Firm Profile > GVZH Advocates > Valletta, Malta

GVZH Advocates > The Legal 500 Rankings

GVZH Advocates > Firm Profile

The firm: GVZH Advocates is a modern and sophisticated legal practice comprised of top-tier professionals, firmly rooted in decades of experience in the Maltese legal landscape. Built on the values of acumen, integrity and clarity, we are dedicated to providing the highest levels of customer satisfaction, making sure that legal solutions are not only soundly rooted and rigorously tested, but also meticulously implemented. The firm understands that today’s business environment requires legal advisors that have both skills and expertise geared towards effectively addressing specific and technical issues in the context of complex projects, transactions and disputes. It is through the contribution of these skills and expertise in an accurate and timely manner, that GVZH Advocates, as a forward-looking firm, looks to cement long-term and meaningful relationships with clients and partners. The firm is regularly involved in cross-border transactions, tapping into a wide network of international consultants, all experts in their respective field, ensuring seamless, timely and quality advice.

GVZH Advocates now consists of 24 lawyers, covering the following practice areas: aviation; banking and finance; citizenship and residence; competition/antitrust regulations; corporate and M&A; culture and entertainment; data protection; employment and industrial relations law; financial service regulations; hospitality; i-gaming; insolvency; intellectual property; litigation and arbitration; prevention of money laundering; projects and public procurement; real estate; shipping; tax; technology, media and telecommunications; trusts, foundations and voluntary organisations and yachting.

Areas of practice: Aviation, shipping and yachting: the firm provides solutions for aircraft, yacht and super-yacht owners, financiers and managers while representing some of the industry’s leading players.

Banking and finance: advising lenders, issuers and borrowers on leveraged and acquisition finance, corporate finance, structured finance, asset finance and leasing, aircraft finance, security trusts, capital markets, project finance, real estate finance, investment funds, asset management operations and securitisation vehicles.

Citizenship and residence: the firm provides a comprehensive advisory and administrative service in respect of residence permits, work permits and visa formalities.

Corporate and M&A: GVZH acts as lead counsel in various M&A transactions in various sectors including pharmaceuticals, financial services, telecommunications, remote gaming and payment institutions.

Employment/industrial relations: GVZH Advocates provides an array of employment-related solutions (contracts of service, dismissals, redundancies, transfers of employees between undertakings, equal treatment in the workplace and the implementation of appropriate systems and procedures for clients’ HR).

Intellectual property: the firm advises on developing legal strategies to maximise and protect the commercial potential of brands, ideas and technological advances.

Litigation and arbitration: legal services rendered to the company in connection with high-profile litigation concerning corporate governance measures, minority rights issues and related matters.

Real estate: advising on the sale and purchase of commercial and residential property, financing, real estate funds, property development, leasing and portfolio management.

Tax: GVZH Advocates has particular strength advising on novel and complex issues in the corporate finance, personal finance, structured finance, financial services and real estate sectors.

Technology, media and telecommunications: GVZH advises on all aspects in the areas of TM: intellectual property, data protection and freedom of information, licensing and regulations of various e-commerce models including remote gaming operators.

Interviews

Press Releases

Malta Gaming Authority publishes Guidance Document on Brexit Impact

13th November 2019 The Malta Gaming Authority (“MGA”) has published a guidance note (“Guidelines”) laying out the impact that the United Kingdom’s (“UK”) exit from the European Union (“EU”) will have on regulatory affairs within the remit of the MGA. These Guidelines apply to entities established in Malta and operating in the UK, with a UK licence but without a Maltese Licence, or entities established in the UK providing services and supplies within Malta.

GVZH Advocates appoints new Partners

16th May 2019

Dr Luca Vella and Dr Kurt Hyzler have been admitted as Partners of GVZH Advocates within the firm’s Corporate, Mergers and Acquisitions, Capital Markets, Banking and Finance and Financial Services Industry practice groups.

Dr. Katrina Abela selected as an Advocacy Committee member of the European Business Aviation Associa

18th April 2019

GVZH Advocates is delighted to announce that senior associate Katrina Abela has been selected as a member of the first Advocacy Committee of the European Business Aviation Association.

Temporary Work Permits

27th July 2018

It has been recently announced that Identity Malta would reduce the application time of a single work permit by weeks, by allowing foreign workers to start working (on a temporary basis) as soon as their application was approved.

Introduction of new MGA Regulatory Framework moves to 1st August 2018

27th July 2018

Further to the notification of the draft legal framework regulating gaming in Malta through the Technical Regulation Information System, a Detailed Opinion has been issued by a Member State in relation to the current draft of the Gaming Authorisations Regulations (the “Regulations”) and the European Commission and another Member State have also issued comments in relation to the various proposed legislative instruments.

Malta Ahead of the Game: Three cryptocurrency and blockchain Bills passed the second reading stage

27th July 2018

During a conference organised by the Malta Institute of Management, Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri, announced that the three crypto-related bills, namely the Malta Digital Innovation Authority Bill, the Innovation Technological Arrangements and Services Bill, and the Virtual Financial Assets Bill will pass through the second reading in Parliament, and in fact yesterday evening the Maltese Parliament finalised the second reading stage. The bills will now move on to the committee stage and then on to the third reading stage. Once the third reading in parliament is concluded the bills will then be presented to the President of Malta for her assent and become law.

Extension of the Special Designated Areas

27th July 2018

By virtue of Legal Notice 181 of 2018, the list of Special Designated Areas has been extended to now include the Southridge Development in Mellieha.

