Malta is a small island in the Mediterranean with a relatively small population, yet it is a full member of the EU and has a large number of talented professionals available to work in the financial services industry. This combination makes it an ideal location for investment. Malta has a distinct advantage over some of its larger rivals: it is still possible to make direct contact with government and legislators in the jurisdiction.
The legislation in Malta is pragmatic and efficient while still maintaining strong and effective regulation, and the island has demonstrated a pro-business attitude and the flexibility that can only exist in a small jurisdiction.
Relatively Low Operating Costs
Malta has a good supply of experienced and sophisticated professionals, and is also less expensive to operate in than other locations. Operational costs in Malta are similar to the Cayman Isles and markedly less than in the Channel Islands, Dublin or Luxembourg.
In the current economic climate, many governments are targeting what they perceive as ‘tax havens’, which could be a major disadvantage for investors who merely want to find a tax-efficient way of managing their investments. One advantage of Malta is that it has an efficient taxation regime and is a member of the Eurozone.
Investment services providers domiciled in Malta enjoy a key competitive advantage; the ability to passport their services and set up branches throughout Europe, thanks to the simplified ‘passporting procedure’.
This means that Maltese investment services providers can use their Malta license to provide their services throughout the EU, without the need for further licenses. This is a very attractive option, which can reduce costs as well as regulatory complexity.