Although it may be the smallest country in the European Union, Malta has the fastest growing economy across member states and a strong financial sector. The stability of the Maltese fiscal framework is evident as the island was untouched by the past financial crises, and is today amongst the top banking industries in the world and a leading financial centre in Europe.
The island has attracted numerous foreign investors looking for a jurisdiction with a framework suited towards the banking industry. With a firm yet flexible financial regulator, the Malta Financial Services Authority (MFSA), Malta is focused on protecting consumers whilst simultaneously aiming to develop commerce in Malta.
Malta's banking industry has allowed for several tax benefits and an extensive double tax treaty network that are compliant with EU regulation. As a probusiness jurisdiction, the island has low set-up costs and licensing fees, as well as a competitive fiscal regime. Maltese law also includes Payment Services Directives and EU Electronic Money Institutions Directives, which regulate payment institutions. The island's legal framework operates under the Banking Act for banking institutions in Malta, and utilizes the Financial Institutions Act for non-bank financial institutions.
The island's membership within the EU allows companies to maintain passporting rights across member states as well as permits credit institutions in the EU to operate in Malta. Apart from its legislative benefits, Malta also offers a skilled and educated English-speaking workforce. As a result, Malta already has a number of sound financial institutions located on its shores, and the amount of foreign investors within the banking sector is quickly growing.
Chetcuti Cauchi has just organised webinars surrounding the banking industry in Malta. To learn more about how Malta is a key jurisdiction for firms looking to transfer or expand their business within the EU, click here to register to watch the webinar.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