In terms of Chapter 246 of the Laws of Malta, the following table would need to be followed for the acquisition of immovable property in Malta:

Deduction for Transportation Cost of Employees Rules

27th July 2018

At the end of February, the Deduction for Transportation Cost of Employees Rules were published through LN67 of 2018. These rules shall apply with respect to transportation costs incurred for the transport of employees as from the year of assessment 2018. These rules shall remain in effect up to the year of assessment 2020.

VAT Grouping Regulations

27th July 2018

By Virtue of L.N. 162, the newly implemented VAT Grouping regulations shall come into force as of 1st June 2018. VAT Grouping will enable members of a VAT Group to avoid irrecoverable VAT due on charges made between such members. Applicants forming the VAT Group will be required to be bound by financial, economic and organisational links. Moreover, one of the applicants within the VAT Group must be a taxable person who is licensed or recognised by the Malta Financial Services Authority (MFSA) or the Malta Gaming Authority (MGA).

Deduction for Transportation Cost of Employees Rules

27th July 2018

At the end of February, the Deduction for Transportation Cost of Employees Rules were published through LN67 of 2018. These rules shall apply with respect to transportation costs incurred for the transport of employees as from the year of assessment 2018. These rules shall remain in effect up to the year of assessment 2020.

Notional Interest Deduction (NID) Rules

27th July 2018

By virtue of Legal Notice 37 of 2018, the Maltese government introduced the Notional Interest Deduction (NID) Rules. Traditionally, businesses operating in Malta finance their operation via debt, given that interest is a deductible taxable expense. On the other hand, equity funded business do not have a corresponding deduction and hence the NID aims to equate the tax treatment of debt and equity by allowing the deduction of a notional interest over equity.

The Malta Gaming Authority (MGA) Publishes Industry Guidelines on the General Data Protection Regula

27th July 2018

In anticipation of the coming into force of the GDPR, the MGA, in consultation with the Office of the Information and Data Protection Commissioner (“IDPC”) has issued a guidance document which intends to provide B2C licensees with guidance on the processing of personal data carried out throughout the course of their gaming service operations.

Legal Developments

Malta Individual Investor Program (MIIP) – Reform

5th August 2020 The revised program which is set to replace the current Individual Investor Program (hereinafter ‘IIP’) is underway. During a briefing session held on Friday 3rd July 2020 the following proposed changes were discussed:

Privacy Rights Trump Artists’ Intellectual Property Rights: A Brief Insight into CJEU and IPR Enforcement of Intellectual Property Right (Regulation) Act in Malta

5th August 2020 Imagine this scenario: an individual decides to upload a copy of a Harry Potter film on YouTube, without acquiring the consent, and without paying any royalties to Warner Bros., which is the production company and owner of the rights of the film. Essentially, by uploading this film onto an online platform such as YouTube, but failing to acquire the consent of Warner Bros., this would constitute an infringement Warner Bros.’ intellectual property rights. Thus, in such a scenario, right holders would request YouTube, as the intermediary between the uploader and the rightsholder,  to disclose the contact details of the person who unlawfully uploaded such a film. Following this, the right holder, Warner Bros., would then be able to commence proceedings against the individual who has shared their film online in this way.

Identity Malta Agency to Lift Suspension on New Single Work Permit Applications in the Coming Days

5th August 2020 On the 16th of March 2020, as a result of the Coronavirus outbreak, Identity Malta Agency advised that they will not be accepting any new single work permit applications except for highly skilled workers (Key Employee Initiative) and medical professionals.

When can an Employer Process Health Data under the GDPR?

5th August 2020 The COVID-19 pandemic has drawn attention to the processing of health data and when such data may be processed, especially in light of the fact that employers are obliged to implement mitigation measures to ensure the safety of employees at the work place. In this article we will analyse some instances where health data may be processed by an employer.

Landmark CJEU Data Protection Judgement: EU-US Privacy Shield declared invalid

5th August 2020 On Thursday 16th July 2020, the Grand Chamber of the Court of Justice of the EU (‘CJEU’) delivered a landmark judgement in data protection, declaring the EU-US Privacy Shield Decision that attempts to guarantee the transmission of EU data to the United States, invalid. In the same breath, the CJEU also declared Decision 2010/87 setting Standard Contractual Clauses as valid and effective.

The P2B Regulation: New requirements for OISPs and Online Search Engines as of July 2020

5th August 2020 There is no denying that, perhaps now more than ever, online platforms offer incomparable access to cross-border markets. The increasing reliance of businesses on online platforms has led to a shift in the online marketplace, creating new dependencies and imbalances of power. Until recently, although platforms were subject to a myriad of different and piecemeal rules and regulations, the services they provide and activities they carry out had not been regulated in their entirety. This reality was recognised by the European Commission (the ‘Commission’) which identified the need to prioritise fairness in platform-to-business relations. Indeed, the EU Digital Single Market strategy confirmed this was one of the areas to be given priority in its mid-term review back in May 2017.

Disclosure of Improper Practice within the Workplace | Employee Protection

27th July 2020 The Protection of the Whistleblower Act (hereinafter ‘Act’) was enacted with the aim of making it possible for employees to safely raise concerns of wrongdoing within their workplace. The Act safeguards those whistleblowers who disclose, in good faith, information on improper practice. Recently, the EU Whistleblowing Directive (hereinafter ‘Directive’) was brought into force on the 16th of December 2019 with an implementation period of two years meaning that Malta must implement the provisions of the Directive into its national legislation by December 2021. The Directive will require the Act’s scope to be significantly widened by obliging all employers who employ 50 or more employees to set up effective internal reporting channels which ensure confidentiality and also requiring national authorities to investigate designated to investigate reports to similarly set up channels enabling confidential reporting. Furthermore, protective measures under the Directive are afforded to third parties as discussed further on within this article as opposed to protective measures being limited solely to the whistleblower under the current Act.

