The Republic of Malta is an archipelago of islands in the Mediterranean Sea, some 80 km to the south of Sicily. Malta is composed of three main islands – Malta, Gozo and Comino – which 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.
As an 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. Malta’s tax system has been deemed by the European Commission to be compliant with EU non-discrimination principles and has also gained approval from the OECD.
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. Malta has further enacted legislation to regulate the provision of Virtual Financial Asset services and has positioned itself as a hub for online gaming, blockchain, fintech and other new technologies. 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 in the future.
Licensed by The Malta Financial Services Authority
A Maltese company is an ideal vehicle for establishing a business within the EU. Malta is regarded as a jurisdiction of choice due to its fully EU-compliant highly competitive tax system, participation exemption and tax refund, along with over 70 double tax agreements. Sovereign’s team based in Malta can establish both holding companies and trading companies.
The Maltese tax system is designed to attract investors and entrepreneurs. Maltese entities can be used for all types of business including holding companies, estate and succession planning, trading companies, family office, funds, local and international property holding and insurance.
Sovereign offers company formation and management in Malta across all business areas and corporate structures, together with the administrative support to maximise opportunities and achieve long-term sustainability. These range from full back-office solutions to assistance with compliance in respect of regulatory, tax and economic substance rules.
Sovereign’s Private Client services assist families and entrepreneurs around the world to structure their assets to support personal, family, commercial and charitable interests. Sovereign has the depth of technical expertise to identify and create the optimum solution for our clients’ needs, whether that be asset protection, estate or succession planning.
Malta offers a wide range of investment vehicles, including investment funds, companies, trusts and foundations, that can accommodate the most complex arrangements within the security of a full EU member state. Malta’s beneficial tax regime allows for minimal tax impact on a corporate or personal level.
HNWIs and their families can also benefit from substantial tax advantages if they move their residence to Malta, which operates a scheme offering a flat tax rate of 15% on foreign income if they purchase property in Malta. Malta is also an attractive base for the registration of commercial and pleasure yachts, as well as aircraft.
The robust regulatory framework provided by the Malta Financial Services Authority (MFSA), together with Malta’s full EU Member status and established financial services industry, make Malta a compelling jurisdiction for international pensions.
Sovereign Pension Services Limited is licensed by the MFSA as a Retirement Scheme Administrator and offers a full range of international retirement benefit solutions from Malta, including four Qualifying Recognised Overseas Pension Schemes (QROPS) and a Qualifying Non-UK Pension Schemes (QNUPS).
Malta’s legislation allows for a number of customised structures that suit the requirements of individuals or international businesses. Malta’s EU Member status means that companies established in other EU member states can also sponsor occupational schemes established in Malta. All plans can be tailored to fulfil the objectives of the scheme sponsors and members.