Chetcuti Cauchi Advocates > Valletta, Malta > Firm Profile
Chetcuti Cauchi Advocates Offices
120 ST URSULA STREET
VALLETTA, VLT 1236
Malta
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Chetcuti Cauchi Advocates > The Legal 500 Rankings
Malta > Private client Tier 2
The team at Chetcuti Cauchi Advocates is ‘highly trustworthy, innovative in their approach and professional.’ Senior partner Jean Philippe Chetcuti has an established track record in acting for ultra-HNWIs in wealth planning, international tax matters and residency and citizenship issues, and is ably supported by the ‘superb‘ Marina Magri and the ‘exceptional‘ Magdalena Velkovska. Antoine Saliba Haig is very experienced in assisting clients in relation to Maltese citizenship law.Practice head(s):
Jean-Philippe Chetcuti; Magdalena Velkovska; Marina Magri; Antoine Saliba Haig; Priscilla Mifsud Parker
Testimonials
‘We have a superstar client point of contact in Magdalena Velkovska. We use the firm for everything – setting up and managing entities, asset purchases and disposals, citizenship, tax, and as such use members of the entire team. She provides a superior, single point of contact. ’
‘Marina Magri is also superb and worthy of special mention for patience, efficiency, precision and clarity. ’
‘Magdalena Velkovska is a very knowledgeable and competent lawyer. Her experience is evident as she is even pre-empting what would my questions be, what I would be concerned about – and she addressed all these points in the most calm, clear and understandable way. She was very diligent, reliable and prompt in handling all my matters and applied thorough legal analysis to my case, unlike the previous lawyer I had engaged. She is very easy to work with, and I would definitely recommend her.’
‘Well organised, focused, team drawn from an international talent pool. Easy to deal with, using technology effectively to ease the customer journey. Good use of collaboration tools to communicate and gather data, to streamline the processes.’
‘Jean-Philippe Chetcuti -responsive, strategic, great with clients a really great knowledge of all things private client, with a really international outlook.’
‘Antoine Saliba Haig -Very professional and extremely user friendly. Very responsive and helpful.’
‘They are highly trustworthy, innovative in their approach, well trained and professional.’
‘We have worked with Magdalena Velkovska, and she is exceptional, detailed, and deal oriented. She has responded in time, giving us, prompt, well explained detailed information on the subject. ’
Malta > Shipping Tier 2
The team at Chetcuti Cauchi Advocates is 'very knowledgeable in yachting and shipping', and 'able to provide practical insight together with legal acumen'. Charlene Mifsud heads up the practice, in which senior associate Susanna Grech Deguara is a key name. The duo field expertise in yacht acquisitions, tax-related matters, and financing issues.Practice head(s):
Charlene Mifsud
Other key lawyers:
Testimonials
‘The team is able to provide practical insight together with legal acumen. This is indeed very helpful in the shipping industry.’
‘We have worked closely with Susanna Grech Deguara who has been exceptional in her work. Very diligent and prompt to reply. She has always guided us well and has supported our company throughout.’
‘Very knowledgeable in yachting and shipping. Has know-how in the areas and cover related areas also such as structure advise, tax, VAT. ’
‘Susanna – very knowledgeable and practical. Great project management skills.’
‘The shipping team at Chetcuti Cauchi is very knowledgeable and has a good command of the law. They have been very helpful and have always guided me very well. They have an efficient billing system and they have always replied to my queries promptly. It has been a pleasure to work with them. ’
‘I have been assisted by Susanna Grech Deguara and her team. She has been amazing. Always fast to reply and very knowledgeable. It is clear that she has been in the industry for a good while and knows all the players in the field well. ’
Key clients
Przemyslaw Klimczak
Secret Island Charter Ltd
General Gas Ltd
Monaco Boat Services (Riva)
Oceanus Marine
Quickly Group Holding Ltd
Classic Charter Ltd
LMS Yachting Ltd
Jeolson Law
FLE Marine Ltd
Piotr Trojanek
Polar Bear Project Ltd
Mamy Chartering Ltd
Concord Riva
Larimar Ltd
Raghav Marine
Work highlights
- Assisted Przemyslaw Klimczak with EU yacht importation matters.
- Advised Secret Island Charter on a yacht commercial registration issue.
- Advised General Gas Ltd on shipping and importation matters.
Malta > Aviation Tier 3
Corporate partner Charlene Mifsud heads up the aviation practice at Chetcuti Cauchi Advocates. The 'very knowledgeable and helpful' team includes the 'exceptional' associate Susanna Grech Deguara, who garners praise for her 'professional knowledge' in the aviation sector and is well versed in advising on AOL applications and operational matters under Maltese regulations.Practice head(s):
Charlene Mifsud
Other key lawyers:
Testimonials
‘The team have provided us with general aviation advice. They have a very good transport team which helped us well. As a firm, we could see that they embrace technology very much, and this has made the process easier and more efficient for us.’
‘Susanna Grech Deguara has been exceptional in her help, both in the shipping and aviation issues we had. Together with her professional knowledge, she has been working in the field for some time and therefore knows the ins and outs of the industry. ’
‘Very knowledgeable and helpful team. Partner attention is constant. Assistance on all aspects including VAT and tax.’
‘Susanna – very knowledgeable and practical. Charlene – very down to earth and helpful – always makes herself available.’
‘The level of professionalism and knowledge of the lawyers at Chetcuti Cauchi – together with being very knowledgeable and valuable, they have a big social heart. I follow the number of initiatives they do to give back to society. For me as a client, this is very important. ’
‘I have worked with partner Charlene Mifsud and associate Susanna Grech Deguara. Both have been great and have been very helpful. They are fair and just and have always guided me well. It was a breath of fresh air to meet competent lawyers with a heart who always do their best to provide an excellent service. Highly recommended! ’
Key clients
Lifejet
Sapia Aviation
Luxwing
Celier
Work highlights
- Assisting a group of investors with AOC and AOL applications in Malta.
Malta > Commercial, corporate and M&A Tier 3
Chetcuti Cauchi Advocates‘ ‘very knowledgeable‘ team focuses on M&A, company formations, re-domiciliation and foreign direct investment matters. Charlene Mifsud is well versed in advising international clients on establishing business operations in Malta, and provides ongoing corporate and commercial support.Practice head(s):
Charlene Mifsud; Priscilla Mifsud Parker
Testimonials
‘Skilled, reactive, good approach, dynamic. It’s a young team, well prepared.’
‘They are very well connected. They are very much involved in all relevant industries in Malta. We like that Chetcuti has very strong female leaders.’
‘Charlene Mifsud’s support is always great. She knows how to handle difficult questions. We fully trust her and she always comes up with practical solutions.’
‘It is my privilege to recommend Chetcuti Cauchi Advocates as an outstanding law firm in Malta, who I have frequently engaged for commercial and company law matters. The partners are all very knowledgeable of the Maltese Law and I find they have a focused and pragmatic approach which is their key strength. The firm is always prepared to go that extra mile for his clients, and I wouldn’t hesitate to recommend Chetcuti Cauchi to companies and individuals as an absolute first-class Law firm. ’
‘The unique knowledge of Malta context and legal framework, as well as the ability to support international groups, with presence across multiple countries. Their guidance has been paramount to ensure compliance to the latest EU legal frameworks. The ability to closely follow the client and tailor services to context and needs has been unique and widely appreciated.’
‘Charlene Mifsud strives to ensure client’s needs are fulfilled to satisfaction.’
Key clients
Sunshine Law Firm
56Bit
Foxgo Technologies Ltd
ELSAPHARMA Ltd
Naelia Technologies Ltd
MED-PACIFIC CONSULTING LTD
FLE Media Ltd
Work highlights
- Advised Sunshine Law Firm on various commercial matters concerning its photovoltaic project within Malta.
