Tax Haven Blacklist: OECD Presents Its Criteria

G20 Finance Ministers met last week of July 2016 and vowed to work closer together to combat tax avoidance.

Furthermore, the OECD presented them with the set of criteria it will use to develop its new blacklist of non-cooperative jurisdictions.

Earlier this week, the G20 finance ministers met in Chengdu, China, and decided to work closer together to maximize tax collection and curtail tax avoidance by multinational companies in their jurisdictions.

A Communiqué by the Ministry of Finance of the People’s Republic of Chinasummarized the meeting’s accomplishments, welcoming “the recent progress made on effective and widespread implementation of the internationally agreed standards on tax transparency.”

As part of these discussions, the statement reiterated the G20 countries’ “call on all relevant countries including all financial centers and jurisdictions which have not yet done so to commit without delay to implementing the standard on automatic exchange of information by 2018 at the latest and to sign the Multilateral Convention on Mutual Administrative Assistance in Tax Matters.”

Likewise, the announcement highlighted the G20 countries’ full support for “the Global Forum’s monitoring of the implementation of automatic exchange of information” as they have high expectations for the full report’s release towards the end of 2016.

Speaking on behalf of the United States, Treasury Secretary Jacob Lew said, “When the current cross-border tax rules were developed they were tied to concepts that reflected geography and national boundaries” and not to today’s world of advanced “technology and cloud computing.”

Lew urged ministers in attendance to develop “a common standard across countries on important issues of transfer pricing” to “collectively” tackle issues of tax avoidance and evasion.

Most importantly, the aforementioned communiqué expressed the group’s choice to “endorse the proposals made by the OECD working with G20 members on the objective criteria to identify non-cooperative jurisdictions with respect to tax transparency.”

Prior to the meeting in China, the OECD presented the G20 countries with a proposal on how it will assemble the list of non-cooperative jurisdictions that will be released in July 2017.

According to MNE Tax, countries will be considered a non-cooperative jurisdiction if they do no meet two out of the three following criteria: “the country must achieve a rating of “largely compliant” with respect to the exchange of information on request (EOIR) standard; must commit to the automatic exchange of information (AEOI) standard, with the first exchange by 2018; and must join the multilateral Convention on Mutual Administrative Assistance in Tax Matters or have a sufficiently broad network permitting both EOIR and AEOI.”

After studying this proposal, various tax justice proponents criticized the criteria and claimed that it falls short of what’s needed to develop a comprehensive and realistic list of non-cooperative jurisdictions.

The Tax Justice Network’s Nicholas Shaxson, author of Treasure Islands, says, “The OECD doesn’t seem to have learned its lesson from its last big war on tax havens, which began in 1998. It identified the small, weak players as the miscreants and whitewashed the big players. That campaign collapsed under the weight of its own contradictions. If the OECD doesn’t summon up some courage to do the right thing this time, it puts this whole promising edifice of global transparency at risk.”

Furthermore, according to Moran Harari, a Tax Justice Network analyst, “The litmus test of the value of the new OECD criteria will rest with the treatment of USA. That only two of the three criteria must be met is a worrysome feature, and combined with the requirement that signature of the multilateral tax convention is enough, appears to be tailored to let the US wriggle through.”

However, according to the OECD’s Secretary-General Angel Gurría, this set of criteria is already working and will bring forward greater transparency.

During the meetings in China, Gurría said, “These proposals do have an impact, and it was with recognition of the pending application of those Objective Criteria, that at the end of last week, Panama took the first step to join the multilateral Convention on Mutual Administrative Assistance. In terms of delivering on their commitment to undertake automatic exchange of financial account information by 2018, this is a very big step forward, and we hope will be swiftly followed by completing the other necessary steps to full compliance.”



Pensions, Pensioners, Brexit and pensions’ passporting throughout Europe

Pensions, Pensioners, Brexit and pensions’ portability throughout Europe


From expatforum

British expats living in European Union countries, especially popular ones such as France and Spain, are still trying to come to terms with how Brexit will affect their finances and living plans.

One big area of concern are pensions and Brexit could be a trigger for more people to move their British pensions out of the UK, according to finance experts.

The issue revolves around whether or not the UK tax authority, HMRC, will continue to recognise Qualifying Recognised Overseas Pension Scheme, or QROPS, which have been popular for expats worried about currency fluctuations.

Brexit will be a trigger for even more people to move their British pensions out of the UK, according to Nigel Green, chief executive of independent financial advisory firm, deVere Group.

‘As the reality of what a Leave result in the EU referendum means for personal finances sinks in, people will now be reassessing their retirement planning strategy. We can fully expect demand for HMRC-recognised overseas pension transfers to be further boosted thanks to the UK’s decision to leave the European Union,’ he said.

‘Due to the huge amount of uncertainty that’s created, more and more people who are eligible to do so, that’s to say expats and those who are considering retiring outside Britain, will be seeking to safeguard their retirement funds by transferring them into a secure, regulated, English speaking jurisdiction outside the UK,’ he added.

The main concern for finances has been the significant fall in the pound following the referendum decision. For those living in the EU and in receipt of a UK pension, a plummeting pound has serious consequences as the cost of living becomes more expensive.

An established way to help mitigate these problems of currency fluctuations, which can seriously erode retirement income, is to transfer a UK pension into a QROPS. However, there have been some questions raised over the legalities of QROPS due to the Brexit decision.

‘QROPS started under EU law, but now there are separate agreements in place between the UK and individual jurisdictions, such as Malta, regarding pensions transfers. This means that when the UK leaves the EU, these agreements will remain intact.

Therefore, the pension funds established in these jurisdictions will still meet the criteria to be recognised as Overseas Pensions Schemes under UK legislation,’ Green pointed out.

‘Considering the wider post-Brexit vote scenario we are facing, we can assume that the wider international financial advisory sector is about to enter a phase of enormous activity and growth,’ he added.

