What are some common misconceptions that prospective investors in financial services have about Malta? 

During tradeshows and conferences, I frequently encounter misconceptions about Malta that need clarification. One common assumption is that Malta’s small geographical size limits its business potential. In reality, Malta boasts a thriving financial services sector, offering a diverse range of opportunities in banking, investment funds and fintech. Another misconception is that Malta lacks innovation; however, Malta is recognised for its leadership in fintech and blockchain regulation, attracting a growing number of tech companies and startups. 

The greylisting of Malta by the Financial Action Task Force (FATF) in 2021 is often mentioned as a concern. While this raised questions about the country’s financial practices, it’s important to highlight that Malta successfully addressed these issues and was removed from the grey list in record time. This underscores Malta’s commitment to regulatory compliance and its proactive approach to strengthening its financial framework.

There remains considerable uncertainty about how Malta will meet its commitment to revise its tax regime. How would you respond to a prospective investor concerned about the lack of clarity? 

I understand that uncertainty surrounding Malta’s tax regime can be a concern for prospective investors. The Maltese Government is actively engaged in tax reforms aimed at aligning with international standards while maintaining competitiveness. Recent statements by the Finance Ministry have outlined plans regarding the implementation of Pillar Two. As of June 2024, 45 countries have begun implementing Pillar Two’s model rules, and EU member states are in the process of aligning their laws accordingly. Malta, with fewer than 12 in-scope multinational groups, has opted to defer implementing these rules for six years. This decision allows for a measured approach to reform, ensuring that Malta remains competitive while working on measures compliant with EU State Aid rules. 

Despite the ongoing discussions of reform, Malta continues to offer a competitive tax regime. The existing structure remains advantageous for investors, and the Government’s aim is to ensure that any future changes enhance, rather than detract from, Malta’s appeal as a business hub.

“The existing tax structure remains advantageous for investors, and the Government’s aim is to ensure that any future changes enhance, rather than detract from, Malta’s appeal as a business hub.”

What kind of assistance from public and private entities can prospective investors in Malta expect to find? 

Prospective investors in Malta can expect substantial support from both public and private entities. Investment promotion agencies such as FinanceMalta and Malta Enterprise provide crucial information on regulations, incentives and funding opportunities. The Government offers various financial incentives, including grants and tax credits, to help reduce initial costs and enhance investment returns. 

Legal and consultancy firms assist investors in navigating Malta’s regulatory framework, including licensing and compliance issues. Additionally, sector-specific agencies, like the Malta Financial Services Authority, offer tailored support for various industries. Investors can also benefit from networking opportunities at conferences and trade shows, facilitating connections with local businesses and potential partners. 

Access to a skilled workforce is available through local educational institutions and workforce development initiatives. Overall, these resources are designed to help investors navigate the Maltese market effectively and maximise their chances of success.