- Advised 56Bit on a shareholder agreement.
Malta > Intellectual property Tier 3
The team at Chetcuti Cauchi Advocates is 'very knowledgeable' on a broad range of IP matters. Maria Chetcuti Cauchi and associate Susanna Grech Deguara are well known for handling franchising and licensing agreements, as well as brands, patents and trade mark work. Corporate expert Charlene Mifsud is a name to note.Practice head(s):
Maria Chetcuti Cauchi; Charlene Mifsud
Other key lawyers:
Testimonials
‘It was very important for us to have an experienced team by our side. They have helped us very much and have always delivered.’
‘Susanna Grech Deguara has led the project and has helped us invaluably. She knows the industry and the law well and has always guided us well. ’
‘Very knowledgeable team, able to assist and coordinate several jurisdictions.’
‘Susanna – very helpful and practical. Maria – very available and attentive and extremely technical.’
‘The team was very helpful in all the stages of the patent filing.’
‘Highly approachable and knowledgeable about the timelines involved.’
Key clients
General Gas Ltd
University of Malta
Ing. Sean Agius
Betting Games Network Ltd.
Azure Holding Limited
Aqua Group Ltd
Camel Brand Co Ltd
Cabinet Chaillot
Polinno Group
Altern Limited
General Supreme Ltd
Arcus Management Ltd
Sovereign Order of Saint John of Jerusalem (S.O.S.J.)
KováriPatent and Trademark Attorneys’ LLC
Actio IP
D Young & Co LLP- U.K.
Cooley (UK) LLP
Beyond Attorneys at
Epic 88 Ltd.
Cutajar Lighting Ltd.
Bird & Bird
Daa Daa Daa Holding Ltd. (Iniala)
Form Matters
Pinreel
Calleja Ltd
Croce Bonaci Caterers
Premium Accounting
Work highlights
- Advised General Gas Ltd on a rebranding process.
- Assisting University of Malta with obtaining an international patent.
- Assisting Croce Bonaci Caterers with trade mark protection matters.
Malta > Real estate Tier 3
At Chetcuti Cauchi Advocates, the real estate team is well versed in handling real estate finance, commercial leases, and private rental matters. Practice co-heads Maria Chetcuti Cauchi and Charlene Mifsud regularly represent real estate investors, advising on investments made via private equity and real estate funds.Practice head(s):
Maria Chetcuti Cauchi; Charlene Mifsud
Testimonials
‘Easy communication and very helpful, very supportive and collaborative. ’
‘The team has consistently demonstrated their exceptional expertise and commitment to excellence. They have proven time and again to be a trusted partner in navigating the complexities of real estate transactions. Their team of knowledgeable attorneys possesses an in-depth understanding of the real estate landscape, offering invaluable insights that have greatly benefited me and my business. Their responsiveness, clear communication, and willingness to go the extra mile to meet client objectives set them apart in the legal industry.’
‘Charlene Mifsud is as an exceptional lawyer and the leader in the field of real estate. She consistently demonstrates a remarkable ability to navigate any real estate issue with precision and professionalism in a best possible scenario could be achieved in certain situation and circumstances. She is highly respected among peers and recognized for her contributions to the field of real estate.’
Chetcuti Cauchi Advocates > Firm Profile
The firm: Chetcuti Cauchi Advocates is one of the top-ranked firms throughout The Legal 500 Malta. With offices in Malta’s legal and financial capital city, Valletta, the firm is recognised as key player offering legal, tax and corporate services.
Providing a full spectrum of in-house client-focused services, Chetcuti Cauchi Advocates advises high-net-worth individuals and their families, as well as both small and large corporations, with all their needs. The firm’s success in this area is notable as a result of its exponential growth and expansion across various emerging industries. Despite its growth, now consisting of a team of over 170 people, the firm is dedicated to providing personalised services to its clients and being the go-to advisory firm for individuals seeking a first class service.
The firm enjoys sound management, a fresh outlook, and state-of-the-art practice management technology which was built in-house and with a client-centric advisory focus. Chetcuti Cauchi Advocates is well positioned to service clients ranging from high-net-worth individuals and families, owner-managed companies to Fortune 500 companies.
Areas of practice
Family and wealth: Chetcuti Cauchi helps HNW families structure their family wealth and business interests in a sustainable legal and tax-optimised manner. It also helps set up family investment and co-investment platforms and helps implement listing and exit strategies.
Residency and citizenship law: its immigration team assists people wishing to relocate and retire to Malta using the appropriate Malta programme, whether this involves the attainment of citizenship or through one of the current residency programmes.
Yachts, aircraft and art: Chetcuti Cauchi holds strong ties with surveyors, yacht management companies, financial institutions, insurance companies and banks which allow it to provide a one-stop-shop service from Malta. The main aim behind its art law team is to provide the artistic and creative industry with practical legal advice and assistance.
Tax: Chetcuti Cauchi’s tax advisory practice specialises exclusively in tax advisory matters. Its experience ranges from corporate and personal tax, property and value-added tax, through to e-commerce tax, energy tax, trusts and estate planning, investment funds tax and tax disputes.
Corporate law and corporate finance: the firm counsels clients in complex transactions including mergers, sales and purchases of shares and assets, tender offers, exchange offers, and leveraged buy-outs.
Gaming, IP and ICT law: its IP, ICT and gaming practice offers an all-inclusive and holistic service to its clients that is in line with clients’ intricate personal and business legal requirements.
Financial services: its specialist expertise and financial knowledge enables its advisors to provide results-driven commercial advice to financial entities on some of their most complex transactions and to help them address some of their most challenging business issues.
Corporate services: the firm provides full corporate tax services, company administrators, compliance services and training to companies setting up within Malta.
Property: its real estate lawyers and planning experts provide advice on residential, commercial, mixed and industrial real estate purchase and leasing. It also provides consulting services on residential, tourism and industrial real estate development.
Shipping and aviation: its specialised aviation team consists of legal advisors, accountants and tax specialists drawn from its transport, corporate and tax practices who have an unparalleled span and depth of knowledge in the transportation industries. Its consultants provide results-driven practical counsel to its aviation clients on some of their most elaborate and unique transactions.
Commercial: the firm always helps its clients to identify simple, practical solutions, and prefers to avoid costly and time-consuming litigation whenever possible. It understands that its clients need effective, commercially savvy legal advice.
