Insurance and Re-Insurance

Malta is increasingly becoming an insurance domicile due to the European passport rights, EU compliant legislation and the vast network of double taxation treaties. Furthermore, the labour force is skilled, multi-lingual, flexible and adaptable. The official languages are Maltese and English, which languages are both spoken fluently, with a large proportion of the population speaking Italian as well.

The Maltese insurance sector has evolved from a handful of domestic insurance companies into an industry which operates across all the EU Member States. The Insurance sector comprises commercial insurance companies carrying out both general and long-term business, subsidiaries of major international insurance and reinsurance undertakings, Captives and Insurance Management Companies.

Requirements/procedures for setting up a new insurance or reinsurance business

In terms of the rules applicable to insurance and re-insurance in Malta, no person may carry on, nor hold itself out as carrying on, in or from Malta, business of insurance and reinsurance unless authorised by the MFSA. The MFSA may grant authorisation to: a company having its head office in Malta to carry on the business of insurance or reinsurance in or from Malta, or in or from a country outside Malta; or to a company whose head office is in a country outside Malta to carry on the business of insurance or reinsurance in or from Malta. In order for an applicant to obtain authorisation, the MFSA must be satisfied that:

• the applicant has submitted the prescribed application form to the MFSA;
• the applicant satisfies the prescribed minimum own funds requirement;
• the applicant’s objects are limited to business of insurance and operations arising directly therefrom;
• sufficient information is made available on persons having any proprietary, financial or other interest in, or in connection with, the company;
• all qualifying shareholders, controllers, and all persons who will effectively direct the business of insurance or reinsurance are fit and proper to ensure its sound and prudent management;
• a scheme of operations has been submitted to the MFSA in the prescribed form; and
• the applicant discloses any close links that it may have with any other person.

• No thin capitalisation or transfer pricing rules.
• Companies which have more than 90% of their business interests outside Malta are exempt from stamp duty on sha