Other Services Other Services


Finance

One of Europe's most stable and innovative finance domiciles, Malta is today home to an increasing number of retail and non-retail funds as well as fund administrators and managers

 

Since Malta's accession to the European Union in 2004 and the Eurozone in 2008, Malta has emerged as one of Europe's most stable and innovative finance domiciles and is today home to a number of retail and non-retail funds as well as fund administrators and managers. As at end of 2013, the sector was worth  1 billion Euro, employed some 10,000 people and accounted for 8.5% of the GDP.  Malta is presently home to  620 funds, 50 credit institutions, 28 international banks, 66 insurance operators, 26 fund administrators and has issued 133 fiduciary licences.


Malta Success is Due to the Following Factors

  • Malta's legislation provides for the setting up of several fund options from UCITS to non-UCITS retail funds as well as Professional Investor Funds (PIFs).

  • Funds can be set up through a number of possible vehicles, including open ended and close ended corporate entities, trusts, limited partnerships or contractually.

  • Flexible and market driven regulator.

  • Funds may opt for self-managed route.

  • The only EU jurisdiction where funds may be formed as incorporated cell companies.  Funds may also be structured as umbrella funds or multi-funds.

  • Re-domiciliation of funds in and out of Malta possible.

  • Passporting opportunities for funds and fund managers. Although not traditionally a UCITS jurisdiction, structures are being set up in Malta and passported across Europe.

  • Cost competitive environment.
 

Fund Managers

Malta hosts a growing number of fund managers in view of the low operating costs and in order to avail of the competitive corporate tax rate and to service funds anywhere in the EU.  A fund management company set up in Malta will be subject to tax at the normal corporate tax rate of 35%, however upon a distribution of dividend to its shareholders, the shareholders will be entitled to a 6/7th tax refund on the Malta tax payable. Furthermore, Malta does not impose any withholding taxes. Under the UCITS IV Directive, the management company of a UCITS domiciled in one EU country may be set up in Malta.

Malta was the first Member State to fully incorporate the AIFM Directive and is therefore AIFMD ready. The AIFM Directive establishes a quality AIF brand for AIFM Directive compliant products comparable to the UCITS brand established by the UCITS Directive.

Building on the success of her already AIFMD complaint product, the PIF, Malta is busy setting up various structures for fund managers and administrators alike.

Highly Qualified Persons

Apart from the above advantages, Malta has also introduced a scheme whereby qualifying persons who occupy an ‘eligible office' with companies licensed and/or recognized by the Malta Financial Services Authority such as CEO, CFO, Portfolio Manager with an annual remuneration exceeding €80,100, (adjusted annually on the basis of the Retail Price Index published by the National Statistics Office will be subject to tax in Malta at the flat rate of 15% with respect to such employment income. Income exceeding €5m will be tax exempt.

Where an individual does not qualify under the scheme, interesting tax planning opportunities are available since individuals that are resident but not domiciled in Malta are taxed on a remittance basis.

Our Services

EMCS International offers a wide range of services in relation to Retail Collective Investment Schemes (UCITS and non-UCITS), PIFs, Private Collective Investment Schemes (CIS) and fund managers:

  • Advising clients on the licensing and other regulatory requirements in relation to entities operating in and from Malta on a cross-border basis
  • Assisting in the setting up of the fund, including the preparation and submission of the required documentation including the offering document/ prospectus 
  • Assisting in the passporting of UCITS and fund managers
  • Assisting with the setup of fund management companies and obtaining the required licence
  • Assisting in the re-domiciliation of funds
  • Liaising with the Malta Financial Services Authority and other public bodies
  • Provision for local company secretary, registered office and directors
  • Provision of serviced office
  • Providing corporate and personal tax advice on the intended structure
  • Assisting with on-going regulatory obligations, including secretarial support
  • Advising clients on the regulatory and supervisory requirements in relation to listing the collective investment scheme on the local market, the Malta Stock Exchange