Payment Institutions in Malta

Malta has become a destination of choice for the setting up of Payment Institutions (also referred to as Payment Services Providers or PSPs).  A number of advantages has contributed to this success, mainly but not limited to the fiscal incentives granted not only to the payment institutions themselves, but also to their shareholders and highly qualified expatriates.  Other advantages include passporting rights and a thriving and a rapidly growing i-Gaming and e-Commerce industry.

Capital requirements for Payment Institutions

PSPs licensed to carry out the above-listed Second Schedule activities are subject to the following initial capital requirements:

  • Where the institution only provides money remittance, its capital shall at no time be less than €20,000;
  • Where the institution provides the payment service listed in paragraph (g) of the Second Schedule to the Act, its capital shall at no time be less than €50,000; and
  • Where the institution provides any of the payment services listed in paragraphs (a) – (e) of the Second Schedule, its capital shall at no time be less than €125,000.

For PSPs that are also licensed to carry out other activities (listed under the First Schedule to the Act) applicable to General Financial Institutions, the MFSA may:

  • set a level of initial capital as applicable to GFIs; and
  • require additional capital depending on the activities undertaken by the respective PSP’s licensable activities.

Why Malta?

Some of the main advantages that Malta has to offer include:

-          Advantageous tax treatment

-          Access to a wide tax treaty network

-          Malta is an EU member state with access to the various EU Directives

-          Passporting rights

-          A well-educated and English speaking workforce

-          Sound technological infrastructure

-          Specialist professionals such as accountants, auditors, lawyers and tax advisors

-          Attractive tax rates for highly qualified employees working with such institutions

How can we help?

We offer a wide range of consultancy, tax, compliance and accountancy services to assist you throughout in each step of the application process. Our multi-disciplinary team of professionals will not only assist you during pre-licensing process but will be able to provide you with the on-going support you may need with respect to regulatory compliance, accounting and tax matters.

For further information please contact the firm’s tax and corporate services partner Stephen Balzan (sbalzan@act.com.mt).

Please visit the following link for our article on Payment Institutions http://www.act.com.mt/articles-publications/Payment-Institutions-Malta.php

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