The fund industry in Malta is experiencing significant growth and has already secured around 500 investment services licenses. Collective investment schemes may be established in various legal forms which can be categorised as corporate funds (eg: SICAV) and unincorporated funds (eg: mutual funds).
Investment services and UCITS schemes may be registered in Malta and passported to any EU country. Registration and listing fees, as well as renting of office space, labor costs and communication expenses, are still relatively low.
The local regulator in the financial services industry is the Malta Financial Services Authority (MFSA) which is known to be proactive and responsive to the needs of the sector whilst ensuring the full compliance with international regulatory requirements. The regulator has ensured the growth of the financial services industry on the island. It is considered to be efficient, approachable and customer oriented and makes its resources readily available to prospective new company promoters as well as already established undertakings.
- A Collective Investment Schemes (CIS) which has less than 85% of its assets situated in Malta is not subject to tax in Malta
- Distribution of business profits by a CIS to its non-resident unit holder is not subject to Malta tax
- Transfer of shares in a CIS by a non-resident are not subject to capital gains tax and stamp duty in Malta to the extent that CIS does not hold immovable property in Malta
- An individual who is not domiciled in Malta and who is the holder of an office in a company licensed by MFSA can benefit from a reduced tax rate of 15% on his income, provided his income is at least €81,457 per annum
- For Malta VAT purposes, the management of a collective investment scheme is classified as an exempt without credit supply and is extended to include certain administrative functions which are specific and essential to the core activity of the scheme. Such exemption is also applicable to outsourced services.