Banks in Malta: In Depth Guide

Any type of business needs a bank account to successfully operate.

Whether you are an Expat, Freelancer, Start-Up, or a Corporation looking into opening either a Business or Personal Bank Account in Malta, the following banking criteria applies:

Ease of Access, Tailor-Made Banking Services, and Competitive Fees, are factors that contribute when selecting the financial institution that will best suit the personal needs and one’s business ideals.

Open Bank Account in Malta?

By law, any EU National is entitled to a ‘Basic Payment Account’, as long as the applicant does not already hold a similar account in any of the other 20+ licensed banks operating in Malta. However, the following list of documentation needs to be provided for a successful and swift application process:-

A copy of a legal ID Document
A Residence Permit ( E-Residence Card)
Utility Bill or a Valid 6 Month Rental Agreement, to verify proof of address
Pay Slips or A Contract of Gainful Employment
Letter of Reference from a licensed bank or one’s Employer

Holders of a Basic Payment Account have access to the following services:-

Checking / Deposit
EU Direct Debits
SEPA Transfers
Online Banking

*Some banks may also require the account holder to deposit a stipulated sum of money into their account. The sum deposited will not be accessible for use, for a period of time as dictated by that particular bank.

Top 5 preferred Banks in Malta

The best banks in Malta for any individuals wishing to open a Basic Payment Account are:

Bank operating hours in Malta are uniform and tend to be as follows:-

Monday – Thursday:- 8.30 – 14.00
Friday:- 8.30 – 16.30
Saturday:- 8.30 – 12.30

How do I open a Business Account In Malta?

With some Banks in Malta, the initial part of the application process form can be submitted online. Nevertheless, once that is approved, it is recommended to set up an appointment and complete the process in person with the bank of ones choosing.

The following documentation and information needs to be in order and readily available to be forwarded upon request:-

KYC (Know Your Client) Form duly filled out
The preferred type of Business Account needed
Trading Currency
A Tax Declaration Plan
Future Projections together with Past Business profit margins.
Certified copies of:
a. Companies Certificate of Registration
b. Companies Memorandum and Articles of Associations
Proof of Company’s Registered Address — in most cases in the form of the most recent utility bill of your office space.
Certified and Authenticated Identification Documentation of all the company’s directors, beneficiaries, and company secretary. These copies need to have the approval stamp from a major bank or the local Maltese Embassy.
Reference Letters issued by a Bank for either / Or each one of:-
a. The entire senior management employed by the company
b. The Board of Directors
c. Beneficiaries
A Letter / Form of Intent. Articulating their intent for that particular choice of Bank in Malta

What Type of Business Account Do Banks in Malta offer?

Banks in Malta have their own platform of business accounts. Each have their own set of financial requirements, from the Minimum Capital to be deposited, Repayment Plans, and Interest Rates. The following are the generic types of business accounts available from any licensed Banks in Malta:-

Business Checking/ Deposit Account
Business Savings Account
Business Loan
Business Credit Card
Business Overdraft
Start-Up Business Account

Business Checking Deposit Account

A Business Checking Account works on the same parameter as a personal account. Account-holders can deposit, withdraw, access unlimited funds, transfer, and issue payments. With a Business Checking Account, no interest is earned.

Business Savings Account

Unlike a Business Checking Account where funds are easily available, holders of a Business Savings Account have limited and no spontaneous access to the funds deposited. Higher opening deposits are normally required, and interest is earned on this type of bank account in Malta.

Business Loan Account

There are two categories associated with a Business Loan Account:-

Working Capital Finance
With a Working Capital Finance Loan, money borrowed is utilized to cover the overheads of running the day to day business operations.
Asset Finance
Any monies borrowed through the Asset Finance Loan is used to finance the purchasing of equipment, products etc… as needed to operate the business.

Both types of loans are paid back from profits generated within the time-frame agreed upon by both parties.

How to apply for a Business Loan?

Companies that need to apply for a Business Loan need to provide a comprehensive business plan that needs to include:-

Forecasts of cash flow
The financial investment injected into the business to date, along with the required sum needed
A detailed (no default) repayment plan
Awareness of possible risk factors and well versed to answer and address potential questions and reservations, the bank may have

Business Credit Cards

Timely payments and responsible use, Business Credit Cards are ideal to help businesses build up a good credit history with the banks.

Business Overdraft

A Business Overdraft is usually linked with a company’s main business account. Interest on this type of account is only paid out on the money used.

Start-up Business Account

As the name infers, this type of Start-Up Business Account is geared for newly registered companies. Interest rates tend to be lower from other kinds of business accounts.

Preferred top Corporate Banks in Malta:

For a full list of licensed banks in Malta and respective contact details, you can find more information here.

All licensed banks and Credit Institutions in Malta are governed by the 2002 Central Bank of Malta Act and the 1994 Banking Act. The Malta Financial Services Authority — MFSA — is the only regulator of financial services on the island.

Pros of Opening a Bank Account in Malta

Malta’s Strong Economy
Strategic Location
Diverse Business Markets
Double Taxation Agreements
Low Corporate Taxes
International Trade Currencies

Malta’s renowned status, with regards to the stability in the banking sector, have contributed in positioning this Nation at the forefront of the International Banking Industry and Financial Sector within the EU. As a result, a large number of foreign Corporations have invested and set-up a multitude of businesses in Malta.

Interested in expanding your business to Malta, and need a local bank account? Contact us about our prestigious virtual office solutions.