCO World Heritage site replete with museums, churches, galleries, shops, open air markets and boasting the remarkable St John’s Co-Cathedral, home to Caravaggio’s masterpiece the Beheading of St John, to the old capital, Mdina, the so-called ‘Silent City', that quietly evokes a bygone era with its elegant stone palaces and hushed cobbled streets, to St Paul’s Catacombs in Rabat, Ggantija Neolithic Temples in Gozo, the World War II shelters and the Forts of St Elmo and St Angelo, Malta offers visitors a glimpse through a 7,000 year microcosm of Mediterranean history.

Winding DownHistory and culture come hand

in hand with sunshine, great food and plenty of diverse activities to enjoy. From swimming in the limpid waters of the Mediterranean to diving around ship wrecks, golfing or rock climbing, there are countless things to do when you’re in Malta. And evenings are fun too… with restaurants, wine bars, nightclubs as well as live music and buzzing beach parties in many different localities to make sure your evenings are as fun-packed as your days.

Outdoor ActivitiesIf you’re the active type or simply want

to blow off steam, you might want to try one of the myriad of sporting activities available on Malta; there’s plenty to do for anyone seeking an adrenaline rush or a blast of fresh air. Keen ramblers will discover the charm of the Maltese rural landscape; a patchwork tapestry of terraced fields, olive trees and honey-coloured stone walls.

vibrant NightlifeWhatever you choose to fill your free time

with, eating out and evening entertainment will put the final touches to your days. Malta offers a great choice of restaurants, bars,

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jazz clubs, nightclubs, discos and casinos and the island’s vibrant nightlife draws crowds from across Europe throughout the year. Dine by the sea on fresh-caught fish, sipping on a glass of ice-cold local chardonnay whilst gazing up into the starry night sky for an unforgettable evening. Round the evening off with a party or nightclub, joining the thousands of young expats and visitors for an evening of dancing, chatting and energetic socialising. If you’re visiting Malta between June and September, find out where the nearest village festa is being held and prolong your evening by sharing in the lively celebrations, fireworks and fun commemorating the village patron saint.

Island HoppingIf you get the opportunity, catch the ferry

across the Gozo channel to Malta’s sister island of Gozo. This tiny, rural island, swirling with myth and romance has a legendary charm that enchants any visitor. Beautiful landscapes of gentle hills and undulating valleys, with a rocky coastline punctuated with occasional sandy beaches and deep sheltered bays, cliffs and bluffs, Gozo is a genuine island delight. Far less developed than Malta, Gozo’s rural communities and coastal fishing villages slumber under the Mediterranean sun in picturesque somnolence. Gozo is also home to the 5,500 year old Ggantija Temples, the oldest and one of the most magnificent examples of megalithic temples on the islands.

Shopping AroundShopping in Valletta, Sliema or St Julians

is excellent, and apart from all the high-street brands from the UK, Italy and France, you will also find boutiques selling designer wear at relatively low prices. If you’re shopping for traditional arts and crafts to take home with you, look out for the renowned Malta lace, delicate silver and gold filigree or the colourful and creative Malta hand-blown glass.

Easy Accessibility Popular for decades with European

tourists from across the continent, Malta’s proximity to the mainland means it has always been relatively easy to get to the island. The island’s national airline, Air Malta, provides regular, direct flights to and from most major European cities. Now, with the advent of low-cost airlines a few years ago improving both pricing and seat availability, getting to Malta has become as easy as catching a train into town. Just an hour away from Rome and three hours from London or Frankfurt, the island offers Europeans the chance to get away from it all and experience for themselves the beauty of its languid Mediterranean lifestyle, the charm of its island landscape and the vibrancy of its multi-cultural, multilingual, young and energetic social scene.

Trip to RememberMalta’s varied, fascinating and multi-

faceted attractions are an alluring draw to visitors of all ages and from all backgrounds. Whether coming for the history, the culture, the lifestyle or the parties, anyone visiting Malta is set to be charmed by the island’s balmy climate, sparkling blue seas and wonderfully hospitable people. There are few holiday destinations in the world that can offer a similar array of attractions within such easy distance of each other: Malta’s small size, proximity to Europe and excellent weather make it a unique holiday destination offering a truly Mediterranean experience. n


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Tempted to join the thousands of expats who have already moved to the sun-soaked Maltese Islands,

lured by business benefits and a higher standard of living for their families? What you need to know before you do…

Some history… Nestled midway between Europe and North Africa, the tiny Maltese Islands are blessed with 7,000 years of colourful history. Their archaeological sites pre-date Stonehenge and the Egyptian pyramids, by more than 1,000 years, and the Neolithic temples are the oldest free standing constructions in the world.

The islands’ population looks surprisingly international, due to being conquered by the Phoenicians, Carthaginians, Romans, Byzantines, Moors, Normans, French and the British, who ruled for 160 years till Malta won its independence in 1964.

ClimateMalta has an enviable Mediterranean climate, with hot dry summers, short mild winters, and warm sunny springs and autumns. The average daily temperature ranges from 12-31 degrees C (54-88 degrees F).

Humidity can rise to 40 per cent, but Malta’s cool sea breezes make this bearable. The average annual rainfall is a low 600 millimetres, mostly all falling between October and March.

Getting ThereThe island’s international airport is modern and efficient, connecting Malta to most European cities via major airlines, including low-cost carriers Ryanair and easyJet which take just three hours to get to London. Malta’s national carrier, Air Malta, flies to more than 50 destinations in Europe, North Africa and the Eastern Mediterranean.

Malta is also a short 30-minute trip by hydrofoil catamaran to Catania and car ferries operate on the sea routes between Malta’s main port of

Valletta and mainland Italy and Sicily.

PeopleMalta’s population figures have just surpassed 413,609, making it one of the most densely populated countries in the world – on average there are 1,265 people per square kilometres.

Around 95 per cent of the population were born in Malta, and only 15 per cent of the population reside in rural areas. Most people live in the satellite towns around the island’s capital, Valletta, and expats tend to prefer the bustling tourist areas of Sliema and St Julian’s.

ReligionOver 95 per cent of Maltese are Roman Catholic, a religion present since 60AD when St Paul was shipwrecked on a mini-island now named after him, converting the local population before travelling on to Rome.

The Church still plays an important role in most communities, and there are 365 churches on three islands to choose from when you want to go to Mass. Other denominations present include Anglican, Church of Scotland, Greek Orthodox, Jewish, Methodist, and Muslim faiths.

LanguageMalta has two official languages: Maltese and English, and the majority of people speak both fluently, as well as Italian.

Due to a quarter of the population working in the tourism industry, many people can also speak French, German and Spanish… plus many Maltese have married foreigners, so other languages are often heard on the streets.

visasSince Malta is a member of the European Union, as well as part of the Schengen area, people hailing from countries who are also members do not need an Entry Visa.

Details of visa-exempt countries, and visa application procedures, are available on the Ministry of Justice and Home Affairs website: www.mjha.gov.mt

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EmploymentAlthough Malta became a member of the EU in 2004, the government successfully negotiated a seven-year restriction period, meaning EU nationals still have to obtain an employment licence before they can work on the islands.

Salaries in Malta are low – around a third lower than the UK – but are gradually increasing, with all employees given an annual pay rise based on the cost of living.

Permanent ResidenceThe Maltese government is keen to attract foreign nationals to settle in Malta, provided they meet certain financial criteria.

In fact, Malta has operated expatriate immigration schemes for many years and people who settle in Malta under such schemes are allowed to remain on the islands indefinitely, benefiting from a range of fiscal advantages.

Cost of LivingMalta joined the Eurozone on 1st January 2008 and, despite recent rises in inflation, the cost of living in Malta remains one of the most advantageous in Europe, with groceries, clothing, furniture, and utility services priced at below average EU levels.

BankingMalta’s main commercial banks are Bank of Valletta and HSBC, which offer a range of personal and business banking services and have branches throughout Malta and Gozo. Volksbank, Banif, FIMBank, Lombard Bank and APS Bank are also present.

Banks in Malta are open Monday to Saturday, from 8.30 am to 2 pm, and ATMs are scattered liberally, with credit and debit cards – including Visa, MasterCard, American Express and Diners Card – widely accepted.

TaxationMalta has a progressive taxation system, under which individuals are taxed between

15 to 35 per cent of their income. Permanent residents are charged a reduced rate of 15 per cent on any income remitted into the country (not on capital), subject to a minimum of 4,193 euro per annum.

Tax is not charged on foreign source income that is not received in Malta, and foreign residents who work in Malta only pay tax on the income they earn in Malta.

Healthcare All EU nationals resident in Malta are eligible for free medical treatment at the state-of-the-art government hospital Mater Dei, as well as clinics found in all towns and villages. However, although the WHO lists Maltese healthcare as the fifth best in the world, the Maltese Ministry of Health still advises foreign residents to take out private medical insurance.

EU food and beverage safety standards are strictly monitored in Malta, but it is still advisable to drink bottled, rather than tap water.

Renting PropertyThere is a wide range of properties available to rent on both islands, from fully furnished apartments to suit all budgets, to rustic farmhouses, villas with pools, and even palaces, all at competitive prices – usually half the price of similar properties in relation to the UK market.

Malta has always had a thriving real estate market, and purpose-built ‘luxury’ developments in the popular areas of Sliema and St Julian’s are plentiful and geared toward expat demands.

Buying Property Although anyone can buy property on the Maltese Islands, a government permit may be required, but EU nationals are rarely refused.

Maltese banks often offer mortgage facilities for expats who take permanent residence in Malta, and application forms for the purchase of property, as well as information on property buying regulations can be found on the Ministry of Finance, the Economy and Investment website under the Acquisition of Immovable Property Section: www.aip.gov.mt


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PetsMalta is now a member of the Pet Travel Scheme, and any pets from countries covered by the scheme are allowed to enter Malta without quarantine.

However, the pet must be micro-chipped, vaccinated against rabies, and can only be brought into Malta six months after a satisfactory blood test.

Education Expats living in Malta are entitled to enrol their children in a local school, but they usually educate them privately because state schools often teach in Maltese. All schools on the islands use the British model of education, and are of an excellent standard.

Education is compulsory between the ages of five and sixteen, with nursery facilities available free for all children aged between three and five years. Tertiary education is also free, whether at the University of Malta, MCAST (Malta College of Arts, Science, and technology) or other institutions.

Utilities There are two utility providers in Malta: Enemalta Corporation which supplies electricity and bottled gas (there is no natural gas network), and the Water Services Corporation which supplies all Malta’s water and disposes of its wastewater.

The electricity is 240 volts AC, 50Hz, and plug types are the three-pronged British model.

CommunicationsMalta boasts one of Europe’s most advanced telecoms infrastructures, with a variety of different operators offering fixed line and mobile telephony, broadband and cable Internet, ISDN, VOIP, and other services at competitive rates. The main providers are GO, Vodafone and Melita.

There are a range of daily and weekly Maltese and English language newspapers, and the island’s national TV station, PBS,

broadcasts locally produced programmes in Maltese, as well as international films, dramas and TV series in English. Most households have cable and satellite TV.

Driving EU nationals (aged over 18) are allowed to drive in Malta on their existing licences, or exchange them for a Maltese one after having lived in Malta for six months. Non-EU nationals can drive on their existing valid licence for a maximum of 12 months from the date of their last arrival in Malta. Like in the UK, the Maltese drive on the left.

SportsThe weather – and the fact that the temperature of the sea never drops below 13 degrees C (55 degrees F), even in winter – makes watersports extremely popular in Malta. The conditions are particularly good for scuba diving, with the best sites around the northern coast of Malta and Gozo.

Malta only has one golf course at the Royal Malta Golf Club, but there are an abundance of gyms and other sports clubs which expats can join, from horse riding to swimming, to netball, running and rugby.

ShoppingSliema and Valletta have the best shops in Malta, with most Italian and British high street brands present. However, there is a real lack of standalone designer outlets on the island, though designer brands can be found in boutiques and dressmakers are reasonably priced, and can whip up an original creation in a few days.

Shops usually open from 9am-1pm and 4pm-7pm. Most are closed on bank holidays and Sundays, except for those located inside the BayStreet Shopping Centre in St Julian’s, as well as some outlets in busy tourist resorts like Bugibba.


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Dining OutMalta’s Mediterranean cuisine is as healthy as it is tasty, and is based on fresh, seasonal produce. Typical year-round dishes include fenkata (rabbit) and bragioli (beef olives), and every meal is served with the renowned local bread made with sourdough and baked in a traditional wood-burning stone oven.

Other cuisines are widely available, and dining out in Malta is always a wonderful experience whether you dine in a trendy city eatery, Baroque palace, family-run trattoria, or seafood restaurant in a fishing village, there’s something to suit every mood, palate and budget. Tips are usually around 10-15 per cent of the bill.

Going OutThe Maltese are a sociable bunch, and no matter how young or old people are they spend more evenings out then indoors watching TV. For such a small island there is a lot of entertainment choice, from beach BBQs, outdoor parties, swanky bars, sport-showing pubs, clubs, theatre, cinemas, concerts, exhibitions, bingo… the choice is endless, and there is something for all tastes and bank balances.

There are also the more traditional festivals, from the spring Carnival to festas, which are held in every village to celebrate its patron saint, and involve religious processions, band marches, fireworks, singing, and lots of drinking! n

Fabulous all-year-round weather

Friendly and hospitable local population

Easy to integrate into the local community

Relatively crime free, family-friendly country

Small distances between destinations

saves you precious commuting time

Politically stable country due to

being an EU member state

English and Maltese are the official

languages of the Islands – Italian is

widely spoken, as well as German and

French within the tourism sector

State-of-the-art, new government hospital –

quality private hospitals, and medical services

Excellent social life for all ages, with bars

and clubs to suit all tastes and budgets

A thriving cultural scene, with big-name

concerts, weekly outdoor festivals, and

many theatres and cinemas island-wide

Top quality restaurants offering most cuisines

Crystal clear sea, perfect for sailing, watersports

and swimming, and clean sandy beaches

Decent sporting facilities and gyms

Above UK-average schooling in English-

speaking schools, and a respected university

Low cost of living: everything you need

is imported and easily available

A wide variety of properties

available in all price ranges

Stable economy and property market,

offering steady capital growth

A national airline offering daily flights to

all major European and North African

airports, as well as low-cost airlines

Excellent residency conditions

with very low taxation

Rates and council tax are not charged in Malta.

