Malta – Island Haven

Despite the ongoing European crisis, Malta has proved to be one of the best performers in the eurozone. LB asks Malta’s leading firms what is so special about this Mediterranean island.

Although Malta has shown resilience during the global downturn, it has not been bypassed completely. M&A volume has reduced and the island’s banking sector is more cautious than ever about credit exposure. Nonetheless, Malta’s own slowdown has been relatively painless when compared to other European jurisdictions. The island is fiscally conservative and its level of state debt is fairly low, with most of it held locally. Consumer debt is also low.

Not that Malta survives in splendid isolation. Far from it: the Maltese government realised some time ago that the island needed closer collaboration with its European neighbours. In the 1990s, there was a marked shift on the part of the government to present the island as a credible onshore financial centre in the Mediterranean in anticipation of becoming a properly integrated EU member. Following this initiative, the island’s legal framework was significantly upgraded and brought in line with international standards, including measures to combat money laundering activities.

The introduction of tailor-made laws, such as the 1994 Investment Services Act and the Banking Act, as well as the more recent 2006 Securitisation Act, have encouraged the incorporation of companies in Malta and the structuring of deals through the island, such as Lufthansa Malta Blues’ successful €234.4m note issue in March 2012. In addition the island boasts tax-friendly legislation, which was bolstered by the government’s 2011 introduction of rules that aimed to stimulate the financial services industry and encourage the re-domiciliation to the island of executive individuals from the financial services industry.

Last year also saw the Malta International Ship Register take over from Greece as the largest ship registry in Europe and Malta has become increasingly popular for its superyacht registry. Furthermore, with recently introduced legislation, the island’s aviation sector is steadily developing. Add this all up and Malta appears to have a winning formula, not only to weather the European crisis but also to establish itself long-term as an alternative financial centre to some of the more established territories.

But all this effort to be more attractive to international investors could come at a price to the jurisdiction’s legal market. If Malta continues to grow, its law firms might be compelled to hunt out local mergers to stay competitive, or even find themselves confronting an eventual invasion by international legal practices.

Good investment

Despite the government’s initial efforts in the 1990s to present Malta as a credible international financial centre, the island lacked the track record to attract high-quality work. Andrew Zammit, managing partner at Zammit & Associates, does not believe that Malta ever suffered from a negative perception in the international sphere, but concedes that the island took several years to be recognised within the financial services industry and show that it fully understood this sector.

‘Taking note of foreign jurisdictions’ legal systems, the government worked closely with the private sector to draft laws that offer investors the opportunity to structure their investments on a tailor-made basis and give clients what they want,’ says Jean-Pie Gauci-Maistre, managing partner at GM & Associates.

Malta has since developed into a very transparent jurisdiction. ‘Its money laundering standards are extremely high,’ explains Frank Chetcuti Dimech, a partner at CDF Advocates. ‘There are no bearer accounts here, the register of companies is online, and all companies are audited by registered auditors, no matter how small the company, unlike in the UK.’

Almost 20 years after the government’s initial push, Zammit tells LB how satisfying it is to see how far the island has come, how Zammit & Associates as a law firm has exceeded clients’ expectations, and how willing clients are to recommend the firm to their business partners and contacts.

Lufthansa Malta Blues (the issuer), a Maltese finance subsidiary of German-based international airline Lufthansa, recently benefited from the island’s growing profile as a financial services hub. In March 2012 it successfully priced the issue of E234m notes, due 2017, exchangeable into shares of common stock of JetBlue Airways Corporation at the option of the noteholders and guaranteed by Lufthansa.

The issuer was established as a securitisation vehicle under Malta’s recent Securitisation Act with a golden partnership interest held by Lufthansa Malta Blues Foundation. This is a Maltese-purpose foundation administered by Ganado Trustees and Fiduciaries Limited – an advisory arm of law firm Ganado & Associates – which is authorised by the island’s regulator, the Malta Financial Services Authority (MFSA), to act as an authorised trustee and to receive property under trusts.

Alongside partners Max Ganado and Stephen Attard, Ganado’s Richard Ambery, an English partner who joined from Irish firm Arthur Cox in 2010, advised Morgan Stanley, Goldman Sachs International and UBS Investment Bank (the arrangers) on Maltese law. Ward Greenberg, a Frankfurt-based partner at Cleary Gottlieb Steen & Hamilton, led the advice to the arrangers on US and German law. Camilleri Preziosi, led by partner Louis de Gabriele, advised Lufthansa on Maltese law; while Freshfields Bruckhaus Deringer, led by Frankfurt-based Andreas König, acted for Lufthansa on US and German law.