Pensioners are the biggest group of British expats in Europe, and they can use the years they have worked in one member state to qualify for pensions in another. For example, in Germany EU citizens can count years worked elsewhere to meet the minimum requirements for a pension.

MALTAway, Corporate & Assets Governance, World Class, MALTA, Worldwide

We believe that many Corporations and Individuals  seek what we have found , and we want to share , we need only starting to think and act differently … and our contribution 

MALTAway is a web portal driven by an holistic vision to offer integrated services such as Corporate Services, Tax & Legal, Management Consulting, Governance, Investment, Business Advisory,  Relocation, in favor of the Corporations, Business, Finance, HNWIs;

MALTA is the best place to move in, with an Anglo-Saxon Business Culture and Regulatory environment in the middle of the Mediterranean Sea, to prosper, develop and protect the Business and the Assets of a Corporation and HNWIs as well

EU and Monaco sign new tax transparency agreement

EU and Monaco sign new tax transparency agreement

Brussels, 12 July 2016

MALTA, the best jurisdiction in EU for Cost, Tax, Transparency, Compliance

MALTA, la migliore giurisdizione per Costi, Tasse, Trasparenza, Compliance

and business & life quality

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Today the EU and Monaco signed a new tax transparency agreement, under which they will automatically exchange information on the financial accounts of each other’s residents from 2018.

This will ensure that both sides are better equipped to detect and pursue tax evaders, who will nolonger be able to hide income and assets in financial institutions abroad.

Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “Today’s agreement reinforces Monaco’s commitment to international tax transparency standards. The EU and Monaco have today sent a joint clear signal: we are allies when it comes to tax transparency and allies in the fight against international tax avoidance and tax evasion.”

Under the new agreement, Member States will receive the names, addresses, tax identification numbers and dates of birth of their residents with accounts in the Principality, as well as other financial and account balance information. This is fully in line with the new OECD/G20 global standard for the automatic exchange of information.

Today’s agreement marks the latest in a series of international landmark deals the EU has signed with Switzerland, Liechtenstein, San Marinoand Andorra.

For more information, see:

Tax Guidelines on Highly Qualified Persons Rules in MALTA

Tax Guidelines on Highly Qualified Persons Rules in MALTA

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Corporate & Assets Governance, World Class, MALTA, Worldwide

MALTAway is a web portal driven by an holistic vision to offer integrated services such as Corporate Services, Tax & Legal, Management Consulting, Governance, Investment, Business Advisory,  Relocation, in favor of the Corporations, Business, Finance, HNWIs;

MALTA is the best place to move in, with an Anglo-Saxon Business Culture and Regulatory environment in the middle of the Mediterranean Sea, to prosper, develop and protect the Business and the Assets of a Corporation and HNWIs as well


Since joining the EU in 2004, Malta has been modernising its economy. and is becoming recognized as a highly functional, low cost, well regulated jurisdiction with the underlying theme being availability of trained staff through investment in education and training.. However, the expansion of the financial services and the gaming services since joining the EU and the aviation services in recent years, is showing a significant need for additional highly qualified workers. Therefore, the need is being felt for the importation of knowledge particularly in those areas of the financial services sector, the gaming sector and the aviation sector where local expertise is lacking.

The objective of the Highly Qualified Persons Rules (SL 123.126), is the creation of a scheme to attract highly qualified persons to occupy “eligible office” with companies licensed and/or recognized by the Malta Financial Services Authority, companies licensed by the Lotteries and Gaming Authority and undertakings holding an Air Operators’ Certificate or an Aerodrome Licence issued by the Authority for Transport in Malta.

“Eligible office” comprises employment in one of the following positions:

  • Actuarial Professional
  • Aviation Continuing Airworthiness Manager
  • Aviation Flight Operations Manager
  • Aviation Ground Operations Manager
  • Aviation Training Manager
  • Chief Executive Officer
  • Chief Financial Officer
  • Chief Commercial Officer
  • Chief Insurance Technical Officer
  • Chief Investment Officer
  • Chief Operations Officer (including Aviation Accountable Manager)
  • Chief Risk Officer (including Fraud and Investigations Officer)
  • Chief Technology Officer
  • Chief Underwriting Officer
  • Head of Investor Relations
  • Head of Marketing (including Head of Distribution Channels)
  • Head of Research and Development; (including Search Engine Optimisation and Systems Architecture)
  • Portfolio Manager
  • Senior Analyst (including Structuring Professional)
  • Senior Trader/Trader
  • Odds Compiler Specialist

“Eligible office” in an aerodrome licensed undertaking refers to employment in the following position:

  • Chief Executive Officer

The rules for the scheme came into force with effect from 1 January 2010 and apply to income which is brought to charge in year of assessment 2011 (basis year 2010) and apply to individuals not domiciled in Malta, with the exception to the positions associated with the aviation sector where the rules are effective from 1st January 2012 i.e. year of assessment 2013.

The scheme’s termination date is 31/12/2025. No determinations shall be issued by the respective Competent Authorities after 31/12/2020.

Scheme Rules

a) Employment Income

Individual income from a qualifying contract of employment in an “eligible office” with a company licensed and/or recognised by the Malta Financial Services Authority is subject to tax at a flat rate of 15% provided that the income amounts to at least €75,000 (seventy five thousand euro) adjusted annually in line with the Retail Price Index. The 15% flat rate is imposed up to a maximum income of €5,000,000 (five million euro), the excess is exempt from tax.

