MALTA – An ideal Jurisdiction for UK Financial Services firms post Brexit

Theresa May has confirmed on the 17th of January 2017 that the UK plans to leave the Single Market.  This position is based on a pragmatic acknowledgement by the UK that the EU will not alter its fundamental position that membership of the Single Market is conditional upon accepting free movement of goods, services, capital and […]

Written By Stephen Balzan

On April 20, 2017
"

Read more

Theresa May has confirmed on the 17th of January 2017 that the UK plans to leave the Single Market.  This position is based on a pragmatic acknowledgement by the UK that the EU will not alter its fundamental position that membership of the Single Market is conditional upon accepting free movement of goods, services, capital and people and the jurisdiction of the ECJ. Neither free movement of people nor the jurisdiction of the ECJ is currently acceptable to the UK.

The sector most immediately affected is expected to be financial services.  When the UK leaves the Single Market, many UK regulated financial services firms will no longer be able to passport their services into the EU (and vice versa) and they risk losing access to EU markets and clients.

Many UK regulated financial services firms are now expected to activate their Brexit contingency plans by establishing an alternative EU base in another EU Member State (such as Malta) and obtaining regulatory authorisation there. This will enable them to guarantee continuity of access to EU markets and clients after the UK leaves the Single Market.

Malta has a number of strong advantages which it can offer to UK firms seeking to establish an alternative post-Brexit EU base. These are some of the reasons to choose Malta:

  1. A highly skilled and educated workforce
  2. One of the fastest growing economy in the EU
  3. An English-speaking country
  4. Low costs – both professional and regulatory
  5. A member state of the EU and has the Euro as its currency
  6. Has an attractive tax system
  7. Strongly committed to EU membership
  8. A comprehensive tax treaty network
  9. Similar tome zone as the UK
  10. Stable labour costs
  11. A stable economic and political situation 

Malta can also be a jurisdiction of choice for individuals to live and work.  One can obtain Maltese residency and Citizenship upon satisfying a number of conditions.  Unlike the rest of the European Union, Malta’s employment rate is one of the highest due to the increased number of businesses that are choosing to relocate to and set up shop in Malta.

How can we help?  

For further information, please contact one of the firm’s tax partners, Stephen Balzan on [email protected] or Elaine Camilleri [email protected]. ACT can help you understand the changes to the tax rules and how these can impact your business.  

Apart from its offices in St. Julian’s Malta, ACT operates from a second office in Gozo, which is situated in the capital city of Victoria.  For an appointment in our Gozo office, please call on 00356 21378672 or send us an email on [email protected]. 

Disclaimer: This article contains general information only and is not intended to address the circumstances of any particular individual or entity. ACT, by means of this article is not rendering any accounting, business, financial, investment, legal, tax, or other professional advice or service. This article is not a substitute for such professional advice, nor should it be used as a basis for any decision or action that may affect your finances or your business. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Before making any decisions or before taking any action that may affect your finances or your business, you should consult a qualified professional adviser. ACT shall not be responsible for any loss whatsoever sustained by any person who relies on this article.