Ambery says that his team was well prepared for the Lufthansa deal because it had already developed and carried out the legal structuring work by way of a Maltese securitisation vehicle in February 2011. Ambery led a team from Ganado that advised on establishing a Maltese issuer for the $2bn asset-backed commercial paper programme of a global commodities trading company. The client, as is the case with many Maltese deals, cannot be named because of restrictions imposed by Malta’s Chamber of Advocates. ‘Much of the work on that matter informed us on this year’s Lufthansa deal,’ says Ambery.

In attracting securitisation mandates of Lufthansa’s calibre, Malta was greatly assisted by its Securitisation Act, which provides for a large variety of corporate and non-corporate forms under which a Maltese securitisation vehicle can be set up. It is perceived as flexible and efficient, as well as accommodating to various business and legal considerations in cross-border transactions. Particular characteristics that appeal include its special statutory regime for issues such as bankruptcy remoteness, creditor protection and debtor notification in securitisation transactions. These features remove some of the uncertainties that hamper structured financings in other jurisdictions.

Securitisation deals were given a further boost by the introduction of the Securitisation Transactions (Deductions) Rules, 2011, which confirm that the principle of tax neutrality applies to Maltese securitisation vehicles.

‘The new tax rules for structured finance deals took some time to put together but the regime has a great deal to offer,’ says Ambery. For example, the vehicle is able to opt to deduct profits if they are brought into account by the originator and the originator’s profits are only taxable if it is resident in Malta.

Serious jurisdiction

Beyond securitisation, Camilleri Preziosi’s de Gabriele believes that Malta has, overall, succeeded in establishing a flexible environment for both corporate and non-corporate entities. This perception spreads worldwide.

Crucially, Malta benefits from a responsive regulator, the MFSA, that understands the needs of business entities looking to structure deals through the island. ‘Our regulator is extremely efficient and takes due diligence and reporting requirements very seriously,’ says GM’s Gauci-Maistre. ‘If you don’t play by the rules, you will be subject to sanctions. This is a very serious jurisdiction.’

In addition to double taxation treaties with over 65 countries, Malta has a full imputation tax system with only one level of corporation tax. It is favourable to shareholders because the company is taxed on behalf of the shareholder, who then receives a credit for the tax already paid.

Consequently, several law firms in Malta have pulled in mandates from advisers and companies wishing to incorporate a company in Malta, particularly in the drafting of incorporation documents and shareholder agreements. At Chetcuti Cauchi Advocates, its tax practice group, which specialises in mixed Malta-Cyprus company structures, has experienced a significant increase in the number of requests it receives on the structuring of businesses through tax-efficient structures. Cauchi’s partner Priscilla Mifsud-Parker says that the latest developments include the re-domiciling of companies from other jurisdictions, especially from the Netherlands, Cyprus and Portugal, but also the relocation of the management and effective control of companies to Malta.

Michael Psaila, a partner at Simon Tortell & Associates, has also seen company structures formerly registered in other jurisdictions relocating to Malta, but not just for tax planning reasons. ‘They are also coming because of the island’s EU membership and the strong reputation the jurisdiction has built,’ he says. Psaila’s firm has also recently advised in various loans, acquisitions and restructurings involving such companies.

With easy access to European investors, Malta’s ever-developing funds sector is beginning to welcome funds that would normally have gone to traditional domiciles such as Ireland or Luxembourg. Ganado’s Ambery hears from investment bankers all the time that clients wish to diversify their holdings in terms of issuer jurisdiction, listing, regulator and so on, and not concentrate them in one or two jurisdictions. ‘Malta is benefiting from this move away from concentration,’ he says.

James Muscat Azzopardi, a partner at Muscat Azzopardi & Associates, believes Dublin’s reputation has been somewhat tarnished because of the banking crisis. Consequently, his firm is also receiving work that used to go to Ireland. ‘In addition, costs are levied at one-third of the costs of Luxembourg,’ he says. A lower cost base is always seen as an advantage, agrees Clinton Calleja, a partner at Guido de Marco & Associates. ‘This is increasingly more so in the current turbulent market climate,’ he says.