Main Contacts
Department | Name | Telephone | |
---|---|---|---|
Commercial | Dr Charlene Mifsud | ccmifsud@ccmalta.com | +35622056200 |
Corporate and Corporate Finance | Dr Maria Chetcuti-Cauchi | mcc@ccmalta.com | +35622056200 |
Corporate Services | Dr Priscilla Mifsud-Parker | pmp@ccmalta.com | +35622056200 |
Trusts, Foundations, Estates | Dr Priscilla Mifsud-Parker | pmp@ccmalta.com | +35622056200 |
Financial Services and Fintech | Dr Natasha Cachia | natasha.cachia@ccmalta.com | +35622056200 |
Gaming, IP and ICT | Dr Maria Chetcuti-Cauchi | mcc@ccmalta.com | +35622056200 |
Property | Dr Charlene Mifsud | ccmifsud@ccmalta.com | +35622056200 |
Residency and citizenship | Dr Jean Philippe Chetcuti | jpc@ccmalta.com | +35622056200 |
Shipping | Dr Charlene Mifsud | ccmifsud@ccmalta.com | +35622056200 |
Tax | Dr Jean Philippe Chetcuti | jpc@ccmalta.com | +35622056200 |
Lawyer Profiles
Photo | Name | Position | Profile |
---|---|---|---|
Dr Natasha Cachia | Partner | View Profile | |
Dr Jean-Philippe Chetcuti | Managing Partner | View Profile | |
Dr Maria Chetcuti Cauchi | Managing Partner | View Profile | |
Dr Luana Cuschieri | Senior Associate | View Profile | |
Mr Wojtek Gadzała | Senior Tax Lawyer | View Profile | |
Dr Susanna Grech Deguara | Senior Associate | View Profile | |
Ms Olena Halahan | Corporate Lawyer | View Profile | |
Ms Marina Magri | Senior Lawyer | View Profile | |
Dr Charlene Mifsud | Partner | View Profile | |
Dr Priscilla Mifsud Parker | Senior Partner | View Profile | |
Dr Antoine Saliba Haig | Senior Lawyer | View Profile | |
Dr Anna Sultana | Associate | View Profile | |
Ms Magdalena Velkovska | Senior Lawyer | View Profile |
Staff Figures
Number of lawyers : 20+ at this office : 16Languages
Bulgarian Chinese Dutch English French German Greek Italian Latvian Maltese Polish Russian Slovakian UkrainianMemberships
Society of Trust & Estate Practitioners (STEP) IBA (International Bar Association) International Tax Planning Association (ITPA) Finance Malta American Immigration Lawyers Association Chamber of Advocates. Malta European Immigration Lawyers Network (EILN) Malta Chamber of Commerce IFA (International Fiscal Association) European Patent Institute INTA - International Trademark AssociationDoing Business In
Malta
A Mediterranean archipelago, the Maltese islands are located at the crossroads between Europe and North Africa. Long popular for beach holidays, the islands also offer prehistoric temples, fossil-studded cliffs and a history of extraordinary grandeur.
Over the years, the islands have served as a geographical vantage point to its many invaders, with architecture and traditions reflecting a wide range of influences. A bi-lingual nation, both English and Maltese are the official languages of the island state.
Back in 1994, Malta issued a series of laws aimed at making Malta attractive to the foreign investor, a strategy that bore great success. Prior to joining the European Union in 2004, Malta revamped its legislative framework to meet compliance with all prevailing EU directives and requirements. This, together with Malta integration of the region’s common currency, the Euro, continued to propel Malta’s economic success. Nonetheless, the sovereign country’s freedom of movement has been amplified upon becoming a member of the Schengen Area, enabling its citizens to move and travel freely to an additional twenty-six countries.
THE LEGAL SYSTEM
Malta has a hybrid legal system, as a result of both common and civil law influences. Malta’s EU membership binds it to transpose all EU directives into domestic law and to abide by regulations issued, and decisions taken, by any of the EU institutions.
THE ECONOMIC AND POLITICAL CLIMATE
Malta enjoys a stable and bi-partisan political scene, which is largely convergent on issues of national and economic importance. Being a parliamentary republic fully adherent to its non-alignment provisos, the country enjoys political neutrality in an international context. Indeed, Malta has very good relationships with its neighboring countries, both to the North and the South of the Mediterranean. It also benefits from a well-established network of bilateral and multi-lateral relationships across the globe.
As a crown colony, the country once relied heavily on British commerce for economic growth. However, that changed with Malta’s independence in 1964 when the foundations for a successful economy were laid down. In fact, the islands’ economy has been incredibly resilient even in times of financial turmoil. It was the only state, alongside Germany, to maintain economic growth during the financial crisis.
Over the past five years, Malta experienced increased economic activity and registered some of the highest GDP growth rates in Europe. In 2017, Malta’s GDP grew by 6.6% and registered a surplus of 3.9%. In 2018, GDP was expected to grow by more than 5% with the surplus estimated to be in the region of 1%. In 2019, Malta is set to remain one of the top performers in the European Union with a projected real GDP growth of 5%, much higher than the average 2.0% expected in the Eurozone.
Malta has additionally maintained a steady level of competitiveness, especially with regards to the cost of living, salaries and property. Whilst maintaining traditional sectors such as manufacturing and tourism, new economic sectors have emerged, namely financial services, iGaming and digital technology, as well as within the pharmaceutical industries. Political stability, and Malta’s economic performance, have resulted in a good quality of life, in turn attracting high levels of Foreign Direct Investment, as well as families and retirees choosing Malta as their place of residence.
BUSINESS ENVIRONMENT AND FDI
Malta is a well sought-after destination for businesses and investors who desire a business-ready European location. As a free-market economy, with no restrictions or legal prohibitions on FDI and no exchange controls, Malta benefits from few obstacles to trade and enterprise. The country does not impose any limitations on the inflow or outflow of funds although, business and trade dealings must be in line with EU and national legislation and regulations.
Alongside its booming economic climate, the islands possess a highly professional and multi-lingual workforce, and adopt a pro-business approach which not only encourages business, but is also attractive for new investment
In fact, in the first half of 2018, the level of foreign direct investment in Malta stood at €176.5 billion. This represents an increase of €8.6 billion over the corresponding period during the previous year. Financial and insurance activities contributed €166.4 billion representing 97.3% of the total stock of FDI in Malta.
MALTA’S SUCCESS STORIES
Malta has always been quick to legislate and to keep up with an ever-changing world and economic and social progress. It recently implemented sound laws and regulations which, while considerate to the needs of the market, allow businesses to operate in a safe yet attractive environment. In turn, the Maltese legislator has molded Malta into an onshore jurisdiction which offers numerous cost-effective opportunities which continue to entice business to its shores.
AVIATION
Malta’s aviation industry is crucial to its development, as it is one of the main sectors responsible for the country’s substantial economic growth. Apart from being a hub for international commerce and travel throughout history, the island was considered as one of the most strategic geographical points during WWII. Throughout the years, we have seen many multinational companies relocate to Malta, such as Lufthansa Technik, VistaJet and EasyJet. Nonetheless, Malta has implemented the Highly Qualified Persons Rules, which have further attracted various aviation executives to relocate their businesses to our shores.
ART & CULTURAL PROPERTY
Malta’s promotion of its arts and culture is at full-speed, thanks to Valletta’s reign as the European City of Culture for 2018. Culture and art are now prevalent on the national agenda and have an immensely important role to play. Indeed, this industry is multi-faceted in nature and addresses the rights of a very wide range of individuals – dealing with artists, art collectors, auctioneers, museum curators and owners of art work, financiers or insurers. Subsequently, art and cultural property touch upon various legislations, including intellectual property laws and taxation laws.
RESIDENCY AND CITIZENSHIP SCHEMES
In 2013, amendments to the Maltese Citizenship Act were passed, allowing one to become a citizen of Malta, provided, of course, that the applicant satisfies the relative conditions of the said Act. These amendments provided for the LN of 2014, which kickstarted the Malta Individual Investor Programme (MIIP). The MIIP regulations provide for affluent persons of impeccable repute to be naturalized and to receive Maltese citizenship, by means of a contribution to the Maltese economy. Therefore, upon obtaining citizenship, the applicant would automatically acquire the status of a European Union citizen and obtain access to 160 visa-free destinations, including the USA.
FAMILIES AND WEALTH
The ever-growing influx of high-net-worth individuals heading to Malta to invest in the country’s extensive investment sectors brought on the demand for sustainable tax planning and legal considerations. Indeed, such a thriving and flourishing sector generally includes trusts law, foundations law and estate management. Malta’s legal system is more than well-catered to suit the needs of HNWs looking to achieve well-established succession, philanthropic and estate planning objectives.
FINANCIAL SERVICES
The Financial Services sector in Malta has grown exponentially in the past twenty-five years, as Malta sought to position itself as the jurisdiction of choice for businesses wanting to set up in a business-friendly EU jurisdiction which embraces innovation. The Malta Financial Services Authority (MFSA), which is the sole regulator for financial services in Malta, maintains a pro-business approach and an open-door policy which has led to the growth of the local capital markets, banking, insurance and investment services industries.
