About Malta business opportunities

The Republic of Malta is an archipelago of islands in the Mediterranean Sea, some 80 km to the south of Sicily. The three main islands – Malta, Gozo and Comino – together cover just over 316 sq km. The population of Malta numbers around 500,000, making it one of the world’s smallest and most densely populated countries. The capital is Valletta.

Malta gained independence from the UK in 1964 and became a republic in 1974. It was admitted to the European Union in 2004 and joined the euro zone in 2008.

Malta has two official languages – Maltese and English – and follows what is usually referred to as the European model of private law. English common law does not apply but its influence is strong in commercial practice and regulation, especially in corporate, insurance and banking law.

Since 1988, Malta has built a comprehensive legislative and regulatory framework for financial services and international business. The Malta Financial Services Authority (MFSA) is the single licensing and supervisory authority for all financial services activity.

Effective regulation, full EU ‘passporting rights’ and strong investor safeguards are the main pillars of Malta’s financial centre, which offers a sophisticated range of banking, investment, legal, accountancy and other professional services.

The Maltese 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. Malta’s tax system has been approved as compliant by the European Commission and the OECD.

As a full EU member state, Malta has implemented all the relevant EU directives in respect of corporate taxation, including the EU Parent-Subsidiary Directive and the Interest and Royalties Directive.

As a result, Malta has enjoyed strong and consistent growth in its financial services sector and has become a jurisdiction of choice for multinational companies looking for a competitive base to maximise business and investment opportunities inside the European Union.

Malta has further introduced a Virtual Financial Assets (VFA) Framework to support innovation and new technologies for financial services in the area of crypto-assets, while ensuring effective investor protection, financial market integrity and financial stability.

The VFA Framework establishes three types of authorisations for: the registration of VFA Agents, the registration of ‘whitepapers’ and applications for VFA Services Providers. This has positioned Malta as a key hub for online gaming, blockchain, fintech and other new technologies. Malta’s communication and transport links are excellent.

In order to encourage the growth of international trade including that of financial services, successive Maltese governments have sought to conclude double tax treaties with important trading partners, as well as with emerging countries. To date, treaties are in force with over 70 countries and this policy is expected to continue.

Sovereign Trust (Malta) Limited is licensed by The Malta Financial Services Authority.