A regulatory framework that is widely respected, accessible decision makers and the certainty of Maltese structures have also assisted Malta’s burgeoning funds industry. And Malta’s existing infrastructure, which supports the industry in terms of human resources and IT and technical capabilities, is an important reason why investment funds come to Malta. The local workforce is also English-speaking.

‘Malta is now considered to be an established funds domicile and for good reason,’ says Mifsud-Parker. ‘ It boasts a sophisticated support infrastructure and has successfully played host to a wide variety of investment strategies. Malta provides clients with the soundness of an established jurisdiction at a highly competitive cost base.’

As with company structures, being in the EU acts as an important seal of quality for fund products. ‘Malta as an EU country adheres to a wide set of rules and regulations at European level,’ says Calleja. ‘Membership in itself automates the perception that Malta is not an offshore financial centre (OFC), thus providing an element of stability and security.’

Consequently, those choosing to move away from OFCs are comfortable moving to Malta.

There is little dissent over the significance of EU membership. ‘A customer or investor dealing with a Maltese-licensed provider knows that he is dealing with a business that is regulated to a very high standard and it can bring a lot of credibility,’ says Mifsud-Parker. This belief remains unchanged in spite of the eurozone crisis. ‘We can safely say that the EU was and remains crucial to Malta’s growth,’ she adds.

In terms of originating work, Azzopardi says that instructions are coming to his firm from all over Europe, but also from as far afield as Canada and South Africa. Meanwhile Zammit & Associates’ Zammit has seen new investment fund work emerging, primarily from financial centres such as Switzerland and London. As for the nature of the funds, Guido de Marco’s Calleja says that Malta’s funds industry has experienced ongoing registrations of both retail and professional funds and recent engagements for Chetcuti Cauchi include advising on establishing funds for start-up managers and acting on the setting up of a renewable energy fund.

After a particularly busy 2011, Ganado’s Ambery expected investment funds work to slow down a little. Yet he confirms that instructions have actually increased by more than 20% when compared to last year. He is seeing more instances of Undertakings for Collective Investment in Transferable Securities (UCITS) of a decent size in addition to the firm’s staple diet of hedge fund professional investor funds. He estimates that Ganado & Associates has acted for over 60% of the collective investment schemes licensed by the MFSA.
However, some commentators add a caveat. CDF’s Chetcuti Dimech agrees that the international awareness of Malta’s offering as a financial centre has increased greatly; that the island can afford to be flexible by adapting its regulatory regime to the needs of start-up operations in financial services; and that it is picking up more funds work from Luxembourg. Yet he also says that most of the funds are around the €20m range and are the types of funds that Luxembourg is likely to turn away. ‘Here, start-ups with investments of just a few million euros come through, but there have been only a few €100m-plus funds in Malta in the last ten years,’ he says.

Up sticks

The efforts of Malta’s authorities to place the island on the world stage do not stop with funds. The government also aims to attract highly qualified people holding eligible offices within the financial services sector to Malta. ‘There is a general understanding within the jurisdiction that every effort needs to be made to attract top talent to the country so as to sustain the excellent growth that the financial sector has achieved,’ says Mifsud-Parker.

In January 2011 the government introduced the Highly Qualified Persons (HQP) Rules, which stipulated that foreigners in certain executive positions in financial services – and with high qualification levels – would pay personal income tax at a rate of only 15%, provided they have an income of at least €75,000 a year (capped at €5m). They must also prove to the MFSA’s satisfaction that they are in receipt of stable and regular resources that are sufficient to maintain themselves and their families without relying on Malta’s social assistance system.

This benefit can be availed of for five consecutive years for nationals of EU countries, Switzerland, Norway, Liechtenstein and Iceland; and four consecutive years for other nationals. After this individuals will be taxed at the standard progressive rates of tax up to 35%.

Many expect to see more managers relocating to Malta, but not just for tax-related reasons. ‘This is just a small part of a larger picture,’ says Mifsud-Parker. ‘There are various other attractions: geographical location; quality of life; and ease of access to the regulator. These are all important factors.’

Guido de Marco’s Calleja also believes that there are other considerations besides taxation that are usually evaluated by an individual manager when considering whether to relocate to Malta. ‘With multiple daily flights to Europe’s major airports, good healthcare facilities and schooling, Malta is an attractive proposition for relocating,’ he says. ‘Once the complete package is evaluated, the tax incentives are most definitely a plus.’

