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Malta is a very attractive jurisdiction for the establishment of pensions. With the new Retirement Pensions Act (Cap. 514, Laws of Malta) replacing the Special Funds (Regulation) Act as from 1 January 2015, Malta has a robust tailored legislative framework for personal pension plans.

It has also consolidated the current regulatory framework for pensions currently regulated by the Special Funds (Regulation) Act (Cap. 450, Laws of Malta) and the retirement directives published by the Malta Financial Services Authority (MFSA).

A new set of Regulations and Pensions Rules have been issued under the Act to supplement the legal framework for the licensing and regulation of Retirement Schemes (both Occupational and Personal), Retirement Funds and Service Providers related thereto, as well as for the requirement of recognition for persons carrying on back-office administrative services.

The main benefits of setting up a pension or retirement scheme in Malta are the following:

  • Fully licensed and fully regulated by the Malta Financial Services Authority (MFSA)
  • Fees for the administration and management of the scheme are comparatively lower than in other jurisdictions
  • A robust regulatory framework which boosts confidence for scheme members
  • Customised structures that suit the requirements of individuals or international businesses feature in the new legislation
  • Malta satisfies the current HMRC requirements enabling Malta retirement schemes to self-certify in terms of the UK’s QROPS legislation. In fact, HM Revenue & Customs confirmed that Retirement Schemes established in Malta and regulated by the MFSA may be considered on a case by case basis for Qualifying Recognised Overseas Pension Schemes (QROPS) under UK Law, thus allowing the transfer of pension rights into the scheme without a UK tax charge.

For further information contact John