A: Malta's financial services industry has grown in recent years despite the European financial crisis, mainly due to the sound banking system in Malta. The political climate in Malta is stable, and the local regulatory authorities governing the financial services sector are approachable and keen on innovative business initiatives. Moreover, Malta has an attractive fiscal regime and is party to over sixty double tax treaties. Future prospects look bright for Malta resilient financial system and economy.
Q:What are the most popular financial products in your jurisdiction? How can they protect the interests of investors?
A:Collective investment schemes for retail investors based on the principle of risk spreading are a popular financial product in Malta. Professional Investor Funds and Alternative Investment Funds are geared towards high net worth individuals and entities, providing a more flexible, yet riskier, investment option. In addition, Malta caters for both trusts and foundations, where confidentiality of the beneficiaries is ensured.
Q:What kinds of professional financial services (trust & foundation/corporate structure) can your jurisdiction provide? What are your existing clients from China? What potential clients do you want to attract from China and how?
A:Malta offers considerable opportunities to Chinese entrepreneurs and investors seeking a secure and flourishing European business environment to serve as a platform for international business activities. Our multi-disciplinary team of lawyers, accountants, financial advisors and relocation specialists has assisted Chinese clients to assume alternative residence in Malta or set up a company in Malta in order to benefit from the ultimate tax exposure on active trading of just 5%. We provide corporate administrative services, assistance with Malta company incorporation, accountancy, back office services, tax compliance and VAT services.
Q:As an offshore financial center, what are you going to do in terms of balancing the need for more transparency with the need to protect the privacy of clients?
A:Confidentiality, asset protection and safeguards for beneficiaries are some of the key features of both trusts and foundations. In 1996, Malta shifted from an offshore to an onshore regime, enabling the use of appropriate tax planning to enhance transparency. A foundation can be treated as a trust for Malta tax purposes, meaning that the foundation would be regarded as wholly transparent and all income and gains would be deemed to have arisen directly in the hands of its beneficiaries.