Despite the size of the jurisdiction, the local capital markets are steadily thriving and growing in size, liquidity and sophistication. The Malta Stock Exchange (MSE) offers various listing options for seasoned companies as well as small to medium enterprises seeking to raise finance.
The MSE plays host to numerous equity and debt transactions, providing facilities by means of which securities can be admitted to trading, and subsequently traded over a secure, well-regulated secondary market. There are various listing options through the MSE, namely the Official List, the Alternative Companies List, the Institutional Financial Securities Market, and Prospects – a multilateral trading facility aimed at small to medium enterprises and family businesses. Listing on the MSE main market is not only a cost-effective solution of raising finance, but also affords a European Passport, and the prestige and brand exposure that comes with being listed on a European capital market.
Whilst still relatively small, Malta also offers the possibility to set up securitization vehicles as an alternative means of raising finance.
Malta is also becoming an increasingly popular jurisdiction for investment services firms seeking to offer their services to persons in EU member states under the simplified passporting procedure. It is also gaining traction as a funds domicile, particularly through its home-grown hedge fund structure, the Professional Investor Fund, which itself has gained popularity for its flexibility. Malta also offers the possibility of setting up Alternative Investment Funds (AIFs) and Undertakings for Collective Investment in Transferable Securities (UCITS), as well as has recently set up a bespoke Notified AIF (NAIF) regime. The NAIF, which is a fully EU law-compliant product, provides a fast-track possibility of accessing the market within just 10 days, by shifting the burden of regulation onto the Fund Manager and allowing the fund to be notified to the MFSA.
The local banking and financial institution sector has also evolved from a handful of domestic banks into an industry which operates across all the EU Member States, set up as both ‘brick & mortar’, as well as online. The industry is experiencing renewed vigor since the advent of Fintech, which is reshaping the services which consumers are expecting from credit institutions, electronic money institutions and payment services providers.
Malta’s insurance sector is also steadily growing since Malta’s EU accession and now comprises commercial insurance companies carrying out both general and long-term business, subsidiaries of major international insurance and reinsurance undertakings, Affiliated Insurance Companies (Captives) and Insurance Management Companies. Malta has become a particularly attractive domicile for Captives and Protected Cell Companies and is increasingly being eyed as a potential domicile of choice by UK insurance companies seeking an EU domicile post-Brexit.
FINTECH AND BLOCKCHAIN
The Maltese Government is always on the lookout to excel in emerging industries and to convert the Island into specialized centers of excellence. Throughout 2017-2018, the Malta Financial Services Authority, together with stakeholders, drafted the first regulations of the disruptive technologies of blockchain and cryptocurrencies. Towards the end of 2018, three legislative instruments became effective in regulating cryptocurrencies, referring to virtual financial assets and service providers, distributed ledger technologies, and innovative technology arrangements. A new regulatory authority called the Malta Digital Innovation Technology was also established. The new laws put Malta on the blockchain map with large renowned crypto-exchanges such as Binance, Coinvest and OKEx, as well as other international crypto-based companies, such as Yovo and Neufund, relocating headquarters or opening operations in Malta.
GAMING
The gaming industry in Malta has flourished in just a decade, making the islands the top European jurisdiction for operators. Malta has now become the foremost legal and operational infrastructure in the gaming industry, a success also synonymous with innovation, professionalism, regulation and trust. In 2018, the laws, rules and regulations governing gambling were complete overhauled in order to meet the needs of the ever-growing gaming presence in Malta. Moreover, the Malta Gaming Authority’s (MGA) role was expanded with further discretion in its compliance and enforcement functions, to better achieve regulatory objectives. To remain at the forefront of gaming laws and disruptive technologies, the MGA also launched a Sandbox Framework, pertaining to the use of Virtual Financial Assets (VFAs) and virtual tokens, as well as Innovative Technology Arrangements (ITAs) within the gaming industry as a means of payment for gaming services.
MARITIME
The island’s fate has always been linked to the sea. Due to its strategic location right in the center of the Mediterranean, alongside its deep and sheltered harbors, Malta has the advantage of being a thriving maritime base. In turn, the country has developed an avant-garde variety of integrated maritime services, complemented by numerous dependable marine facilities. Indeed, the Maltese Ship Registry has experienced steady growth over the years and is the 6th largest registry in the world.
Additionally, the Maltese flag is synonymous to a mature and safe jurisdiction with regard to the world of sailing. Vessels bearing the country’s flag are less susceptible to detainment and inspections at foreign harbors, as Malta’s flag belongs to the White List of the Paris and Tokyo MoU. Moreover, the country also offers cost-effective solutions for yacht owners and shipping companies, while at the same time provides state of the art services and infrastructure to a range of vessels. In the first quarter of 2019, the Commissioner for Revenue of Malta issued new guidelines in relation to the calculation of VAT on the leasing of yachts.
SETTING UP IN MALTA
CORPORATE VEHICLES
Business in Malta may be conducted through a number of different vehicles such as partnerships, sole proprietorships, branches of foreign companies, co-operatives, trusts, investment companies with varied share capital (SICAV), protected or incorporated cell companies. The most common vehicle is the limited liability company, whilst partnerships are also popular, although the latter are normally associated with the professional services sector. SICAVs are principally used in investment fund structures and incorporated or protected cell companies popular within the insurance sector.
In addition to the various structuring options, Malta offers an attractive tax regime for carrying out business or the holding of investments through Malta.
COMPANY FORMATION
The ease with which a company can be set up in Malta is a convenient feature of setting up a business here. Provided the requirements of Maltese law are complied with and the necessary due diligence procedures are carried out, a company can be incorporated in as little as 24 to 48 hours from the receipt of documentation.
ADVANTAGES OF SETTING UP IN MALTA
Malta is a popular and reputable destination for both start-ups and well-established businesses that wish to set up HQs, branches, or finance and investment companies in a European jurisdiction. Due to its pro-business approach, the islands are now home to some 70k companies, with 30% of them having been registered in the last 5 years.
As mentioned above, setting up in Malta is a relatively straightforward process. No licenses or permits are required, save for businesses operating within certain sensitive sectors such as pharma, gaming, finance, insurance and medical sectors.
A brief overview of the benefits which businesses in Malta can obtain through setting up in Malta are:
- competitive set-up and operations costs, which are 20% to 30% lower than in other European business hubs;
- a fast track company formation process;
- an English-speaking, highly professional workforce;
- business incentives by Malta Enterprise (including tax credits, soft loans and training grants);
- a favorable tax regime and an extensive double taxation treaty network;
- EU passporting rights for banks and financial services companies.
COMPANY TAXATION
Companies incorporated in Malta are deemed to be resident and domiciled in Malta and are therefore subject to tax on their worldwide income less permitted deductions at the corporate income tax rate of 35%. However, income or gains from qualifying investments may be exempt from tax in Malta under the participation exemption provisions.
Participation Exemption
Income or capital gains derived by Malta companies from qualifying “participating holdings” (PH) may be exempt from tax in Malta at the option of the company.
An investment qualifies as a PH where a Malta company is an equity shareholder in another company and:
(a) holds directly at least 5% (five percent) of the equity shares of such a company, which holding confers an entitlement to at least ten percent of any two of the following (“equity holding rights”): right to vote; profits available for distribution; and assets available for distribution on a winding up; or
(b) is entitled at its option to call for and acquire the entire balance of the equity shares not held by that equity shareholder company to the extent permitted by the law of the country in which the equity shares are held; or
(c) is entitled to first refusal in the event of the proposed disposal, redemption or cancellation of all equity shares of that company not held by that equity shareholder company; or
(d) is entitled to either sit on the Board or appoint a person to sit on the Board of that company as a director; or
(e) holds an investment representing a total value, as on the date or dates on which it was acquired, of a minimum of one million, one hundred and sixty-four thousand euro (€1,164,000) (or the equivalent sum in a foreign currency) and that investment is held for an uninterrupted period of not less than183 days; or
f) such shares are held for the furtherance of its own business and the holding is not held as trading stock for the purpose of a trade.
