Malta Economy Profile - Doing Business 2019
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Doing Business 2019 Malta
Economy Profile
Malta
Page 1
Doing Business 2019 Malta
Economy Profile of Malta
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Malta
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Malta
Ease of Doing Business in DB 2019 Rank
Region Middle East & North Africa
190 1
Malta
Income Category High income 84
DB 2019 Ease of doing business score
Population 465,292
0 100
City Covered Valletta 65.43
DB 2019 Ease of Doing Business Score
0 100
77.68: Spain (Rank: 30)
72.56: Italy (Rank: 51)
71.71: Cyprus (Rank: 57)
68.08: Greece (Rank: 72)
65.43: Malta (Rank: 84)
58.30: Regional Average (Middle East & North Africa)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Malta
1
28 39
45 41
57
55
71
77
82
Rank
103
109 121
134
136
151
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Malta
100
91.01
84.86
80 74.75 76.34 76.18
67.57
61.67
Score
60
48.87
40 38.07
35.00
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Malta
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization)
The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card
- Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Malta
Starting a Business - Malta
Standardized Company
Legal form Private Limited Liability company
Paid-in minimum capital requirement EUR 233
City Covered Valletta
Indicator Malta Middle East & OECD high Best Regulatory
North Africa income Performance
Procedure – Men (number) 8 7.2 4.9 1 (New Zealand)
Time – Men (days) 16 20.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 7.1 22.6 3.1 0.0 (Slovenia)
Procedure – Women (number) 8 7.9 4.9 1 (New Zealand)
Time – Women (days) 16 21.2 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 7.1 22.6 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 1.0 8.1 8.6 0.0 (117 Economies)
Figure – Starting a Business in Malta and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
92.39: Greece (Rank: 44)
91.24: Cyprus (Rank: 52)
89.50: Italy (Rank: 67)
86.91: Spain (Rank: 86)
84.86: Malta (Rank: 103)
82.00: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Malta
Figure – Starting a Business in Malta – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
16 4
14 3.5
Cost (% of income per capita)
12 3
Time (days)
10 2.5
8 2
6 1.5
4 1
2 0.5
0 0
1 2 3 4 5 6 7 *8
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Malta
Details – Starting a Business in Malta – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Reserve a unique company name Less than one day EUR 10
Agency : Online (online procedure)
Checking the availability of a company name can be made online through the
website of the Registry of Companies or in person. The reservation confirmation
is sent by email.
2 Draft the memorandum and articles of association 1 day Between EUR 500
Agency : Lawyer, accountant or a registered corporate services provider. and EUR 1,000.
Lawyers or corporate service providers draft the memorandum and articles of
association.
3 Deposit the paid-in minimum capital 1 day no charge
Agency : Bank
The Bank will open a company account once it receives reference letters from
the signatories' respective banks. The following documents are necessary to
open a bank account:
1. A duly filled in Know-Your-Client (KYC) form
2. A completed request to open an account specifying the type of account, the
currency and the preferred mode of tax payment
3. Copy of the Memorandum and Articles of Association together with a certified
copy of the Certificate of Registration issued by the Registry of Companies once
the company is registered. The bank may also require a description of the
activities of the company and the anticipated turnover thereof.
4. Confirmation of the permanent address of the Directors through a completed
identification statement certified by a Prime bank or Maltese Embassy in the
country of residence. The bank also requires the authenticated identification
documents for all the directors, signatories, beneficial owners and secretaries. An
original copy of a utility bill to be certified by the bank may also be required.
5. A completed form signed by the directors of the company appointing the
bankers.