Some Maltese lawyers report that the effect of the HQP rules have already begun to gather momentum, especially among smaller operators. But not everybody is expecting a rush of high-flying financial services executives to up sticks and relocate to Malta’s sunny shores. ‘It may depend on the type of manager but despite the tax advantages I am not convinced that there will be a wave of investment fund managers relocating to Malta,’ says Azzopardi. ‘The funds themselves are coming but the managers tend to stay where the money is. If their clients are in Zürich then they will be in Zürich.’

Other forms of migration to Malta have also benefited the island’s shipping sector and its lawyers.

Because Malta’s credibility has continuously improved over the years, increasing numbers of stakeholders have been looking to set up shop in Malta, believes GM’s Gauci-Maistre.

Shipping-related work has grown as a result of the instability created by the EU and specifically, the Greek crisis. ‘Malta has come to be viewed as a stable environment within which to carry out business, the importance of which heightened during the economic unrest,’ says Gauci-Maistre. In 2011, the Malta International Ship Register became the largest ship registry in Europe, overtaking Greece.

‘Malta has always been a strong maritime jurisdiction but the ship register has gone from strength to strength,’ says Calleja. ‘Surpassing Greece puts Malta in an even better position to continue its success in this industry.’

At a political level, the government has long been committed to strengthening the maritime industry in Malta. ‘The investment made by the government in actively enforcing international safety and environmental standards, and in publicising the Maltese flag to the international shipping sector continues to pay off,’ says Zammit. Coupled with strong legal and infrastructure support, such investments augur well for Malta to retain its position as the largest ship register in Europe and the seventh largest ship register in the world.

As with the relocation of funds and companies, being in the EU – as well as being a white-listed jurisdiction since 2009, as recognised by the OECD for implementing internationally agreed tax standards – has added confidence to the island. ‘With the whole registration structure being EU-approved, shipowners and investors know that Malta is no fly-by-night jurisdiction, where the ships run the risk of registering and de-registering within short timeframes to the detriment of registered mortgagees and other financiers,’ says Gauci-Maistre.

Nonetheless, taxation again plays a part in understanding Malta’s appeal. Shipowners know that in Malta there is a tonnage tax regime in place and that no further company taxation should be due on income derived from maritime services. With the shipping industry in crisis globally, clients are naturally relieved when faced with fixed and reasonable costs.

Particularly favourable tax treatment has also led to Malta enjoying a surge of private and superyacht registrations. In November 2005, the Maltese VAT Department introduced reduced rates of VAT on leasing arrangements for private leisure yachts, and those entered into between a Maltese yacht-owning company as lessor and lessee. This effectively reduces the VAT in Malta on such leasing transactions to as little as 5.4%.

Ganado’s Ambery has already noticed a number of Russian oligarchs coming to Malta for superyacht registrations, while GM’s Gauci-Maistre says that they are coming from all across the globe. ‘Clients are emerging that, traditionally, were more conservative when it came to flagging out their vessels,’ he says.

Taking off

Malta’s aircraft registration market is likewise developing well. In late 2010, the sector was boosted by the introduction of the Aircraft Registration Act. Tailor-made to the industry, it was designed to regulate the registration of aircraft and aircraft mortgages in Malta.

‘The Aircraft Act was the result of a national effort that aimed to exploit and harness the aviation sector’s booming development,’ says Cauchi’s Mifsud-Parker.

The legislation effectively took the island’s shipping legislation and improved it. Lessons were learnt regarding the infrastructure required, the level of protection needed by financiers under the law and the procedures and timeframes demanded. With the introduction of the Aircraft Act, it is now possible to take advantage of all the benefits emerging from Malta’s aviation industry, particularly the recognition of fractional ownership, as well as joint ownership and the regulation of trust agreements in relation to aircraft.

A mortgage can now be executed and registered in favour of a security trustee, who is recognised as the mortgagee and entitled to exercise rights over that mortgage. Given that multiple financiers are often involved – due to the costs involved in aircraft financing – the trustee’s role becomes a beneficial tool so that various financiers can appoint a trustee rather than enforcing their own security interests individually.

‘The Aircraft Act offers a great deal of protection to the mortgagee and explicitly states that the above rights can be exercised without the need for court intervention,’ says Gauci-Maistre. In addition, a mortgage is an executive title. This is fundamental, as it allows a mortgagee to proceed directly to the Maltese courts for a judicial sale of the aircraft.

