Top 3 Money Transfer Providers for UK to Malta

Daniel is Founder and CEO and has 20 years of experience in the international finance world focusing on cross-border payments, technology and the property sectors. Daniel is widely quoted as an expert within the money transfer industry including by The Economist, The Wall Street Journal, Reuters, CNBC and Bloomberg. Daniel is passionate about helping consumers and businesses find the best and most efficient ways to transfer money internationally.

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Summary

Malta became a member of the European Union in 2004 and entered the eurozone in 2008, adopting the euro (EUR, ) as its official currency. In accordance with eurozone policies, Malta employs few foreign exchange controls and restrictions on cross border flows of capital. Sending money to Malta and sending money from Malta is not restricted.

Malta's money transfer regulations

A member of the European Union (EU) since 2004, Malta must comply with all EU regulations and directives regarding imports, customs duties, trade regulations, and agricultural agreements. As such, Malta places very few restrictions on overseas money transfers. Trade in Malta is also governed by the rules of World Trade Organization (WTO). Malta is open to and encourages foreign direct investment, offers tax incentives for investors in several sectors, including information and communications technology development, healthcare, manufacturing, audio visual and film, and waste treatment. Malta eliminated all exchange controls when it joined the EU, but negotiated certain restrictions regarding the acquisition of companies by nonresidents. For such operations, local authorities must authorize the transactions.

Individual travellers may carry a maximum of 10,000, or its equivalent in foreign currency, in cash into or out of the European Union, in accordance with EU customs controls.

Currency union

Malta joined the European Union in 2004 and entered the eurozone in 2008, adopting the euro as its official currency. The euro replaced the Maltese lira (or pound) starting on January 1, 2008. Maltese coins were convertible at the Central Bank of Malta until February 1, 2010, and banknotes remain convertible until January 31, 2018. Malta complies with eurozone economic policy, which imposes few restrictions on foreign currency transfers.

Malta's economic background

Malta, a Southern European island nation in the Mediterranean Sea, is one of the world's smallest and most densely populated countries. Malta is one of 26 European countries that make up the Schengen area, and has established itself as a financial center, popular tourist destination, and a freight transhipment point, thanks to its strategic location in the Mediterranean. Due to its geographic location in the Mediterranean Sea, Malta has few domestic natural resources and has to import sources of energy, fresh water, and most of its food. Most of these imports come from France and Italy.

It is the smallest economy in the eurozone depending mostly on manufacturing, financial services, and international trade. With well-trained labor force and low unemployment, Malta is attractive for foreign investments, and places few restrictions on foreign exchange transfers. Maltas main exports include transport equipment and machinery, which it sends to Asia, other EU countries, and the US. Malta closed 2013 with a GDP of US $9.64 billion, and led the eurozone that year with 3% growth.

Malta's monetary and regulatory authority

The Central Bank of Malta was first established in 1968, and became part of the European System of Central Banks (ESCB) in 2004. When Malta officially adopted the euro as its currency in 2008, the Central Bank of Malta joined the Eurosystem, becoming responsible for issuing the new currency and implementing EU monetary policy. The main objective of the Central Bank of Malta is to maintain price stability following European Union and European Central Bank (ECB) regulations and to oversee payment systems in Malta.

Taxation

In the case of individuals, residents are subject to income tax on their worldwide income, while non-residents are subject to taxes on income gained in Malta, but also on foreign income received in Malta. Malta has progressive income tax rates up to 35% and individuals are also subject to capital gains taxes, which are also progressive up to 35%. Other taxes include stamp duty and a value-added tax. Total tax revenue in Malta was equal to 35.2% of domestic income in 2015.

Malta does not maintain a separate system for corporate taxes. Companies are charged income tax like individuals, but at a flat rate of 35%, which is the highest marginal tax rate for individuals. Companies residing in Malta are subject to tax on worldwide profits, while non-resident companies are required to pay taxes only on income sourced in Malta. Malta currently has double taxation treaties with 67 countries, which work to encourage international trade and the growth of the financial services sector.

Currency

The Central Bank of Malta has the exclusive right to issue banknotes and coins in Malta and is responsible for cash distribution across the country. Maltas monetary unit, the euro (EUR), consists of 100 cents. Euro banknotes are printed in denominations of 5, 10, 20, 50, 100, 200 and 500. Coins are available in values of 1, 2, 5, 10, 20 and 50 cents, and 1 and 2. The central bank of each EU member country issues its own banknotes and coins; the latter have national designs on one side and common designs on the other. All euro currency from any country is accepted within the currency zone.