In practice this means that the minimum income (based on the Retail Price Index published by the National Statistics Office) must exceed the following thresholds:

  • €75,000 for basis year 2010
  • €76,136 for basis year 2011
  • €78,207 for basis year 2012
  • €80,100 for basis year 2013
  • €81,205 for basis year 2014
  • €81,457 for basis year 2015
  • €82,353 for basis year 2016

The 15% tax rate applies for a consecutive period of five years for European Economic Area (ie EU countries plus Norway, Iceland and Liechtenstein) and Swiss nationals and for a consecutive period of four years for third country nationals. Individuals who already have a qualifying contract of employment in an “eligible office” two years before the entry into force of the scheme may benefit from the 15% tax rate for the remaining years of the scheme. This means that a national of the EEA and Switzerland who has a qualifying contract of employment in an “eligible office” starting in 2008 (basis year) will benefit for three years from the scheme, ie basis years 2010, 2011 and 2012, while a third country national will benefit from one less. This “grandfathering” only applies for eligible offices in the financial services and gaming sectors.

The four or five year period, as the case may be, commences from the year when the individual concerned first becomes taxable in Malta. In cases where the individual was taxable in Malta but not benefiting under this Scheme and subsequently comes to Malta and becomes eligible under the Scheme, he can benefit only if the four or five year period has not elapsed; the benefit is for the years remaining from the date of eligibility under the Scheme until the said four or five year period from the date of first being subject to tax in Malta elapses.

Nationals of the EEA and Switzerland who have availed themselves of the benefit under this scheme may apply for a one-time extension of five years to the qualifying period.

b) Qualifying Contract of Employment

An individual may benefit from the 15% tax rate if he satisfies all of the following employment conditions:

  1. derives employment income subject to income tax in Malta
  2. has an employment contract subject to the laws of Malta and proves to the satisfaction of the Competent Authority that the contract is drawn up for exercising genuine and effective work in Malta
    (Note: where an individual receives salaries from different companies in the same group and the group relationship of such companies is of 100% ownership, he will still be eligible if the aggregate salaries (excluding fringe benefits) are higher than the minimum thresholds as specified above).
  3. proves to the satisfaction of the Competent Authority that he is in possession of professional qualifications and has at least five years professional experience;
  4. has not benefitted from deductions available to investment services expatriates with respect to relocation costs and other deductions (under article 6 of the Income Tax Act);
  5. fully discloses for tax purposes and declares emoluments received in respect of income from a qualifying contract of employment and all income received from a person related to his employer paying out income from a qualifying contract as chargeable to tax in Malta;
  6. proves to the satisfaction of the Competent Authority that he performs activities of an eligible office; and
  7. proves that:
    1. he is in receipt of stable and regular resources which are sufficient to maintain himself and the members of his family without recourse to the social assistance system in Malta;
    2. he resides in accommodation regarded as normal for a comparable family in Malta and which meets the general health and safety standards in force in Malta;
    3. he is in possession of a valid travel document;
    4. he is in possession of sickness insurance in respect of all risks normally covered for Maltese nationals for himself and the members of his family.

Exclusions from the Scheme

The individual income derived from employment in an “eligible office” will not qualify for the 15% reduced rate if it is paid by an employer who receives any benefits under business incentive laws or is paid by a person who is related to the employer who received any benefits under any business incentive laws or if the individual holds more than 25% (directly or indirectly) of the company licensed and/or recognised by the Malta Financial Services Authority or the Lotteries and Gaming Authority or of a company holding an Air Operators’ Certificate issued by the Authority for Transport in Malta or if the individual is already in employment in Malta before the coming into force of the scheme either with a company not licensed and/or recognised by the Malta Financial Services Authority or the Lotteries and Gaming Authority or not holding an Air Operators’ Certificate issued by the Authority for Transport in Malta (in the case of aviation services) or not holding “eligible office” with a company licensed and/or recognised by the Malta Financial Services Authority or the Lotteries and Gaming Authority or not holding an Air Operators’ Certificate issued by the Authority for Transport in Malta (in the case of aviation services).

The individual income derived from employment in an “eligible office” will not qualify for the scheme if a claim is made for any relief, deduction, reduction, credit or set-off of any kind except for any income tax deducted at source.

Provisions in respect of split contracts have been introduced. An arrangement in terms of which a beneficiary receives a payment from a person related to his employer and such payment is not declared for tax purposes in Malta is considered to be an artificial arrangement.

Any rights are withdrawn with retrospective effect if a beneficiary is a third country national and he either:

  • Physically stays in Malta, in the aggregate, for more than four years; or
  • Directly or indirectly acquires real rights over immovable property situated in Malta or holds a beneficial interest directly or indirectly consisting in, inter alia, of real rights over immovable property situated in Malta.

Any individual who claims a benefit under the scheme when he is not entitled to do so is liable to a penalty equal to the amount of benefit claimed and if the benefit is paid the individual is liable to repay the benefit received plus additional tax of 7% per month or part thereof.

Application to Benefit from the Scheme

An application for a formal determination relating to eligibility under the Highly Qualified Persons Rules must be made to:

  • The Chairman, Malta Financial Services Authority using this form (in the case of Financial Services). Persons who already submitted a personal questionnaire to the Malta Financial Services Authority can apply using this form instead.
  • The Chairman, Lotteries and Gaming Authority using this form.
  • The Chairman, Authority for Transport in Malta using this form (in case of Aviation Services).

The benefit is exercised for each year of assessment by means of a declaration made on the form RA 17 signed by the beneficiary and endorsed by the Malta Financial Services Authority or the Lotteries and Gaming Authority or the Authority for Transport in Malta as the case may be. This form is to be attached to the income tax return and filed with the Inland Revenue Department by the tax return date.