The type of client likely to take advantage of the legislation includes non-EU entrepreneurs and businesses looking for a jurisdiction that provides access to EU air space; financiers in need of a sound jurisdiction where their clients can register financed aircrafts; and private jet owners hunting for a speedy and efficient registration process.

Although the island is yet to experience a snowballing of aircraft registrations, Zammit believes that the industry is gaining momentum. ‘The favourable tax treatment of aircraft leasing arrangements makes Maltese structures very appealing to aircraft owners,’ he says. Over the past 18 months, Zammit’s firm has handled a number of transactions involving the ownership and leasing of commercial and private jets.

The Aviation Act is only two years old and is still in test mode. But the industry – which has also been assisted by lower overall costs, the island’s updated regulatory structure and Malta’s taxation advantages – is definitely growing in Malta.

Tidal wave

Apart from feeding Malta’s lawyers with increasing volumes of mandates, only time will tell if the growth in Malta’s financial services, shipping and aviation sectors will cause ripples in Malta’s traditionally conservative legal market.

While Malta’s profile as a dynamic and viable international financial centre grows, it remains unclear which type of legal practice is best placed to benefit from the changes that are redefining the island. Malta’s legal market is currently characterised by a few large firms, and several small practices and sole practitioners.

Consequently, although it is rare to see major movements between law firms in Malta, many observers expect a wave of consolidation to grip the island’s legal market during the next few years. A number of small practices might agree to being absorbed by larger local firms, so as to gain exposure to certain practice areas they would otherwise find difficult to penetrate.
‘Cost sharing would be a big advantage for small practices and there is currently pressure on law firms to be too generalist, while international clients expect their individual legal advisers to be increasingly specialised,’ says Ambery.

As a small-to-medium sized firm, such a development is not something envisaged by Simon Tortell’s Psaila. ‘We would not be interested in getting together with another law firm purely for the sake of becoming larger and we perceive our clients to be very happy with the current dimensions of our practice,’ he says.

Others are not convinced that consolidation is by any means a certainty. ‘Size and quality do not necessarily go together and clients are increasingly choosing their legal service providers on the basis of the expertise of individual lawyers, rather than the name of a firm,’ says Azzopardi. Even if a wave of consolidation does hit the island, CDF’s Chetcuti Dimech believes that the typical size of a Maltese law firm will remain at around two to three lawyers.

Although rare, recent examples of mergers among Maltese law firms include Buttigieg & Refalo and Zammit Pace joining forces to become Refalo & Zammit Pace Advocates in 2009. Spin-offs have also occurred, including the founding of Simon Tortell & Associates in 2009 by name partner Simon Tortell when he left GVTH Advocates in 2009. In addition, Fenech Farrugia Fiott Legal was formed in 2009 when founding partners Tonio Fenech and Christian Farrugia exited Fenech & Fenech Advocates and Farrugia Schembri Orland – Law Firm respectively.

More recently in 2012, Acumum Services Group was co-founded by UK barrister Geraldine Noel, who has 20 years’ experience of advising multinational corporations in a number of jurisdictions. ‘We felt that there was a need for a modern, international and multidisciplinary firm’, says Noel. Working on the principle of leanness, the firm utilises secure technology and the flexible engagement of highly qualified associates and network partners to provide cost-efficient services to clients.

But if Malta continues to steer clear of its EU neighbours’ troubles, local law firms may have to watch out, not just for each other, but also for a foreign invasion. The Big Four accountancy firms are already in Malta, and the biggest change that could affect the island’s legal market would be the arrival of international law firms.

Because the economy is growing rapidly, many market observers believe that the foreign law firms will come if economic imperatives dictate. ‘The international law firms will one day arrive in Malta,’ says Simon Tortell’s Psaila. ‘They are looking at us more and more regularly. It just takes one of them to make the plunge; and if it is successful, others will follow.’
Mifsud-Parker says Chetcuti Cauchi is very open to international law firms starting operations in Malta. She thinks that it would be beneficial for the Maltese financial services industry and that it will help secure Malta’s place on the map of the world’s financial centres.

Others are not convinced that the major international law firms will ever launch in Valletta unless they see evidence of truly exponential growth to justify such an investment. Camilleri’s de Gabriele says that Malta is too small a market for foreign law firms. ‘Our relationships with overseas practices are a major source of referral work and if Maltese firms carry on providing an excellent service, there is no reason for the international practices to establish operations here,’ he says.

