Publications

VAT Structures for Yacht Leasing

The Maltese VAT structure Towards the end of November 2005 a set of guidelines were issued by the Maltese VAT Department tackling the issue of taxation of lease-purchase yachts to third parties by a Maltese Company. As per the Guidelines, a lease-purchase financial agreement is defined as “a leasing agreement of a pleasure boat is an agreement whereby the LESSOR contracts...

Trusts in Malta

Recent legislation in Malta has allowed Trusts to be set up in Malta. Previously Maltese legislation allowed the recognition of foreign registered Trusts. This has changed in order to offer more flexibility in the administration of moveable and immoveable property in Malta and elsewhere The term “Trust” refers to the legal relationship created by a person, the “Settlor”, when assets...

The Maltese Corporate Tax System

Brief Information on: Integrated Imputation System Tax Accounts Participation Exemption Double taxation relief Refunds of Malta tax paid No outbound withholding taxes Group taxation provisions Payment of tax and refunds Advance Revenue Rulings General The main legislation regulating income tax in Malta is included in the Maltese Income Tax Act and the Maltese Income Tax Management Act. The...

Remote Gaming Operations in Malta

Since the introduction of the first offshore betting licenses in 2000, the Lotteries and Gaming Authority (the “Authority”) has developed its methodologies to regulate the procedures of remote gaming operations. In April 2004, Malta published the (revised) Remote Gaming Regulations – a comprehensive legislative instrument that aims to provide a secureon-line environment to players and, at the same time,...

Migrating Luxembourg 1929 Companies to Malta

Migrating Luxembourg 1929 Companies to Malta and the Changing of Domicile to Malta. Following Malta’s entry to the European Union in 2004, the financial services sector on the island has made significant developments in the European financial services scene. Accession has placed Malta on the financial map as a very significant and competitive jurisdiction. The benefits derived from EU membership...

Global Residence Programme

Malta will be soon introducing the new Global Residence Programme for foreigners; it will address non-EU, non-EEA and non-Swiss nationals only, and will drastically reduce the thresholds presently in place. The Global Residence Programme will stipulate that the minimum value of immovable property bought in Malta by foreigners be of €275,000. For property located in the South of Malta...

FUNDS IN MALTA

Professional Investor Fund Malta is fast becoming a very popular jurisdiction in which to register funds of various types. Below is a very brief introduction on the Professional Investor Fund (PIF). The Malta Financial Services Authority (MFSA) is responsible for the licensing, regulation and supervision of all collective investment schemes, including PIFs. It is a “one-stop-shop”financial services regulator...

Corporate Opportunities in Malta

Branches of Overseas Companies Under Maltese law an oversea company is a body corporate which is constituted or incorporated outside Malta. The Companies Act holds that a company is required to register with the Maltese Registrar of Companies within one month from establishing a branch or a place of business in Malta. The process involves the delivery to the Registrar for...

Foundation in Malta

MALTA FOUNDATIONS The principal legislation regulating Foundations in Malta is Act XIII of 2007, this act gave formal recognition to foundations in Malta which had been existing since the early 20th Century, prior to Act XIII of 2007 Foundations had been regulated by customary law. Foundations can be set up as ‘private foundations’ or ‘purpose/public foundations’. A Foundation set up...

Banking in Malta

Financial Services in Malta The global and regional business and the financial markets are undergoing a consolidation process and this brought about important changes in the banking and financial services sectors throughout the world. With the accession of Malta in the European Union, Maltese market players have been given a larger role on the financial plane, due to the increased coverage given in...

Aircraft Legislation Act – Overview

Air Craft Registration Act chapter 503 of the Laws of Malta. In 2010 parliament enacted the Aircraft Registration Act (from here on referred to as the ‘Act). The main aim behind this Act was to promote and encourage the growth of the aviation industry in Malta. This Act applied the provisions of the Cape Town Convention on the International Interest in Mobile Equipment...

VAT Treatment of Aircraft Leasing

The Maltese VAT department has issued a new set of guidelines with regards to VAT structures for aircraft leasing and thus further increasing Malta’s relevance as a jurisdiction for the registration of aircrafts. The guidelines provide for a lower and more effective rate of VAT when flying an aircraft within E.U. airspace. As stipulated by the guidelines a leasing agreement of an aircraft...

Leasing Agreement of an Aircraft

What is a leasing agreement of an aircraft? A leasing agreement of an aircraft is an agreement whereby the lessor (the owner of the aircraft) contracts the use of the aircraft to a lessee (the person who leases the aircraft) for a consideration. In addition, after the end of the lease period, the lessee may opt to purchase the aircraft at a percentage...

AOC Malta

Application for an AOC in Malta Steps to acquiring an AOC: The process starts off with a preliminary meeting with the Civil Aviation Directorate in Malta. The next step involves the submission of the ‘Prospective Operator’s Preassessment statement’ (the POPS form available at: this link). The POPS form is then followed by a pre-application meeting with the Civil Aviation Directorate in Malta. ...