Malta Budget 2022 Overview

The Malta Budget 2022 comes at a time when Malta is making inroads to recover economically from the impact of the pandemic. Real GDP is forecast to grow by 6.5% in 2022 while unemployment remains contained at very low figures. These indicators are promising for Malta’s fortunes over the next years. The Malta Budget for 2022 introduced no new taxes, rather it presented a raft of new incentives and benefits to steer the country forward. Tax and Property Purchase In a drive to promote the regeneration of Malta’s traditional village cores, a series of tax exemptions and grants have been announced in the Malta Budget 2022: Exemption from property transfers tax and duty on documents and transfers on the first EUR 750,000 of the price of qualifying properties that: Were built over 20 years ago and have been vacant for more than 7 years; Are built in an urban conservation area (UCA); or Are new properties built in a traditional Maltese style. First-time buyers of such properties will further benefit from a grant of €15,000 (€30,000 for Gozitan first-time buyers of such properties in Gozo). VAT refunds for the restoration and renovation of qualifying property have also been extended and … Read more

understanding malta trusts

Malta Trusts Online Course by Malta…

On the 1st and 4th October 2021, Dr Priscilla Mifsud Parker will be presenting a lecture at the Malta Stock Exchange Institute “Understanding Trusts”.  Understanding Trusts  Participants will learn how trusts are a legal relationship created by one party and places assets under the control of another party referred to as the trustee for the benefit of the beneficiary. Participants will learn the intricacies of trusts and the legal and tax ramifications of their set-up. There will also be discussions related to how to properly create trust deeds and articulate the powers of trustees. Attendees will learn why trusts are formed, such as for the protection of assets or estate planning, and why trustee independence helps avoid any suggestion that the settlor continues to The setting up of trusts have control of the trust assets. Topics covered Probate and charitable giving Types of trusts Imposition of conditions on the distribution of assetsfollowing the settlor’s death Wealth legacy planning Express trusts and implied trusts Protection of assets from claims and creditors Maltese trust tax treatment Constructive trusts Drafting of trust deed The trustee, settlor, protector and beneficiary The Maltese regulatory environment for trusts Malta Trusts and Trustees Act The trust deed The minimization of … Read more

Dr Priscilla Mifsud Parker re-elected Chair…

Director of INTERSERV Dr Priscilla Mifsud-Parker has been re-elected Chair of the Malta branch of private client professional organisation STEP, the Society of Trust & Estate Practitioners.  Priscilla has accepted another term as the head of STEP in Malta after a first successful year in the same role. Before this, Priscilla served in the STEP Malta Branch Committee for many years in the capacity of Secretary and Chair of the Technical Committee.  Priscilla is a Maltese Advocate and a senior partner in leading Maltese law firm Chetcuti Cauchi Advocates.  At INTERSERV she heads up the Corporate, Estates and Trusts Practice Groups.  She has more than 15 years’ experience as a corporate and tax lawyer specialising in private client advisory and structuring work.  Priscilla is a Maltese advocate and tax advisor.  INTERSERV and STEP  INTERSERV runs one of the leading tax, trust and corporate services practices on the Island.  The firm has a longstanding relationship with STEP since 2004 with INTERSERV ‘s private client lawyers contributing to the running of STEP Malta branch in various capacities.  Dr Priscilla Mifsud Parker has occupied the positions of Secretary and Chair of the Technical Committee, prior to her appointment as branch chair in October … Read more

Malta Property Rental Company

5 Reasons for a Malta Property…

Malta, an island nation in the Mediterranean Sea offers far more than plentiful sun and idyllic sea. The country has history and charm to spare and investing in property continues to make sense. 1. A Resilient Property Market As an island that is geographically small, Malta has a limited footprint that may be built up. This restricted supply has given rise to a persistently strong demand for residential and commercial properties. Even during times of global recession, the value of Malta property has held stable or dipped only very slightly, backed by a prudent banking system.As Malta’s population continues to expand, both with locals moving out to their own place as well as an influx of expats, so the demand for rental units remains strong. 2. Range of Target Investments Malta offers an array of different investment opportunities. Property investment may begin with an apartment or commercial premises all the way up to large scale mixed-use developments. Malta offers small rural villages to larger cosmopolitan towns, with properties ranging from traditional buildings or palazzos dating back several hundred years, to modern builds with all amenities and luxuries. 3. Reduced Transfer Tax and Stamp Duty, 15% Flat Tax on Rental Revenue, … Read more

Funding Programs in Malta

Funding Programs in Malta and the…

Promoting Enterprise in the EU As an entrepreneur or business decision maker, you know how important investment is to drive forward an enterprise or new venture. At the same time, there may be a reluctance to commit funds to new projects or ideas, particularly in times of higher uncertainty. Are you aware of the funding programs that are available to your business to stimulate investment and thus propel future growth? The European Union has an objective to encourage businesses to invest in member states to increase employment and productivity.  Several funding programs have been launched to promote investment in different areas. Malta, an EU member state, also offers its own national funding schemes to attract business investment to the country. Funding Program – Not for New Projects Only While many business owners and executives imagine that one needs to have a striking new project to qualify for funding, the truth is that funding may also be available for something as mundane as a business plan, or expansion to larger offices. All funding programs vary and have their distinct: Areas funded Scope Maximum funding (capping of aid) Aid intensity (percentage of costs that the scheme will cover) Duration Project timelines & … Read more

Management and control in malta companies

Understanding Management and Control in Malta…

As international bodies move to restrict aggressive tax planning, companies that operate across different borders need to ensure that their operations and structure do not unintentionally fall foul of measures recently put in place. Tax Residence as per the Income Tax Act in Malta Malta’s Income Tax Act holds that a body of persons “resident in Malta” refers to “any body of persons the control and management of whose business are exercised in Malta, provided that a company incorporated in Malta on or after 1st July 1994 shall be resident in Malta and any other company incorporated in Malta shall be resident in Malta from 1st January 1995 where the management and control of the business of the company is exercised outside Malta”. Tax Residence through Incorporation One starting point is that a company is deemed resident by virtue of its incorporation in Malta. Quite simply, a company that is incorporated in Malta is deemed to be resident and domiciled in Malta and is therefore subject to tax on a worldwide basis. Tax Residence by Management & Control in Malta The next point is that a foreign body of persons (including a company) may be subject to Malta tax to … Read more