Malta as a Hotspot for finance companies

The finance indus­try is the largest sec­tor in Mal­ta and is the largest con­trib­u­tor to the gross domes­tic prod­uct. When Mal­ta joined the Euro­pean Union in 2004 there were only four hedge funds present in Mal­ta. Since then over 400 invest­ment licences had been issued by the Mal­ta Finan­cial Ser­vices Author­i­ty (MFSA), and more are issued every year. But what makes Mal­ta so pop­u­lar for finan­cial com­pa­nies to move their busi­ness oper­a­tions here?

With Mal­ta being part of the Euro­pean Union, it offers a con­ve­nient posi­tion for com­pa­nies to tar­get the Euro­pean mar­ket. Even though Mal­ta is an island in the mid­dle of the Mediter­ranean, flight con­nec­tions to oth­er Euro­pean coun­tries are avail­able in abun­dance, espe­cial­ly the selec­tion of routes and fre­quen­cy of flights to the Unit­ed King­dom.

The gov­ern­ment also offers com­pa­nies attrac­tive incen­tives to set­tle on the island. The cost for licens­ing and reg­is­trar fees are com­pet­i­tive on the Euro­pean mar­ket, and office costs in Mal­ta can be very low as well — depend­ing, of course, on the area you choose for your busi­ness. A few years ago, the gov­ern­ment invest­ed into the com­mu­ni­ca­tion sys­tems, and they are now pro­vid­ing high-speed broad­band ser­vices using state-of-the-art tech­nol­o­gy. Ser­vices are offered at a com­par­a­tive­ly low cost for the clients. The Mal­tese gov­ern­ment also offers a refund of cor­po­rate tax if the com­pa­ny is struc­tured accord­ing to strict reg­u­la­tions.

Mal­ta is a bilin­gual nation, using Mal­tese and Eng­lish as nation­al lan­guages. The uni­ver­si­ty and the Col­lege for Arts, Sci­ence and Tech­nol­o­gy (MCAST) pro­vide skilled work­ers that are pre­pared in Eng­lish.

The abun­dance of Hedge Funds and Col­lec­tive Invest­ment Schemes in Mal­ta speaks for the pop­u­lar­i­ty of the islands. If you have fur­ther ques­tions about set­ting up a finan­cial com­pa­ny in Mal­ta, or apply­ing for the licences, you are wel­come to sched­ule a per­son­al con­sul­ta­tion with the legal office of Dr. Wern­er & Part­ner.

About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT ‑Advanced Diplo­ma in Inter­na­tion­al Tax.

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