4 Register at the Companies Registry and obtain Tax Identification Number 2 days If share capital
(TIN) exceeds €100,000
Agency : Registry but does not exceed
The following documents are submitted to the Companies Registry in order to
€250,000, they
incorporate the company:
payment for
1. Confirmation of name reservation;
electronic submission
2. Signed memorandum and articles of association;
is calculated as €736
3. Confirmation of deposit of share capital;
4. Information about beneficial owners; with the addition of €8
4. Copy of the passport/ID of each shareholder, director and company secretary. for each €15,000 or
part thereof in excess
The Registry will take about 2 days to incorporate the company at which point the of €100,000.
official memorandum and articles along with the certificate of registration bearing
the registration number and registration date of the company are issued. These
documents are then subsequently uploaded to the website of the Registry of
Companies.
The Registrar of Companies also provides an alternative service for the
registration of Companies. Registration may now be carried out online through
the Registry's portal. Prior to registration, an applicant must register for an
account and obtain a personal Digital Certificate by registering for an e-ID. The
MFSA would then vet the application within 5 working days.
MFSA communicates C-number with the Office of the Commissioner for
Revenue (OCR) and OCR then creates an Income Tax Number. This normally
happens within a couple of hours. OCR will then communicate this number to the
company through email without the entrepreneur having to make a separate visit
to the OCR.
Since January 1, 2018, all new companies are legally required to disclose
information about beneficial ownership. The information can be submitted at the
business registry for free at the time of business incorporation
Page 8Doing Business 2019 Malta
5 Register for VAT 7 days no charge
Agency : Office of the Commissioner for Revenue - VAT Department
To register for VAT, the entrepreneur submits the application form S.L. 406.09
"Value Added Tax (Forms) Regulations", along with the company Tax
Identification Number (TIN). Furthermore, a copy of the memorandum and
articles of association, and a copy of the original certificate of registration
including the stamp of the Malta Financial Services Authority (MFSA) should be
produced.
Recently, a new electronic service was introduced through which companies can
register with the VAT Department, obtain an employer identification number and
notify the National Statistics Office on one application form. However, this was
not used by the majority of users at the beginning of 2018. Such form shall
become mandatory in the future.
6 Obtain a PE number (employer identification number) and register 3 days no charge
employees
Agency : Office of the Commissioner for Revenue - PE number
Both the VAT number and the Income Tax number are required to obtain the PE
number
For PE number: the registration form is available, the entrepreneur can either
complete it online or print it and send it to IRD. The entrepreneur has to provide:
- The tax ID number
- The number of employees
- Details of the business
- Date of first employment
7 Register the employees with Jobplus Less than one day no charge
Agency : Jobplus (online procedure)
The entrepreneur must declare the company's recruits to Jobplus. The PE
number is required.
8 Register for Data Protection 1 day (simultaneous EUR 23.29
Agency : Office of the Information and Data Protection Commissioner with previous
Such registration must be done before the company carries out any data procedure)
processing operations. VAT and registration numbers are required according to
the form to be submitted.
Such requirement is likely to change in May 2018.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Malta
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Malta
Dealing with Construction Permits - Malta
Standardized Warehouse
Estimated value of warehouse EUR 1,110,950
City Covered Valletta
Indicator Malta Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 14 16.6 12.7 None in 2017/18
Time (days) 170 137.4 153.1 None in 2017/18
Cost (% of warehouse value) 2.0 4.7 1.5 None in 2017/18
Building quality control index (0-15) 13.0 12.1 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Malta and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
75.29: Greece (Rank: 39)
74.75: Malta (Rank: 45)
70.60: Spain (Rank: 78)
67.39: Italy (Rank: 104)
64.08: Cyprus (Rank: 126)
59.17: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Malta – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
2
160
Cost (% of warehouse value)
140
1.5
120
Time (days)
100
1
80
60
40 0.5
20
0 0
1 2 3 4 *5 6 7 8 9 * 10 11 12 13 14
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 Malta
Figure – Dealing with Construction Permits in Malta and comparator economies – Measure of Quality
15
13.0 13.0
12.1
11.0 11.0 11.0
Index score
10
5
0
Malta Cyprus Greece Italy Spain Middle East & North Africa
Details – Dealing with Construction Permits in Malta – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain fire and safety report for the plans of the building 7 days EUR 450
Agency : Private consultant
An engineer's report dealing with fire safety and ventilation is required. A
mechanical and electrical engineer is engaged to prepare this report which may
be submitted to Planning Authority after the screening letter is issued.