Health & Safety Obligations of Employers – How has COVID-19 affected such?

27th July 2020

THE EMPLOYER’S LEGAL OBLIGATIONS

The Occupational Health and Safety Authority Act (Chapter 424 of the Laws of Malta) establishes that it is the duty of an employer to ensure the health and safety of all persons who may be affected by the work being carried out for such employer at all times. All measures taken by employers to ensure health and safety, shall be taken on the basis of general principles of prevention which include:

Why Should an Employer have Policies in place?

27th July 2020 A policy is a predetermined course of action, established to provide clear guidelines to staff on how the company operates. Along the years, policies have become an essential part of well-structured and professional organisations, as they provide, direction and guidelines for the day to day operations of the company, as well as, ensure compliance with laws, regulations and codes of practice. At the moment, Maltese laws do not oblige companies to incorporate policies as part of their operations. However, it is increasingly becoming a practice which is highly recommended by both lawyers and the Industrial Tribunal (‘Tribunal’).

Duties of Directors of a Maltese Company in the case of Over-indebtedness or Illiquidity

27th July 2020 Apart from being responsible for the proper administration and management of the company, Directors of a Maltese company are, amongst other obligations, generally bound to act honestly and in good faith in the best interests of the Company; to promote its well-being and to exercise the degree of care, diligence and skill that may reasonably be expected of a person in such a position.

Guidelines 5/2019 published by the EDPB on the Right to be Forgotten

27th July 2020 The European Data Protection Board, or the ‘EDPB’, has issued a set of guidelines (Guidelines 5/2019) regarding the criteria of the right to be forgotten under the General Data Protection Regulation, or ‘GDPR’ (Regulation 2016/679). The right to be forgotten is dealt with in Articles 17 and 19 of the GDPR, together with the right of erasure and the notification obligation provision respectively. Guidelines 5/2019 were adopted very recently, on the 7th of July 2020, with the aim of interpreting the right to be forgotten in terms of processing by search engine providers and delisting requests submitted by data subjects. Essentially, the Guidelines were published following two cases of the Court of Justice of the European Union, (CJEU), namely the cases of ‘Google Spain vs. Costeja Gonzáles’ (Case C-131/12) and ‘Google vs. CNIL’ (Case C-136/17).

Uncapped EU Funds available for Hardest Hit Sectors

2nd July 2020 Member State governments may grant financial assistance or other forms of aid to their companies and/or sectors in difficulty so long as this aid is compatible with EU State aid rules namely Articles 107(2) or Article 107(3) of the Treaty on the Functioning of the EU (“TFEU”).

Data Protection, Gaming Affiliates, & Direct Marketing – Processor or Controller?

19th June 2020 The role of affiliates in relation to gaming operators’ platforms is to drive individuals to an operator’s site/app with the aim of such individual signing up to become players. The legal position of whether an affiliate is deemed to be a controller or processor in light of data protection law, has been subject to some debate for a while.

Malta Individual Investor Programme (MIIP) Has Reached Its Cap

10th June 2020 As most people are aware, when enacted back in 2014 the Malta Individual Investor Programme (hereinafter ‘MIIP’) which grants Citizenship by Investment in Malta, stated that the number of successful main applicants, shall not exceed one thousand and eight hundred (1,800) for the whole duration of the Programme. This week the Malta Individual Investor Programme Agency has advised that this cap is close to being reached.

Assignments of Rights Acquired Under a Promise of Sale Agreement Rules 2020

24th May 2020 Legal Notice 191 of 2020, which came into effect from the 1st of January 2020, introduces a final tax on the assignments of rights acquired in terms of a promise of sale agreement.

What are the Employer’s Obligations with regards to Employee Representatives?

28th April 2020 The Employee (Information and Consultation) Regulations (S.L 452.96) (the ‘Regulations’) make provision for the right to information and consultation of employees including the election of an employee representative to represent categories of employees which do not fall under a trade union. These Regulations bind employers to ensure that they make the practical arrangements in order to allow employees to be able to effectively exercise their right to information and consultation by setting out the minimum provisions which must be adhered to.

New Pension Regulations on Cross-Border Activities and Transfers

28th April 2020 The ‘Retirement Pensions (Cross-Border Activities and Cross-Border Transfers) Regulations (the “Regulations”) came into force on 13^th March 2020 by means of Legal Notice 48 of 2020. The Regulations transpose certain provisions of Directive (EU) 2016/2341 (the “Directive”), more commonly referred to as the IORP II Directive. While many of the Directive’s provisions have as their main objective the provision of adequate protection of members and beneficiaries of occupational retirement schemes, the Directive also intends to further facilitate pension schemes by reducing barriers to cross-border activity, with the aim of encouraging cross-border pension provisions.

Redundancies under Maltese Law

28th April 2020 When terminating on grounds of redundancy, an employer must always follow the last in, first out rule. Thus, the last person engaged within a class of employees affected by the redundancy should be the first to be made redundant.

COVID-19: Teleworking Becomes a Necessity Not Just an Employee Benefit

28th April 2020 Due to the present circumstances, many employers have had to put into action contingency plans with regards to remote working in order to abide by the public health department’s instructions to safeguard the health of their employees.

