Malta Represents Safe Haven For Capital Flight From Cyprus Misery

March 19, 2013 - PRLog -- The International Banker 19/3/2013 Feature (extract).

An announcement that the Cyprus Government will impose a levy on bank accounts as part of a 10 Billion Euro EU bailout deal, has prompted turmoil and fear across the world. Bank runs ensued as news quickly spread of a tax on deposits.

Major media outlets reported savings and current accounts in Cyprus were frozen, including pension payments to British expats, ahead of a parliamentary vote delayed since Sunday till Tuesday.

In wake of the crisis, speaking to Demetris Georgiades, the financial editor for the Politis newpaper in Cyrpus, Jane Dutton from AlJazeera's Inside Story report “The Cyprus Effect”, hinted that the island of Malta, may look a little more attractive for capital flight out of Cyprus.

The island of Malta, a Southern EU country, comprising of an archipelago in the center of the Mediterranean sea, could well be the perfect jurisdiction for capital flight from financial misery in Cyprus. The EU's smallest member state, Malta is emerging as one of the fastest growing international financial centers.

Quick Facts:

12th Soundest Banking Sector - World Economic Forum's Global Competitiveness Report 2011 - 2012 (142 countries reviewed)
15th position in Financial Market Development - World Economic Forum's Global Competitiveness Report 2011 - 2012 (142 countries reviewed)
1st in both Online Sophistication and Full Online Availability - European Commission's 2010 Benchmarking report on eGovernment Services
1st in the timely implementation of Internal Market rules into national law - Internal Market Scoreboard 2011
3rd place for overall quality of life and 1st place for best climate - International living 2011  (192 Countries Reviewed)

With an English speaking workforce and sound Government, Malta is a strategic crossroads between Europe, Africa and the Middles East. Backed up by best-in-class ICT infrastructure, a bilingual workforce, a nimble economy and a strong yet flexible regulatory body in the Malta Financial Services Authority, Malta is recognised on a global scale, as an attractive, low cost, tax-efficient base for businesses and consumers alike.

Success of Malta’s Financial Services Marks it as Premier QROPS Jurisdiction

A Qualifying Recognised Overseas Pension Scheme, or QROPS, is an overseas pension scheme that meets certain requirements set by HM Revenue and Customs (HMRC). A QROPS can receive the transfer of UK Pension Benefits without incurring an unauthorised payment and scheme sanction charge.

Malta is set to become an even more popular destination for British expats to set up financial services, due the island having English as its national language and its historic ties with the UK.

David Retikin, Director of Operations at Pryce Warner International Group, commented: “In recent years Malta has gone from strength to strength as a jurisdiction for financial services. It is within the EU, and therefore subject to strong regulations, but also offers many benefits that larger EU countries cannot. Particularly since Guernsey’s demise as a QROPS jurisdiction, Malta has really taken off, with almost 300 providers immediately flocking there from Guernsey last year. In addition to this, Malta has a commendably strong attitude towards self-regulation, so hopefully the strength of the jurisdiction will continue to grow over the years to come.”

Low Corporate Tax

A full imputation tax system has existed in Malta since 1948. The rate for corporate taxation in Malta stands at 35%, however upon distribution of dividends, shareholders may qualify for a refund generally equivalent to 6/7th of the tax paid, resulting in a paid tax rate of 5%.

Over the past years Malta has successfully established itself as a leading, serious and well-regulated European remote gaming jurisdiction and is estimated to host around 10% of the world’s on line gaming companies. The Government of Malta had carried out a complete revision and consolidation of the gaming legislation, and a new all-encompassing gaming law was enacted by the Maltese Parliament in virtue of which the Malta Lotteries and Gaming Authority (LGA) has been set up.

Safe and Comfortable Living

Malta is a safe place with a low crime rate. Drenched in sunshine from May till late October, with a short mild Winter, makes for an ideal location for expatriates and foreign investors.

Commitment to Education

The Maltese take education very seriously with most learning 3 languages from a very early age. Such investment in education ensures that brands like HSBC base major call centers on the island, to service UK account holders.

The Financial Crisis

The banking and financial services sector in Malta hold a traditional and conservative approach to business. This critical strength was a key factor in the way Malta weathered the financial crisis. Although certainly not spared by the chaos in other countries, Malta was one of the least affected countries in the EU.

Every Cloud

They say every cloud has a silver lining and the already good reputation of Malta improved to great, due to the stability and resilience shown during the meltdown. Observed by failing worldwide financial systems means that today, Malta is truly recognised on a global scale, as a major international financial services center.

Malta Represents A Safe Haven For Currency Flight From Cyprus Misery

With the situation in Cyprus critical, Malta may play an important role for Business and Domestic capital flight from Cyprus. More so, for the Russians invested in Cyprus, seeking an alternative international financial services center, Malta (a 2 hour flight from Cyprus) may well be key.

Malta and Russia already enjoy well established relations, with many Russians visiting the islands for business, leisure and education. For many years now Malta has hosted thousands of Russian students, who visit the island to learn English. You can buy Russian food from Russian stores in Malta, and there is an affluent Russian Private Boarding school for students.

These facts combined with the strength of the financial services sector on Malta makes Malta the ideal IFC for currency flight from the misery in Cyprus.

Read the whole story at http://theinternationalbanker.com/banking-finance/index.p...