The outcome of the recent UK EU membership referendum has created a major concern for Payment and Electronic Money Institutions established in the UK.
The major concern lies in the fact that Payment and Electronic Money Institutions established in the UK would no longer be able to benefit from the financial services passporting regime which are enjoyed by other institutions established in the other member states in the European Union (EU) and in the European Economic Area (EEA).
Such financial institutions are now likely to consider investigating the possibility of moving their operations from the UK to elsewhere in other EU countries such as Malta.
As an English speaking jurisdiction with an educated workforce and developed financial services sector, Malta is the ideal jurisdiction to which UK Financial Institutions can relocate to.
A sound technological infrastructure, an accessible and innovative but yet prudent regulator and highly competitive costs are some of the advantages which Malta has to offer to such financial institutions, not to mention the tax advantages to Maltese companies, their shareholders and to highly qualified expatriates working such financial institutions in terms of Malta’s Highly Qualified Persons’ Rules. Such rules provide expatriates working in the financial services industries in certain eligible offices, with a beneficial income tax rate of 15% on their employment income. Malta also has a wide tax treaty network which ensures that the same income will not be subject to tax twice.