20reasons why expats enjoy living in Malta


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Business Financial Service Providers

Accounting&AuditingBaker Tilly SantBDO CharlesScerri&AssociatesCiantar AssociatesDeloitte Ernst&YoungKPMG PricewaterhouseCoopers RSM Malta UHYPace,GaleaMusu`&Co.

Banking ServicesAkbank T.A.S; Malta Branch Banif Bank (Malta) plc Bank of Valletta p.l.c. BAWAG Malta Bank Ltd. CommBank Europe FIMBank plc HSBC Bank Malta p.l.c. – Premier HSBC Bank Malta p.l.c. – Private Clients HSBC International Banking Centre Mediterranean BankNBG Bank Malta Limited RTFX Ltd Sparkasse Bank Malta plc

Business Process OutsourcingBPO Services Ltd

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Business Service Providers



Profiles217

Corporate ServicesApex Business Services LtdAvanzia Taxand Limited Butterfield Trust (Malta) Limited Corporate Services Limited (CSL) CREDALTRUST Management Ltd. Credence Corporate and Advisory Services Ltd.CSB Group Dominion Fiduciary Services (Malta) LimitedECOVIS Malta EJZ Comprehensive Business Services Ltd. e-Management Group EMCS International Services Ltd Equity Trust Exco Services Limited FACT Group Fenlex Group FrancisJ.Vassallo&AssociatesLimitedGSB Services Limited HBM Malta Ltd HSBC Bank Malta p.l.c. as Trustees IIM Business Consultants Limited Impetus Europe Consulting Group Ltd. International Trust Limited Maitland Malta Limited Mifra Consultants Limited MSS International Services Portman International Group QUBE Services Limited Salt Partners Group SpiteriBailey&Co.

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FundManagement&AdministrationApex Fund Services (Malta) Ltd Custom House Global Fund Services LimitedHSBC Securities Service (Malta) LtdNatixis Malta Investments LimitedPraxis Fund Services (Malta) Limited SGGG Fexco Fund Services TMF Group Valletta Fund Services Limited

Institutions&PublicCompaniesFinanceMaltaMalta EnterpriseMalta Financial Services AuthorityMalta Stock ExchangeMalta Tourism AuthorityTransport Malta

Insurance ServicesAon Insurance Managers (Malta) Limited Atlas Insurance PCC Limited Citadel Insurance plc Elmo Insurance Ltd.Heritage Insurance Management (Malta) LtdHSBC Insurance Management (Malta) LimitedInternational Insurance Management Services LtdMIB Insurance Group Middlesea Valletta Life Assurance Co. Ltd Munich Re of Malta p.l.c.

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Profiles219

Investment Services Crystal Finance Investments Curmi&PartnersLtd.HSBC Global Asset Management Ltd. MZ Investment Services Limited

Legal Services Aequitas LegalCamilleri Preziosi Advocates Chetcuti Cauchi DavidGriscti&AssociatesDingli and Dingli Law FirmEMD Fenech&FenechAdvocatesFenech Farrugia Fiott LegalFZDTrustee&FiduciaryServicesLtdGanado Sammut AdvocatesGonzi and Associates, AdvocatesGVTH AdvocatesMAMO TCV Advocates Mifsud&MifsudAdvocatesSimonTortell&AssociatesZammit&Associates–Advocates

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MaritimePalmali Shipmanagement

Real EstateGap Developments plc Pender Ville Ltd Regus RecruitmentCastille Resources KONNEKT

Software&ITSolutions Systec Limited

TelecommunicationsVodafone Malta Ltd.

Travel Services Air Malta plc Island Hotels Group Holdings p.l.c. Kempinski Hotel San Lawrenz Malta International Airport plc TheXaraPalaceRelais&Chateaux

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Profiles221

aOn insuranCe managers (malta) limiteDAon Insurance Managers (Malta) Limited forms part of Aon Global Insurance Managers (AGIM), the world’s leading captive and insurance management service provider, overseeing more than 1,200 insurance vehicles in over 30 locations worldwide. We deliver services to more clients, in more domiciles and have a greater depth of resource than other managers. Our 470 captive management experts are experienced in key disciplines and are at the forefront of their local captive communities. As a market innovator, we offer White Rock Insurance (Europe) PCC Limited which provides our clients with lower cost, flexible alternatives to captives for risk financing and retention.

Steven ConverygEnEral managEr

2nd Floor, 53, Mediterranean Building, Abate Rigord Street, Ta’Xbiex XBX 1122 - Malta T: (+356) 2343 3104 • F: (+356) 2132 3677 • E: [email protected] • W: www.aon.comcontact person: steven convery – general manager

BUSINESS SERVICES LTD.

ABS Apex

aequitas legalAequitas is a full service legal firm with the size and capacity to give total focus to the demands of each international client and treat each brief as a priority. The Aequitas offering is a team of twenty lawyers able to represent clients in specialised areas of financial services as well as in litigation and public affairs. Aequitas is the Malta member firm for Multilaw, the global legal network.

Valletta Buildings, Level 2, South Street, Valletta VLT 1103 - Malta T: (+356) 2123 4085 • F: (+356) 2122 3306 • E: [email protected] • W: www.aequitas.com.mt contact person: ms. marilena grech – customer service representative

aKBanK t.a.s; malta BranChWith over 850 branches throughout Turkey and around 15,000 employees, Akbank offers a wide range of retail, commercial, corporate, private banking and international trade finance services. Akbank conducts overseas activities through a branch in Malta since 2001 concentrating on corporate banking services - mainly project financing, investment and working capital loans. In 2007, Akbank and Citigroup became strategic partners. Its strong capital base, sound risk management practices, stable deposit structure, excellent profitability & asset quality, and robust growth in assets makes Akbank the leading private sector bank in Turkey. At year-end 2009, with US$ 69.1 billion total assets, Akbank realized a consolidated net profit of US$ 1.8 billion.

Portomaso Tower, Level 6, St. Julians. STJ 4011 - Malta T: (+356) 2138 3400 • F: (+356) 2138 3666 • E: [email protected] • W: www.akbank.comcontact person: müge cergel - Branch manager

aPeX Business serViCes ltDEstablished since 1994. Apex Business Services Ltd provides a range of financial services to both local and overseas clients. These include: day to day bookkeeping, Payroll services, back office services, taxation services, company formation, business consultancy, secretarial and company administration services, business plans and financial projections and other accountancy services. We also offer Auditing services through the practice Joe Cordina & Ass. Fiduciary services, Trust Formation, and trustee services are also provided through a related company. We specialize in offering a professional service, which is flexible and according to the client’s needs.

Level 3, Tigrija Palazz, Republic Street, Victoria Gozo - MaltaT: (+356) 2155 9999 • F: (+356) 2155 7185 • E: [email protected] • W: www.jcordina-andco.comcontact person: mr Joe cordina - managing director

Joe Cordinamanaging dirEctor

aPeX FunD serViCes (malta) ltDApex Fund Services (Malta) Limited is part of the leading international fund administration business with 13 international offices. Apex delivers traditional and hedge fund administration solutions to investment managers investing in all asset classes and offers tailored products to suit the regulatory and investment environment. With extensive industry expertise, innovative products and robust operating solutions, Apex has become internationally recognised as one of the world’s leading independent fund administration businesses. With offices in Bermuda, USA, Ireland, Malta, Isle of Man, London, Dubai, Bahrain, Mauritius, Singapore, Hong Kong, and China, and with Luxembourg, Toronto and Abu Dhabi planned for 1H10, we have an international business for international clients.

6th Floor Airways House, Gaiety Lane, Sliema SLM 1549 - Malta T: (+356) 2131 1330 • F: (+356) 7981 8867 • E: [email protected] • W: www.apexfundserivces.comcontact person: anthony o’ driscoll managing director

air malta PlCAir Malta is Malta’s National Airline. The airline offers customers a selection of around 45 scheduled destinations to/from Europe, North Africa and the Eastern Mediterranean. Air Malta has a fleet of 12 Airbus aircraft configured in business and economy from the A320 and A319 aircraft family with an average age of 3.5 years.

Anthony O’Driscollmanaging dirEctor

Müge CergelBranch managEr

Georg Sapianomanaging partnEr

Head Office, Luqa LQA 9020 - MaltaTel: (+356) 2299 9000 • Fax: (+356) 2167 3241 • E: [email protected] • W: www.airmalta.comcontact person: mr Brian Bartolo - general manager marketing and product

Sonny Portellichairman



Profiles223

atlas insuranCe PCC limiteDThe Atlas Group of companies today forms one of Malta’s foremost insurance and financial services organisations. The flagship company of the Atlas group is Atlas Insurance PCC limited. Atlas’ progression from agency to insurance company on 1 May 2004 laid the base for the change to a protected cell company in November 2006. This evolution was also a first for Malta and the EU. This development took advantage of Malta’s aim of establishing itself as a financial services centre within the Union. The interest shown in Malta and the new legislation together with the advantageous tax structures has been the stimulus for Atlas’ successful emergence on the international scene.

Michael Gattmanaging dirEctor

BaniF BanK (malta) PlCBanif Bank (Malta) plc is a Maltese bank owned by Banif Financial Group and prominent Maltese investors. Banif has positioned itself as the Alternative Maltese Bank by offering innovative banking solutions based on the clients’ needs. Backed by a strong financial group represented in 19 countries worldwide, Banif is deploying a network for both retail and business segments supported by a local internet banking platform. The Bank also offers an executive banking service for professionals. Be it a personal dream, a professional requirement or a new business project, Banif is the right partner for you. Speak to us – you will be pleasantly surprised!

Joaquim F. Silva PintogEnEral managEr

47-50, Ta’Xbiex Seafront, Ta’Xbiex XBX 1021 - Malta T: (+356) 2343 5363 • F: (+356) 2134 4666 • E: [email protected] • W: www.atlas.com.mt contact person: mr. michael gatt, managing director

203, Level 2, Rue D’Argens, Gzira GZR 1368 - Malta T: (+356) 2260 1000 • F: (+356) 2131 2000 • E: [email protected] • W: www.banif.com.mt contact person: mr. charles mizzi – head of unit, image & communications

aVanZia taXanD limiteD Avanzia Taxand is the Maltese member firm of Taxand. Taxand is a global network of leading tax advisors from independent member firms in nearly 50 countries with more than 300 tax partners and 2,000 tax advisors. Our tax professionals grasp both the fine points of tax advisory and the broader strategic implications, helping you mitigate risk, manage your tax burden and drive the performance of your business. Avanzia Taxand is ranked as a tier two firm in Euromoney’s Corporate Tax Handbook and in 2009 it was named ‘Malta Tax Firm of the Year’ by the International Tax Review at the European Tax Awards ceremony in London.

Cobalt House, Second Floor, Notabile Road, Mriehel BKR3000 - Malta.Level 14 Suite 3, Portomaso Business Tower, St. Julian’s STJ4011 - Malta. T: (+356) 2730 0045 • F: (+356) 2730 0049 • E: [email protected] • W: www.avanzia.com.mtcontact person: Walter cutajar – managing director

Walter Cutajarmanaging dirEctor

Level 5, Rosa Marina Building, 216, Marina Seafront, Pieta PTA 9041 - MaltaT: (+356) 2010 9500 • F: (+356) 2010 9501 • E: [email protected] • W: www.bakertillysant.com contact person: mr donald sant - managing partner and head of audit

BaKer tillY sant Baker Tilly Sant is a firm of accountants, auditors, taxation and business advisors providing services for businesses operating in all spheres of the economy, both locally and overseas. Baker Tilly Sant is an independent member of Baker Tilly International, a worldwide association of leading accountancy practices operating in 104 countries around the world, ensuring that our clients are able to draw on professional advice on any aspect of their international affairs. The philosophy of the firm is based on the concept of providing creative forward thinking and planning, and being able to offer an independent and innovative service in support of clients’ business goals.

Donald Santmanaging partnEr

Level 6, Strand Towers, 36 The Strand, Sliema SLM 07 - MaltaT: (+356 ) 2328 6111 • F: (+356) 2131 5147 • E: [email protected] • W: www.bawagpsk.comcontact person: dr otto Karasek - managing director

BaWag malta BanK ltD.BAWAG Malta Bank Ltd. is a 100% subsidiary of the Austrian-American Banking Group BAWAG P.S.K. Located in the heart of Sliema, it is the springboard of the group to the Mediterranean with a special focus to North Africa. In the domestic Maltese market, it is specialized in traditional commercial banking in the upper market and in project finance. With its strong capital base of 500 mn Euros it is also a partner for syndications and structured finance transactions.