MALTA BRexit EUROPE, partner instead of compete to offer better solutions for business and individuals

MALTA BRexit EUROPE, partner instead of compete to offer better solutions for business and individuals

maltaway valletta night

Corporate & Assets Governance, World Class, MALTA, Worldwide

We believe that many Corporations and Individuals  seek what we have found , and we want to share , we need only starting to think and act differently … and our contribution 

MALTAway is a web portal driven by an holistic vision to offer integrated services such as Corporate Services, Tax & Legal, Management Consulting, Governance, Investment, Business Advisory,  Relocation, in favor of the Corporations, Business, Finance, HNWIs;

MALTA is the best place to move in, with an Anglo-Saxon Business Culture and Regulatory environment in the middle of the Mediterranean Sea, to prosper, develop and protect the Business and the Assets of a Corporation and HNWIs as well

Malta was not looking for the “spoils of war” following the Brexit vote, but would offer assistance to the UK and to companies interested in using the country as a gateway to the European Union

ince the surprising decision by UK voters, a number of European financial services capitals, including Luxembourg, Paris, and Frankfurt have been actively ‘propositioning’ UK-financial services institutions in a bid to lure them away from London amid the uncertainty following the Brexit vote.

Defending Malta’s apparent lackadaisical reaction to the result – which could see it lose out to a number of European capitals that have are promoting themselves to poach investment – the prime minister insisted that Malta does not view the UK as an enemy to be exploited.

“The best results would be obtained through friendship and offering to work together with the UK … those who are going to fight for investments by stealing companies away from the UK would find short shrift in their methods.”

“While others may try to knock down the door into the UK, we want that door to be opened for us because of our behaviour,” Muscat said.

Malta had immediately provided a voice of caution even within the EU, and called for Britain to be given enough breathing space to get its house in order before pursuing exit negotiations, he explained.

The prime minister – who in the wake of the vote ruled out any Maltese referendum on leaving the EU on the basis that it would be tantamount to “suicide” – argued that though he did not agree with the UK’s decision to leave the EU, he understood why people would voted in favour of Brexit.

“I can understand why a man living in a housing estate in the UK would vote against the EU when he suddenly finds himself the only Englishman in his neighbourhood,” he said, while denouncing as “shallow” those who blamed Brexit on the elderly, poor and uneducated in Britain.

“Unless the EU understands that immigration is an issue that is close to the heart of many people and countries, more EU citizens will be turning to extreme groups and parties in greater numbers in the future,” he said.

The Prime Minister also said he sympathises with Birzebbugia and Marsa residents who frequently express concern at the number of refugees in their localities, and argued that whoever discusses migration should not be accused of being xenophobic, racist or far right.

Muscat said the EU should not have anything to do with leaders of extreme parties, but should engage in discussion those people who turn to such parties in a bid to protest against the union.

“The EU cannot remain a union of a few elite that forgets and ignores those with a humble background, dismisses pensioners or makes the young feel totally ignored,” he stressed.

MALTA, 1Q 2016 PIL reale +5,2%

MALTA, 1Q 2016 PIL reale +5,2%

WHY MALTAWAY ? è davvero la domanda chiave

Corporate & Assets Governance, World Class, MALTA, Worldwide

Noi crediamo che molti cerchino quello che noi abbiamo trovato, e che vogliamo condividere, serve solo iniziare a pensare e ad agire differentemente…e il nostro contributo

MALTAway, your way to enter the MALTA world

MALTAway è un portale che nasce con una visione olistica di servizi integrati di Corporate Services, Tax & Legal, Management Consulting, Governance, Investment, Business Advisory, Relocation, rivolti al mondo Corporations, Business, Finance, HNWIs

MALTA è la nuova Svizzera e il meglio del Nord Europa in mezzo al Mediterraneo, il posto migliore per il successo, lo sviluppo e la protezione di una Corporation, del suo Business, dei suoi Assets

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First quarter GDP up by 5.2% over 2015

Increases of €153 million in gross domestic product for January-March 2016 when compared to same period in 2015

Provisional estimates indicate that the Gross Domestic Product (GDP) for the first quarter of 2016 amounted to €2,185.6 million, an increase of €153.4 million or 7.6 per cent when compared to the corresponding period last year.

In real terms, GDP went up by 5.2 per cent.

During the first quarter of 2016, Gross Value Added (GVA) increased by €124.2 million when compared to the same quarter last year.

This was mainly generated by wholesale and retail trade; repair of motor vehicles and motorcycles; transportation and storage; accommodation and food service activities which increased by €28.4 million or 8.0 per cent.

Other increases were registered in professional, scientific and technical activities; administrative and support service activities by €24.4 million or 11.2 per cent; and in public administration and defence; education; human health and social work activities which increased by €18.0 million or 5.0 per cent. A slight drop was registered in construction.

Total final consumption expenditure in nominal terms increased by 7.6 per cent and by 6.4 per cent in real terms. Gross fixed capital formation increased by 22.6 per cent in nominal prices and by 16.2 per cent in real terms. Real exports and real imports increased by 0.5 per cent and 2.5 per cent respectively.

Compared to the corresponding quarter last year, the increase in GDP at current prices of €153.4 million is estimated to have been distributed into a €54.5 million increase in compensation of employees, a €65.4 million increase in gross operating surplus of enterprises, and a €33.6 million increase in net taxation on production and imports.

Considering the effects of income and taxation paid and received by residents to and from the rest of the world, Gross National Income (GNI) at market prices for the first quarter of 2016 is estimated at €2,150.7 million.

Is digital identity and residence a new business way for Malta?

Why Estonia Is Letting Entrepreneurs Become “E-Residents”

Is digital identity and e-residence a new business way for Malta as well?

MALTA il paese leader in Europa nei servizi di #eGovernment per cittadini e imprese … come il Sud del Mediterraneo batte il Centro e Nord Europa

Maltaway is here to help you to relocate and invest in Malta, for yourself, your business, your wealth, your people….how can I help you?

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A common mistake governments make is assuming that a “more digital” economy will equal economic growth. But digitalization does not necessarily translate into growth.

For instance, in the HBR article “Where the Digital Economy Is Moving the Fastest,” the country with the fastest rate of digital development in the past, and the steepest trajectory for future digitalization, is Singapore. But, as the Singaporean government is slowly realizing, correlation does not mean causation, and digitalization does not mean growth. The Singaporean economy’s growth rate went from 6.2% in 2011 to 2.9% in 2014.