Equity shares refer to a holding of the share capital in a company which entitles the shareholder to at least any two of the following three rights: the right to vote, the right to profits available for distribution to shareholders and the right to assets available for distribution on a winding up of the company. Capital gains derived from the disposal of such PH may be exempt from tax in Malta. Where Malta holding companies receive dividend income from a participating holding, such income may also be exempt from tax in Malta provided that the company in which the PH is held falls within one of the following safe harbors:
- it is resident or incorporated in the EU;
- it is subject to any foreign tax at a rate of at least 15%; or
- less than 50% of its income is derived from passive interest or royalties .
Where a PH does not fall within one of the safe harbors described above, a company may still opt for such income to be exempt from tax in Malta, if both anti-abuse conditions below are satisfied:
- the equity shares held in the non-resident company do not represent a portfolio investment; and
- the non-resident company or its passive interest or royalties have been subject to tax at a rate which is not less than 5%.
TAX REFUNDS
Where the participation exemption does not apply, upon receipt of a dividend, shareholders of a Malta company, or a foreign company which is resident in Malta for tax purposes, are entitled to a refund of all or part of the Malta tax paid at the level of the company on such income. The type and source of income received by the company must be considered when determining the amount of refund which may be claimed. Shareholders of companies that have a branch in Malta, who are in receipt of dividends out of branch profits subject to tax in Malta, are also eligible for the same tax refunds as shareholders of a Maltese company.
Full Imputation System
Malta operates a full imputation system of taxation whereby shareholders in receipt of dividends out of a Malta company receive a credit for the tax suffered at the company level, thus eliminating any further taxation being due on the dividend by the shareholder.
OPPORTUNITIES & FUTURE PROSPECTS
BREXIT
With the UK projected to leave the European Union by 2020, concerns regarding businesses which presently benefit from the EU market and its harmonization are on the rise. With regards to this, the UK financial services industry is weighing out the options related to the maintenance of passporting rights within the EU. Malta is well positioned to attract such business and offers the possibility of re-domiciling all manner of business and licensed financial services operators, including funds and asset managers, insurance operators, banking and electronic money institutions (EMI). Concerns related to Brexit aside, co-locating to Malta for operational aspects is an ideal prospect. Its favorable tax regime, historical and contemporary ties to the UK, the fluent use of the English language, laws based on common law equivalents, portfolio of fund options, and lastly, its stable financial services industry, all point towards a seamless integration.
PROPERTY MARKET
Malta’s tax regime has proven beneficial in many sectors and it undoubtedly features very prominently in the property market. Even despite the decade’s worth of global financial and political turmoil, Malta has continued to feature on the radar of investors interested in investing in Europe’s growing property market. The Maltese property rates, nonetheless, have remained relatively stable throughout the years.
Indeed, the tax regime alongside its favorable environmental climate, has attracted many to move their personal and business affairs to Malta or to invest in Malta. The country’s tax system protects both buyer and seller in property deals and has contributed to maintain the strength and perseverance of the Maltese property market, especially with relation to high-end properties. Moreover, residential prices in Malta saw a roughly 17% year-on-year increase from Q2 2017 to Q2 2018, putting the country in the lead worldwide in relation to house price rankings. In the first quarter of 2018 alone, residential prices had undergone a 3.6% average price increase.
The demand for property and steady price increments are nevertheless supported by a strong growth in disposable income, which continues to benefit from advantageous labor market conditions. Nevertheless, the fact that Malta has a low interest rate make it all the more attractive for investment. In turn, these factors continue to contribute to Malta’s exponential growth in lending for house purchases. Nonetheless, the increase in the foreign work force in Malta and, to a limited extent, the MIIP, have also been supporting demand for housing.
PROSPECTS FOR FAMILY BUSINESSES
Small-to-Medium Enterprises and family businesses lie at the heart of the Maltese economy and the Maltese government is aware of how crucial their contribution is. Intent on fostering the best possible thriving business environment, besides the implementation of a family business legislation which ultimately allows businesses that have a sound business plan to access financial support, the Malta Stock Exchange’s ‘Prospects MTF’ allows SMEs to access finance of between €1 to €8 million.
Therefore, SMEs can confidently seek access to funding without relinquishing ownership or control of their company, through the capital markets, traditionally associated with far higher levels of funding.
FINTECH, BLOCKCHAIN & ARTIFICIAL INTELLIGENCE HUB
Malta implemented groundbreaking legislation in the Blockchain or Distributed Ledger Technology (DLT) field in the shape of a trio of Acts that took force of law in 2018. The Malta Digital Innovation Authority Act (Cap. 591) sets out the basis for the creation of a digital authority, with the remit of regulating innovative technologies. The Innovative Technology Arrangements and Services Act (Cap. 592) sets out the legal basis under which the MDI will regulate such technologies, currently DLT platforms and smart contracts.
The Virtual Financial Assets Act (Cap. 590) regulates the launch of virtual financial assets (VFAs or cryptocurrencies) in or from Malta, as well as those providing services to VFAs, such as advisers, brokers, portfolio managers, or crypto exchanges. The VFA Regulations (S.L. 590.01) provide further guidance on how the act is to be applied in practice.
A national Artificial Intelligence (AI) taskforce has been set up with the vision of making Malta the ultimate AI launchpad, by creating an innovation sandbox and bringing together innovators, business angles, investors and users in a secure environment. No regulation has to date been announced, however the intention with technology with so many potential uses in different fields is for a light touch regime rather than a rigid approach that would stifle the necessary dynamism. The scope of both MDIA and ITAS are expected to include AI in the near future.
WHY MALTA CAN BE THE RIGHT JURISDICTION TO DO BUSINESS
Malta is a popular and reputable destination for start-ups and well-established businesses alike, who wish to set up or co-locate in Europe. Due to its long-standing pro-business approach, the islands are now home to over 70,000 international companies, with 30% of them being registered in the last 5 years.
As mentioned above, setting up operations in Malta is a relatively easy process. In general, no licenses or permits are required, save for businesses operating within certain sensitive sectors such as medical/pharma, gaming, financial services and aviation sectors. Convincingly, businesses in Malta can benefit from;
- a competitive set-up and operational costs, which are 20% to 30% lower than in other European business hubs;
- a fast track company formation process;
- an English-speaking, highly professional workforce;
- business incentives by Malta Enterprise (including tax credits, soft loans and training grants);
- 5% net effective corporate tax rates and an efficient double taxation treaty network;
- EU passporting rights for banks and financial services companies.
Press Releases
Malta to offer a Start-Up Residence Permit
5th November 2021 A new directive targeting third-country nationals to invest in a new or existing start-up shall be implemented in the coming months as announced by Malta’s Finance Minister Clyde Caruana. The new Malta Start-Up Residence Programme will be operated by the Residency Malta Agency and the government agency Malta Enterprise.Malta Stock Exchange: European capital raising now easier for SMEs
17th May 2021While larger enterprises often steal the limelight, small and medium-sized enterprises (SMEs), very often being family businesses, make up the very backbone of most economies, with SMEs constituting the vast majority of companies within the EU. In Malta, 99.9% of Maltese companies are classified as SMEs, with 4.8% classified as small to medium enterprises and 95.1% classified as micro organisations.
