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.
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 ([email protected]).
Please visit the following link for our article on Payment Institutions http://www.act.com.mt/articles-publications/Payment-Institutions-Malta.php
Maltese companies are subject to tax at the rate of 35% on their world wide income and capital gains. Malta grants various fiscal incentives to both companies and their shareholders upon distribution of a dividend. Malta is a membe...Learn More
Setting up a Company
Setting up a company in Malta is a relatively straight forward procedure and can be set up within 2 working days, provided we are in receipt of all the information, funds and due diligence documentation we need. The Act that regulates Malte...Learn More
Taking up Residence
Warm climate, friendly people, excellent communication infrastructures, low criminality and many other features of the Maltese islands have made Malta an excellent destination for people to take up residence in. Moreover low rates of taxati...Learn More
Malta was the first EU Member State to specifically regulate the remote gaming industry in 2004 and has ever since established itself as one of the prime jurisdictions for remote gaming operators. The Malta Gaming Authority (“MGA”) is the regulatory of gaming in Malta. The success o...Learn More
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 ...Learn More
Electronic Money Institutions
Malta has recently seen an increase in the number of Electronic Money Institutions (EMIs) looking to set up their operations in Malta. This has been largely due to the growth in the e-commerce and the i-gaming industries. Such EMIs are regulated by the Financial Institutions Act and t...Learn More
Initial Coin Offering (ICO) Services
Malta has always been on the forefront of technology and innovation. In the past months, a number of initiatives have been launched, aimed at establishing an innovative and attractive regulatory framework for entities operating in blockchain (and distributed ledger technologies), virtual cu...Learn More
Prospects – Services of a Corporate Advisor
‘Prospects’ is a new platform set up by the Malta Stock Exchange in line with its commitment to open up new capital market opportunities, create economies of scale and to afford businesses more competitiveness and sustainability. Through ‘Prospects’, SME’s wil...Learn More
Assistance to Family Businesses
Malta has recently introduced legislation to encourage good governance in the management of family businesses, to assist family businesses to operate their business in an efficient way and to assist such family businesses to transfer their business from one generation to the other. Malta is...Learn More