Many governments have been focused on both making themselves more efficient through digital technology (such as making it easier to renew passports through online portals) and making their countries more attractive to digital technology companies (by reducing the cost of doing business within their borders). As the examples of Singapore and many other countries illustrate, these steps are not enough.

If the public sector is to realize the full potential of digital technology to transform public finances and even kickstart national economic growth, governments will have to move beyond streamlining services and cutting red-tape for entrepreneurs.

Let’s look at the lessons from the private sector. As students of disruption realize, a new technology is never a disruption on its own. It’s an enabling condition, arguably even a necessary one, but it is not a sufficient condition. For a new digital technology to deliver a disruptive innovation, a new technology must leverage two things:

A new route to market. All disruptive innovators in business have capitalized on a channel of commercialization where the leading firms are not present. For instance, Dell sold directly to consumers, as did Salesforce, Skype, and eBay.

A new business model. Disruptive innovators usually change the revenue architecture — how you hire a car or plan a trip, for example. It’s really hard for incumbents already deeply invested in an existing business model to follow suit, which explains the success of free newspapers, Zipcar, TripAdvisor, and Lending Club.

So what would this look like in the public sector?

One example comes from Estonia. The small European nation has made it possible for entrepreneurs to become “e-residents.” Anyone in the world who wants to operate out of Estonia can become a “resident” of the country — without living there. While e-residents don’t have full rights as citizens (they don’t vote, for example), the government will grant you, for a flat subscription rate, a digital identity that grants you full rights to do business in Estonia and in most European countries, depending on the industry. This enables the Estonian government not only to foster entrepreneurship in their economy but to generate revenue through the e-card subscriptions. Even better for public finances, e-residents are not physically in the country (they just pay taxes there), which means they don’t generate the expenses that normal citizens impose on a country.

Note how this initiative is not about using digitalization to make the process of entrepreneurship more efficient or faster, which is one of the key metrics on how countries are measured worldwide, but instead leverages a new model (in this case, a new model of citizenship) to capture new net growth.

As with disruption in the private sector, Estonia’s e-residency program offers both a lower price and fewer features while simultaneously creating a new route to market. In this way, Estonia is suddenly making it possible for a whole new cadre of startup founders to operate in Europe at a fraction of the cost of living there.

Marc Andreessen, the prominent venture capitalist, once said that software is eating the world. He’s not wrong, but it’s more complicated than that. Technology is just one part of the story. No matter how innovative a new technology is, it’s not automatically profitable. To truly create economic value, a digital technology needs a new channel of commercialization and must offer the possibility of creating a new business model.

Once governments realize that digitalization does not automatically mean growth but can act as a powerful enabler, they can use disruptive principles to create new net growth.


MALTA your new SWITZERLAND, your Northern Europe but in the middle of the Mediterranean Sea, inspired by Island City-State Model of SINGAPORE

Apart from the desire to be here in Malta now , that this picture arouses , answer these questions :

How do you see the future of Italy , of a person or entrepreneur , honest , not parasitic , competent , creative , motivated to grow and create ?

Which country offers a quality of life , gorgeous weather 12 months a year , cost effectiveness , frequent connections and low cost flights (max of 2 hours from your city) , a stable country system of rules and tax, very competitive in the global arena and in Europe as well?

Where you can find an open large international community and a Regulations’ model designed to attract great people , companies , ideas and capital, able to grow together in a multi-cultural country ?

We, after a long and in-depth comparison of experience and analysis, we have the answer !

MALTA is the best place to move in, with an Anglo-Saxon Business Culture and Regulatory environment in the middle of the Mediterranean Sea, to prosper, develop and protect the Business and the Assets of a Corporation and HNWIs…with a plan to be the next SINGAPORE of the MED SEA


Which country offers exceptional quality of life, gorgeous weather 12 months a year, low cost of living, frequent and low cost flights to a maximum of 3 hours from your EU city, a system of rules and competitive tax around the world ?


MALTA is your new SWISS and your Northern Europe but in the middle of the Mediterranean, stable and secure, inspired by the model of the City – State of the Island SINGAPORE


Zero inheritance tax, ZERO capital & wealth tax, ZERO capital gain tax, ZERO real estate tax, 5% corporate tax


Where you can find an open international community, with country regulations shaped to encourage and to attract people, companies, ideas and capital ? These are the rare and valuable resources from the world that MALTA needs to grow together


Malta FinTech, a true hub of Finance and Technology from eGaming and eCommerce to eFinance and eBanking, valuable solutions, services and support for the Consumer and Corporate world



Malta is strategically located at the heart of the Mediterranean with very close ties to mainland Europe, North Africa and the Middle East. The island is considered the best choice for investments in knowledge based sectors and high end manufacturing. Due to its excellent port infrastructure, Malta is also considered an ideal logistical hub. This, together with EU membership, makes the country a perfect gateway to the Euro-Mediterranean region and further.

Flights duration to main business hubs

Algiers Amsterdam Berlin Brussels Dubai Dublin Edinburgh
 1:15  3:10  2:55  2:55  5:00  2:55  3:00
 Libya  London  Madrid  Milan  Moscow  Munich  Oslo
 1:30  3:00  2:55  2:00  4:00  2:30  4:00
 Paris  Prague  Rome Stockholm   Vienna  Warsaw  
 2:45  2:45  1:30  3:50  2:15  3:50


Malta has undergone an incredible transformation in the few decades since independence was gained in 1964. Four decades later, with a fully functioning open market economy, joining the EU in 2004 was seen as a natural step towards securing the economic future of the country. The adoption of the Euro in 2008 ensured that the economy would not be vulnerable to currency fluctuations and would allow the nation to be more competitive.