EU VAT on Yacht solutions
17th May 2021 The yachting industry sails across a dynamic regulatory environment, increasingly leading to more paperwork, administration, checks and procedures. In this context, and considering that yachts are generally a leisure escape, yacht owners are constantly looking for straight forward solutions that allow them to sail their yachts worry-free.Chetcuti Cauchi Advocates Launch Dual Citizenship Report: European Region
31st October 2017Chetcuti Cauchi Advocates released a new report entitled ‘The Dual Citizenship Report’ which explores the treatment and legal status of dual citizenship in European Countries. To commemorate the launch of the report, the partners invited Hon. Prime Minister Joseph Muscat on the 27th September 2017, who signed the first physical copy of the report.
Legal Developments
Integrating ESG Practices into Intellectual Property Law
3rd April 2024 Delving into the dynamic relationship between Environmental, Social, and Governance (ESG) principles and Intellectual Property law.The Legal Side of Content Creation
14th March 2024 Influencer marketing has evolved into a pillar of the digital economy, having a worldwide valuation of over €21.1 billion.Inheriting Property in Malta
12th March 2024 When a person inherits property in Malta, a procedure needs to be undertaken for such person to have the property officially listed under his name.Malta Nomad Residence Permit Income Tax Rules
29th February 2024 The Income Tax Rules applicable to the Nomad permit holders in Malta prescribe a tax exemption for one year starting from the date of issue of the residence card.Trademarking the Digital Frontier
21st February 2024 This article shall be delving into the guidelines issued by the European Union Intellectual Property Office (the ‘EUIPO’) on the classification of NFTs, virtual goods and services.Copyright Case Study: News Agencies vs Generative AI
21st February 2024 There is a widespread discussion surrounding ChatGPT, an advanced generative artificial intelligence (AI) language model.Navigating Maltese Roots: A Comprehensive Guide to Maltese Citizenship by Descent for Canadians
14th February 2024 Maltese citizens who emigrated and acquired Canadian citizenship voluntarily, lost their Maltese citizenship once acquiring such citizenship.Transfer Pricing Methods
13th February 2024Transfer Pricing Methods in a Nutshell
In a globalized economy, it is a common practice that entities forming part of a multinational enterprise (“MNE”) transact with each other.Malta Property Ownership
13th February 2024Property Ownership in a Nutshell
Through its consistent economic growth and competitive residential market, Malta has developed into a unique and attractive option for property ownership.Malta Tax Year 2023 in Review
9th February 2024 In 2023 year, the field of direct tax law saw substantial updates, encompassing a range of changes and advancements on both domestic and international fronts.Taxation of Rental Income in Malta
15th January 2024 When a property is rented out in Malta, the lessor can decide to either opt for the 15% final withholding tax or to declare the rental income in the annual tax return (and have it taxed at applicable standard income tax rates).Malta Transfer Pricing Rules
20th December 2023 With the Malta Transfer Pricing Rules, Malta has introduced to its legal system transfer pricing rules, imposing obligations on corporate taxpayers and introducing new legal institutionsThe Advantages of the Malta Flag
19th December 2023 Due to the private and public function of ship registration, owners and charterers must weigh different factors prior to choosing the flag state of their vessels. Malta, in this respect, has proven to be an ideal jurisdiction.Intellectual Property Rights in Yachting
11th December 2023 The world of yachting, a realm of luxury and innovation, stands as a testament to creativity and engineering. Amidst the azure expanse of the seas, a less obvious but equally important facet shapes this industry: intellectual property rights (IP Rights).Moving to Malta: Applying for a European Pet Passport
27th September 2023 In an increasingly interconnected world, pet owners often face the prospect of relocating with their beloved animals.Arm’s Length Principle in Transfer Pricing
19th September 2023 In a globalized economy, it is a common practice that entities forming part of a multinational enterprise (“MNE”) transact with each other.Insolvency Reform
20th July 2023 Following the introduction of Directive (EU) 2019/1023 on preventive restructuring frameworks, on the discharge of debt and disqualifications,Yacht Financing in Malta
13th July 2023 Yacht financing in Malta is an option for individuals who want to own their own luxury yacht but do not want to pay the full price in cash outright.AI and Maritime Law
26th June 2023 Legal writers assumed that every ship would carry a crew. Indeed, most of the maritime legislation which regulates the seas currently is based on this very assumption.Data Subject Rights under the GDPR
21st June 2023 The exponential growth and popularity of the digital world has led to a vast shift in lifestyles during the 21st century,Copyrighting AI Generated Art
14th June 2023Artificial Intelligence (AI) has taken the world by storm and is rapidly transforming various industries and activities. The realm of Intellectual Property (IP) is no exception. The impact of AI on IP is multifaceted, ranging from automated IP searches to the creation of AI-generated content.
Why Film in Malta?
12th June 2023 Malta has one of the largest production facilities in the world, which offers a unique environment for films and productions. It is not only an ideal location, but through the several financial incentives it also gives crucial financial support to the film industry.Design Protection after Porsche 911
12th June 2023Recently Porsche lost a design protection case for its widely known Porsche 911 model, with the European Court confirming such cancellation by quoting lack of individual character and no substantial difference from previous models.
Maltese Citizenship & Taxation : An overview of Malta’s tax system when obtaining citizenship
12th June 2023 Taxation of Maltese Citizens based on Residence and Domicile. Malta Citizenship does not alone alter the tax treatment of persons acquiring Maltese Citizenship under the Citizenship by Investment Program. Maltese citizenship alone does not change the tax treatment of an individual or family acquiring citizenship unless they take up tax residence in Malta.Malta as a Family Office Location: Why Set up a Family Office in Malta
12th June 2023 Since before the pandemic, Malta has been a favourite location attracting not only professionals in IT, aviation, financial services and shipping but also family principals and family offices to make this country their base. Malta is a jurisdiction that because of its climate and lifestyle appeals to families who would then establish a Malta family office as party of their migration plans.Legal Issues with AI-Generated Content: Copyright and ChatGPT
12th June 2023 ChatGPT has taken a different level of presence in the technological world, with this AI system being used to generate all types of literary and artistic content. With the advent of more sophisticated AI systems and the depths in which these can function, the worlds of literary creators have been taken by storm.Arm’s Length Principle in Transfer Pricing
9th May 2023 International production, trade and investment are increasingly organized within global value chains.What is Transfer Pricing?
9th April 2023 The pricing of transactions between associated enterprises located in various states could potentially affect the amount of taxes collected by each state involved. To protect their tax bases, tax administrations around the world turn their attention to transfer pricing policies of multinational enterprises.Transfer pricing in a nutshell
The pricing of transactions between associated enterprises located in various states could potentially affect the amount of taxes collected by each state involved. To protect their tax bases, tax administrations around the world turn their attention to transfer pricing (“TP”) policies of multinational enterprises. Increasing amount of tax audits aims to verify whether the prices set in cross-border transactions between related entities (so called “transfer prices”) are set in line with the arm’s length principle. The arm’s length principle requires that transfer prices reflect the prices that would have been set between independent enterprises in comparable transactions and comparable circumstances.
Key Issues
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What is transfer pricing?
In simple terms, transfer pricing refers to the pricing of transactions between associated enterprises. For multinational enterprises (“MNEs”), transfer pricing is very important from a business and operational perspective. In the modern, globalized world MNEs do not operate in multiple jurisdictions as a single entity. Instead, they create complex corporate groups with numerous entities that are active in different countries. Transfer pricing allows MNEs to identify and properly remunerate value contributing factors of each member of the MNE group. It provides a reliable metric to determine the profitability and performance of each group entity and thus enables effective resource allocation.How transfer prices affect profit allocation and taxes?