Upon completion of construction, the engineer must submit a statement to
Planning Authority at the end of construction stating that the building has been
built according to the proper fire safety standards.
2 Apply for building permit and await estimation of fees 15 days EUR 50
Agency : Planning Authority
The architect to fill the online application, upload necessary drawings and
documentation (including the fires and safety ventilation report) and pay an initial
€50 fee (which is then deducted from the overall development planning fee). The
application is reviewed by the Authority and a bill for the remainder of the
development planning fee is sent electronically.
3 Obtain a Permit Application Report (DPAR), attend hearing in front of the 60 days EUR 19,695
Environmental Planning Commission (EPC) and receive building permit
Agency : Planning Authority
Once payment is effected the PA publishes a notice in the government gazette
and the Department of Information website, informs the relevant local council and
neighbours of the site, and affixes a notice on the site. This is done so that the
public is informed that an application has been received, and the public may
comment within 30 days from publication in the newspaper. Persons doing so will
be recognised as interested parties during the processing of the application.
At the same time the Authority will automatically consult with 11 government
agencies whose input may be relevant to the application in question and these
will send in their views within the above mentioned time period.
The Development Control Directorate will prepare a DPAR assessing the
application, and concludes with their recommendation as to whether the
application should be approved or not. If the recommendation is favourable, a
draft building permit with conditions is attached to the DPAR. The DPAR also
specifies the bank guarantees that may be required to obtain the permit, such as
for the protection of the surrounding road surface, archaeological or
environmental sensitive site (which is not the case since warehouse is to be
situated next to similar development), etc.
The DPAR notice gives the date for the hearing in front of the PCDP (Planning
Commission – Development Planning) which is held not later than 14 days from
the conclusion of the same DPAR. The application is reviewed in a public hearing
which is attended by the applicant and the Architect and Civil Engineer
responsible for the application. The permit issued is valid for 5 years.
4 Obtain approval from Building Regulation Office prior to starting 7 days no charge
construction
Agency : Building Regulation Office (BRO)
At least 2 months before BuildCo can start construction work, it must submit the
following documents to the Building Regulation Office and await approval:
- Condition report of adjoining properties
- Construction method statement
- Bank guarantee of 3,000 EUR per floor
- Insurance of 500,000 EUR
Page 12Doing Business 2019 Malta
5 Submit commencement of works notice and request for official alignment 1 day no charge
Agency : Planning Authority
The building permit issued includes a site notice which is to be affixed on the site
while works are ongoing, and a commencement notice which is to be submitted
to Planning Authority not less than 5 days before commencement of works. The
commencement notice requires details of the contractor and site manager
(including 24-hour contact details) who will be engaged on the site. When
submitting the commencement notice, the Architect and Civil Engineer can
indicate whether Planning Authority is required to provide official alignment on
site or not. If yes, Planning Authority will provide this within 10 days.
6 Request and receive initial inspection by Planning Authority for road 10 days no charge
alignments and levels
Agency : Planning Authority
Once the building permit is issued Planning Authority visits the site to provide the
official road alignments and levels.
7 Hire an agency specialized in safety 1 day EUR 1,500
Agency : Private consultant
A specialized agency in health and safety is generally hired to be in charge of
safety issues to ensure that everything is done according to regulations on the
construction site. The reason for this is that the legal responsibility lies with the
owner and the contractor in case of an accident. The state will initiate a lawsuit
against both if there is some form of accident or complaint. Hiring a specialized
agency decreases the risk of accidents or non-observance of legislation on site.
8 Request and receive inspection from OHSA during construction works 1 day no charge
Agency : Occupational Health and Safety Authority (OHSA)
The applicant / developer advises the OHSA with basic information regarding the
construction works (i.e. presence of equipment such as cranes / scaffolding on
site, as well as any specific additional details such as the requirement to close a
road during works, etc). OHSA carries out random inspections during the works.
