The Pensions and Retirement Sector
Malta boasts a dynamic pensions sector wherein multinational corporations and individuals are increasingly looking to place their benefit plans. Malta's financial services sector is rapidly emerging as one of the strongest in Europe and the island provides an ideal setup for international pension pooling vehicles for international companies, international workers and high net worth individuals looking to set up their own or employees' retirement plans. This was outlined in the FinanceMalta Wealth Management Sector Guide 2015-2016.
So far, Malta has mainly been servicing the UK market. In 2009, Malta's regulator, the Malta Financial Services Authority (MFSA) received confirmation from the British tax authority that pension schemes established in Malta and regulated by the MFSA are eligible for recognition as Qualifying Recognised Overseas Pension ( QROPS) and since then Malta's QROPS scheme became well-established.
In addition to its QROPS scheme, Malta also has an advantageous Qualifying Non-UK Pension Scheme (QNUPS) set in place and is gaining ground fast in relation to Institutions for Occupational Retirement Provision (IORPS). The latter can be set up in Malta and passported to other EU/EEA member states, in line with the EU's single market directive.
Advantages of Malta Pension and Retirement Schemes
In view of the current scenario, Malta and its regulator are directing their efforts towards creating a cost-effective and advantageous regime that attracts European employers, expatriates and high net worth individuals to establish their pensions in Malta. The most prominent benefits of Maltese pensions and retirement schemes are the following:
- Retirement schemes and their administrators are licensed and fully regulated by the Malta Financial Services Authority (MFSA),
- Malta's full EU membership enables companies established in other EU member states can sponsor occupational schemes established in Malta,
- Scheme administration and management fees are comparatively lower than in other jurisdictions,
- A strong regulatory framework and the MFSA ensure the integrity of the plan and peace of mind for the scheme's members,
- Legislation allows for a number of customised structures that suit the requirements of individuals of international businesses,
- Malta satisfies the current HMRC requirements, enabling Malta retirement schemes to self-certify in terms of the UK's QROPS legislation.
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.