Otto Karasekmanaging dirEctor

BanK OF Valletta PlCBank of Valletta is a leading financial services provider in Malta, licensed by the Malta Financial Services Authority with a national network of 41 branches, a Corporate Centre, 5 Business Centres and a Wealth Management arm. The BOV Group provides a full range of financial services including investment banking, private banking, fund management, bancassurance, stockbroking and trustee services. In addition to the traditional banking services, the Bank is continuing to evolve its product portfolio to include new financial products. Bank of Valletta also issues bank cards under the VISA and MasterCard brands and offers Internet banking, telephone banking, mobile banking and the services of a customer service centre to its personal and corporate customers. Tonio Depasquale

cEo

Canon Road Santa Venera SVR 9030 - MaltaT: (+356) 2131 2020 • F: (+356) 2275 3730 • E: [email protected] • W: www.bov.comcontact person: mr charles Borg - chief officer Financial markets & investments



Profiles225

BPO serViCes ltDBPO Services Ltd forms part of World Aviation Group - your one-stop service for the outsourcing of back-office operations. Strategically located in Malta we provide high quality revenue accounting services to the airline industry as well as financial accounting, billing and other services to virtually any sector seeking an efficient way to run their back-office operations. The World Aviation Group is jointly owned by Air Malta plc and Cassar Aviation Services Pty Ltd of Australia.

Dominic R. Attard chiEF ExEcutivE oFFicEr

Aviation Centre, First Floor, St. Thomas Street, Luqa LQA 5000 - Malta T: (+356) 2364 4444 • F: (+356) 2124 2905 • E: [email protected] • W: www.worldaviationgroup.eucontact person: mr. dominic r. attard - chief Executive officer

Tower Gate Place, Tal-Qroqq Street, Msida MSD 1703 – MaltaT: (+356) 2131 3060 • F: (+356) 2131 3064 • E: [email protected] • W: www.bdo.com.mtcontact person: J attard or l Buttigieg or J psaila - directors

BDO COnsult limiteDBDO International is a worldwide network of accounting and consulting firms. Each BDO Member Firm is an independent legal entity in its own country. Currently, the fifth largest in the world – the BDO network has 671 offices, with more than 35,000 partners and staff providing professional auditing, accounting, tax and consulting services. BDO Member Firms take pride in their clients’ success. It is a personal relationship, which combines the benefits of professional knowledge, integrity and an entrepreneurial approach with an understanding of a client’s business and an ability to communicate effectively. The BDO Member Firm in Malta is BDO Attard Buttigieg Psaila & Co.

Camilleri PreZiOsi aDVOCatesA leading Maltese law firm with a commitment to deliver an efficient service to clients by combining technical excellence with a solution driven approach to the practice of law. Camilleri Preziosi is a specialised practice focusing on domestic and international transactions with a focus on corporate and commercial law, and the financial services sector. The firm provides both transactional and regulatory advice and assistance to clients.We take a multi-disciplinary approach to our practice and all our lawyers advise across a broad range of areas. The close relationships we develop enable us to give practical and effective advice. In other words, advice that adds value.

Louis de GabrielepartnEr

Level 3, Valletta Buildings, South Street, Valletta VLT 1103 - Malta T: (+356) 2123 8989 • F: (+356) 2122 3048 • E: [email protected] • W: www.camilleripreziosi.comcontact person: louis de gabriele - partner

Castille resOurCesCastille Resources specialises in ICT and Financial recruitment and is recognised as the leading careers brand in these disciplines. Our company has invested significantly in internal specialisation, training and ongoing market research so as to enable us to provide a knowledge driven recruitment service for companies requiring specific technical skills. Our sizeable network boasts healthy growth and covers a range of skills from accounting technicians to experienced fund accountants and captive insurance account managers to FS experienced Financial controllers and CFOs. Our search and selection process is thorough and informed, making our opinion on each individual count with clients. Castille Resources delivers best in class technical talent through our permanent placement and staff leasing services. Matthew Camilleri

dirEctor

32-33, Old Bakery Street, Valletta VLT 1454 - Malta T: (+356) 2123 4102 • F: (+356) 2123 4103 • E: [email protected] • W: www.castilleresources.comcontact person: matthew camilleri ca, director

ButterFielD trust (malta) limiteDThe Bank of N. T. Butterfield was established in Bermuda in 1858 and trust has been a hallmark of the relationships we have with our clients. Butterfield Trust (Malta) Limited (formerly Bentley Trust Limited) is part of the Butterfield Group. Our specific services include acting as trustees of trusts and managers of companies; incorporating Maltese companies and companies from many international jurisdictions; ensuring that the ongoing legal and regulatory requirements of trusts and companies are satisfied; maintaining complete records for trusts and companies and prepare annual accounts; provision of directors services, corporate secretarial services and regular asset and activity reports.

Level 7, Portomaso Business Tower, St Julians PTM 01 - MaltaT: (+356) 2137 8828 • F: (+356) 2137 8383 • E: [email protected] • W: www.butterfieldgroup.comcontact person: mr malcolm Becker - chief Executive officer

Malcolm Becker chiEF ExEcutivE oFFicEr

Charles sCerri & assOCiatesCharles Scerri & Associates (CS) provides audit, tax, consulting, and financial advisory services to local and foreign clients operating in various industries. The company’s main advantage is that of a one-stop-shop, providing personalised and tailor made service. CS is a member of IAPA International which has over 165 offices in more than 85 countries. Drawing on the professional skills and experience of its employees the firm is focused to help clients achieve their goals both locally and internationally. Company formation, administration services, back office and accounting are amongst other services provided.

Charles ScerripartnEr

The Penthouse, Caroline Court, Giuseppe Cali Street, Ta’ Xbiex XBX 1425 - MaltaT: (+356) 21374747 • F: (+356) 21374646 • E: [email protected] person: mr charles scerri - partner

Lino ButtigiegdirEctor



Profiles227

ChetCuti CauChiChetcuti Cauchi is a professional services firm providing legal, tax, corporate, accounting and assurance services to businesses and private clients worldwide. The firm is well positioned to service clients ranging from high net worth individuals and families, owner-managed companies to larger corporations. On an international level, Chetcuti Cauchi has also grown to be regarded as the Maltese firm of choice by various leading professional firms in the EU and worldwide. Our areas of practice include: Financial Services; Taxation; Gaming; Intellectual Property; Trusts & Estate; Immigration & Relocation; Media & Telecoms, Maritime; Aviation; Accounting; Audit; ICT Consulting; and Corporate Services.

120, St Ursula Street, Valletta VLT 1236 - Malta T: (+356) 2205 6200 • F: (+356) 2205 6201 • E: [email protected] • W: www.ccmalta.comcontact person: dr Jean-philippe chetcuti – partner

Jean-Philippe Chetcuti partnEr

Ciantar assOCiatesWe are a medium sized firm of accountants, auditors and tax consultants specialised in services to non residents. We cater for a large range of foreign owned companies. We have been established since 1986. We guarantee a direct access to an assigned partner at all times and that all queries and correspondence are answered within two working days. Our services comprise: Accounting; Auditing; Tax consultancy; Company Incorporation; Acting as nominees; Trustees; Payroll services; Acting as corporate directors / company secretary; Use of registered address; Payroll; Liquidations; Redomiciliation of companies; Management consultancy.

152/9 Naxxar Road San Gwann - MaltaT: (+356) 2137 6686 • F: (+356) 2137 6523 • E: [email protected] • W: www.sciantar.comcontact person: mr simon ciantar – senior partner

Simon CiantarsEnior partnEr

CitaDel insuranCe PlC Established in 1997 as the second indigenous Insurance Company in Malta, Citadel Insurance plc is a composite insurance company licensed by the MFSA to transact both general and life insurance business. Our professionally qualified personnel deliver the quality coverage and service expected by our customers. Our wide and flexible range of products includes motor, home, pleasure craft, travel, business, marine, loan protection, retirement and savings plans besides also tailor-made products and schemes designed specifically for our customers. As a leading insurance provider Citadel is focused on delivering efficient customer solutions and is continuously seeking growth opportunities. Citadel – trusted, respected, reliable.

Joseph N. Tabonechairman / managing

dirEctor

Casa Borgo, 26 Market Street, Floriana FRN 1082 - Malta T: (+356) 2557 9000 • F: (+356) 2557 9550 • E: [email protected] • W: www.citadelplc.comcontact person: Joseph n. tabone - chairman / managing director

COmmBanK eurOPeCommBank Europe Limited was established in Malta in 2005. The Bank’s services include infrastructure and utilities solutions, corporate lending and asset finance solutions to clients throughout Europe. Harnessing the resources of industry and product experts, CommBank Europe works in partnership with clients to deliver innovative solutions that meet complex financing and risk management objectives. CommBank Europe is part of the Commonwealth Bank of Australia Group, which is one of Australia’s leading providers of integrated financial services. The Bank is one of the largest listed companies on the Australian Stock Exchange and is included in the Morgan Stanley Capital Global Index.

Anthony RobertsExEcutivE dirEctor

Strand Towers, Level 3, 36 The Strand, Sliema SLM1022 - MaltaT: (+356) 2132 0812 • F: (+356) 2132 0811 • E: [email protected] person: anthony roberts, Executive director

COrPOrate serViCes limiteD (Csl)CORPORATE SERVICES LIMITED (CSL) is a well established and professional firm providing high standard tailored services in the Maltese financial sector. Our experienced, multi-lingual team focuses on quality in a full range of services under one roof, including the formation of companies, Trusts, management of investment companies, registration of vessels and the financial, legal and administrative work. For further information kindly contact us on [email protected] or visit our website on www.cslmalta.com.

5/2 Merchants Street, Valletta VLT 1171 - MaltaT: (+356) 2122 2097 • F: (+356) 2123 4941 • E: [email protected] • W: www.cslmalta.comcontact person: amanda chetcuti ganado

Amanda Chetcuti GanadodirEctor

CreDaltrust management ltD.As international Business-Development-Trustees, we manage value on a personal basis, via strategic corporate and professional multidisciplinary support. We are members of the world’s largest organization of independent law, accountancy and consulting firms (GGI.com), and therefore able to assist clients with on-site due diligence, expertise and business support in all major capitals. CREDAL’s core competence of entrusted business development is a focus on owner-managed international start-ups and family offices. After legal, tax and operational specialists have designed a specific business model, the project is taken over by our business trusteeship team, enabling us to match and synergize individual client strengths to established contacts and opportunities, using Malta-based structures and systems to manage asset protection and manage international business.

Robert D’AlessandrochiEF ExEcutivE oFFicEr

189/2 The Strand, Gzira GZR1024 - MaltaT: (+356) 2133 2936 • F: (+356) 2132 3215 • E: [email protected] • W: www.credalnetwork.comcontact person: robert d’alessandro cEo



Profiles229

CsB grOuPCSB Group (est. 1987) provides its clients with a spectrum of specialised business and commercial services including the incorporation and re-domiciliation of Maltese companies; company, secretarial, directorship and management; trustee and fiduciary services; aircraft, ship and yacht solutions; licensing of financial and investment services; hedge fund registration; eCommerce and iGaming consultancy; bank accounts and online payment solutions; accounting and payroll services; back office support; tax structuring and administration industrial property registration; residence and work permits; personnel recruitment; managed office space and re-location assistance.

Michael J. Zammit group cEo

CustOm hOuse glOBal FunD serViCes limiteDCustom House Global Fund Services Limited offers its clients a full “round the world” and “round the clock” hedge fund administration service through its fully integrated network of offices in Amsterdam, Chicago, Dublin, Guernsey, Luxembourg, Malta and Singapore. Custom House’s Dublin office, which is authorised by the Irish Financial Regulator under Section 10 of the Investment Intermediaries Act 1995, achieved an exception-free SAS70 Type II and was the first hedge fund administrator to be awarded a Moody’s Management Quality Rating. Custom House Global Fund Services Limited is authorised by the Malta Financial Services Authority.

Albert Ciliamanaging dirEctor

DaViD grisCti & assOCiatesDavid Griscti & Associates is a legal consultancy and advisory firm highly focused on the financial services industry, with a marked emphasis in Securities, Credit Institutions and other Financial Institutions. The firm assists Banks, Asset Managers, Financial Advisors and other Financial Intermediaries to structure, establish and license Collective Investment Schemes, Fund Management Companies, Fund Administration outfits, Credit Institutions, other Financial Institutions and other Investment Service firms. Post licensing, the firm offers full legal, corporate and tax advisory services, compliance and anti-money laundering services, company secretarial and executive board services, as well as a number of other supplementary back-office administrative services. David Griscti

partnEr

The Penthouse, Tower Business Centre, Tower Street, Swatar BKR 3013 - MaltaT: (+356) 2557 2557 • F: (+356) 2557 2558 • E: [email protected] • W: www.csbgroup.comcontact person: michael J Zammit - group cEo

60, Tigne Towers (Ground Floor), Tigne Street, Sliema - Malta T: (+356) 2010 6053 • F: (+356) 2010 6054 • E: [email protected] • W: www.customhousegroup.comcontact person: albert cilia - managing director

168 St Christopher Street, Valletta VLT1467 - Malta T: (+356) 2569 3000 • F: (+356) 2122 7731 • E: [email protected] • W: www.dglawfirm.com.mtcontact person: david griscti - partner

CreDenCe COrPOrate anD aDVisOrY serViCes ltD.Credence is a leading team of lawyers, accountants and tax advisers offering corporate and advisory services to an international clientele. Our sister company, Credence Holdings Limited, is a licensed trustee and also provides fiduciary services. Our areas of specialization include Company registration, redomiciliation and administration, International tax advice, Trustees and fiduciary services, VAT and tax issues relating to maritime vessels and aircraft, Ship and aircraft registration, Online gaming solutions - licensing and administration, Virtual office solutions. See how we can help your business - contact us today for a no-obligation discussion of your requirements.