At the same time, the allocation of profits and/or costs between MNE group entities operating in different jurisdictions has a significant bearing on the group’s income tax position in these jurisdictions. To illustrate that, let’s have a look at an example. The Manufacturer produces television sets in State A. The sets are sold to an associated distribution entity, the Distributor, in State B. The Distributor resells the products in State B to end customers. The Manufacturer sells the TV sets to the Distributor at a transfer price of €250,000 euro. After deducting the cost of goods and other expenses (€190,000 euro in total), the Manufacturer is left with a profit of €60,000 euro. This income is taxed at a rate of 30%, resulting in total tax liability in State A of €20,000 euro. Moving on to the Distributor, the transfer price for the TV sets (€250,000) becomes the cost of goods for the Distributor. We then aggregate them with other expenses (€70,000) and arrive at total expenses of €320,000. After deducting total expenses from the sales to end customers (€400,000), the Distributor is left with a profit of €80,000. This would then be taxed in State B at a rate of 20%, resulting in €20,000 euro in taxes. To sum up, in this example total profit of the MNE group on the transaction amounts to €140,000, and the total tax liability amounts to €40,000. Nonetheless, income taxes are a cost of running a business, and MNEs have a legitimate interest in reducing their total tax liabilities through legal means. This could potentially be achieved by allocating more of the total profits from the transaction to State B which has a lower income tax rate. To do that, the MNE would lower the transfer price between the Manufacturer and the Distributor. Let’s illustrate it with an amended example. It is evident that a simple change of the transfer price, with all other factors remaining the same, resulted in the reduction of the MNE’s total income tax liability on that transaction from €40,000 to €32,000. Moreover, the allocation of tax revenues between States A and B changed significantly. Following the change of the transfer price, State A will only be able to collect 50% of its previous tax revenues (i.e., €10,000 instead of €20,000).The arm’s length principle
The differences between the tax rates in various jurisdictions create an incentive for international business to allocate their profits in a tax efficient manner. This clearly conflicts with the interests of the states which want to increase their tax revenues. As a way of resolving these conflicts, many national and international laws adopted a consensus on calculating adequate transfer prices: the arm’s length principle. In particular, the arm’s length principle has been included in Articles 9 of the OECD and the UN Model Tax Treaties. Under the arm’s length principle, a transfer price will be considered adequate, if it reflects the price that would have been set between independent enterprises in comparable transactions and comparable circumstances. If tax authorities deem that transfer prices do not reflect the arm’s length principle, they can impose additional tax on the companies involved, often with interest. Essentially, the arm’s length principle imposes an obligation to compare the conditions adopted in a transaction with an associated enterprise with the conditions that “would have” been adopted under “comparable circumstances” between two independent parties. We describe in more detail the process and factors governing such comparison in our separate article: The Arm’s Length Principle. To correctly calculate the arm’s length price for the transactions between associated enterprises, MNEs use transfer pricing methods. We provide more guidance on transfer pricing methods recognized by the UN and the OECD Transfer Pricing Guidelines in our article on Transfer Pricing Methods.What this means for you?
Transfer prices determine the allocation of profits between different states and impact the amount of income taxes that each of these states can collect. It is, therefore, no wonder that countries aiming to protect their tax bases are shifting their attention towards transfer pricing. In recent years new transfer pricing regulations have been introduced in many countries. At the same time, the established transfer pricing regimes have grown in scope and complexity. Transfer pricing policies of MNEs are increasingly often subject to heavy scrutiny by tax authorities worldwide. In November 2022, Malta has introduced its first Transfer Pricing Regulations. Starting from year 2024, the Regulations impose transfer pricing documentation obligations on Maltese companies engaging in intra-group transactions. It is expected that Malta tax authorizes will ramp up their efforts in the field of transfer pricing. Taxpayers involved in transactions with related entities should make sure that their transfer prices conform with the arm’s length principle. Transfer prices should be calculated using an appropriate TP method and ideally supported by comprehensive TP documentation.How we can help
Our team of experienced advisors can help to identify, assess, and mitigate potential transfer pricing risks in your business and to develop a sustainable, tax efficient transfer pricing policy for the future. As a collaborating firm of Andersen, leading global Tax & Legal advisors, we offer the comfort of years of experience in this highly contentious area. Get in touch with us to learn how we can help you to manage your transfer pricing risks so that your business remains in compliance with Malta Transfer Pricing Regulations whilst retaining its operational effectiveness.Introduction to Privacy Law and GDPR
20th July 2021 In the digital age, characterised by the growth of cloud computing and remote access, the importance of protecting personal data has gained new significance. Privacy has become one of the pivotal issues in our time, which does not only affect legislators or technology innovators, but has become relevant to every household, who has internet access or has welcomed smart gadgets home1.Highly Qualified Persons Rules
6th July 2021 The Malta Highly Qualified Persons Rules builds on the success of Malta’s reputation in attracting highly professional expatriates seeking an alternative residence base in a warm Mediterranean Island in the European Union.Increase in trademark registration EUIPO
18th June 2021 EUIPO Executive Director Christian Archambeau has shed light on the record filing numbers for EU Trademark registrations experienced in the first months of 2021. Archambeau has stated that:Malta Nomad Residence Permit
10th June 2021 The Malta Nomad Residence Permit (NRP) is a residence permit which can be issued to non-EU nationals only. The NRP is open to individuals who can work remotely in Malta using telecommunications technology. This permit enables its holders the right to retain their current employment based in another country whilst legally residing in Malta.Introduction to Mergers and Acquisitions
4th June 2021Mergers & Acquisitions - Malta Law
In the last few decades, the importance of mergers and acquisitions as a tool for business has arisen drastically. In a fluctuating, competitive corporate world, it is vital for businesses and corporate structures to remain dynamic while always looking towards strategically employing corporate law tools to expand, improve and maximise corporate structures. This is also a fact within the Malta law and business sphere.Learning from the Chanel vs Huawei Trademark Dispute
3rd June 2021 French luxury fashion house Chanel has lost an EU court battle against Chinese technology giant Huawei over their iconic double ‘C’ logo.Malta Launches the Nomad Residence Permit
2nd June 2021 The Parliamentary Secretary for Citizenship and Communities has announced the launch of a new residence programme for non-EU nationals. The programme which will be administered by Residency Malta Agency will be known as the Nomad Residence Permit (NRP). The Malta NRP is aimed at individuals who want to move to Malta whilst working remotely. Announcing the NRP, the Parliamentary Secretary for Citizenship, Alex Muscat held that this could be a profitable economic niche for Malta. This programme enables beneficiaries the right to retain their current employment based in another country whilst legally residing in Malta. The permit is thus open to individuals who can work remotely using telecommunication technologies.The Act to Regulate the Legal Profession in Malta
31st May 2021 An act regulating the legal profession in Malta has entered into force on the 20th April 2021. The aim of the act was to address inefficiencies identified by Moneyval and to create further safeguards for the legal profession in terms of money-laundering risks.Malta Company Service Providers Regulations
14th May 2021 By virtue of Legal Notice 96 of 2021, the Malta Company Service Providers (Amendment) Act 2020 (“the Act” or “the Amendments”) came into force on 16 March 2021. This Act also brought with it an overhauled Corporate Services Provider (“CSP”) Rulebook (“Rulebook”). Previously exempt, Malta CSPs must apply for their licences under the impending deadline of 16 May 2021. CSPs who were already listed with the Malta Financial Services Authority (“MFSA” or “the Authority”) prior to this reform need also ensure full compliance with the new amended rules with a deadline expiring on 16 September 2021. Both groups of CSPs must look intensively at their new obligations under the new Rulebook.New Malta Company Service Providers Regime 2021