Tips to Ensure Data Security whilst Working from Home

28th April 2020 While technological developments over the last couple of decades have made this transition to remote working a relatively seamless one, it’s important to stay vigilant: working from home can increase risks to employee privacy and company security, making it a growing challenge for employers.

Amendments made to the Qualifying Employment in Aviation Rules

28th April 2020 Amendments were made to the Qualifying Employment in Aviation (Personal Tax) Rules (S.L. 123.168) by means of Legal Notice 120 of 2020 (hereinafter ‘Legal Notice’) which was published on the 2nd of April 2020. Such amendments shall be applicable retrospectively as from the 1st of January 2020.

Cell Companies for Aviation & Shipping Companies

23rd April 2020 Act V of 2020 (hereinafter referred to as ‘the Act’) was published on 3rd March 2020 and provides a number of amendments to various financial services laws. The most pertinent of these amendments in relation to the shipping and aviation sectors is found in Part V of the Act, which caters for the amendments to the Companies Act, Chapter 386 of the laws of Malta.

Yacht Importation Procedures

1st April 2020 When a yacht is imported in the EU for commercial purposes, it must undergo relative VAT and customs procedures in order to subsequently be imported into the EU. On the other hand, for a yacht to be placed in the EU indefinitely it would need to be registered in an EU member state. In that case, a yacht registration in Malta would be a fiscally advantageous alternative. Thus, yachts intended for commercial use may be imported into the EU via Malta for the relevant VAT and customs procedures to be undertaken. This would then allow the yacht to be chartered out and sail freely within EU waters.

100 Data Breaches by the UK Home Office

13th March 2020 The UK Home Office was responsible for at least 100 instances of data breaches that violated the country’s data protection laws, according to a report published last month by the Independent Chief Inspector of Borders and Immigration.

What are an Employer’s Rights in relation to the Spread of COVID-19?

13th March 2020 The rapidly spreading Coronavirus disease has brought about several queries from both the employer’s and the employee’s point of view, particularly due to the absence of any formal guidance provided in our legislation for these scenarios. Initially, the Ministry for Health had issued guidance advising individuals to self-quarantine as a precautionary measure. This has been updated and at the time of writing individuals returning from Switzerland, Germany, France, Spain, Italy, China, Singapore, Japan, Iran and South Korea are to observe a mandatory quarantine for 14 days.

Malta Rent Regulations 2020: The Private Residential Leases Act

25th February 2020

High Compensation awarded by the Industrial Tribunal for Unjust Dismissal from Employment

18th February 2020 The Industrial Tribunal recently heard the following four cases simultaneously, (Dr. Jeremy Debono representing the absent Gordon Clark vs Dragonara Gaming Limited, Dr. Jeremy Debono representing the absent Giancarlo Vecchoni vs Dragonara Gaming Limited, Dr. Jeremy Debono representing the absent Andrew Smith vs Dragonara Gaming Limited and Stephen Thornton vs Dragonara Gaming Limited), and awarded abnormally high compensation to the four employees who were made redundant following a transfer of business.

Malta Gaming Authority Publishes Guidance Document on the Application of Enforcement Measures

17th February 2020 On the 26th November 2019, the Malta Gaming Authority (‘’MGA’’) published an Explanatory Note setting out the principles which should guide the MGA in its application of enforcement measures when a breach occurs. This Explanatory Note substitutes the Explanatory Note which was issued in May 2016 on the Quantification of Administrative Fines.

GVZH Contributes to GDPR Enforcement Tracker

6th February 2020 Together with other European law firms, GVZH’s regulatory team contributed to a GDPR Enforcement Tracker which was launched by Baker McKenzie. This Tracker provides an extensive overview of the EU enforcement measures which have taken place since the introduction of the General Data Protection Regulation (“GDPR) in May 2018. The tool is intended to report the main decisions of the respective national Data Protection Authorities regarding violations of GDPR.

Galistair Trading Ltd Granted Air Operator Certificate

28th January 2020 Galistair Trading Ltd has received its Air Operator Certificate (AOC) and Air operator License (AOL), which was granted by the Transport Malta Civil Aviation Directorate. Galistair’s Airbus A321 is now registered as 9H-VDB and will shortly begin new operations with their GTR flight code.

GVZH’s newest venture: Ewropa Consultancy Services Limited, approved as a Registered Service Provision

17th January 2020 GVZH’s newest venture: Ewropa Consultancy Services Limited, has just been approved as a registered Service Provider under the Consultancy Services Grant Scheme pursuant to the Expression of Interest for Service Providers issued by the Measures and Support Division.

Competition law: Cooperation or Collusion? Time for the EU Commission to Revisit the Horizontal Bloc

10th January 2020 On 6 November 2019, the EU Commission launched a public consultation on the two so-called Horizontal Block Exemption Regulations. This consultation will run until 12 February 2020, so any feedback needs to be submitted to the Commission by midnight of the 12th February 2020.

Updates to Maltese Data Protection Law

17th December 2019 The last quarter of 2019 brought a number of changes to our data protection legislation.

Malta Gaming Authority publishes Guidance Document on Brexit Impact

13th November 2019 The Malta Gaming Authority (“MGA”) has published a guidance note (“Guidelines”) laying out the impact that the United Kingdom’s (“UK”) exit from the European Union (“EU”) will have on regulatory affairs within the remit of the MGA. These Guidelines apply to entities established in Malta and operating in the UK, with a UK licence but without a Maltese Licence, or entities established in the UK providing services and supplies within Malta.