9 Request and receive inspection by the local council to release bank 1 day no charge
guarantee on roads
Agency : Local Council
The local council inspects that the roads are not damaged. It is done the same
day.
Receive final inspection for road alignments and levels from MEPA 1 day no charge
10 Agency : Planning Authority
Once construction is completed, Planning Authority must visit the site to ensure
that the building was built according to the approved road alignment and levels.
This is a separate inspection from the final inspection to receive a compliance
certificate and is conducted by a different department within Planning Authority.
11 Apply for a compliance certificate from Planning Authority 1 day EUR 60
Agency : Planning Authority
The application for compliance takes the form of a declaration by the Architect
and Civil Engineer that the building has been constructed in accordance with the
building permit, or outlines any deviations therefrom. MEPA may then inspect the
site (on a random basis) to verify or issue the compliance certificate on the basis
of the architect's declaration.
12 Request and receive inspection by Planning Authority for the compliance 14 days no charge
certificate
Agency : Planning Authority
An inspector from Planning Authority visits the construction to check that the
construction has been completed in accordance with the approved plans.
13 Obtain compliance certificate 7 days no charge
Agency : Planning Authority
Once the client has received the compliance certificate, the bank guarantees are
released. The compliance certificate is necessary to apply for electricity, water
and sewage (but not telephone).
14 Request and obtain water and sewage connection 45 days EUR 842
Agency : Water Services Corporation
The owner of the building must provide the following documents to make a
request for water and sewage connection:
• The compliance certificate issued by Planning Authority
• A recent site plan showing the extents of the property
• Color photos showing the property facades and adjacent properties
• Copy of identity card
• Company Board resolution authorizing the application
• Proof of ownership
• Completed application for a public sewer discharge permit
Takes place simultaneously with previous procedure. Page 13Doing Business 2019 Malta
Details – Dealing with Construction Permits in Malta – Measure of Quality
Answer Score
Building quality control index (0-15) 13.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0
(0-2) house engineer.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 2.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 1.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance ;
Owner or
investor;
Insurance is
commonly taken
in practice.
Professional certifications index (0-4) 4.0
Page 14Doing Business 2019 Malta
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Passing a
certification
exam.
Page 15Doing Business 2019 Malta
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 16Doing Business 2019 Malta
Getting Electricity - Malta
Standardized Connection
Price of electricity (US cents per kWh) 17.0
Name of utility Enemalta PLC
City Covered Valletta
Indicator Malta Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 4 4.7 4.5 3 (25 Economies)
Time (days) 105 72.4 77.2 18 (3 Economies)
Cost (% of income per capita) 213.8 479.9 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 5 4.2 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Malta and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
85.28: Italy (Rank: 37)
83.00: Spain (Rank: 48)
78.35: Cyprus (Rank: 70)
76.34: Malta (Rank: 77)
75.97: Greece (Rank: 79)
69.45: Regional Average (Middle East & North Africa)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 17Doing Business 2019 Malta
Figure – Getting Electricity in Malta – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
120
100
Cost (% of income per capita)
100
80
80
Time (days)
60
60
40
40
20
20
0 0
1 2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Malta and comparator economies – Measure of Quality
8 8
8
7 7
7
6
Index score
5
5
4.2
4
3
2
1
0
Malta Cyprus Greece Italy Spain Middle East & North Africa
Page 18Doing Business 2019 Malta
Details – Getting Electricity in Malta – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Client submits completed application for a new connection to the 3 calendar days EUR 900
Automated Revenue Management Services
Agency : Automated Revenue Management Services
Client submits completed to the Automated Revenue Management Services
Portal (ARMS) online: https://www.smartutilities.com.mt
ARMS processes the application and forwards it to the utility - Enemalta PLC
through a computerized system to notify the utility of a new connection request.