Andrew CefaipartnEr

35 Zachary Street, Valletta VLT 1132 - MaltaT: (+356) 2125 2893 • F: (+356) 2125 2894 • E: [email protected] • W: www.credence.com.mtcontact person: mr andrew cefai, partner

CrYstal FinanCe inVestments ltDCrystal Finance Investments Ltd is a leading financial services provider licensed by the Malta Financial Services Authority with offices in Valletta, Msida, Qormi and Gozo. Crystal consist of a select group of senior investment professionals and their staff, providing multilevel analyses of the economic and investment environments, including economic growth, interest rates, foreign exchange, credit and the effect of forecasts on market sectors, individual securities and client portfolios. Crystal co-operates with major international banking institutions for search or development of innovative products for personal, corporate and institutional investors. Crystal offers investment advice, trade execution and discretionary portfolio management. Alfred Mifsud

chairman

Curmi & Partners ltD.Curmi & Partners Ltd. is one of the leading financial services provider in Malta focussed on providing clients with a personalised wealth management solution. A dedicated team of analysts provide independent research and advice on both the local and international markets. The company focuses mainly on offering private and institutional clients investment management solutions, including treasury management services. Clients can access these strategies through a discretionary or an advisory service. Curmi & Partners Ltd also assist in bringing companies to the Malta Stock Exchange, generally in the form of an IPO (Initial Public Offering).

David Curmimanaging dirEctor

Finance House, Princess Elizabeth Street, Ta’ Xbiex XBX 1102 - MaltaT: (+356) 2134 7331 • F: (+356) 2134 7333 • E: [email protected] • W: www.curmiand partners.comcontact person: david a. curmi - managing director

Crystal Finance Investments Ltd, City Gate, Valletta VLT 11 - Malta T: (+356) 2122 6190 • F: (+356) 2122 6188 • E: [email protected] • W: www.crystal.com.mtcontact person: Eric schembri - managing director



Profiles231

DelOitteDeloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s more than approximately 169,000 professionals are committed to becoming the standard of excellence. In Malta, the firm services large significant international and national clients as well as smaller owner-managed businesses, which all benefit from a policy of personal partner involvement. Over the years the practice expanded steadily. We are now firmly established as one of Malta’s leading providers of professional services. Andrew Manduca

chairman

Deloitte Place, Mriehel Bypass, Mriehel BKR3000 - MaltaT: (+356) 2343 2000 • F: (+356) 2131 8196 • E: [email protected] • W: www.deloitte.com/mtcontact person: andrew manduca, tax leader

Dingli anD Dingli laW FirmDingli and Dingli is a Maltese Law Firm established in 1982. Since then it has earned a solid reputation for efficiency and effectiveness, leading to results. This is achieved through the deployment of a strong team effort when handling assignments, harnessing the power of partnership to the full. Although the Firm handles all types of legal work, it is especially active in the fields of maritime law, ship registration and finance, admiralty, company law (including company formation and administration), financial services, international tax planning, aviation law, real estate, residency and intellectual property law.

Kevin F. Dinglimanaging partnEr

18/2 South Street Valletta VLT 1102 - Malta T: (+356) 2123 6206, 2123 8256, 2124 7604 • F: (+356) 2124 0321 • E: [email protected] • W: www.dingli.com.mtcontact person: dr. Kevin F. dingli – managing partner

DOminiOn FiDuCiarY serViCes (malta) limiteDDominion was formed in 2001 as a specialist Trust Company and consulting firm to provide a range of services to corporate and personal clients. Our core services include: Comprehensive Trustee and administrative services within employee benefits, corporate and personal pension plans; Private Trustee services for discretionary trusts, international pension arrangement and bespoke private and company structures; UK tax planning and compliance services for private individuals who are resident in the UK as well as compensation planning strategies for privately owned businesses with a presence in the UK.

Ben CookechiEF ExEcutivE oFFicEr

Suite 3a, 3rd Floor, Merchant Street, Valletta VLT 1171 - MaltaT: (+356) 2248 1906 • F: (+356) 2248 1901 • E: [email protected] • W: www.expertsinwealth.comcontact person: James Barber-lomax, new Business team

eCOVis maltaECOVIS is a leading global consulting firm with over 2,700 staff operating in over 30 countries providing consulting services in the areas of tax, auditing and accounting and management accounting. ECOVIS Malta team is trained to provide the client personal attention combined with a one-stop-shop service. Targeting the small and medium sized enterprises, the experience of the local partners and staff combined with the international partners experience in their respective jurisdictions provide our local and international clients a holistic support in business, tax and corporate compliance.

Anthony VellasEnior partnEr dirEctor

55B, Birbal Road, Balzan BZN9017 - MaltaT: (+356) 2134 1680 • F: (+356) 2134 1681 • E: [email protected] • W: www.ecovis.comContact Person: Anthony Vella CPA, FIA• Karl Bonanno - Assurance Partner/Director

eJZ COmPrehensiVe Business serViCes ltD. EJZ Comprehensive Business Services Ltd. is a multidiscipline organization, comprising qualified accountants, experienced accounts clerks and secretaries. The Company’s competent and friendly staff is conversant in Maltese, English and Italian. Being associated with Maltese legal and auditing firms we offer a one stop shop service. Our satisfied clients hail from Sweden, Italy, France, Greece, Russia, UK, Germany, and Austria. The firm offers the following services: Tax Consultancy; Tax Related Services (personal and company tax declarations, claims for tax refunds, representations with tax authorities); Company formation – including Maltese Licensed Remote Gaming Companies; Company Secretarial; Accountancy; Payroll Bureau; Trust & Fiduciary Services Edward J. Zammit

managing dirEctor

No. 217 Suite 4, 21st September Avenue, Naxxar NXR 1013 - MaltaT: (+356) 2149 1127 • F: (+356) 2540 1093 • E: [email protected] • W: www.ejz.com.mtcontact person: Edward J. Zammit, cpa, managing director

elmO insuranCe ltD.Elmo Insurance Ltd. provides financial services in insurance underwriting for the local market. Elmo’s role in providing knowledge and infrastructure is central to the company’s vision of delivering the highest quality insurance services in Malta. Elmo’s portfolio of personal lines include motor, health, home, yacht, travel, personal accident and credit insurance. Commercial insurance services include cargo, retail, construction, property and general business insurance. Insurance Captive Management Services are provided through Elmo’s joint venture company with the Jardine Lloyd Thomson Group, JLT Insurance Management Malta Ltd. Elmo Insurance Ltd. is a company authorised and regulated by the Malta Financial Services Authority. David Bartoli

managing dirEctor

Head Office, Abate Rigord Street, Ta’ Xbiex XBX 1111 – Malta T: (+356) 2343 0000 • F: (+356) 2134 5037 • E: [email protected] • W: www.elmogroup.comcontact person: mr William harding – chairman, mr david Bartoli - managing director



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emCs internatiOnal serViCes ltD EMCS is a professional services group offering a one-stop-shop to foreigners seeking to do business from or within Malta. Services include corporate and tax structuring, back office, accounting, trustee services, financial services advisory, including the setup of professional investor funds and asset management companies. EMCSI are committed towards providing clients constructive assistance and solutions by understanding their clients’ individual needs, drawing on the skills and experience of their tax and legal specialists, accountancy and management consultants. A company within the Group is duly licensed by the Malta Financial Services Authority to carry out Trustee and Fiduciary Services.

Geraldine Schembrimanaging dirEctor

ernst & YOungErnst & Young has been operating in Malta since the mid 1990s and is this year celebrating its 10th Anniversary since becoming a full member of the Global Firm. As part of the recent unparalleled global integration Ernst & Young Malta is a fully integrated firm of Europe Middle East India and Africa (EMEIA) which is one of the region’s three areas making up Ernst & Young Global (EYG). This enables its numerous clients in Malta and abroad to benefit from access to a large number of specialised personnel and expertise in a number of countries.

Mario P. Galeacountry managing partnEr

Level 2, Regional Business Centre, Msida MSD 1751 - Malta T: (+356) 2133 6472 • F: (+356) 2134 3326 • E: [email protected] • W: www.emcsinternational.comcontact person: geraldine schembri – managing director

Regional Business Centre, Achille Ferris Street, Msida MSD 1751 - MaltaT: (+356) 2134 2134 • F: (+356) 2347 1600 • E: [email protected] • W: www.ey.comcontact person: mr. mario p. galea - country managing partner

e-management grOuPe-Management, a dedicated business division of HBM Group (est. 1991) with worldwide representative offices; is a leading turnkey provider of Business Support & Corporate Services to the Online Gaming Industry in particular. With more than a decade of experience in assisting major companies, software providers and operators with their corporate and licensing requirements; e-Management is positioned as a professional, client−oriented group of companies focused on facilitating the process of establishing and managing international e−businesses in Curaçao, Netherlands Antilles, Malta and other leading jurisdictions. By building on its tradition of excellence, and upholding clients’ confidentiality and reputation, e-Management is committed to providing all necessary business services to succeed in an ever changing and challenging business environment without borders.

Jonathan DallihEad oF marKEting

28, Cathedral Street, Sliema SLM1525 - Malta T: (+356) 2132 3626 • F: (+356) 2132 3627 • E: [email protected] • W: www.emanagement-group.comcontact person: Jonathan dalli – head of marketing

emDEMD is a dynamic and established firm which provides legal, advisory and corporate services. The firm boasts a strong international legal practice with particular emphasis on a number of niche areas including tax law, i-Gaming, financial services, trust law, corporate law, intellectual property, ship & yacht registration, immigration and residency, employment law, media & entertainment law and property and construction law. Our services also include company incorporation and administration services, tax consultancy and compliance as well as accounting and book-keeping services. Our in-house company EMD Trust Services Limited is licensed by the Malta Financial Services Authority to act as trustee and co-trustee.

Tonio EllulpartnEr

Vaults 13 – 15, Valletta Waterfront FRN 1913 - Malta T: (+356) 2203 0000 • F: (+356) 2123 7277 • E: [email protected] • W: www.emd.com.mtcontact person: dr tonio Ellul – partner

Albert Ciliamanaging dirEctor

equitY trustEstablished in 1970, Equity Trust is the world’s leading independent provider of trust and fiduciary services. Located in the key financial centres of the world, our global footprint is impressive: we have over 1,200 employees working across more than 30 jurisdictions. An independent specialist, Equity Trust is not merely a department within a large bank or law firm. This independence, combined with our local knowledge and international expertise, gives us the freedom power to strike the best strategic partnerships, free from any conflicts of interest, and adds real value for you and your clients. Our five global business lines are: Corporate Services; Fund Services; International Incorporations; Private Clients and Structured Finance.

60, Tigne Towers (Ground Floor), Tigne Street, Sliema - Malta T: (+356) 2010 6053 • F: (+356) 2010 6054 • E: [email protected] • W: www.equitytrust.comcontact person: albert cilia - managing director

eXCO serViCes limiteDEverything you would expect from a firm providing corporate services, operating in an efficient, effective regulated jurisdiction within the European Union. Set up on 16 September 1994, we pride ourselves in providing a prompt, professional service in a cost-effective manner. A preferred service provider to one of the Big Four accounting firms, our set up is aimed at establishing and maintaining for our clients an adequate legal presence and appropriate representation in Malta. We also provide fully serviced offices and workstations in the Verdala Business Centre, book-keeping and management accounting services for internal purposes as well as trusteeship services.

Michael Sciclunamanaging dirEctor

Suite 1, Level 2, TG Complex, Brewery Street, Mriehel BKR3000 - MaltaT: (+356) 2133 5520 / 2133 5525 • F: (+356) 2133 5526 • E: [email protected] • W: www.excoservices.com.mtcontact person: michael scicluna – managing director



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FaCt grOuPFACT Group, which originates way back to 1998, is committed to providing you with a factual and informative service on issues related to Finance, Accounting, Corporate and Tax – undoubtedly considered as the fundamental considerations of any business venture. Every smart business wishing to be successful cannot commence business without first planning its financial capabilities and being aware of its constraints. The trust in our team of young, dynamic, experienced and dedicated professionals has one main goal – the common concern to deliver a high quality service adhering to the firm’s philosophy that dictates a priority to a high degree of integrity, upholding of sound business practices, absolute confidentiality and loyalty to clients in whatever it does. Jesmond Pace

managing dirEctor

Cornerline, Dun Karm Street, Birkirkara BKR 9039 - MaltaT: (+356) 2142 2564 • F: (+356) 2142 2560 • E: [email protected] • W: www.factgroup.netcontact person: Jesmond pace – managing director

FeneCh & FeneCh aDVOCatesEstablished in 1891, Fenech & Fenech Advocates is a leading law firm in Malta with a strong commercial, corporate, tax, maritime, ship registration, M&A and financial services practice and is a recognised pioneer in eGaming and ICT law. The largely international client base is serviced by 21 advocates and 3 legal procurators. The firm has advised blue-chip clients in various landmark transactions in Malta and overseas and remains at the forefront of legal developments. Our team’s legal insight and business instinct provides clients with value-driven solutions. The varied maritime, tax and aviation practices are also a mainstay of the firm’s international work.

Ann Fenechmanaging partnEr

198, Old Bakery Street, Valletta VLT1145 - Malta T: (+356) 2124 1232 • F: (+356) 2599 0644 • E: [email protected] • W: www.fenechlaw.comcontact person: dr. ann Fenech – managing partner

FeneCh Farrugia FiOtt legal Fenech Farrugia Fiott Legal was established in 2009 as a result of the convergence of three distinct but complementary, long standing professional realities and experiences. The founding partners Christian Farrugia, Tonio Fenech, Antoine Fiott and Damien Fiott all enjoy an excellent reputation as experts in their respective fields and represent a large local and international client base in various market sectors. Areas of particular expertise include Corporate Law, Mergers & Acquisitions, Taxation, Financial Services, Trusts & Fiduciary structures, Shipping & Aviation, New Media Law, Regulatory Compliance & Gaming. The firm also operates Litigation and Arbitration units from its Valletta offices.

