Tips That You Need to Know About Offshore Banking in Malta12 min read

Tips That You Need to Know About Offshore Banking in Malta12 min read

If you’re considering opening an offshore banking account, make sure to choose the correct jurisdiction and bank. 

Malta has grown into one of the best offshore banking destinations thanks to its stable economy, low taxation, and strong regulatory framework. It is here that we will give you all information about which Malta offshore bank is suitable for you.

Why Choose Malta for Offshore Banking?

There are a few compelling reasons why Malta is one of the top offshore banking destinations. Let’s take a closer look at some of the major advantages:

Political and Economic Stability – Malta has been a member of the European Union since 2004 and it uses the Euro as its currency. This guarantees stability and quick access to EU markets. The island country, likewise, faces an extremely low likelihood of political turmoil or economic crisis.

Regulatory Strength – Malta’s financial services are supervised by the Malta Financial Services Authority (MFSA), which guarantees high standards of compliance and supervision. The country follows international standards such as the Common Reporting Standard (CRS).

Low Corporate Tax Rates – Malta has one of the most competitive corporate tax rates (35% for all businesses that are lowered to 5% or 0% for some business transactions). Dividends, interest, and capital gains are also taxed at affordable rates. Malta also enjoys a comprehensive double taxation treaty system.

Modern Infrastructure – Being an EU country Malta possesses modern digital and transport networks. The islands are small enough that travel is easy. English is spoken and the culture is Western.

Privacy and Anonymity – Malta adheres to the global standard of transparency, but offshore accounts offer higher privacy than local accounts. Account ownership is managed through a company structure.

If you’re looking for a stable, accessible and secure offshore financial hub within the EU, Malta is a great option. Let’s explore a few offshore account choices there.

Benefits of Offshore Banking in Malta

There are a whole lot of benefits to having an offshore bank account in Malta, rather than having all your funds back home. 

The top advantages include:

• Asset Protection – Assets held outside your country are less vulnerable to litigation, taxes, and state seizure.
• Tax Planning – Effective planning enables you to avoid or postpone tax on your income, investments, inheritance and capital gains by taking advantage of Malta’s territorial tax system.
• Privacy – Offshore accounts provide greater financial anonymity and confidentiality than domestic accounts. Data does not simply fall into the hands of third parties.
• Foreign Exchange – Having global banking and investment access gives you the opportunity to profit from international markets instead of your home country.
• Simple Account Services – Many Malta offshore banks offer low or no fees for basic account services. There are no high in-country charges for international wire transfers and foreign exchange accounts.
• Protection from Risk – By spreading assets overseas you hedge political, economic, and currency risks that could hurt your home market.

Offshore banking in Malta has both financial and individual advantages that make wealth management and planning easier and safer. Let’s take a closer look at specific account types.

Types of Offshore Accounts Available in Malta

You can open different offshore accounts in Malta, depending on what you need.

The main account types are listed below:

• Savings Accounts – Simple interest rate accounts with no balance requirements. Ideal for parking liquid assets.
• Checking Accounts – Provide check-writing and debit card access for daily costs while traveling or conducting business in Europe.
• Time Deposits – Save for a certain amount of time (3-24 months on average) in exchange for higher interest rates.
• Investment Accounts – Offer access to global stocks, bonds, funds, futures, forex, and traded products through online brokers.
• Private Banking Accounts – Specialized wealth management solutions for high net-worth clients, with dedicated relationship managers and customized services.
• Corporate Banking Accounts – Corporate banking products including multi-user access, online payment, transfer, etc.
• Trust and Foundation Accounts – Estate planning, succession, and asset protection through fiduciary accounting.

Which account you should choose will depend on your balance, liquidity requirements, investment objectives, and privacy/asset protection requirements. 

Trusted Malta offshore banks can advise you in finding out which fits best.

Costs and Fees Associated with Offshore Banking in Malta

As already stated, most offshore Malta banks do not charge much as opposed to local ones. 

Yet you should still know the average price before getting started:

• Opening Fees — Typically anywhere from $0-500 for both the bank and account type. Exempted on larger deposits.
• Maintenance Fees — From $0-500 per year. Usually reduced or waived when the minimum balance is met.
• Fees for Wire Transfers – $10-50 USD for International Wires depending on currency and destination. Within the EU, domestic transfers cost about $0-10.
• Charges – Debit cards are typically free, credit cards can cost $100-200 annually and charge interest on purchases.
• Transaction Fees – Many banks charge $1-5 per bill payment online or check withdrawal after the first couple of months.
• Fees for Investments – Online brokers set normal trade, funds, custodial fees of 0.1-1 % of assets annually.

Don’t forget to inquire about auxiliary fees such as foreign exchange spreads, certificate requirements, overnight deposit rates, and penalties for undermining. Well known banks will also inform you of all the costs involved.

Top Banks Offering Offshore Services in Malta

In Malta, a wide variety of reputed banks offer offshore services. But here one of the best is The Kingdom Bank. 

Here are the top 5 reasons why The Kingdom Bank is possibly the best Malta offshore bank:

• Strong Reputation – The Kingdom Bank has been in business since 2015 with a strong financial and regulatory profile. As a regulated bank, it follows stringent MFSA regulations.
• High Technology – Our web and mobile banking interface is very user friendly and safe. It delivers all your current functions, such as bill payments, e-statements, wire transfers and more, on any device.
• Wide Service Area – In addition to personal and business accounts, The Kingdom Bank offers Private banking, Corporate Banking, and Crypto Banking under the same roof.
• Price Match Guarantee – The Kingdom Bank offers some of the lowest account fees in Malta such as $0 account opening, $0 monthly maintenance, and $0 client-to-client domestic transfers. Foreign wires are not very expensive either.
• Multilingual Support – Being an international organization, The Kingdom Bank offers customer service by phone and email in all major languages like English, German, French, Italian, and more.

If you’re looking for an all-digital offshore bank offering a wide range of account types and features under one roof, The Kingdom Bank is a great option. 

Our online reviews also repeatedly give glowing testimonials about the service.

Malta is one of the leading destinations for offshore banking because of its political stability, strict laws, competitive tax regime and high infrastructure. From asset protection and anonymity to tax structuring and global reach, an account with a trusted Malta offshore bank such as The Kingdom Bank brings tremendous advantages. 

For those who are looking for offshore banking services, The Kingdom Bank would be an ideal choice.