Progress and flexibility are key factors in the success of Malta’s ability to react quickly to international trends and the global market place. Our pro-business government continually seeks to strengthen Malta’s attractiveness as an open market economy. The exogenous shocks of the global recession inevitably had an impact on the local economy. However, it should be noted that Malta was one of the last countries within the European Union to enter the recession and it was also one of the first countries to rebound from the economic downturn. In essence Malta showed great resilience and emerged in a strong position.


The country’s national language is Maltese but both the latter and English are official languages in Malta. This certainly adds to the destination’s appeal for visitors, traders and investors. Practically all Maltese are bilingual and many are also conversant in Italian. Some may also have at least a working knowledge of French or German. Foreign language fluency as a percentage of the population is as follows: English 88%, Italian 66%, French 17% and German 6%.


The success of a business is not achieved by financing or technology but is ultimately determined by people power. The labour force in Malta is a very productive one, highly educated and extremely flexible with an excellent work ethic. Our people are our greatest natural resource and the country has good availability of professional, managerial and technical staff as well as a ready supply of top graduates most of whom are technology-experienced. The link between education and industry is vital for our competitiveness. Education and HR-related strengths top the criteria for choosing Malta as an investment destination.


Malta is now an internationally recognised financial services hub. However, due to the sector’s traditional and conservative approach it never experienced a real financial crisis. Indeed, the strength of the financial services sector was a critical contributing factor to the speedy emergence of Malta’s economy from the recession. In fact, the reputation of the Maltese financial services sector improved considerably due to the resilience and stability it showed during the financial crisis. This did not go unobserved in the global scenario and the impeccable reputation of the local financial services is expected to fuel further growth in this sector.


It has always been considered strategically important to the country’s human and economic advancement to be well connected with the rest of the world. As such there has been a great deal of investment and consolidation in order to create and ensure a reliable Information Communication Technology (ICT) infrastructure.

Malta’s fully liberalised and developed ICT infrastructure has certainly contributed to the island fast becoming a regional centre of excellence in ICT and financial services.


A long-standing, full imputation tax system has existed in Malta since 1948. The rate for corporate taxation in Malta stands at 35%; however upon distribution of dividends, shareholders may qualify for a refund generally equivalent to 6/7th of the tax paid, thus resulting in a paid tax rate of 5%.


There are many reasons why investing in Malta makes good business sense but it is not enough for the figures to add up and the stars to be aligned. In this day and age – where time, health, safety and true quality of life are precious commodities – Malta scores highly on all these aspects. Travelling distances are minimal, the healthcare facilities, which rank among the best in Europe, are first-class in both public and private hospitals and the crime rate is very low. However, the biggest selling point of the island nation is undoubtedly the lifestyle that investors and their families enjoy in the country. Indeed, those thinking of investing in Malta are highly recommended to visit the nation to explore and experience for themselves the wealth of history, culture, hospitality, bars and restaurants. That way they can also get a real taste of the flavoursome Maltese and Mediterranean cuisine that the country offers.


EU all’attacco degli schemi di corporate tax avoidance, le 5 stelle di Malta

EU all’attacco degli schemi di corporate tax avoidance

le vecchie prassi e giurisdizioni di Lussemburgo, Irlanda, UK, Svizzera ecc…sempre più nel mirino

Con MALTAway hai accesso a Malta, la giurisdizione più efficiente a 5 stelle riconosciute nel mondo:

  1. bassa struttura dei costi e bassa tassazione dei redditi e degli asset
  2. 100% compliant con le norme EU e OCSE
  3. modello regolatorio trasparente e alla luce del sole
  4. ideale per il grande afflusso di cervelli e capitali e quindi per l’economia e il business reali
  5. modello anglosassone con veicoli e strutture a protezione dell’individuo e del patrimonio ma molto aggressivo nei confronti della corruzione e del riciclaggio

EU to clamp down on corporate tax avoidance schemes

Multinational companies are facing severe constraints on their ability to avoid taxes on their activities in Europe as regulators seek to close loopholes laid bare by the LuxLeaks scandal.

Pierre Moscovici, the EU’s tax policy chief, will set out plans next week to curb practices such as using debt interest payments to lower tax bills or shifting profits to minor subsidiaries in low-tax nations, according to a copy of the proposals obtained by the Financial Times.

“The schemes targeted by this directive involve situations where taxpayers act against the actual purpose of the law, taking advantage of disparities between national … systems,” the document says. Such techniques mean that “taxpayers may benefit from low tax rates or double deductions or ensure that their income remains untaxed”.

The measures build on international proposals developed by the OECD and are one of the most far-reaching steps yet by the EU to seize the initiative in the wake of LuxLeaks.

The LuxLeaks revelations emerged shortly after Jean-Claude Juncker became commission president in November 2014, and dogged his early days in office. They documented how during his two decades as Luxembourg prime minister, up to 340 multinational companies, ranging from Ikea to Pepsi, funnelled profits through the tiny country to lower their tax bills to as little as 1 per cent.

The scandal was particularly resonant at a time of rising populist anger in Europe and a sense among many citizens that the pain from austerity measures had not been shared equally.

The commission has sought to get on top of the affair by proposing regulatory changes and pursuing competition cases against tax deals governments have struck with multinationals such as Apple, Starbucks and Fiat.

Mr Moscovici’s proposals, which will need unanimous support from the EU’s 28 national governments to become law, include an effort to limit the extent to which a multinational company can cut its tax bill by financing some parts of its business through debt owed to subsidiaries in low-tax countries.

The plans would limit the amount of interest that a company can claim each year as tax-deductible, setting an upper limit measured as a percentage of operating profits. The commission plans to set the ratio at 30 per cent, the upper limit foreseen by the OECD, with the option for individual nations to go further if they wish.

Banks and insurers would be given a carveout from these rules while the EU develops more tailored requirements for the sector, according to the documents.

