Malta’s Financial Regulatory Bodies: A Global Hub for Financial Innovation
Malta has solidified its position as a leading global player in the financial sector, thanks to its advanced telecommunications infrastructure, highly skilled workforce, and welcoming regulatory environment for digital financial services. At the heart of this success is the Malta Financial Services Authority (MFSA), which stands out for its commitment to transparency and adherence to international standards.
Economic Growth and Development
The MFSA’s 2022 Annual Report highlighted a significant increase in the value provided by the financial services industry to the Maltese economy, reaching €1.1 billion - a 4.3% growth from the previous year. The Malta Chamber of Commerce has taken the initiative to collaborate with multiple financial institutions to improve the sector for all stakeholders.
Licensing Process
The licensing process in Malta is renowned for its efficiency, with the MFSA ensuring that only institutions with strong financial standing and stringent compliance measures secure licenses. The process begins with a high-level presentation to the MFSA, followed by a review of the application and final approval subject to post-licensing requirements.
Benefits of Doing Business in Malta
Malta’s unique regulatory environment offers significant benefits, including:
- Passporting rights within the EU, allowing financial institutions to operate across the region
- A diverse and multilingual workforce, proficient in multiple languages, which facilitates effective communication and understanding in an international business environment
Fintech Innovation and Infrastructure
The country’s fintech innovation and cutting-edge telecommunications infrastructure have positioned it as a forward-lookng hub in the financial services domain. Malta has cumulatively committed €90 million to enhance its networks and service offerings between 2022 and 2023.
Tax Regime
Malta’s favourable corporate income tax regime, with approximately 70 double taxation treaties in place, offers significant advantages for businesses looking to reduce their tax liabilities. The country boasts an effective corporate tax rate of 5% if the company is owned by a non-resident or a resident without domicile in Malta.
Strategic Location
Malta’s strategic location offers excellent connectivity to continental Europe through various sea and air routes, making it an attractive hub for corporations seeking to establish a presence in Europe. Looking ahead, Malta’s financial sector is poised for even greater heights, fuelled by strategic initiatives and forward-thinking policies set in motion by the Malta Financial Services Advisory Council.
Get Expert Guidance from BDO Malta
At BDO Malta, we offer invaluable expertise to financial institutions navigating the licensing process in Malta, providing seamless compliance with local regulations and ensuring the successful establishment of your entity within Malta’s dynamic financial landscape. Contact us today to learn more about how we can help you achieve your goals in this vibrant market.