Malta is recognized across Europe as a financial center and even if does not offer the same benefits as Luxembourg, the small country is sought by a large number of foreign investors. During the last few years, the Malta Financial Services Authority (MFSA) has enabled various decrees which has allowed for the development of special purpose vehicles (SPVs). Among these, the most common is the reinsurance special purpose vehicle (RSVP).
Our Maltese company formation agents can offer detailed information on the laws governing the creation of SPVs.
Registering a SPV in Malta
The 2006 Securitization Act is the main law providing for the creation of SPV in Malta. According to it, a Maltese SPV can take one of the following forms:
- – trusts;
- – investment companies;
- – commercial partnerships.
The MFSA also allows the use of other types of companies, such as limited liability companies and public companies when opening a SPV in Malta. The establishment of a Maltese SPV is done through a written agreement in the case of trusts and partnerships, and through incorporation documents filed with the Companies Registry in the case of other type of structures. Foreign investors can use company registration services in Malta in order to ease the creation of a SPV. All SPVs in Malta must be registered with the MFSA. The vehicle must also appoint a service agent, according to EU Directive 1075/2013.
Tax considerations for SPVs in Malta
It is well-known that Malta is one of the most advantageous countries to do business in due to its taxation system. Even if subject to the income tax, a Maltese SPV can deduct some of its costs, thus reducing significantly this tax. Among these costs are:
- – interests, premiums or other costs related to the issuance of securities;
- – administrative expenditures related to the daily management of the SPV;
- – payments related to the transfer of securities.
Malta also allows for the residual deduction, which implies the deduction of any amount equal to the remaining income.
For more information on the advantages of setting up special purpose vehicles in Malta, please feel free to contact us. Our Maltese company formation representatives can also assist you with the SPV setup procedure.