Christian FarrugiaJoint managing partnEr

Malta offices: Tower Business Centre, Level 1, Tower Street, Birkirkara, Swatar BKR 4013

12/16 Strait Street, level 1, Valletta VLT 1432 - MaltaT: (+356) 2549 6400 • F: (+356) 2549 6444 • E: [email protected] • W: www.fff-legal.comcontact person: dr. christian Farrugia - Joint managing partner

FenleX grOuPAs a leading management and corporate services provider, Fenlex services a large international client base. Fenlex is in a position to provide a wide range of services that include company incorporation and maintenance, tax and VAT compliance, accountancy, payroll, bank account administration, directorship services as well as operational assistance. The company has been active in servicing the international business sector since the 1980’s and its clients are serviced by a multi-disciplinary team organised into three support units: Corporate Services, Accounts and Operations. Fenlex is closely associated with Fenech & Fenech Advocates, a leading local law firm.

Karl Diaconomanaging dirEctor

85, St. John Street, Valletta VLT 1165 - Malta T: (+356) 2124 1817 • F: (+356) 2599 9640 • E: [email protected] • W: www.fenlex.comcontact person: Karl diacono - managing director

FimBanK PlCFIMBank is an international trade finance specialist with an established reputation as a dynamic and customer-driven provider of trade finance solutions to corporates, banks and individuals worldwide. Through its strong correspondent banking network and offices located across the globe, this Malta-based Bank offers a unique environment in which trade finance opportunities are identified, innovatively structured and successfully executed. Through its Mediterranean Factors Division, based in Malta, FIMBank offers a complete portfolio of factoring services, designed to improve cash flow, manage credit risks and support the growth of international business. The Bank’s Classic Term Deposits, on the other hand, offer you the flexibility of six-monthly, annual and two-year terms. Ms Margrith Lutschg

EmmeneggerprEsidEnt

7th Floor , The Plaza Commercial Centre, Bisazza Street Sliema SLM 1640 - Malta T: (+356) 2132 2100 • F: (+356) 2132 2122 • E: [email protected] • W: www.fimbank.comcontact person: ms margrith lutschg Emmenegger - president

FeXCO FinanCial serViCes (malta) ltD.For the past 14 years, Fexco powers niche in financial products and services through market leading partnerships, and excellent customer service. Fexco are agents of Western Union and also operate the Gift Voucher Shop in Malta. SGGG Fexco Fund Services (Malta) Limited is your administrative partner bringing together the experience of SGGG Fund Services Inc. having over 200 alternative strategy funds under administration worldwide and Fexco Financial Services, a main player in the financial services industry with established servicing platforms.

Tony ZahracEo

Alpine House, Naxxar Road, San Gwann SGN 9032 - Malta T: (+356) 2576 2576 • F: (+356) 2138 3296 • E: [email protected] • W: www.fexcomalta.comcontact person: mr. tony Zahra - cEo



Profiles237

FranCis J. VassallO & assOCiates limiteD Francis J. Vassallo & Associates Limited was established 11 years ago by a former Governor of the Central Bank of Malta. Its team of lawyers, accountants and support professionals deliver a broad spectrum of bespoke services to a global client portfolio. This one-stop-shop boutique firm provides a personalised and holistic approach to address their clients’ business requirements going that extra mile to offer an efficient, professional and outstanding service. The firm has a proven track record and its core expertise lies in International Tax Planning and Related Advisory Services, Company Formation, Corporate & Fiduciary Services, Accountancy, Investment Funds, Shipping and Aviation, Gaming, Trusts, VAT, Residency & Related services, Back-office Support Services. Francis J. Vassallo

prEsidEnt

259, St. Paul Street, Valletta VLT 1213 - MaltaT: (+356) 2299 3100 • F: (+356) 2299 3101 • E: [email protected] • W: www.fjvassallo.comcontact person: adriana camilleri vassallo - director

FZD trustee & FiDuCiarY serViCes ltD. FZD Trustee & Fiduciary Services Limited is a company licensed by Malta Financial Services Authority in order to provide trustee and fiduciary services. Our Firm is composed of a highly motivated and creative team of professionals who provide a one-stop-shop solution to clients seeking to reap the diverse benefits presented by the Maltese Jurisdiction. We offer a vast array of Financial, Business and Commercial Services including Company Incorporation, Trustee and Fiduciary Services, Company Secretarial Services, Gaming Licensing, Intellectual Property Registration, Relocation Assistance and Bank-office services.

Francis Zammit Dimechchairman

FZD Advocates 20/1, Republic Street, Valletta - MaltaT: (+356) 2122 8340 • F: (+356) 2122 8360 • E: [email protected] • W: www.fzdadvocates.comcontact person: hon. dr Francis Zammit dimech

ganaDO sammut aDVOCatesThe firm’s roots go back to 1856 and it is now in its fifth generation of lawyers. A traditionally civil law firm, Ganado Sammut has over the years been transformed into a commercial law-orientated set up, with a large international base, offering a range of services. Its areas of practice include: Financial services; Company law; Maritime law; Succession and estate management; Property and construction; Intellectual property; E-gaming; Trusts and trust management; Litigation and debt collecting; Arbitration and mediation; Banking and finance; Telecommunications and media law; Insurance law.

Austin Sammutmanaging partnEr

35-36, Archbishop Street, Valletta VLT 1447 - Malta T: (+356) 2124 3149 • F: (+356) 2124 7170 • E: [email protected] • W: www.ganadosammut.comcontact person: dr. austin sammut - managing partner

gaP DeVelOPments PlCGAP Developments plc is a successful merger between GAP Holdings Limited and Tigné Skies Limited. GAP Developments plc is a public limited company and its Chairman is Mr George Muscat. Tigné Skies Limited is a relative new company in property development but it forms part of one of the largest business groups on the island. Although established in 2001, through its Chairman, Gap Holdings Limited has over 30 years of experience in the property development sector. Apart from identifying a mutual business opportunity, through this merger the two companies recognized that their common business philosophy of delivering the quality promised on a timely fashion would further enhance the success story of the Fort Cambridge Development. George Muscat

chairman

Gap Holdings Head Office, Censu Scerri Street, Tigne, Sliema SLM 3060 - MaltaT: (+356) 2327 1000 • F: (+356) 2327 1210 • E: [email protected] • W: www.fortcambridge.com, www.gap.com.mtcontact person: paul attard - sales & marketing director

gOnZi anD assOCiates, aDVOCatesGonzi and Associates, Advocates is an established Maltese law firm specialising in Corporate and Tax, Financial Services and iGaming law. Our team of lawyers are experts in their respective fields allowing us to provide you with relevant, reliable and experience-based legal advice. Contact us for a free initial assessment as to how we can better your business by setting-up or relocating your company to Malta or by assisting you to license your banking, investment services, funds, financial institution or igaming operations in Malta.

David GonzipartnEr

10, Wesgha Reggie Miller, Fgura, FGR1211 - MaltaT: (+356) 2166 2318 • F: (+356) 2166 4418 • E: [email protected] • W: www.gonzi.com.mtcontact person: dr. david gonzi

FinanCe maltaFinanceMalta, a non-profit public private initiative, was formally set up as an autonomous Foundation on the 21st May 2007 with the scope of promoting Malta as a financial services centre, both within, as well as outside, its shores. It brings together, and harnesses, the resources of the industry and government, to ensure that Malta maintains a modern and effective legal, regulatory and fiscal framework in which the financial services sector can continue to grow and prosper. The founding associations are: the Malta Funds Industry Association, the College of Stockbrokers, the Malta Bankers’ Association, the Malta Insurance Management Association, and the Institute of Financial Services Practitioners.

Kenneth Farrugiachairman

Garrison Chapel, Castille Place, Valletta VLT1063 - MaltaT: (+356) 2122 4525 • F: (+356) 2144 9212 • E: [email protected] • W: www.financemalta.orgcontact person: dr Bernice Buttigieg - head of administration




Profiles239

gVth aDVOCates GVTH Advocates is one of Malta’s leading law firms, with a strong focus on commercial and corporate affairs, intellectual property and telecoms. The firm services a vast local client base which comprises some of the island’s top companies, as well as a notable list of international clients, including multinational firms. It regularly acts as a correspondent firm to a number of eminent international law firms, advising on international transactions. GVTH ethos is to provide its clients with a comprehensive and holistic service through its team of specialised and dedicated practitioners.

Joseph J. Vellamanaging partnEr

hBm malta ltD (Part OF hBm grOuP)HBM Group, established in 1991, is a leading independent financial services provider headquartered in Curaçao, Netherlands Antilles and with operational and/or Representative Offices in international financial services centers including Anguilla, Aruba, B.V.I., Cayman Islands, New York, Panama, St. Maarten, Uruguay, The Netherlands and Malta. As a professional, client-oriented family of service companies, HBM Group is focused on delivering comprehensive company solutions. HBM Group assists in the formation and management of international companies for businesses and individuals, ensuring compliance with international legislation. HBM Group is dedicated to providing a complete range of services and solutions to meet and exceed the demands of our clients in an ever-changing global market.

Freddy KoningsdirEctor

28, Cathedral Street, Sliema SLM1525 - Malta T: (+356) 2132 3626 • F: (+356) 2132 3627 • E: [email protected] • W: www.hbmgroup.comcontact person: Freddy Konings – director

heritage insuranCe management (malta) ltDA member of the Heritage Group – an independent management–owned organisation. Being independent allows clients to have absolute faith and confidence in the impartiality of our advice and services; a highly prized quality in the world of corporate finance. Whilst our line of business is often referred to as captive management, our services are significantly broader. We are geared to create and manage a comprehensive range of ART structures, direct re/insurers and PCCs with EU passporting rights, feasibility reviews, and other leading industry products as they are developed from time to time. Our team of Malta-based specialists has an extensive body of knowledge in these areas and thereby can provide cost effective and sustainable solutions. Derek Douglas

managiing dirEctor

Block A, Aviation Park, Civil Aviation Avenue, Luqa LQA9023 - MaltaT: (+356) 2248 9111 • F: (+356) 2248 9106 • E: [email protected] • W: www.heritage.co.ggcontact person: derek douglas – managing director

hsBc Bank malta p.l.c. is licensed by the mFsa to conduct investment services business and is enrolled as a tied insurance intermediary of hsBc life assurance (malta) ltd

hsBC BanK malta P.l.C. – PremierHSBC Premier is an individually tailored package of exclusive premier banking services that can be accessed from anywhere you choose to live or work. With HSBC Premier, customers will have a dedicated relationship manager who will provide them with tailored financial solutions to meet their personal needs, overseas bank account opening and worldwide online premier banking, international recognition and emergency support, investment expertise and credit card privileges and rewards. HSBC Premier is the first internationally linked-up banking service being offered to our most valued customers. The focus is on making banking a convenient and pleasurable experience.

Gregory InglotthEad oF prEmiEr

proposition

HSBC PFS Centre, 80, Mill Street, Qormi QRM 3101 - Malta T: (+356) 2380 2931 • F: (+356) 2380 2219E: [email protected]/premier • W: www.hsbc.com.mt/premiercontact person: gregory inglott - head of premier proposition

hsBC BanK malta P.l.C. – PriVate ClientsHSBC Bank Malta p.l.c. Private Clients protects and enhances the wealth of local and international high net worth customers through the provision of professional financial advice based on a comprehensive range of local and offshore HSBC and third party products. The scope of advice encompasses protection, retirement, savings and investments both on a personal and corporate basis. Advice is also available in relation to wealth planning, estate planning and the settlement and administration of trusts through our specialist Trust Department.

Martin SciclunahEad oF prEmiEr and

WEalth managEmEnt

HSBC PFS Centre, 80, Mill Street, Qormi QRM 3101 - Malta T: (+356) 2380 2950 / 2910 • F: (+356) 2380 2205E: [email protected], [email protected] • W: www.hsbc.com.mtcontact person: martin scicluna - head of premier and Wealth managementian casingena - senior private clients manager

hsBc Bank malta p.l.c. is licensed by the mFsa to conduct investment services business and is enrolled as a tied insurance intermediary of hsBc life assurance (malta) ltd

192 Old Bakery Street Valletta VLT 1455 - MaltaT: (+356) 2122 8888 • E: [email protected] • W: www.gvthlaw.comcontact person: Joseph J. vella - managing partner

gsB serViCes limiteDGSB is an independent financial services provider specialised to provide advisory services in Maltese and international tax, Maltese company law, trusts and estate planning. GSB is also fully equipped to assist in the implementation and ongoing administration of any corporate or other arrangements and any restructuring exercises. An affiliated company, GSB Fiduciaries Limited, is licensed locally to act as a trustee and to carry on other fiduciary activities. We are committed to provide our clients with a ‘one-stop’ personalised service which meets the highest professional standards and to do so speedily, efficiently and cost-effectively but with due care and diligence.

Jeannine GigliodirEctor

158 Merchants Street Valletta VLT1176 - MaltaT: (+356) 2144 7047, 2125 2709 • F: (+356) 2149 1069 • E: [email protected] • W: www.gsb.com.mtcontact person: dr. Jeannine giglio - director



Profiles241

hsBc Bank malta p.l.c. and hsBc global asset management (malta) ltd are licensed to conduct investment services business by the mFsa.

hsBC glOBal asset management ltDHSBC Global Asset Management (Malta) Limited is the asset management arm of HSBC Bank Malta p.l.c. It was incorporated in 1996 and is regulated by the Malta Financial Services Authority, managing a range of domestic and international funds, specializing in the development of innovative products catering for a range of personal, corporate and institutional investors. The company is also responsible for sourcing HSBC Group and other third party retail and institutional investment products for distribution in Malta to the PFS Wealth Management, Commercial Banking and Global Banking and Markets customer groups of HSBC Bank Malta p.l.c.

