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Insurance Expatriates

In recognition of the possible need of a Captive insurance company to employ expatriates - meaning either (1) persons who are not ordinarily resident in Malta, or (2) Maltese persons who have been working abroad in the same field for at least 3 years, the Income Tax Act provides expatriates (and their immediate family) with a number of fiscal incentives for a period of 10 years while they are working in Malta with an insurance company.

Amongst other incentives, the Act provides them with the following deductions from their taxable income:

• Removal costs when relocating to or from Malta
• Accommodation expenses incurred in Malta
• Travel expenses to or from Malta
• Provision of a car to be used by expatriate while in Malta
• Costs of living allowances of not more than Lm250 (approx. US$650) per month
• Medical expenses and medical insurance
• School fees of dependent children

Re-domiciliation of Captives (revised 17 July 2000)

In terms of the Insurance Business (Continuance of Companies Carrying on Business of Affiliated Insurance) Regulations, 2000 :

• A body corporate, formed and incorporated or registered in a Country outside Malta, which is similar in nature to a company and which would, if it where such a company qualify to be authorised under the IBA to carry out business of affiliated insurance may be continued in Malta as a company formed and registered under the Companies Act and authorised to carry on business of affiliated insurance,
• A company authorised under the IBA to carry on business of affiliated insurance may be continued as a body corporate incorporated or registered under the laws of a country outside Malta.

Continuance ensures the continuation of the corporate existence of the body corporate or similar entity in its new domicile.

On re-domiciliation of a 'foreign' Captive in Malta, through the process of continuation, the Captive ceases to be a body corporate under its previous jurisdiction and continues its corporate existence , and retain all its assets, rights and liabilities as a company otherwise formed and registered under the Companies Act, and authorised under the IBA. This process of continuation is subject to the laws of the relevant foreign jurisdiction and is only applicable if it is permitted therein

The re-domiciliation of a local Captive in another country is allowed provided that such continuance is permitted by the law of such foreign jurisdiction and it ensures the continuation of the corporate existence of the Captive, or its conversion into, a body corporate which will continue to retain or will succeed to all assets, rights and liabilities of the Captive.

Conclusion and Contact Persons

This memorandum has been prepared for information purposes only and should not be treated as legal advice.

Should you require any further information, please contact Dr. Max Ganado, Dr. Stephen Attard or Mr. Matthew Bianchi at the following legal offices:

e-mail address : lawfirm@jmganado.com

171, OLD BAKERY STREET
VALLETTA VLT 09, MALTA
Telephone (+356) 242 096; (+356) 235406/7/8
Fax: (+356) 225 908

57, ST. CHRISTOPHER STREET
VALLETTA VLT 08, MALTA
Telephone (+356) 247 902/3/5/6
Fax: (+356) 240 550

 

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