Data Protection Implications of a Bring Your Own Device Policy

18th October 2019

BYOD is an acronym for ‘bring your own device’ and refers to a policy which an employer may implement to regulate the use of personal devices for work-related purposes at the workplace. Such a policy would regulate how employees access privileged company information and software on their personal devices, which devices would be connected to the corporate network. An effective BYOD policy is essentially a set of rules which establishes the level of support which an IT department may provide to employee-owned devices used in the workplace, while safeguarding both employers’ and employees’ interests.

Redemption of Government-owned Land held under a Title of Revisable Perpetual Emphyteusis

30th September 2019

On 27^th August, Legal Notice 216 of 2019 was published, which grants any person who holds a property of the Government or of the Lands Authority, under a title of revisable perpetual emphyteusis, the right to request the Authority to redeem that property at any time.

PSD2 Implemented into Maltese Law: What now?

8th August 2019

On the 2^nd August 2019, Bill 89 of 2019, entitled “Various Financial Services Laws (Amendment) Act, 2019” was published in the Government Gazette to become Act XXVI of 2019. This law will effectively amend the Banking Act (Chapter 371 of the Laws of Malta) and Financial Institutions Act (Chapter 376 of the Laws of Malta), making several amendments to the text of those principal legislative instruments dealing with various elements introduced by the Second Payment Services Directive, or, as it has come to be more affectionately known, “PSD2”, as a preference to the more formal and somewhat more taxing reference: “Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC.”

Consolidated Group (Income Tax) Rules, 2019

22nd July 2019 On 31 May 2019, Malta published the “Consolidated Group (Income Tax) Rules". The rules will come into force as from year of assessment 2020 and the rules introduce the concept of fiscal units into Maltese tax law.

Up for a gig? The risks of worker misclassification in the “gig economy”

8th July 2019

Author: Dr. Ann Bubeja

Several “gig economy” business models have sprung up in Malta over the past few years. Cab-hailing services, outsourcing platforms and courier delivery services, to name a few, have adopted the model of engaging with independent contractors for engagements, rather than undertake the orthodox, and admittedly more bureaucratic, route of hiring employees to perform those tasks.

Any undertaking looking to establish operations in Malta should, however, be careful about designing a business model around “independent contractor” arrangements before taking full account of the Maltese law rules governing the correct classification of such workers as employees, regardless of their contractual designation.

In this piece we will consider the critical question: when is a freelancer treated as an employee in terms of Maltese law?

Pharma no longer under the Competition radar

28th June 2019

Author: Dr. Gayle Kimberley

The use of competition law to regulate the pharmaceutical industry is beginning to see a new impetus. While traditionally competition authorities struggled to use competition law to address the pharmaceutical sector’s practices, EU legislators have given a clear political signal that something needs to be done to address anti-competitive practices of pharmaceutical companies which, they believe, are endangering patients’ access to affordable and innovative essential medicines.

Termination of Employment for Good and Sufficient Cause

23rd April 2019

In the case of Joseph Saliba vs Imperial Hotel (Goldvest Company Limited), the facts of the case revolved around Mr Saliba who was employed in various positions within the Hotel Imperial in Sliema until such hotel was acquired by Goldvest Company.

Immigration Status of British Citizens Resident in Malta

18th April 2019

On the 9^th of April 2019 the Immigration Status of British Citizens Resident in Malta on the Withdrawal Date of the United Kingdom from the European Union Regulations, 2019 (“Regulations”) were published.

Malta introduces new guidelines for long term leasing, reducing the vat liability of pleasure yachts

26th March 2019

On the 28th of February 2019 the Maltese Revenue Department published a new set of guidelines for the long term hiring of yachts and the payment of VAT. These guidelines apply to operational leases which have started on or after the 1st of November 2018. The guidelines have a number of similarities to those that were previously in place in Malta, including the principle of effective use and enjoyment which can be found in Article 59A of the VAT Directive.

The VAT guidelines

The guidelines establish a system whereby Maltese VAT is charged on the portion of the lease which is effectively used and enjoyed within EU territorial waters and a ration of such use will need to be established. The lessor is made responsible for showing and proving the portion of the effective use and enjoyment of the vessel in EU waters, and the burden of proof has been shifted completely onto the Lessor, therefore the lessor must maintain adequate records and documentary evidence, to determine the location of the actual effective use and enjoyment of the yacht. The Lessor must effectively prove that the vessel has been used outside EU territorial water to benefit from the reduction in the percentage of VAT applied.

Malta Gaming Authority launches VFA/DLT Sandbox Environment

14th March 2019

The first phase of the Malta Gaming Authority’s (MGA) sandbox environment was launched on 1 January 2019, for the purpose of accepting virtual financial assets (‘VFA’) and virtual tokens as valid consideration for the participation in licensed games. This test environment, which is intended to attract innovative business models, allowing them to develop in a contained regulatory environment, is expected to remain operative for a minimum period of ten months and can be extended at the discretion of the MGA.

Pregnant Employee Dismissed During Probation

8th March 2019

Giada Mifsud Calabro has been awarded damages amounting to €10,846 by the Industrial Tribunal after the Tribunal decided in favour of the employee in a case against Union Print Company Limited.

Summary Dismissal of Employees

7th March 2019

The Court of Appeal overturned a decision of the Industrial Tribunal given in the names of Marco Pisani vs The AV Warehouse and stated that summary dismissal of an employee must be the exception and not the rule.