Reuben Fenechmanaging dirEctor

80, Mill Street, Qormi QRM 3101 - Malta T: (+356) 2380 5130 • F: (+356) 2380 5191E: [email protected] • W: www.hsbc.com.mt contact person: mr reuben Fenech - managing director

hsBC insuranCe management (malta) limiteDHSBC Insurance Management is a principal international manager of captive and cell captive, insurance and reinsurance companies and risk retention groups with presence in all major captive domiciles. HSBC Insurance Management (Malta) Limited was set up in 2006 as the HSBC group’s domicile of choice for EU based captive clients. HSBC Insurance Management (Malta) Limited provides its captive clients with a comprehensive range of insurance management services from the conceptual study preparation to the licensing process and eventual ongoing management services. HSBC Insurance Management (Malta) Limited also provides policy administration services for insurance and reinsurance companies.

Ray Schembrimanaging dirEctor

80, Mill Street, Qormi QRM3101 - Malta T: (+356) 2380 8651 • F: (+356) 2380 8640E: [email protected] • W: www.insurancemanagement.hsbc.comcontact person: ray schembri - managing director

hsBC internatiOnal BanKing CentreThe International Banking Centre is a specialised unit of HSBC Bank Malta p.l.c. with a wealth of experience in providing the necessary banking services to our corporate clients registered overseas, as well as locally registered shipping and international trading/holding companies including trusts. In recognition of the increase in business seen from the financial sector, IBC also provides relationship management services for financial institutions, especially for captive insurance companies and fund management companies. The credit rating of banks is an important factor for such financial entities and the HSBC Group’s rating of AA- is an additional level of comfort for the bank’s customers.

Charles CinihEad oF intErnational

BanKing cEntrE

80, Mill Street, Qormi QRM 3101 - Malta T: (+356) 2380 2678 • F: (+356) 2380 2676E: [email protected] • W: www.hsbc.com.mtcontact person: charles cini - head of international Banking centre

hsBc Bank malta p.l.c. is licensed by the mFsa to conduct investment services business and is enrolled as a tied insurance intermediary of hsBc life assurance (malta).

hsBc insurance management (malta) limited is regulated by the malta Financial services authority and enrolled in the managers list to act as an insurance manager in terms of the insurance intermediaries act 2006.

hsBC seCurities serViCes (malta) ltDHSBC Securities Services (Malta) Ltd provides a full range of administration services to investment funds. We have significant experience, knowledge and understanding of the industry and we can therefore provide a high quality service to investment funds, leveraging on the HSBC Group’s scale and capabilities where this is necessary. We hold fund administration mandates across most asset classes (bonds, equities, property, etc) and strategies (long, absolute returns, etc) and our offering consists of fund set up and launch, fund accounting and valuation, investor services and corporate management services.

Charles Azzopardimanaging dirEctor

80, Mill Street, Qormi QRM 3101 - Malta T: (+356) 2380 5100 • F: (+356) 2380 5190E: [email protected] • W: www.hsbc.com.mtcontact person: mr charles azzopardi - managing director

hsBc securities services (malta) ltd is a recognised Fund administrator and is licensed by the mFsa to conduct investment services business by the malta Financial services authority.

iim Business COnsultants limiteDIIM Business Consultants Limited is a business development organization providing quality professional advisory services to transnational clients on all matters related to operations conducted from or through Malta. These professional services include accountancy, corporate finance and restructuring, corporate governance, tax planning and administration, management consultancy, banking administration, back office, company formation, call centre and office facilities. IIM offers a one-stop-shop to its private and corporate clients, whether resident or non-resident, who operate in a varied range of industries. IIM provides its clients with quality customized solutions which are tailored by specialist staff to meet the clients’ expectations. David Pace

dirEctor

Canter Business Centre, Patri Felicjan Bilocca Street, Marsa MRS 1524 - MaltaT: (+356) 2132 2118 • F: (+356) 2131 0461 • E: [email protected] • W: www. iimconsultants.comcontact person: david pace

hsBC BanK malta P.l.C. as trusteesHSBC Group has been involved in the field of trusts and estate administration for over 100 years. In Malta, HSBC Bank Malta p.l.c. as Trustees is one of the leading fiduciary services providers offering services relating to trusts, foundations and estate administration. We offer a number of straight-forward and bespoke trusts that will suit your requirements. Our services include the formation and administration of trusts with a wide range of uses such as asset/portfolio management, inheritance planning, buying property in Malta & overseas, charities and special purposes (including foundations), commercial uses and asset protection.

Emanuel MagrihEad oF trust sErvicEs

HSBC PFS Centre, 80, Mill Street, Qormi QRM3101 - Malta T: (+356) 2936 2263 • F: (+356) 2936 2205E: [email protected] • W: www.hsbc.com.mtcontact person: Emmanuel magri - head of trust services

hsBc Bank malta p.l.c. is licensed by the mFsa to conduct investment services business and is enrolled as a tied insurance intermediary of hsBc life assurance malta ltd. hsBc Bank malta p.l.c. is authorised by the mFsa to act as trustee.



Profiles243

internatiOnal insuranCe management serViCes ltDInternational Insurance Management Services Ltd (IIMS), a wholly-owned subsidiary of Middlesea Insurance p.l.c., provides a comprehensive range of management services to clients who are seeking to establish an insurance or reinsurance company in Malta. IIMS boasts of highly qualified personnel in various financial disciplines, including insurance, reinsurance, finance and cash management which allows it to provide a full range of management and administrative services tailor-made to suit the specific needs of its clients. IIMS is enrolled in the Managers List and authorized under the Insurance Intermediaries Act, 2006 to act as an Insurance Manager.

Elizabeth CarbonarogEnEral managEr

4th Floor, Development House, St Anne Street, Floriana FRN9010 - Malta T: (+356) 2124 6262 • F: (+356) 2124 8774 • E: [email protected] • W: www.iims.com.mtcontact person: Elizabeth carbonaro - general manager

internatiOnal trust limiteDInternational Trust Limited was established in 1995 in order to provide; trustee and fiduciary services, company formation and secretarial services, together with yacht and ship registration to international clients. International Trust Limited, which is closely associated with Simon Tortell & Associates, one of Malta’s leading financial services law firms, today has offices in Valletta, London and is also present in Zurich. In 2008, ITL Advisory Services Limited, was set up in order to provide; accounting, back-office and specialist administration, corporate re-organisation, consultancy and advisory services, compliance and governance services and therefore complement the suite of services offered by the Group.

islanD hOtels grOuP hOlDings P.l.C.Island Hotels Group Holdings plc is one of Malta’s leading hospitality players. It operates some of Malta’s finest properties including The Radisson Blu Resort, St. Julian’s and The Radisson Blu Resort & Spa, Golden Sands, and The Coastline Hotel. The company also runs an independent catering set up through Island Caterers Ltd. Over the past 22 years the Group has grown from a small entity with fewer than 200 beds, to one which now owns and manages a bed stock of 2,000 with just under 1,000 employees. In September 2009 Island Hotels Group Holdings plc was listed on the Malta Stock Exchange.

Winston J. ZahrachiEF ExEcutivE oFFicEr

Coastline Hotel, Salina Bay, Salina NXR 9030 - MaltaRadisson Blu Resort, St. Julian’s, St. George’s Bay, St. Julian’s STJ 3391 - MaltaT: (+356) 2137 4894 • F: (+356) 2137 4895 • E: [email protected] • W: www.islandhotels.comcontact person: adrian attard – group director of revenue

KemPinsKi hOtel san laWrenZThe Kempinski Hotel San Lawrenz is more than just an exclusive hideaway resort with all the comforts 5 stars can offer. Surrounded by 30,000 sqm of gardens, it has been built to blend into the yellow limestone in a traditional style. An elegantly rustic atmosphere has been created with natural stone floors, palm trees, flower beds, local woods and Mediterranean colours – add to that the award-winning Spa & Ayurveda Centre, and you have the ideal surroundings to relax body and mind. Its 122 airy rooms, 48 of which are Suites, are tastefully decorated in traditional Maltese style. Four meeting rooms with all state-of-the art facilities accommodate up to 300 delegates.

Noel AttardgEnEral managEr

Triq ir-Rokon, San Lawrenz SLZ 1040, Gozo - Malta T: (+356) 2211 0000 • F: (+356) 2211 6372 • E: [email protected] • W: www.kempinski.com/gozo.comcontact person: tanja mueller - director of sales

KPmgKPMG in Malta is a professional firm with over 240 partners and staff, providing Audit, Tax and Advisory services. The Maltese practice is part of a strong global network of member firms operating in 144 countries, having 137,000 people working in member firms around the world. KPMG’s association with Malta can be traced back to 1969. Today KPMG is one of the leading firms of Certified Public Accountants, Tax and Business Advisors, providing a complete range of inter-related services. Our vision is simple - to turn knowledge into value for the benefit of our clients, people and our capital markets.

Joseph C. SchembrisEnior partnEr

Portico Building, Marina Street, Pieta’ PTA 9044 - Malta T: (+356) 2563 1000 • F: (+356) 2566 1000 • E: [email protected] • W: www.kpmg.com.mtcontact person: Joseph c schembri, senior partner

62/5 Melita Street, Valletta VLT 1122 - Malta T: (+356) 2122 7974 • F: (+356) 2122 6585 • E: [email protected] person: Kevin vella - director & cEo

Kevin VelladirEctor & cEo

imPetus eurOPe COnsulting grOuP ltD.Impetus Europe Consulting Group Ltd. provides professional consultancy and assistance to Maltese, European and international private or public companies, enterprises and institutions wishing to participate in EU or Euro-Mediterranean projects. Impetus Europe offers consultancy services on EU related matters and funding arrangements, project management, information collation, and Public Affairs. The company also assists in searching for partners and in networking by maintaining dialogue with key figures in the EU. Impetus Europe clients include Ministries, Government Agencies, Local Councils, Multi-national companies, local SME’s and non-governmental organisations. The company has also successfully carried out public affairs related for leading multinationals. Marvin Cuschieri

managEr

89, St. John Street, Valletta VLT 1165 - MaltaT: (+356) 2124 1817 • F: (+356) 2599 0642 • E: [email protected] • W: www.impetuseurope.comcontact person: marvin cuschieri - manager



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malta stOCK eXChange PlCMalta Stock Exchange plc has carved out a niche for itself in the focal financial sector and remains committed to Malta’s drive to become a major international financial centre. Malta Stock Exchange plc operates a regulated market and a dematerialized central securities depository in accordance with internationally recognized standards. It has undertaken to increase the range of services it provides to market participants. In particular the Exchange has focused its strategy to attract more issuers both local and overseas to the market, to increase the range of financial instruments available for trading on its recognised lists.

Mark A. GuillaumierchiEF ExEcutivE

Garrison Chapel, Castille Place, Valletta VLT 1063 - MaltaT: (+356) 2124 4051 • F: (+356) 2569 6316 • E: [email protected] • W: www.borzamalta.com.mtcontact person: Eileen v muscat - general manager

malta FinanCial serViCes authOritY (mFsa)The Malta Financial Services Authority (MFSA) is the single licensing and supervisory authority for all financial services activity. The Authority is an autonomous public institution set up by law. The sector overseen by MFSA includes banks, investment firms, insurance companies and financial intermediaries who provide a wide range of products and services on the domestic and international markets. The regulation of the Malta Stock Exchange also falls under the responsibility of the MFSA. The MFSA is further responsible for consumer education and consumer protection in the financial services sector. It also manages the Malta’s Registry of Companies.

Joe Bannisterchairman

Notabile Road, Attard BKR 14 - MaltaT: (+356) 2144 1155 • F: (+356) 2144 1189 • E: [email protected] • W: www.mfsa.com.mtcontact person: contact person: mr michael xuereb - director Business development

maitlanD malta limiteDWhether you are a private or corporate client, Maitland can help you to plan, establish, redomicile, administer and manage international structures in Malta, including companies, trusts, investment funds and other entities. Maitland’s services are run on a unique business model which integrates the firm’s cross-border expertise in legal advisory, trust & corporate services, asset management and fund services. The firm has an internal culture of cooperation and teamwork across practice groups and across 12 office locations. Our team in Malta is able to draw on Maitland’s cross-border expertise and knowledge of multiple jurisdictions in providing clients with optimal solutions.

Ian CrockfordhEad oF trust

oFFicE - malta

Level 1, ‘Cornerline’, Dun Karm Street, Birkirkara BKR 9039 - MaltaT: (+356) 2144 6377 • F: (+356) 2144 6330 • E: [email protected] • W: www.maitlandgroup.comcontact person: dr. ian crockford - head of trust office, malta

KOnneKtKONNEKT is an established independent recruitment agency, providing a specialist recruitment service to SMEs and startups. We actively recruit for a number of organisations operating within the financial services sector in Malta, the UK and North Africa. We are passionate in what we do, invest heavily in people & technology, and have a solutions driven approach. Our quality focused approach has enabled us to rapidly secure an unprecedented market share and work on a number of prestigious projects. The conscientious application of our values and search & selection methodology guarantees consistent delivery.

Level 1, Europa Centre, St Anne Street, Floriana FRN 9011 - MaltaT: (+356) 2123 4010 • F: (+356) 2123 4015 • E: [email protected] • W: www.konnekt.comcontact person: Josef said – operations director

Josef SaidopErations dirEctor

malta enterPrise Malta Enterprise is government’s exclusive agency focused on attracting inward investment and supporting enterprise in Malta. Its role is to act as a point of contact for all enterprise support and to provide cohesion to government policies relating to enterprise in Malta. Malta Enterprise provides a comprehensive incentives package of assistance to local and international companies and investors considering operations in Malta; including pre-investment advice and support, start-up assistance as well as post investment services and aftercare facilities. Malta Enterprise also offers trade promotion services aimed at introducing foreign companies to suitable manufacturers, service providers, suppliers and potential strategic partners in Malta.

malta tOurism authOritYMTA commenced operations in September 1999 taking over the functions and responsibilities of the National Tourism Organisation of Malta (NTOM). The MTA is currently headed by a Chairman supported by a Chief Executive Officer and has four main areas of responsibilities: Marketing Support and Development; Product Development; Regulatory; Corporate Services.The MTA has overseas offices in Italy (Rome), Germany (Frankfurt) and the UK (London) and overseas representations in Russia, France, Belgium, Sweden, Spain, Austria, Poland, Hungary, Switzerland and the Czech Republic.