13th May 2021 The Malta Company Service Providers (Amendment) Act 2020 (“the Act” or “the Amendments”) came into force on 16 March 2021 through Legal Notice 96 of 2021. This reformed Act also brought with it an overhauled Corporate Services Provider (“CSP”) Rulebook (“Rulebook”). Previously exempt, Malta CSPs must apply for their licences under the impending deadline of 16 May 2021. CSPs who were already listed with the Malta Financial Services Authority (“MFSA” or “the Authority”) prior to this reform need also ensure full compliance with the new amended rules with a deadline expiring on 16 September 2021. Both groups of CSPs must look intensively at their new obligations under the new Rulebook.Malta Government Announces More Incentives to Aid Businesses
4th May 2021 Addressing the press conference with the major local Unions, in the run up of the National Workers Day, Prime Minister Robert Abela together with Energy and Enterprise Minister Miriam Dalli states that the government will continue helping businesses grow in such troubling times and pivot in light of the new realities.EU unveils new Artificial Intelligence Rules
4th May 2021 The EU Commission has revealed its latest legislative framework with regard to the regulation of AI. With the aim of creating a global standard, the EU Commission has adopted a risk-based approach to regulating this vast and ever-growing computer science. The legislative framework creates a four tier risk system which can be updated with the emergence of new technologies.World Intellectual Property Day
27th April 2021A Significant Day for WIPO
Back in the year 2000, the member states of the World Intellectual Property Office (WIPO) designated the 26th of April to be marked as World Intellectual Property Day.Brexit’s Impact Upon Shipping Disputes and Enforcement
26th April 2021 The end of 2020 saw the end of the Brexit transition period wherein the ties connecting the UK and the Lugano Convention 2007, which deals with jurisdiction issues and judgements’ enforceability between its signatories, were cut. On the 8th of April 2020, an attempt on the part of the UK was made to re-join such convention as an impartial contracting state; however, clarity as to whether the EU has approved has yet to be established.Proposal for a Specialised Court for Maritime Cases
19th April 2021 Recently, a proposal was made by the Malta Maritime Forum (MMF), following Justice Joseph Zammit McKeon’s suggestion, for the Law Courts’ commercial section to be expanded in order to cater for maritime court cases specifically. He stated that this should be done by allotting more judges and by having a specialised court to deal solely with such cases, an example of which is the transportation of goods.Amendments to the Prevention of Money Laundering Act 2021
11th April 2021 On the 9th of April 2021, Act XV of 2021 came into force with the aim to amend The Prevention of Money Laundering Act (PMLA) being Chapter 373 of the Laws of Malta. The aim of such amendments is for Maltese legislation to comply further with European Union law.Malta Copyright Protection in the Digital Age
18th February 2021 Swift technological advancements, rapid communication, social media and the internet in general have all contributed to the transformation of the manner in which artistic, literary works and other creative arts are created, produced, distributed and exploited. New business models and novel protagonists continue to appear.Trademark Registration in Malta and the EU
9th February 2021 With the ever-growing influence that technology has on our lives, and the radical increase in screen time, the use of brand identifiers and marks has become more vital than ever. The growing competition between established enterprises and start-ups alike for a couple of minutes of consumer attention has continued to grow. The number of EUIPO trademarks continues to rise, with over 11 million registered trademarks to date. It is, therefore, now more important than ever, for individuals and entities to register their marks.Brexit Agreement – EU-UK Trade and Cooperation Agreement
8th January 2021 After years of intensive negotiations and wrangling, the European Union and United Kingdom have finally reached an agreement entitled the “EU-UK Trade and Cooperation Agreement” (the “Brexit Agreement” or “Agreement"). Such Agreement sets forth the terms on which the EU and the UK will carry out trade relations between them post-December 2020.Malta Opportunity: Blockchain and Cryptocurrencies
7th May 2018 Talking of cryptocurrencies as an opportunity for the Maltese banking sector might sound outlandish, in the context of a highly-regulated banking industry in Malta.The Cryptocurrency Race Is On! Comparing Leaders In DLT Regulation
6th April 2018It seems like cryptocurrencies and blockchain technology are all anyone can talk about. Regulators have realised that disruptive technologies hold vast potential, but few have taken up the initiative to create a regulatory framework within which FinTech businesses can operate. Countries are classifying cryptocurrencies as assets, commodities and even as currencies – there is no one view that prevails. This article will explore how jurisdictions at the forefront of DLT regulation are moving forward in this race among regulators.
Proposed Regulatory Framework for Virtual Currencies and DLT
3rd April 2018 The Parliamentary Secretary for Financial Services, Digital Economy and Innovation, Hon. Silvio Schembri, unveiled a consultation document on the establishment of the Malta Digital Innovation Authority ("MDIA" or "Authority).Malta opportunity: Blockchain and Cryptocurrencies
13th February 2018 Talking of cryptocurrencies as an opportunity for the Maltese banking sector might sound outlandish, in the context of a highly-regulated banking industry in Malta. However if one follows the rapid developments in cryptocurrencies across the globe, it is clearly inevitable that many industries, including traditional banks, will have to adapt to this highly innovative evolution that is fast permeating many economic sectors.Blockchain Technology Opportunities for the Maltese Insurance Industry
29th January 2018
Blockchain
Technology presents a number of opportunities for various businesses, including
insurance companies. There are various possibilities which Maltese insurance
companies could explore, as we shall highlight below.
EU and Malta Securitisation Market
12th December 2017Following the US subprime crisis that began in 2007, the notion of securitisation has suffered from bad press that tainted its reputation. However, securitisation is still considered as an essential component to continued economic recovery and for well-functioning financial markets.
Crowdfunding – The Path towards a regulatory Framework
4th December 2017- Recent developments in the market of Crowdfunding in Malta
The ECB’s Fitness and Properness Test: The Assessment Process
21st September 2017In May 2017, the European Central Bank ("ECB") published a list of guidelines which gave a compressive overview of the practices and procedures applied by it when assessing the suitability of members of the management bodies of Significant Institutions ("SIs") as well as trying to harmonize national rules of all Member States in relation to the fit and proper assessment.
Malta: a new magnet for High Net Worth Individuals
13th April 2017 Malta has hit headlines for its record economic performance during the last decade and has grown into a booming financial centre in the Euro-Mediterranean region. Sunseeker interviews prominent Maltese lawyer Dr Jean-Philippe Chetcuti, managing partner of Chetcuti Cauchi Advocates, on the reasons for Malta's attractiveness to affluent international families.Investing in Malta- A Property Almanac
9th March 2017Malta has long gained a reputation for a high standard of living with a Mediterranean flair. With the introduction of various programmes related to the attainment of citizenship or residency, many foreign investors have eyed the island as an ideal European solution for immigration purposes with vast potential for stable investment in real estate. In this article Dr Maria Chetcuti Cauchi presents an analysis of the real estate market and laws through 2015 and 2016, with a view of giving an exposition of the process for property acquisition and resale.
EU VAT on Yacht solutions
9th March 2017The yachting industry sails across a dynamic regulatory environment, increasingly leading to more paperwork, administration, checks and procedures. In this context, and considering that yachts are generally a leisure escape, yacht owners are constantly looking for straight forward solutions that allow them to sail their yachts worry-free. Malta has been at the forefront in providing such solutions and finding a balance between what are usually deemed two opposing needs: those of proper regulation and application of procedures on the one hand, and enjoyment of the yacht without unnecessary and unwarranted restrictions, on the other.
NAIF – an AIFMD-Compliant Fund with quick access to the market
9th March 2017Since the advent of the Alternative Investment Fund Managers Directive (‘AIFMD’), fund managers have been facing a double regulatory burden as a result of having both fund managers and funds subject to prudential regulation which led to overlapping and possibly inconsistent regulatory requirements affecting funds.
Malta Stock Exchange: European capital raising now easier for SMEs
6th March 2017While larger enterprises often steal the limelight, small and medium-sized enterprises (SMEs), very often being family businesses, make up the very backbone of most economies, with SMEs constituting the vast majority of companies within the EU. In Malta, 99.9% of Maltese companies are classified as SMEs, with 4.8% classified as small to medium enterprises and 95.1% classified as micro organisations.