IDPC fines Lands Authority for Data Breach

25th February 2019

On the 18th of February, the Information and Data Protection Commissioner (“IDPC”) imposed a €5,000 fine on the Lands Authority after having investigated a major data breach in November 2018.

Performance Bonus paid out more than 5 years later

21st February 2019

The Court of Appeal in its Inferior Jurisdiction overturned a decision taken by the Court of Magistrates and ordered the payment of a performance bonus owed by the Transport Authority in Malta to one of its employees.

New Directive on Work-Life Balance

7th February 2019

A new Directive, known as the Work Life Balance Directive, has been proposed to repeal the existing Framework Agreement on Parental Leave, made binding by Council Directive 2010/18/EU.

MGA Issue The De Minimis Games Directive

6th February 2019

The Malta Gaming Authority (the ‘MGA’) has issued a new directive, The De Minimis Games Directive, Directive 3 of 2019 (the “Directive”) which aims to exempt small lotteries and/or raffles from the regulatory regime, which would otherwise be applicable.

Google hit with €50 Million fine over GDPR Violation

24th January 2019

On the 25th May 2018, the same day on which the General Data Protection Regulation (“GDPR”) came into effect, complaints were filed against Google by two groups which advocate for privacy rights. The complaints were filed in France with the French data protection authority, the National Commission on Informatics and Liberty (“CNIL”). The complaints alleged that Google did not have a valid legal basis to process user data for the purpose of ad personalization.

Malta Employment Law Updates – January 2019

21st January 2019

In August of 2018, four Legal Notices were published making amendments to annual leave entitlement, itemised payslips, transfer of business legislation and temporary agency workers. These legal notices were suspended shortly after publication with further legal notices being published in December of 2018 to amend some of the suspended provisions, and bring into force.

The Intra-Corporate Transfer Regulations

10th December 2018

The Conditions of Entry and Residence of Third-Country Nationals in the Framework of an Intra-Corporate Transfer Regulations (“Regulations”) were brought into force through Subsidiary Legislation 217.21. These Regulations transpose EU Directive 2014/66/EU into Maltese law.

The Intra-Corporate Transfer Regulations

10th December 2018

The Conditions of Entry and Residence of Third-Country Nationals in the Framework of an Intra-Corporate Transfer Regulations (“Regulations”) were brought into force through Subsidiary Legislation 217.21. These Regulations transpose EU Directive 2014/66/EU into Maltese law.

Protecting Business Interests Following Termination of Employees

5th December 2018

In today’s world, one of a businesses’ most valuable asset would be its know-how, client base and trade secrets, all of which are becoming increasingly more difficult to protect with the rate of employment turnover of 2018.

Maltese Court of Appeal: Employee Email Addresses Constitute Personal Data

5th December 2018

On the 5th of October 2018, in the case of Doreen Camilleri vs Commissioner for Information and Data Protection, the Court of Appeal reversed a decision previously taken by the Appeals Tribunal for Information and Data Protection and held that an employee’s email address constituted personal data.

Virtual Financial Assets Act and Innovate Technology Arrangements and Services Act coming into force

10th October 2018

The Maltese Government has published the long-awaited legal notices establishing the 1^st November 2018 as the date on which the Virtual Financial Assets Act (VFAA) and the Innovative Technology Arrangements (ITAS) Act will come into force.

Consultation Paper on the Virtual Financial Assets Rules for VFA Service Providers

10th October 2018

On Friday 31st August, the MFSA published a consultation document outlining the Virtual Financial Assets (VFA) Rules for VFA Service Providers, (which include VFA [Crypto]Exchanges). The document is the third and final Chapter of the “Virtual Financial Assets Rulebook”. The scope of the Consultation is to obtain industry feedback in relation to Chapter 3 of the Virtual Financial Assets Rulebook; and the Authority’s interpretation of the transitory provision provided under Article 62(1)(c) of the Virtual Financial Assets Act (VFAA).

Malta Ahead of the Game: Three cryptocurrency and blockchain Bills passed the second reading stage

22nd August 2018

During a conference organised by the Malta Institute of Management, Parliamentary Secretary for Financial Services, Digital Economy and Innovation Silvio Schembri, announced that the three crypto-related bills, namely the Malta Digital Innovation Authority Bill, the Innovation Technological Arrangements and Services Bill, and the Virtual Financial Assets Bill will pass through the second reading in Parliament, and in fact yesterday evening the Maltese Parliament finalised the second reading stage. The bills will now move on to the committee stage and then on to the third reading stage. Once the third reading in parliament is concluded the bills will then be presented to the President of Malta for her assent and become law.

Commercial Importation Of Aircrafts

27th July 2018

An aircraft whose owner is established in the European Union and is intended for commercial use may be imported through Malta for VAT purposes and thus enabling the aircraft to be in free circulation within the European Union.

This procedure is a full importation procedure and requires the aircraft to be physically present in Malta to undergo the necessary VAT and customs procedures. Most of the paperwork can be processed before the arrival of the aircraft to Malta therefore ensuring minimal turnaround time.

Telecoms & Media in Malta | 2018 GTDT Edition

27th July 2018

Communications policy

Regulatory and institutional structure

Summarise the regulatory framework for the communications sector. Do any foreign ownership restrictions apply to communications services?

The regulatory framework for telecommunications in Malta is based on the following primary and secondary legislation:

Lexology 2018 Q&A Report on Data Security & Cybercrime in Malta

27th July 2018

Jurisdiction snapshot

Trends and climate

Would you consider your national data protection laws to be ahead or behind of the international curve?