Companies already warned the UK Treasury this month that the plans to restrict the generous tax treatment of interest costs were unnecessary and potentially damaging.

The Institute of Chartered Accountants in England and Wales said businesses had “major concerns” and warned that changes to the “current, relatively benign, regime for interest deductibility” could have a negative impact on the UK as a desirable business location.

Sven Giegold, a German lawmaker in the European Parliament who has campaigned on corporate tax avoidance issues, said the plans threw down the gauntlet to national governments.

“Member states now face a test on whether they are serious to fight corporate tax avoidance and should adopt this new directive within the year,” Mr Giegold told the FT. “European citizens can no longer understand why their leaders do not deliver on key reforms.”


MALTAway fornisce servizi societari e si fonda su principi semplici e rigorosi: credibilità , integrità , trasparenza e rigore.

Per essere credibili, si deve essere innanzitutto trasparenti e rigorosi, questo è un nostro valore.

MALTAway è una Società di Consulenza e Servizi, per il Consiglio di Amministrazione, per la Governance Societaria, per gli Investimenti.

La nostra attività e quella di consigliare e aiutare i nostri clienti nel migliorare le proprie performances e nella crescita, attraverso un approccio strategico e globale

Con sede legale a Malta, MALTAway ha sviluppato e guidato molteplici progetti in diversi settori di attività e paesi

La Mission di  MALTAway è anche quella di promuovere MALTA e le sue opportunità e capacità di Business, Governance e Globalizzazione.

Un ambiente pro-business e uno stile di vita unico e vincente, sono capaci di attrarre a Malta Professionisti qualificati, Capitali, Aziende, Imprenditori e High Net Worth Individuals ( HNWI ), interessati a trasferirsi in questa giurisdizione per fare Business, Investire, Lavorare


Il Team di MALTAway offre un’ampia capacità, competenze ed esperienze, dai servizi societari e di governance alla consulenza di business e di management, dalle tematiche fiscali a quelle legali e regolamentari, sia societarie sia di protezione del patrimonio.

Investimenti, prodotti e servizi finanziari basati sulle nuove tecnologie e servizi finanziari e bancari tradizionali, strumenti di investimento e di ricerca e analisi finanziaria e quantitativa

Inoltre, abbiamo sviluppato una rete di partner locali accuratamente selezionati, capaci di consigliare e assistere clienti di qualsiasi settore e dimensione insieme a MALTAway a Malta e nel mondo

MALTAway offre i seguenti servizi ai clienti che vanno dalle start-up alle imprese consolidate, dalle imprese familiari alle società globali e ai HNWIs:

  • SERVIZI PER IL CONSIGLIO DI AMMINISTRAZIONE: MALTAway offre risorse senior e qualificate, residenti a Malta, necessarie e adatte a ricoprire il ruolo di Direttore NON-Esecutivo Indipendente, con lo scopo di ampliare la capacità e le competenze del consiglio di amministrazione e di rispettare le leggi fiscali internazionali
  • SERVIZI GOVERNANCE: MALTAway mette a disposizione un personal trainer dedicato per i tuoi Membri del CdA e per il tuo Leadership Team, offrendo supporto e consulenza in materia di governance e investimenti, sia a fronte di problematiche emergenti dovute a variazioni di mercato e/o a specifici piani di crescita.
  • BUSINESS SERVICE: Processi di Relocation, MALTAway opera come connettore del cliente con la comunità di business e di governo, assistendo i nostri clienti che si trasferiscono a Malta, nel massimizzare in poco tempo i benefici reali presenti e nel mettere a frutto le concrete opportunità che questa giurisdizione offre
  • SERVIZI FISCALI: locali, europei, globali, regolamentazioni OCSE, BEPS (base erosion and profit shifting)
  • SERVIZI LEGALI: Corporate, Holding, Fondazione & Trust, Corporate & Fiduciary Services, ridomiciliazione per individui e imprese
  • SERVIZI FINANZIARI: Banking, Treasury, Investment & Merchant Banking, Asset Allocation
  • RELOCATION SERVICES: pacchetti completi di trasferimento per le Società, Dirigenti, Dipendenti e Individui, dal viaggio alla scuola per i figli, alla scelta della casa e degli uffici alle coperture assicurative
  • CORSI INGLESE CORPORATE: pacchetti individuali e collettivi per Executives, Managers, Dipendenti e loro famiglie

 Board, Governance & Investments – New way for Global thinking & Local Actions 





MALTA skilled workers, what’s next

Visa programmes to attract skilled workers?

MALTAway for your Board Members and Governance

To compete in a global market Malta has to compete on the skilled workers as well, rewarding them to move here, taxation is just a way

The KPMG’s biennial financial services conference questions ‘what’s next?’ for Malta’s financial services industry


The financial services industry is finding it hard to recruit skilled workers because Malta’s education is preparing “robots” and not independent thinkers, speakers taking part in a financial services conference said today.

In a day-conference at the Hilton organised by audit firm KPMG Malta, senior partner Tonio Zarb said Malta had to work harder to reach the level of sophistication of other countries in the financial services sector.

“One way of doing this is to import expertise. Innovation is closely tight to education and we need to encourage a change in our education system to produce independent thinkers, and not robots,” Zarb said.

Malta Financial Services Authority chairman Joe Bannister drew attention to the fact that, despite the complaints of the industry, very few came forward to help with training prospective workers.

He explained how last year, only 90 placements were granted down from a 120 the previous year. Bannister went on to state that students were attracted to the financial services industry because of the high salaries. He went on to warn of risks of creating a wage inflation.

One way of bridging the gap resulting from skills shortage was through the setting up of visas programmes, such as those employed by the United Kingdom, FinanceMalta chairman Kenneth Farrugia said.

The UK brought in a 20,700-a-year cap on skilled workers from outside the EU in 2011.