280, Auberge d’Italie, Merchants Street, Valletta VLT 1170 - MaltaT: (+356) 2122 4444 • E: [email protected] • W: www.visitmalta.com • www.mta.com.mtcontact person : mr Kevin drake - director communications and pr

Louis Farrugiachairman

Enterprise Centre, Industrial Estate, San Gwann SGN 1000 - MaltaTel: (+356) 2542 0000 • Fax: (+356) 2542 3401 • E: [email protected] • W: www.maltaenterprise.comContact Person: Mr Peter Paul Meli - head, investment promotion

Alan Camillerichairman



Profiles247

miDDlesea Valletta liFe assuranCe CO. ltDEstablished in 1994, Middlesea Valletta Life Assurance Co. Ltd (MSV) is Malta’s leading provider of life insurance, long term savings and retirement planning. MSV offers a vast product portfolio which ranks amongst the highest in the market in terms of quality, performance and price. MSV is jointly owned by Bank of Valletta p.l..c. and Middlesea Insurance p.lc. Through its bancassurance partnership with Bank of Valletta p.l.c. , MSV has gained access to a formidable sales channel, which together with a strong network of authorised tied insurance intermediaries, has led to MSV operating the strongest distribution network in the market. In 1997, MSV set up Growth Investments Ltd, the exclusive representative of Fidelity Funds SICAV in Malta. David G. Curmi

cEo

Middle Sea House, Floriana FRN1442 - MaltaT: (+356) 2122 6411 • F: (+356) 2122 6429 • E: [email protected] • W: www.msvlife.comcontact person: mr david g. curmi

miFra COnsultants limiteDMifra Consultants Limited is an affiliated company of GVTH Advocates, providing a comprehensive scope of fiduciary, trust, fiscal, corporate and management services to a vast array of international clients. Through its dedicated multi-disciplinary team it offers a full spectrum of ancillary services, including registered office, director and company secretary, as well as full range of back office services that include a dedicated accounts department, which enable it to provide a one stop solution to client requirements.

Sarah Jacobsenmanaging dirEctor

192, Old Bakery Street, Valletta VLT 1455 – MaltaT: (+356) 2122 8888 • F: (+356) 2123 6895 • E: [email protected] • W: www.mifraconsultants.comcontact person: sarah Jacobsen

miB insuranCe grOuPEstablished in 1976, the MIB Group today employs over 50 insurance and ancillary services specialists. It comprises three companies independently focusing on the demands of distinct sectors of insurance services consumers. Mediterranean Insurance Brokers offers independent insurance broking and risk management services to the full spectrum of insurance buyers with unique access to the resources of a leading global broking network. MIB Insurance Agency, representing major local and international security, provides expert capabilities and support to the intermediary market in particular Tied Insurance Intermediaries (TII’s). MIB Management Services provides independent Claims Management, Back Office administration and Alternative Risk Transfer solutions. Joseph Cutajar

managing dirEctor

53, Mediterranean Building, Abate Rigord Street, Ta’ Xbiex XBX 1122 - MaltaT: (+356) 2343 3234 • F: (+356) 2134 1599 • E: [email protected] • W: www.mibgroup.com.mtcontact person: mr. Joseph cutajar - managing director - miB

mamO tCV aDVOCatesMAMO TCV Advocates is a Maltese tier-one law firm with a strong international practice and actively involved in all practice areas of commercial law, with a particular focus on corporate and financial services. The firm is committed to providing bespoke legal solutions to a number of companies and groups, firms, family offices and other entities and individuals in the relevant sectors and industries. Our mission is to deliver high-quality services in structuring and implementing business and investment proposals in a pro-active, efficient and timely fashion, and to foster our local and international network to offer comprehensive and integrated services to clients.

Joseph SalibapartnEr

Palazzo Pietro Stiges, 90, Strait Street, Valletta VLT 1436 - Malta T: (+356) 2123 2271 • F: (+356) 2124 4291 • E: [email protected] • W: www.mamotcv.comcontact person: dr. Joseph saliba

10, St. Barbara Bastion, Valletta VLT1961 - MaltaT: (+356) 2557 4444 • F: (+356) 2557 4903 • E: [email protected] • W: www.medbank.com.mtcontact person: Frederic villa - head of Wealth management

meDiterranean BanKMediterranean Bank was established in June 2004 and since July 2005 has been a fully licensed Maltese credit institution, regulated by the Malta Financial Services Authority (MFSA). Mediterranean Bank is a specialist bank focusing on wealth management, savings and investments. In July 2009, Mediterranean Bank was acquired by new shareholders and recapitalised. Its share capital and share premium at 31st March 2010 stands at €52.9 million. The new shareholders are a fund managed by AnaCap Financial Partners, a UK private equity firm specialising in financial services, and senior management.

Frédéric VillahEad oF WEalth

managEmEnt

miFsuD & miFsuD aDVOCatesMifsud & Mifsud Advocates is specialised in commercial, corporate, maritime, aviation and EU Law. The Firm, through its team of professionals, is in a position to assist clients in the following fields of law: financial services, incorporation of trading and holding corporate, structures, trust services, registration of funds, mergers and acquisitions, EU regulatory compliance services, i-gaming licences application procedures, assistance in litigation civil, commercial and maritime cases instituted in Malta, Intellectual property advice, Registration of vessels, aircrafts and mortgages, drafting of commercial agreements/contracts.

Malcolm MifsudpartnEr

123, Melita Street, Valletta - Malta T: (+356) 2123 7172 • F: (+356) 2723 7314 • E: [email protected] • W: www.mifsudadvocates.com.mtcontact person: dr malcolm mifsud



Profiles249

nBg BanK malta limiteDNBG Bank Malta Limited (formerly Finansbank Malta Ltd) was established in 2005 and is a wholly-owned subsidiary of National Bank of Greece, which is the oldest and largest among Greek banks, boasting a dynamic profile internationally, particularly in Greece, Turkey, Albania, Australia, Bulgaria, Cyprus, Egypt, FYROM, Romania, Serbia, South Africa and UK. Our goal is to provide a full range of financial products and services that are tailored to meet the constantly changing needs of our corporate customers and private individuals.

Cenk Kahramanmanaging dirEctor

302/304,Townsquare, Qui-Si-Sana Place, Sliema SLM 3112 - MaltaT: (+356) 2131 8969 • F: (+356) 2132 0991 • E: [email protected] • W: www.nbgmalta.com.mt contact person: maria meilak - assistant to the director

Palmali shiPmanagementPalmali Shipmanagement Ltd established operations in Malta in 2006 to provide financial, technical, administrative and strategic services to oaur parent company and third party ship owners. Palmali Shipmanagement has been established to be a leading provider of shipmanagement and related services to the shipping industry. Our primary objective as a service company is to add value to our clients by delivering quality services in a transparent, cost effective and consistent way. We pride ourselves on offering a flexible and customized approach to our ship management clients seeking global solutions for all vessel segment.

Villa Aurora, 14-16, Princess Elizabeth Street, Ta' Xbiex XBX 1102 - MaltaT: (+356) 2138 8344/5/6 • F (+356) 2138 8347 • E: [email protected] • W: palmali.com.trcontact person: nigar aliyeva - director

Palmali ShiPmanagement ltd

Nigar AliyevadirEctor

mZ inVestment serViCes limiteDMZ Investment Services Ltd. was incorporated in 1999 and is licensed to conduct investment services business by the MFSA. We are committed to create a long-term partnership with our clients and offer a full range of financial services focused to meet their needs. The Company offers high quality Investment Advice, Nominee Services, and Reception and Transmission of orders to retail and professional clients. These services are offered on a wide range of products such as Local and Foreign Equities, Corporate Bonds, Government Securites, and Collective Investment Schemes. MZI is also the Sponsor and Representative in Malta for Lloyds TSB Offshore Funds.

Martin Zahramanaging dirEctor

55, MZ House, St. Rita Street, Rabat RBT 1523 - MaltaT: (+356) 2145 3739 / 21459058 • F: (+356) 2145 3407 • E: [email protected] • W: www.mzinvestments.comcontact person: mr. martin Zahra Fcsi iiac miFsp – managing director

mss internatiOnal serViCesMSS International Services Limited (MSS) has been in operation since 1994 offering a comprehensive range of corporate services to clients operating in various different sectors. MSS is licensed under the Malta Trust and Trustees Act to provide trust and fiduciary services. Other services include taxation, VAT and management consultancy, the incorporation of companies, provision of directors, registered office, company secretarial requirements, company administrative support, accountancy, application for work permits, taking up residency in Malta, administrative support to the film industry and ship registration.

Michael ScerricEo

Regent House, 52, Fifth Floor, Bisazza Street, Sliema SLM 1641 - MaltaT: (+356) 2134 1857 • F: (+356) 2133 6296 • E: [email protected] • W: www.mss.com.mtcontact person: ms. alida mizzi

muniCh re OF malta P.l.C.Munich Re of Malta offers reinsurance solutions in all major lines of business for primary insurers including captives in Malta and selected international markets. It started operations in October 2008 and is a 100% subsidiary of Munich Re, one of the world´s leading reinsurers which stands for exceptional solution-based expertise, consistent risk management, financial stability and client proximity. From its offices in Floriana Munich Re of Malta services its clients with its team of experts who enjoy the support of the broad Munich Re Group network.

Konstantin von JagowchiEF ExEcutivE oFFicEr

Development House, 5th floor, St. Anne Street, Floriana FRN 9010 - Malta T: (+356) 2248 0821 • F: (+356) 2248 0889 • E: [email protected] • W: www.munichre.comcontact person: Konstantin von Jagow - chief Executive officer

natiXis malta inVestments limiteDNatixis Malta Investments Limited is a wholly owned subsidiary of Natixis SA, which forms part of Banque Populaire Caisse d’Epargne (BPCE) Group, the second largest banking group in France. The company established in Malta in 2007 provides effective investment opportunities solutions to the Group primarily within the hedge fund industry. It also offers structured financing and other investment opportunities to the Group and also to third parties.

166 Old Bakery Street Valletta VLT 1455 - MaltaT: (+356) 2701 5593 • F: (+356) 2701 5597 • E: [email protected] • W: www.natixis.comcontact person: david Bonavia – general manager

David BonaviagEnEral managEr



Profiles251

quBe serViCes limiteDQUBE Services Limited is involved in trust/foundation and company formation in Malta. At QUBE Services Limited, we are also pleased to provide ancillary and related services, including but not limited to, provision of directors, company secretary, registered office and back office operations. We can be consulted on all legal and tax issues in connection with the above-mentioned business lines. Essentially we are a one-stop-shop for all tax-driven vehicles for corporate and non-corporate clients. Last but not least, we are able to assist with the setting up and/or registration of funds in Malta and with all connected and ancillary services in this sector.

Michael ElluldirEctor

168, St Christopher Street, Valletta VLT1467 - Malta • T: (+356) 2122 7553 • F: (+356) 2122 7667 E: [email protected], [email protected] • W: www.qubeservices.comcontact person: michael Ellul/thomas Jacobsen - directors

regusRegus is the world’s leading provider of innovative workspace solutions, with products and services ranging from fully equipped offices to professional meeting rooms, virtual offices, business lounges, Businessworld cards and the world’s largest network of video communication studios. Based on flexibility, Regus solutions deliver a new way to work, whether it’s from home, on the road or from an office, allowing individuals and companies to focus on their core business. Over 500,000 customers such as Google, GlaxoSmithKline, Nokia and thousands of SMBs, already benefit from Regus facilities spread across a global footprint of 1,000 locations in 450 cities and 78 countries.

Olivier de LavaletterEgional gEnEral managEr

rEgus southErn EuropE

2nd floor Tower Business Centre, Tower Street, Swatar - Malta T: (+356) 8007 2213 • F: (+356) 2546 6000 • W: www.regus.com/maltacontact person: olivier de lavalette, regional general manager regus southern Europe

PriCeWaterhOuseCOOPersPricewaterhouseCoopers provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 146,000 people in 150 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice. At PricewaterhouseCoopers in Malta, our relationship-based service focuses on delivering tailored solutions to individual business needs, helping to build shareholder value and providing support on an ongoing basis. We are the leading and largest professional services organisation in Malta and serve a large and diverse client portfolio of both local and international clients.

Kevin ValenziapartnEr

167, Merchants Street, Valletta VLT 1174 - MaltaT: (+356) 2124 7000 • F: (+356) 2124 4768 • E: [email protected] • W: www.pwc.com/mtcontact person: mr Kevin valenzia - partner

POrtman internatiOnal grOuPOur activities include corporate services; company formation & secretarial; trust services; accounting; advisory; tax & VAT; audit; trading support services and compliance & regulatory advice & support. Portman international employs over 75 professionals and has specialized teams of lawyers and accountants. Portman International has its main administrative hub in Malta and offices in London & Dublin in order to directly support its clients’ international business activity. Portman International also assists clients across the globe via its membership of the world-wide TIAG and TAGLaw networks of lawyers and accountants in 240 firms operating out of over 420 offices in 100 countries.

David Marinelligroup cEo

PraXis FunD serViCes (malta) limiteDPraxis Fund Services (PFS) provides a comprehensive, efficient and independent fund formation and administrative service spanning start ups to larger more established fund structures. Our clients include institutions and high net worth individuals in a range of jurisdictions. Our expertise focuses on the administration of a wide range of alternative assets, including but not limited to hedge fund of funds, fund of hedge funds, property and private equity funds. PFS has operations in Malta, Guernsey and Luxembourg and is part of the Praxis Group, one of the leading independently owned financial services groups in the Channel Islands.