Malta has been proactive in the implementation and development of its national data protection legal framework and is fully compliant with EU standards and best practice. Accordingly, Malta is a member of the EU Article 29 Data Protection Working Party and actively and periodically ensures that all of its policies and best practices are in line with those established by the working party.

A holistic approach to regulating cryptocurrencies and virtual financial assets in Malta

27th July 2018

Malta’s Parliament has recently approved three bills surrounding blockchain technology and cryptocurrency. These bills were presented by the government in order to instil legal certainty in the sector as well as to address banks’ concerns in accepting companies working in the industry.

Virtual Currencies & ICOs in Malta – State of Play

27th July 2018

It is fair to say that virtual currencies (“VC”) and initial coin offerings (ICOs) have been all the rage in 2017 and, while many of the more well-renowned VCs have lost more than 50% of their value in the first quarter of 2018, this new digital asset phenomenon has not shown any signs of relenting.

The Rights Granted To Minority Shareholders Under The Maltese Companies Act

22nd February 2018

“The rights of minority shareholders are an important and rapidly developing branch of law. It raises difficult questions of principle: the conflicts between the letter and the spirit of the company’s constitution; between the sanctity of the bargain between shareholders embodied in the articles and unfair treatment; between giving a remedy which is effective and allowing it to become an institution of abuse; between the attainment of fairness and the amount of money parties can spend on litigation”.[1]

Qualifying Employment in Aviation (Personal Tax) Rules

13th February 2018

Legal Notice 378 of 2017 has amended the Qualifying Employment in Aviation (Personal Tax) Rules which were originally promulgated in 2016, and amended by means of Legal Notice 1 of 2017.

Under the Qualifying Employment in Aviation (Personal Tax) Rules, which have come into force specifically under the auspices of the Maltese Income Tax Act, expatriates holding an eligible employment and office under a qualifying contract of employment in the aviation industry in Malta may opt to benefit from a reduced flat rate of tax of 15% on their employment income derived in respect of work or duties carried out in Malta. Eligible employment and office under the Rules include the following:

Award to Employee Following Transfer of Undertaking

13th February 2018

The transfer of undertakings takes place when a business or undertaking is taken over by another Company (new employer) from the current Company (old employer). Any employee in employment, with the old employer, shall be deemed to be in employment by the new employer who shall also take on all the rights and obligations which the employee had prior to the transfer of the undertaking.

Lexology Navigator: Secured Lending Trends and Regulatory Climate

13th February 2018

TRENDS AND REGULATORY CLIMATE

TRENDS

What is the current state of the lending market in your jurisdiction and have any new trends emerged over the last 12 months?

The lending market in Malta has traditionally been a conservative one. This factor contributed significantly towards the stability of Maltese credit institutions and debt security issuers during and after the 2008 credit crisis.

New Incentives for Family Businesses

13th February 2018

The Family Business Act (the “Act”), which came into effect on the 1st of January 2017, aims to regulate family businesses and the manner in which they are managed and operated. It also endeavours to ease the process of succession and transfer of the family business.  Through the Act, businesses can structure and register themselves as “family businesses”. Once registered, family businesses will be eligible for benefits available under the Act, including assistance or relief given in terms of the Duty and Documents Transfers Act (“DDTA”), Malta Enterprise Act, Business Promotion Act and in terms of any other law as may be prescribed. The legislation includes an initial set of incentives which are immediately available to registered family businesses to assist them throughout their transition process.

The European Commissions’s take on a European Data Economy

13th February 2018

MOVING TOWARDS THE CONCEPT OF A EUROPEAN DATA ECONOMY

Digital data is a fundamental resource for economic progress, job creation, citizen empowerment, competitiveness, and business development. The European Union (EU) must guarantee that data flows across borders and sectors. This data should be available and reusable by stakeholders in an efficient manner and supplemented by superior computing capabilities to scrutinise such data. Indeed, the utilisation of intelligent data supports the production of brand-new products and services, the continued development of such production, the growth of the target market, and the strengthening of research and development.

The Notified AIF – Malta’s Fast Track Fund

15th January 2018

The Notified AIF is a new fund regime offered by Malta which allows fund promoters to set up a fund within 10 working days from application to the regulator. The application is a notification submitted to the MFSA and which is spearheaded by the investment manager of the Notified AIF. The latter must be a full-compliant AIFMD manager which will be responsible for effective the monitoring of the NAIF.

Employment and Industiral Relations Law

15th January 2018

GVZH Advocates provides an array of employment-related solutions including contracts of service, dismissals, redundancies, transfers of employees between undertakings, equal treatment on the workplace and the implementation of appropriate systems and procedures for clients’ human resources.

Can your IP disclose your ID?

21st July 2017

An “IP”, or “internet protocol” is a unique series of numbers allocated to each and every device connected to a network, including and most notable the internet. Similar to your physical  home address to which postal articles are addressed and delivered, internet traffic is delivered to your computer’s address i.e. your IP address.

Leave for medically assisted procreation

21st July 2017

The recent Legal Notice No. 156 of 2017 (“Leave for Medically Assisted Procreation National Standard Order 2017”) has laid down minimum requirements designed to grant a period of paid leave to employees who undergo the process of medically assisted procreation (hereinafter referred to as the “leave”) whether in Malta or outside Malta.

When Paid Leave and Sick Leave Collide

9th May 2017

As stated by the European Court of Justice (“ECJ”), the right of employees to paid annual leave is a “particularly important principle of the European Union social law” which cannot be derogated from the competent local authorities or practices, such as collective agreements, and whose implementation by the said authorities or practices must not fall short of the minimum requirements imposed by European law.