KPMG partner Juanita Bencini went on to suggest that the solution could be closer to home: increase female participation. 60% of University graduates are women but less than half of the full-time working population are women.

“We have to tackle the defeminisation of the workforce and we [financial services sector] should be at the centre of increasing female participation.

It’s also translated into how employers look at it,” Bencini said.

“There is a huge mismatch between what the industry wants and what comes out of university. We have not shown enough courage to ensure that this talent doesn’t drop off and we cannot afford to have them disappear of the face of the earth.”

Bencini added that what the government did with the universal provision of free childcare centres had helped a lot but the private sector needed to do something different too.

“Can we see our males working four days a week? We really need to start thinking to ensure female participation is there and this will make the industry grow,” she said.

Labour MP Charles Mangion also highlighted the country’s stability as a key attraction to investors. He noted, that the cross-party consensus that existed for years allowed the sector to flourish.

The financial services sector contributes some 12% to the country’s GDP.

Malta Trust

Malta Trust

MALTAWAY offers legal advisory and an open access to a wide set of legal vehicles to protect your wealth and your asset

Means of establishment

A trust may be created unilaterally or bilaterally, by oral declaration or in writing. A unit trust must always be created in writing.

The Settlor

The settlor is the person who sets up the trust. The settlor must be of age, have full capacity to contract and a free disposition of the assets settled on trust. While imposing fiduciary obligations upon the trustee in favour of the beneficiaries, trusts do not leave the settlor with any rights in relation to the trust property – except as specifically provided for in the Trusts and Trustees Act. The Trusts and Trustees Act lists the settlor’s rights (which may be supplemented by the trust deed) as follows:

  • The settlor has the power to seek court directives as to trust validity
  • The settlor has the right to a variation of terms and revocable trusts where the Trust Deed so provides
  • In cases of trust termination, interest lapses or no existing or possible beneficiary, the trustee holds the trust property for the settlor (or his or her heirs)
  • It is the trustee’s duty to provide the settlor with information, subject to the terms of the Trust Deed.

NEW: The settlor may reserve or grant himself:

  • Any beneficial interest in the trust property
  • Any power to appoint, add or remove trustees, protectors or beneficiaries
  • Any power to appoint an investment adviser or investment manager

The Protector

The protector is typically a person who is in a trustworthy position (e.g. the family lawyer). The protector may also act as investment advisor. Subject to the trust terms, the protector typically has the power to:

  • Appoint new and/or additional trustees
  • Remove trustees
  • Require trustees to obtain the protector’s discretion (including approval) in relation to particular matters e.g. purchase /sale of trust property.

The Beneficiary

The beneficiary is the person who may benefit from the assets of the trust. All beneficiaries have to be mentioned by name or are ascertainable by class or by relationship to a person alive or dead. For instance, children not yet born or conceived may be potential beneficiaries. The rights of the beneficiary are personal and are regarded as movable property. Subject to the trust deed, the beneficiary may sell, charge or deal with his or her interest in any manner, provided that this is done in writing.

The beneficiary has the right to information from the trustee and may seek court directives regarding the validity of the trust. The beneficiary may also disclaim his or her interest, or part thereof.

NEW: all the beneficiaries who are in existence and have been ascertained, provided that none of them is interdicted or a minor, may request the trustee to terminate the trust and distribute the trust property. The new amendments preclude this rule from applying in the case of protective trusts.

Trust Deed

The Trust Deed is the instrument whereby the trust is created and includes the terms of the trust and may also be in the form of a unilateral declaration of trust. For example, a Trust Deed may provide for the addition of new beneficiaries (e.g. for unborn children) or the exclusion of a specific benefit to certain beneficiaries under conditions clearly stated in the Trust Deed.

Letter of Wishes

The settlor can guide the trustee in a separate letter of wishes on how the trustee should exercise his discretion. Depending on the relationship between the settlor and the beneficiaries, the settlor can inform the beneficiaries of this letter, however, he/she may also choose not to disclose this letter to the beneficiaries. A letter of wishes is not legally binding on the trustee, but rather constitutes general guidance on a settlor’s wishes.

Legal Form

A trust does not have its own legal personality. Trusts are not registered anywhere and there are no formalities for the annual maintenance of trusts other than statutory obligations that are imposed on trustees in the administration of trusts (for example the duty to prepare accounts).

Set-up time

There are no statutory restrictions that could delay the setting up of a trust in Malta. Therefore, the time required depends on the particular circumstances and mainly relates to the drafting of the Trust Deed.


The Malta trust has been amended to extend the permitted duration to 125 years (formerly maximum duration was 100 years), however, it can be terminated earlier if all beneficiaries acting in unison demand termination, which the trustees must accept under the conditions outlined in the Trusts and Trustees Act. With most trust deeds it is usual for the trustees also to be able to bring the trust to an end during the trust period.

Ensuring trustees’ performance

Professional trustees are licensed by the MFSA, which has also issued a code of conduct to provide guidance to trustees as to the standards required under the Trusts and Trustees Act and other financial services legislation, as well as to the best practice in the industry. Trustees must exercise their fiduciary duties prudently and competently and, subject to the terms of the trust and the provisions of the Trusts and Trustees Act, consider the rights of all beneficiaries when making decisions affecting the administration of the trust.

If a trustee fails to administer a trust in accordance with the law and the respective trust deed, the trustee is liable for such a breach and can be sued for it.

NEW: the amendments include:

  • trustees have the duty to avoid any conflicts of interests
  • upon accepting appointment, trustees are duty-bound to draw up a written inventory of the trust assets and declare it includes all the trust property of which the trustees are aware
  • trustees are obliged to keep accounts and records of their trusteeship for at least 10 years from the date of termination of the trust/trusteeship

(Excerpt from the FinanceMalta Wealth Management Sector Guide 2015-2016)