Blog

New Residency Scheme

Global Residency Programme

A new residence programme for foreigners (non-EU) was launched this morning, replacing the permanent residence scheme which was amended in 2012.

Parliamentary Secretary Edward Zammit Lewis said the Global Residence Programme, as the new scheme is called, will allow people who buy high value property and pay taxes in Malta to benefit from a residence permit.

Under the Global Residence Programme, the value of immovable property bought in Malta by foreigners has to be at least €275,000. Whereas for property is in the south of Malta or in Gozo, the minimum value can be €220,000.

If applicants wish rent a property it will for a minimum of €9,600 annually for Malta generally and €8750 for Gozo or the South of Malta.

The minimum tax to be paid in advance has been reduced to €15,000.

Foreign residents under this programme, including their dependants, have to be covered by health insurance. They will not be entitled to free state health services.

The new regulations will be introduced by legal notice by the end of June 2013.

IMF – Malta Report

IMF Report:

Malta – 2013 Article IV Consultation Concluding Statement

Macroeconomic outlook and challenges

1.         Malta has shown remarkable resilience in the face of a major crisis in Europe and its main challenge is to preserve this macroeconomic stability. Average growth of the Maltese economy (relative to historical average) has been the best in the euro area since the beginning of the crisis and the unemployment rate remains one of the lowest.

Russia – Malta Tax Treaty

It is expected that the new tax treaty will be in force much quicker then its predecessor.

Following the Cyprus crises, Malta has remained a tax compliant and tax efficient jurisdiction for legitimate businesses.

Fitch has recently confirmed that Malta’s banking system is stable: Fitch Report: Malta Bank’s Stable -  with the World Economic Forum stating that Malta is 13th in respect of sound banking systems – globally.

Added to which, French President Francois Hollande’s has recently endorsed the legitimacy and integrity of Malta’s banking sector, stating that Malta is ‘not a tax haven’ – but a legitimate low tax EU jurisdiction. 

The terms of the Russian – Malta tax treaty allows for the following benefits:

  • 5% for interest and royalties
  • 5 to 10% on dividends
  • Business profits to be taxed at normal state tax

Malta, unlike the other contenders, provides unique tax benefits, which international groups with interests in Russia will be able to fully explore when the treaty becomes law in both countries. Namely:

  • Malta allows for an effective 5% rate of corporation tax on business income
  • Companies, which are resident but not domiciled in Malta are taxed on the remittance basis of taxation

There are generous exemptions for royalties and a quasi-full exemption from tax on foreign dividends. The absence of CFCs, little TP regulation and access to the EU tax directives also help. These combined factors make Malta an ideal jurisdiction to locate a group holding company, as well as a financing or an IPR holding SPV.

More importantly, Malta allows for the continuation of non-Maltese companies, for example a BVI holding entity subject to various restrictions can easily re-domicile (migrate) to Malta without losing its corporate personality.

Notably, on becoming Malta-resident the company can achieve a tax-free step-up in the base cost of its assets effectively avoiding tax on future disposals.

To see the text of the Russia – Malta Tax Treaty please go Here.

Malta’s Banking System Sound – Don’t Compare to Cyprus – Fitch

Fitch, the international credit rating agency has released a report stating that Malta’s banking system is sound and should not be compared to Cyprus.  Following the crisis in Cyprus, much has been said in recent news articles, comparing the situation in Cyprus to the economy and banking system in Malta.

Malta has the 13th soundest banking system in the world according to the World Economic Forum – this has recently been further backed by Fitch’s recent report, which has given Malta ‘A+’ with a Stable Outlook rating.  Comparisons between the two countries are misleading and confusing.

Please go here to read the Fitch Report.

Acumum Sponsors International Taxation Conference

As part of its commitment to continued education and best practice, Acumum is a sponsor of the Malta Institute of Management’s International Taxation Conference.

Acumum Shortlisted – Investment Funds Firm of the Year, Malta

Acumum is pleased to announce that it has been shortlisted by Global Finance Monthly Global Awards 2013, in the Investment Funds Firm of the Year, Malta.

“We are tremendously pleased to be shortlisted by such a prestigious publication.  I would like to thank everyone that voted for us.  it is a vindication of all of our hard work since launching in 2012″ states Managing Partner, Geraldine Noel.

International Barrister & Author Joins Acumum

Press Release - For Immediate Release 

Dr. Andreas O’Shea becomes a member of the Acumum Legal Group

International barrister & author joins the Acumum team

As of November 5, 2012, Acumum is pleased to announce that barrister & author, Dr Andreas O’Shea  has joined the Acumum Legal Group as Head of the Public & Private Law Department. Dr. O’Shea’s participation in the Group substantially increases the fields of law that Acumum provides advice and assistance in. Andreas’ practices in the UK, is registered in Malta as a barrister and appears before International Courts and Tribunals.
Read more..

UK Court of Appeal: Samsung wins over Apple ‘Over Wide’ Patent Claims

18 / Sept 2012.  In a move that follows a number of jurisdictions – barring Apples home court of California and Germany, the UK High Court in a decision handed down yesterday, rules that although there is indeed similarity between Samsung’s tablet and Apple’s patents, there is no actual infringement.

This is a victory over stifling patent’s that hinder legitimate innovation. Sir Robin Jacob criticised Apples ‘over wide’ patent claims.  Full judgement can be found at: http://www.bailii.org/ew/cases/EWHC/Patents/2012/1882.html.

UK: With the UK’s specialised technology, patent and now small patent track, the UK Court system provides a faster and more cost effective  mode of dealing with technology and intellectual property claims.

Malta: 0% tax on patent and artistic royalties, makes Malta a tax efficient jurisdiction for IP holding companies.

Acumum to Exhibit at London Patent Summit 2012

Acumum is pleased to announce that they shall be an exhibitor at the prestigious London Patent Summit 2012, which is to be held at the London Stock Exchange 8-12 October 2012.

Acumum will be using the opportunity to detail its lawyer’s expertise and the services it offers in respect of intellectual property.  In particular intellectual property registration and portfolio maintenance, tax efficient royalty routing and structuring – trading and holding companies.

With Malta offering 0% tax exemptions for patent and artistic royalties, utilising Malta companies in the structuring of tax efficient structures offers intellectual property owners, venture capitalists, start-ups and companies with large intellectual property portfolios, as well as artistic individuals – actors, musicians, sports persons – a superb opportunity to best leverage and retain earnings as part of a  strategic monetisation plan.

 

FinanceMalta Welcomes Acumum As Its Newest Member

FinanceMalta officially welcomes Acumum Legal Group as a Corporate Member within the Corporate Services, Fund Management & Administration, Investment services/Asset Management, Legal Services, Pensions, Trusts and Tax Services‘ groupings.

Acumum’s Managing Partner, Geraldine Noel, states ‘We are extremely pleased that Acumum’s membership application has been approved by FinanceMalta.  FinanceMalta, as does Acumum, sees the many benefits of doing business with and in Malta; from Malta’s very beneficial tax regime, it’s skilled workforce pool, strategic EU location and advanced communications infrastructure.  We very much look forward to working with FinanceMalta’.