Licence To Skill – An Outline Of Malta’s Regulation Of Skill Games

17th February 2017

Gambling, from a legal and policy perspective, has been consistently defined by reference to the constitutive elements of involving a monetary consideration, an element of chance, and a prize having some inherent value. Although definitions can vary significantly from one jurisdiction to another, the general consensus has been that a game or scheme that requires players to stake something of value for a prize that is awarded due to the outcome of an uncertain event should be treated as “gambling.”

Employment Contracts Conducted Electronically

1st February 2017

LEGAL BACKGROUND

In this digital age, there is an increased reliance on the internet as a means of conducting business in a more efficient manner. In recent years, businesses have slowly started to move away from traditional methods of conducting business, to a more online based business. This allows for innovation and development in the business sector.

European Commission Proposal Strengthens Privacy Rules for Electronic Communications

23rd January 2017

Following a leak in early December, the European Commission has officially published the finalised proposed new legislation which aims to strengthen privacy in electronic communications. The Regulation on Privacy and Electronic Communications (“Proposal”) aims to repeal the ePrivacy Directive. These rules will be updating existing laws and bringing them in line with the new General Data Protection Regulation (“GDPR”), forming part of the Digital Single Market Strategy.

Leaked Eprivacy Draft: What To Expect

3rd January 2017

Following the introduction of the General Data Protection Regulation, the European Commission has been working on reforming the E-Privacy Directive. The draft law was leaked on the 13th of December 2016. Although this is not the final version, we now have a clearer idea of what to expect in the coming months. The Privacy and Electronic Communications Regulation is expected to be finalized by January 2017. Since this is no longer a directive but is now a regulation, there is no need for it to be transposed. It will become effective within 6 months as opposed to the normal 2 year period, which means that companies will have a much shorter time period within which to bring themselves in line with the Regulation.

The most important changes found within the draft Regulation are the following:

• Prior consent must be obtained for cookies and any other kind of online tracking techniques (first party analytics are exempted). Nevertheless, when cookies are necessary for technical reasons, there is no need for consent. This means that pop-ups requiring consent for cookies will no longer be necessary.
• Privacy by design – device and software manufacturers must set default settings to block cookies by third parties.
• New opt-in requirement for direct marketing phone calls. However, Member States may choose to allow such calls on an opt out basis instead. There must be a specific marketing prefix number making these calls easily identifiable.
• Direct marketing by electronic communications is only allowed with respect to end users who have given their prior consent.
• Information related to the end user’s device is now protected.
• Publicly available directories must obtain consent from end users (if natural persons) prior to including their personal data in the directory.
• Consent may be withdrawn but only at periodic intervals every six months
• Fines which may be imposed in the case of a breach of the provisions of this Regulation are the following, depending on the offence in question:
  • 4% of global revenues or €20 million, whichever is higher; or
  • 2% of global revenues or €10 million, whichever is higher, for providers of devices and software who fail in their privacy by default obligations.

Although a revamped privacy regulation is welcome, it is certainly lacking in two important areas: it makes no mention of data retention or encryption. Local Data Protection Authorities will be responsible for the implementation of this Regulation. “OTT” (over the top) services such as Skype, Whatsapp, Facebook and Messenger will be expected to comply, together with traditional telecommunication services providers. The Regulation will have extra territorial effects as even third country websites will be required to conform in order to ensure that website visitors hailing from the European Union will have their rights protected.

Posting of Workers: The New Proposal of EU Commission for Revision of EU Directive 96/71/EC

3rd January 2017

As a specific form of temporary labour mobility, posting of workershas been a prominent topic of public and political debate during previous decades. Several factors have contributed to the debate.

Mfsa Issues Discussion Paper On Investment-based Crowdfunding

2nd December 2016

With access to finance becoming more difficult for start-ups and small businesses, the evolution of crowdfunding is becoming an emerging alternative funding source for project owners seeking starting capital.

Gapsme: General Accounting Principles For Small And Medium Enterprises

30th November 2016

The EU Single Accounting Directive 2013/34/EU, which repealed the 4th and 7th Accounting Directives on Individual and Consolidated Accounts, introduced a simplified procedure for financial statement reporting. This Directive was transposed into Maltese law via legal notice 289 of 2015 in virtue of the ministerial powers conferred on the Minister of Finance in virtue of the Accountancy Professions Act (Chap. 281 of the Laws of Malta).

Fraud And Investigations At The Workplace

16th November 2016 LEGISLATIVE FRAMEWORK

 

Monitoring of employees at the workplace is not specifically regulated by Maltese Law. In this respect, one  must refer to the Data Protection Act (Chapter 440 of the Laws of Malta), the European Directive 95/46/EC on processing of personal data and free movement of such data, as well as relevant rulings of the European Court of Justice (“ECJ”) and the European Court of Human Rights (“ECHR”), and best common practices.

A principle common to all Member States is that when it comes to working life, employers must strike a balance between monitoring employees and employees’ right to a private and family life. In fact, on the one hand, employers have an expectation to safeguard themselves against “wrongdoing” at the place of work, and on the other hand employees have an expectation of privacy.

Therefore, as a matter of principle, monitoring of employees at the place of work must be reasonable, not excessive and not disproportionate.

Comparative Guides

• Malta: Technology

  Published: July 2020

  Authors: Dr Andrew J Zammit Gayle Kimberly Francesca Hili Nicole Sciberras Debono

  This country-specific Q&A provides an overview to Technology laws and regulations that may occur in Malta.