The application needs to be accompanied by the following documentation:
1- Valid electrician’s License
2- Compliance certificate
3- Recent original Site Plan signed by architect
4- Photo of Facade: colored photo, showing premises facade and
adjacent premises (from both sides)
5- Photo copy of Identity Card or Passport.
6- Company resolution: Authorizing the applicant to apply on
behalf of the company
7- Notary declaration or contract of sale
2 Enemalta meets client to discuss requirements and issue quote for external 16 calendar days EUR 23,300
works
Agency : Enemalta PLC
The utility's engineer will meet with the client requesting a new connection. The
engineer discusses in detail the requirements for the connection and the how it
can best be completed. Once the client and the utility agrees, Enemalta PLC will
forward the quote for works to the client.
3 Enemalta applies for excavation permit and completes external works 75 calendar days EUR 0
Agency : Enemalta PLC
The utility is responsible for obtaining the excavation permit, required for crossing
a road on public domain. The external works are completed by the utility
connecting the new premises to the electric grid.
The client also has the option to complete the external works through a private
contractor following public procurement regulations.
4 Enemalta installs meter and finalizes installation 11 calendar days EUR 23,300
Agency : Enemalta PLC
Enemalta PLC's personnel installs the connection's meter, finalizes the
connection and energizes the warehouse.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 Malta
Details – Getting Electricity in Malta – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 5
Total duration and frequency of outages per customer a year (0-3) 1
System average interruption duration index (SAIDI) 7.4
System average interruption frequency index (SAIFI) 3.4
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 0.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.rews.org
.mt/#/en/fa/31
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 Malta
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2019 Malta
Registering Property - Malta
Indicator Malta Middle East & OECD high Best Regulatory
North Africa income Performance
Procedures (number) 7 5.6 4.7 1 (4 Economies)
Time (days) 15 29.7 20.1 1 (New Zealand)
Cost (% of property value) 13.4 5.7 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 12.5 14.2 23.0 None in 2017/18
Figure – Registering Property in Malta and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
81.72: Italy (Rank: 23)
71.74: Spain (Rank: 58)
63.46: Cyprus (Rank: 94)
62.11: Regional Average (Middle East & North Africa)
48.87: Malta (Rank: 151)
47.59: Greece (Rank: 153)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Malta – Procedure, Time and Cost
Time (days) Cost (% of property value)
14
14
12
Cost (% of property value)
12
10
10
Time (days)
8
8
6
6
4 4
2 2
0 0
1 2 *3 4 5 *6 *7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 Malta
Figure – Registering Property in Malta and comparator economies – Measure of Quality
30
26.5
25 23.0 22.5
Index score
20
15 14.2
12.5
10
4.5
5
0
Malta Cyprus Greece Italy Spain Middle East & North Africa
Details – Registering Property in Malta – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Notary registers the promise of sales with Inland Revenue Department 1 day EUR 11,109.5; (Pre-
Agency : Notary paid stamp duty paid
The promise of sale has to be registered in the Inland Revenue Department by a by the buyer: 1% of
notary
property value (20%
from the total amount
of the Stamp duty
(5%)))
2 Notary orders a search of title at Land Registry 10 days EUR 5.15; (
Agency : Land Registry )
It is in this transitory time between signing of promise of sale and the final
contract that the Notary is engaged with all necessary verifications and
preparations that will in turn enable the final contract to be made. The Notary
orders searches to ascertain that the Seller has good title and can proceed with
the sale without being impeded by legal niceties. The Notary conducts a search
at Land Registry by submitting an application (Form E) with a Land Registry plan
of the property being transferred to verify if the property is in a registration area
or not (since not all properties are in a registration area). If the property is in a
registration area, the land registry informs the Notary whether the property is
registered or not. If registered, the Land Registry notifies the Notary and issues a
Certificate of Title with details on whom the property is registered and other
details ancillary thereto (such as for e.g. contract details, if property is freehold or
not etc..) The Land Registry will give an official search result within 8 working
days from the date the request was submitted.