Although Azzopardi does expect foreign entrants to land one day, he does not believe that there would currently be much incentive for his firm to merge into a foreign legal practice. It could potentially lose referral work from the merger firm’s international competitors and would find itself having to answer to a foreign head office for the first time. The overheads could also increase significantly.

Nonetheless, Malta’s lawyers are already seeing a great deal of interest in this issue. ‘We are aware that some local practices have already been approached with a view to merging with an overseas firm,’ says Psaila. ‘We ourselves would prefer to keep all doors open.’

Some believe that an offshore law firm could be the first to test the water and open in Malta. Irrespective of who lands first, such an investment is most likely to be client-driven so as to justify the establishment of a permanent office in Valletta. If one or more important clients move substantial businesses to Malta, their legal advisers may do the same, potentially triggering an opening for a merger with a local law firm.

Safe waters

In a time of global uncertainty, most Maltese lawyers can count themselves lucky to be working in practice areas that are either anti-cyclical or in growth mode. In addition to financial services, shipping and aviation, e-gaming work continues to develop, while Malta is still investing in infrastructure projects, which typically require government debt. Calleja says that Guido de Marco has acted on a number of multimillion-euro infrastructure projects in the past 12 months, while Patrick J Galea Advocates’ founding partner, Patrick Galea, tells LB that his firm has not experienced any dramatic downturn in work flows. ‘We remain busy with litigation, corporate, advisory, financial services and banking mandates,’ he says.

Some lawyers have tapped into the island’s more eclectic industries. In 2011, Zammit & Associates’ Andrew Zammit led the advice to SysPay, assisting it with obtaining a financial institutions licence to carry on activities as a licensed electronic money institution (EMI), becoming the first Malta-licensed EMI.

Trusts mandates are on the up, since the introduction of the Trusts and Trustees Act in 2004.

‘Two of our main markets for trust work are Switzerland and Italy,’ says Azzopardi. ‘Switzerland is an international centre for private client work but does not have its own trust legislation,’ he explains. It is extremely rare for a civil law-based jurisdiction to have its own trust laws and Malta appeals because of its historical mix of both civil and common law.

Trusts are considered to be transparent for tax purposes under Maltese law and unless the beneficiaries are resident in Malta there is no Maltese tax to be paid. However, the trustee may elect to have the trust treated like a company from a tax point of view and to take advantage of Malta’s refund system. At Chetcuti Cauchi, its tax practice group has seen a significant increase in the structuring of businesses through tax-efficient structures, such as the setting up of trusts and foundations according to clients estate planning needs.

‘The favourable tax treatment of aircraft leasing arrangements makes Maltese structures very appealing to aircraft owners.’ – Andrew Zammit, Zammit & Associates

And with M&A activity sluggish, the nature of the work seen by Maltese transactional lawyers has altered, with regulatory and litigation work replacing purely transactional work. Malta’s legal market is not overly specialised and it is relatively straightforward for Maltese lawyers to leap between M&A work and dispute resolution or regulatory mandates.

Certainly the island’s clients are feeling more litigious. ‘Fuelled by a generally negative sentiment towards banks and financial operators – and at times on the most flimsy of pretexts – investors, having lost millions of euros, find fertile ground to complain and sue institutions,’ says Camilleri’s de Gabriele. Debt recovery work is also common – again a direct result of the economic downturn – as is intellectual property litigation, such as domain name disputes and counterfeit goods cases.

Nonetheless, many are confident that when M&A does return, Malta will see its fair share of both structured finance transactions and acquisitions. ‘Not only does the island offer efficient entry routes but for businesses looking to exit smoothly within three or four years, Malta is an ideal location,’ says de Gabriele.

As for which kind of law firm is best placed to benefit from the changes sweeping over Malta, Ann Fenech, the managing partner of Fenech & Fenech Advocates, believes that those legal practices that are constantly developing, and that keep up with Malta’s legislative and economic changes, have the most to gain. ‘We pride ourselves with having done exactly this since our inception in 1891,’ she says. ‘The last 25 years have witnessed meteoric growth and we have been heavily involved in this development, sometimes even ahead of time.’

With Malta offering high service levels, low costs and quality work, the island’s lawyers feel optimistic. Malta has taken several years to evolve into a successful international finance hub and the island and its legal advisers should continue sailing in the same direction. LB

julianmatteucci@legalease.co.uk