Nick Mahymanaging dirEctor

2nd Floor, Europa Centre, St. Anne Street, Floriana FRN1400 - Malta T: (+356) 2124 1225 • F: (+356) 2124 1120 • E: [email protected] • W: www.portmaninternational.comcontact person: david marinelli, group cEo

Second Floor, Chircop Building, 115 Valley Road, Birkirkara BKR 9011 - MaltaT: (+356) 2546 8000 • F: (+356) 2149 4740 • E: [email protected] • W: www.pfs.ggcontact person: nick mahy - managing director

PenDer Ville ltDPender Ville Ltd was set up to develop two large tracts of land in St.Julians, now branded ‘Pendergardens’ and ‘The Exchange’. Pendergardens is the residential side of the development on 18,500sq m and will include 320 apartments and 16 exclusive villas. ‘The Exchange’, will be Malta’s Financial and Business Centre with 20,000sq m of office space of which 8,000sq m were taken up by FIMBank as their global headquarters and over 8,500sq m of retail and leisure area. The development includes ample car parking spaces.

Peter DiaconochiEF ExEcutivE oFFicEr

Pender Place, St.Andrews Rd, St.Julians STJ 9023 -Malta T: (+356) 2138 3260 • F: (+356) 2138 1441 • E: [email protected] • W: www.pendergardens.comcontact person: mr.peter diacono - chief Executive officer



Profiles253

simOn tOrtell & assOCiatesSimon Tortell & Associates is a full-service law firm with a particular focus on financial services and corporate law. Our lawyers are trained to not only apply the law to any given transaction or scenario but to familiarize themselves with the markets in which they operate with the ultimate goal of finding the best solutions for our clients. This commitment to excellence has been recognized and appreciated by a diverse client base that ranges from leading investment banks and multinationals to local companies and individuals.

Simon Tortellmanaging partnEr

25, Strait Street, Valletta VLT 1434 - Malta T: (+356) 2122 8862 • F: (+356) 2122 3567 • E: [email protected] • W: www.simontortell.comcontact person: dr. simon tortell – managing partner

sParKasse BanK malta PlCSparkasse Bank Malta plc forms part of the Austrian Savings Banks and the Ertse Group Bank AG network. The ‘Sparkasse’ Brand is known to be one of Central Europe’s foremost Savings and Financial Services Group. Our Goal is to deliver highly personalised banking and innovative investment solutions backed by experience, competence and robust support services. Our core services include: private banking, wealth management, custody & settlement, broker support services, international payment solutions.

Paul Mifsudmanaging dirEctor

101 Townsquare, ix-Xatt ta’ Qui-si-Sana, Sliema SLM3112 - Malta T: (+356) 2133 5705 • F: (+356) 2133 5710 • E: [email protected] • W: www.sparkasse-bank-malta.comcontact person: paul mifsud - managing director

sKY ParKs Business CentreSky Parks Business Centre is the latest investment within the expansion plans pursued by Malta International Airport plc under the operations of Sky Parks Development Ltd. Launching the construction of the Centre worth €16 million, the project boasts of a state-of-the-art 9-level building situated in a uniquely accessible location. Sky Parks Business Centre has been sited by MEPA as an ideal site for company premises, offering a total of 14,000 m² of rentable area including office accommodation, food and beverage outlets as well as a wellness and childcare centre with complimenting underground car parking facilities. This project is scheduled to be completed by the third quarter of 2011, by which date our anchor tenant -Vodafone (Malta) Ltd.- will be transferring all their operations to the new Business Centre. Alan Borg

gEnEral managEr

Malta International Airport plc, Luqa LQA 4000 - Malta T: (+356) 2369 6340 • F: (+356) 2124 9563 E: [email protected] • W: www.maltairport.comcontact person: alan Borg – general manager

rsm maltaRSM Malta is a multi-disciplinary firm with a proven track record that provides sound and practical advice to international investors interested to set up business in Malta. We employ various specialists to provide a full range of services including: tax planning and compliance, company formation and re-domiciliation, due diligence, mergers and acquisitions, accounting and payroll, business and IT advisory and audit. Our organisational set up is such that enables us to provide swift and efficient solutions tailored to client needs and ensure the highest standard of quality services at all times. The firm forms part of RSM International a global network of independent accounting and consulting firms.

Maria MicallefassurancE and BusinEss

advisory partnEr

Cobalt House, Level 2, Notabile Road, Mriehel BKR 3000 - Malta T: (+356) 2149 3313 • F: (+356) 2149 3318 • E: [email protected] • W: www.rsmmalta.com.mtcontact person: maria micallef - assurance and Business advisory partner

rtFX ltDRTFX was established in March 2009, after taking over the operations of Realtime Forex SA, the first Swiss online foreign exchange trading company. RTFX is licensed by the MFSA and regulated under MiFID. As a leading Online FX market-maker providing trading facilities to investors covering over 40 currency pairs, including Precious Metals, we provide Execution-Only Accounts, through state-of-the-art Trading Platforms including charting and news feeds. Additionally, we offer fully transparent Asset Management Services, together with selection between ECN and Fixed spreads and minimum Accounting Opening of Eur 1,000. RTFX is well positioned for the English, French, German and Italian markets.

Andrew Zarb MizzigEnEral managEr

The Cornerstone Complex, 16th September Square, Mosta MST1180 - Malta T: (+356) 2331 0000 • F: (+356) 2141 2458 • E: [email protected] • W: www.rtfx.comcontact person: mr. andrew Zarb mizzi, general manager

salt Partners grOuPSalt Partners are corporate and trust service providers focusing on customer relationships. With offices in Malta, the UK and the Caribbean we offer multi-jurisdictional company formation, corporate administration and licensed trustee services. In-house accountancy and bookkeeping facilities allow a complete package to be offered to international clients. This is an energetic group with an international team of professionals able to provide a cost-effective service. Our directors and staff have working experience in Malta, Bermuda, the Caribbean, the UK, Canada and the USA. Back-office services include management and facilitation of Malta branch offices within our premises.

Tracy Langemanaging dirEctor

7 Northfields, Independence Avenue, Mosta MST 9026 - Malta T: (+356) 2701 1727 • F: (+356) 2141 9307 • E: [email protected] • W: www.saltpartnerslimited.comcontact person: tracy lange, managing director



Profiles255

uhY PaCe, galea musu ̀& CO.UHY Pace, Galea Musu` & Co. provides quality professional services including audit and assurance, business solutions, corporate finance, corporate governance, local and foreign tax planning, company formation and redomiciliation, management consulting, payroll bureau, insolvency, accountancy and back office administration customized for its local and foreign clients, operating in a wide range of industries. UHY Pace, Galea Musu` & Co. is a member firm of UHY International, a cohesive association of independent accountants offering specialist sector and country knowledge based services from 242 office in 76 countries located in all major international business centres across the globe.

David PacepartnEr

No. 2, Matilda Court, 35 Giuseppe Cali` Street, Ta’ Xbiex XBX 1423 - MaltaT: (+356) 2131 1814 / 2133 1710 • F: (+356) 2131 0461E: [email protected] , [email protected] • W: www.uhymalta.comcontact person: david pace or pierre galea musu - partners

tmF grOuPThe TMF Group is an independent provider of management and bookkeeping services to companies worldwide. Through its truly global network, TMF can provide the local knowledge and expertise to help clients focus on their core business activities. TMF has a strong track record of growth and now employs over 3,300 professionals and operates out of 86 offices in 65 countries (March 2010). In Malta, TMF also provides fund administration services within a SAS-70 Type II certification to produce fully reconciled NAV calculations in a timely and accurate manner.

Els Serracino Inglottmanaging dirEctor

Level 7, The Mall Offices, The Mall Street, Floriana FRN 1470 - Malta T: (+356) 2206 3000 • F: (+356) 2122 8465 • E: [email protected] • W: www.tmf-group.comcontact person: Els serracino inglott, managing director

transPOrt maltaTransport Malta (TM), the Authority for Transport in Malta, was set up in 2010 as a distinct and autonomous corporate body to assume the functions previously exercised by the Malta Maritime Authority, the Malta Transport Authority and the Civil Aviation Department. Vested with detailed regulatory powers, TM is entrusted to supervise and co-ordinate the organisation of all functions related to roads, transport by air, rail, road, or sea, within ports and inland waters, and relating to merchant shipping.

Stanley PortellicEo

Malta Transport Centre, Marsa MRS 1917 - MaltaT: (+356) 2122 2203 • F: (+356) 2125 0365 • E: [email protected] • W: www.transport.gov.mtcontact person: dr stanley portelli - cEo

the Xara PalaCe relais & ChateauXThe Xara Palace Relais & Chateaux is Malta’s finest, privately owned, luxury boutique hotel offering 17 individually designed suites. Here one can discover and savour the past whilst enjoying every amenity and comfort of the present. Situated in the medieval town of Mdina, this unique 17th century palazzo offers the highest standard of service, accommodation and cuisine. Mdina is a short drive away from the Island’s major attractions. The highly acclaimed de Mondion Restaurant enjoys spectacular panoramic views and offers the best of modern cuisine prepared by award-winning Executive Chef, Kevin Bonello and his Brigade.

Justin Zammit Tabonamanaging dirEctor

Misrah il-Kunsill, Mdina MDN 1051 - MaltaT: (+356) 2145 0560 • F: (+356) 2145 2612 • E: [email protected] • W: www.xarapalace.com.mtcontact person: mr Justin Zammit tabona – managing director

sYsteC limiteDSystec Limited is a leading IT solutions provider in Malta. Systec is the HP Authorised Enterprise Distributor and HP Authorised Service Delivery Partner, for the complete HP solution portfolio. Systec’s Enterprise Team has extended its core expertise in Virtualization technologies by investing significantly in training and certification on VMWare, Vizioncore, Vyatta, F5, Veeam, and Novell technologies. Systec’s further accreditations as HP BladeSystem Solution Builders and VMWare Authorised Consultants, quarantees many successfully implemented corporate HP BladeSystem and Enterprise Storage Arrays in virtualized environments. Systec places a great focus on active strategic partnerships, by virtue of which it is uniquely positioned to build complete Virtualization eco-systems. Raphael Micallef Trigona

managing dirEctor

Regional Business Centre, Level 3, Achille Ferris Street, Msida MSD 1671 - Malta T: (+356) 2347 5000 • F: (+356) 7942 0696 • E: [email protected] • W: www.systec.com.mtcontact person: ing. raphael micallef trigona - managing director

sPiteri BaileY & CO.Spiteri Bailey & Co is an independent member of IGAF Worldwide, an association of 130 independent firms with over 430 offices in more than 50 countries. We offer a holistic one-stop-shop approach with practical advice to international investors interested in setting up business in Malta. Besides offering Office Space and Board Room facilities serviced with all amenities, the firm provides a complete range of services including Incorporation of Malta Companies, Corporate Tax Compliance and Planning, Back Office Administration including Accounting , Payroll and Regulatory requirements, Audit and Business Advisory, Application for Permanent Residence & Work Permits, Management Consultancy.

William Spiteri Baileymanaging partnEr

Triq Dun Karm, Birkirkara By-Pass, Birkirkara. BKR 9038 - Malta.T: (+356) 2149 9250 • F: (+356) 2144 4815 • E: [email protected] • W: www.spiteribailey.comcontact person: William spiteri Bailey - managing partner


Profiles 256

Zammit & assOCiates – aDVOCatesZammit & Associates - Advocates is a leading Maltese law firm specialising in corporate and commercial law, mergers and acquisitions, finance, financial services, hedge fund registration, e-commerce, employment, immovable property, shipping, yachting and aviation. The firm is committed to providing its clients with smart and effective legal solutions, based on detailed legal analysis and carefully-considered courses of action. Zammit & Associates - Advocates is a member of the Malta Chamber of Advocates, the International Bar Association (IBA), the Institute of Financial Services Practitioners (IFSP), FinanceMalta, the International Tax Practitioners Association (ITPA), International Fiscal Association (IFA), Malta Maritime Law Association (MMLA), and International Masters of Gaming Law (IMGL). Andrew J. Zammit

managing partnEr

The Penthouse, Tower Business Centre, Tower Street, Swatar BKR 3013 - Malta T: (+356) 2557 2300 • F: (+356) 2557 2310 • E: [email protected] • W: www.zammit-law.comcontact person: dr. andrew J Zammit- managing partner

VODaFOne malta ltD.Vodafone Malta is proud to be the local provider of choice for high-speed bandwidth, co-location services and international private leased lines. With its very own submarine cable and a high capacity link on another 3rd party subsea cable, Vodafone provides a resilient connection to mainland Europe where redundant international carriers route all traffic to anywhere around the world. Vodafone Malta also operates a state-of-the-art carrier grade co-location facility serving an ever growing number of mission-critical businesses operating out of Malta. Vodafone guarantees 24x7 technical support, multiple carrier connectivity and an outstanding level of service that is synonymous with the Vodafone brand.

Inaki BerroetacEo

Vodafone House, Msida Valley Road, B’Kara BKR 9024 - Malta T: (+356) 9211 1401 / 332 • F: (+356) 9211 1358 • E: [email protected] • W: www.vodafone.com.mt/bandwidthcontact person: albert Zerafa - gateway & roaming manager

Valletta FunD serViCes limiteDValletta Fund Services Limited is a fully owned subsidiary within the Bank of Valletta Group in Malta. Structured to provide a comprehensive range of fund administration solutions including, turnkey fund formation, fund accounting and valuation, transfer agency as well as compliance and corporate services.

Kenneth FarrugiagEnEral managEr

Level 6, The Mall Offices, The Mall, Floriana FRN 1470 - Malta T: (+356) 2122 7311 • F: (+356) 2123 4565 • E: [email protected] • W: www.vfs.com.mt contact person: mr Kenneth Farrugia – general manager

Malta the culture of

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