3 Notary orders a search on people and companies from Public Registry 3 days EUR 31.7; (EUR
Agency : Identity Malta - this Government Agency incorporates the Land and 15.85 (regular) or
Public Registries EUR 31.7 (fast track))
The Notary orders searches of transfers and liabilities on persons and companies
and publis wills from Public Registry to acquire information as to how the seller
acquired the property and to see if the seller has any liabilities that can affect the
property being sold.
4 Parties sign a final deed of sale at Notary 1 day EUR 4,077.37;
Agency : Notary (Notary fee is
To sign the final deed of sale the parties must provide the following: • Identity regulated by 356 of
card, passport, or any other official document for personal identification for both
2012 – Notarial
parties • In the case of a company, a copy of the Memorandum and Articles of
Profession and
association or resolution of the board of directors authorising such person to
Notarial Archives Act
represent the company • Copy of last receipts of payment due in view of ground
rent, electricity/water bills etc. • Any other document (such as plans, permits, (Schedule)
cancellation of hypothecs, etc.) asked for by the Notary • If for some reason the (Substitution)
parties appearing on the promise of sale cannot all be present for the final Regulations, 2012
contract, a power of attorney is required • All keys of the property being sold • Government Gazette
Buyer brings cheque book in order to pay the balance on the final consideration, of Malta No. 18,979 –
the duty on documents, as well as the dues for the act and notarial fees 19.10.2012
Notary fee for transfer
of property:
1% of property value
up to EUR10,000;
0.5% from
EUR10,001 to
EUR500,000;
0.25% from
EUR500,001
onwards)
Page 23Doing Business 2019 Malta
5 Notary pays the taxes collected on the transaction 1 day EUR 133,314;
Agency : Inland Revenue Department (Balance of stamp
After the final contract has been duly signed, the Notary has 15 days within which duty of 4% of
to pay the tax collected on such contract.
purchase price and
the final withholding
With effect from 1st January 2015, a taxpayer may no longer opt to be taxed at
tax of 8%.)
35% on the capital gain. A final withholding tax of 8% (previously 12%) of the
property’s value will apply on all transfers of immovable property subject to two
exceptions and a transitional measure as follows:
1) A final withholding tax of 10% of the property’s value will be applicable on
transfers of property which was acquired prior to 1st January 2004;
2) A final withholding tax of 4% of the property’s value will be applicable on
transfers of property which is transferred not later than five years from the date of
acquisition where the transferor is an individual who does not habitually trade in
property;
• As a transition measure, the current system will continue to apply to any
transfers of property which occur following the entry into force of this new system
where the Commissioner for Revenue was notified of the prospective transfer by
17th November 2014 by way of registration of the promise of sale or notification
of the transfer.
6 Notary registers the final deed of sale with Land Registry 1 day EUR 606.75; (Fee
Agency : Land Registry schedule according to
After the final contract has been duly signed, the Notary has 15 days within which Subsidiary Legislation
to enroll the deed in the Malta Public Registry or the Gozo Public Registry, or in
296.01, specifically
the Land Registry, where applicable.
under the Second
Schedule:
up to EUR 11,646.87
...................................
......................... EUR
15.4
over EUR 11,646.87
to EUR 23,293.73
...................................
.... EUR 20.50
over EUR 23,293.73
to EUR 46,587.47
...................................
... EUR 30.75
over EUR 46,587.47
to EUR 69,881.20
...................................
... EUR 41.00
over EUR 69,881.20
to EUR 93,174.94
...................................
... EUR 51.25
for every additional
EUR 23,293.73 or
part thereof
.................... EUR
10.25.)
7 Notary registers the final deed of sale with Public Registry 1 day EUR 3.85
Agency : Public Registry
After the final contract has been duly signed, the Notary has 15 days within which
to enroll the deed in the Malta Public Registry or the Gozo Public Registry, where
applicable.
Takes place simultaneously with previous procedure.
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