Banks in Malta (What You Need to Know)

​​​Banks in Malta tend to attract foreigners and business owners seeking quasi-offshore accounts. Unfortunately, banks here are difficult to access, frustrating to deal with, and are only suitable for certain client groups. That said, if you’re looking for banks that issue IBANS and euro IBAN accounts, you will be happy to know banks in Malta do.

But, depending on your client profile and banking needs, there might be better banking alternatives elsewhere.

KEY TAKEAWAYS

• Non-resident individuals and foreign business owners can bank in Malta
• Opening accounts in Malta does not come easy for residents or non-resident individuals
• Depending on your client profile there may be more suitable banking options to consider
• Account opening conditions will vary depending if you are looking for personal or corporate bank accounts

Malta banking may not be for everyone. In fact, better alternatives are usually available elsewhere. That said, it is possible to bank in Malta if you know which banks and bankers cater to your client profile and you’re able to meet the bank-specific conditions.

In this article, we’ll share the information you need to open an account in Malta. Of course, this will include who should consider banking here, the challenges you’ll most likely face, and which other alternatives you might want to consider.

But, before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Non-Resident Banking Starter Guide. It’s designed to help non-residents open an international bank account in top banking hubs around the world.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

1. Banks in Malta 101
2. Who Should Open a Bank Account Here?
3. Challenges of Opening a Bank Account in Malta
4. Alternative Banking Jurisdictions
5. Opening a Bank Account in Malta
6. Ready to Open an Offshore Bank Account?

Banks in Malta 101

Whether you’re a resident of Malta or a non-resident, chances are, you’re going to have a tough time opening accounts in Malta. The main reason for this is that Malta is currently under significant regulatory pressure.

This is due to Malta being added to the FATF greylist in mid-2021. As a result, Maltese banks are treading very carefully.

Not surprisingly, this has forced Maltese banks to “de-risk” their operations due to compliance concerns. In other words, potential customers that fall outside the bank’s acceptable risk parameters are being denied. And, existing clients that don’t pass compliance reviews will likely have their accounts terminated.

There are, of course, other suitable European banking jurisdictions, like opening a bank account in Spain as a foreigner, that might be worth considering.

However, depending on your client profile, opening accounts in Malta is still possible. So, let’s take a deeper look into the available options for both businesses and individuals along with the unique challenges (and opportunities) each client type may face.

Business or Corporate Banking in Malta

As mentioned, Malta is currently on the FATF greylist. One of the catalysts for Malta’s inclusion on this list was the apparent facilitation of money laundering and criminal activity. Not surprisingly, Malta is working hard to correct its mistakes. And, from a corporate banking perspective, that means banks are much more strict about who can bank here. This is especially true when it comes to foreign entities.

So, if your business is incorporated in another offshore jurisdiction or even a more reputable foreign country, opening in Malta is going to be difficult. In other words, companies from outside of Malta should consider opening elsewhere.

But, it’s not just foreign companies that have a hard time opening accounts in Malta. Non-resident Maltese companies also have difficulty opening accounts here. Again, this is largely due to the de-risking by Maltese banks and their desire to avoid higher-risk business clients, which non-resident businesses are considered.

If you’re one of the lucky ones, you’ll be able to get a business account in Malta. But again, the chances of that happening are very slim. Instead, you’ll most likely be faced with challenges, be turned away, and forced to consider alternatives. We’ll discuss some of these below. But, for now, let’s jump into opening personal accounts in Malta..

Personal Banking in Malta

Opening personal accounts here is easier than opening business bank accounts. That said, it still has its challenges. And, you also need to consider why you would want to bank in Malta in the first place.

Like elsewhere, Matla has a strict account opening process, bank-specific conditions, and challenges you’ll need to overcome. And, even though opening an account is possible, banking here may not be the best option for you.

There are of course other concerns to think about, including account freezes and account closures. Fortunately, you can use this link to uncover information on account closures and how long a bank can legally freeze your account in the UK.

So, since accounts here can be difficult to access, you may want to consider some of the alternatives instead. But, before looking at these alternatives, we’ll take a closer look at who should consider opening accounts with Malta banks in the following section.

Who Should Open a Bank Account Here?

Malta has seen dramatic changes in its banking industry over the years. Making it tough for almost anyone to bank here.

That said, those who typically consider opening accounts in Malta include the following groups:

• Residents of Malta
• Foreigners that require a Malta bank account
• Tourists frequently visiting Malta
• Individuals that own a business in Malta
• Foreign companies that do business in Malta
• Foreigners looking to invest in Malta

Pretty self-explanatory, right? Kind of.

Even though each of the groups listed above can consider opening in Malta, it doesn’t mean they should. In fact, opening accounts in most countries can still facilitate the goals listed above. So, a question you may still be asking yourself, is why are people opening accounts here.

Well, there are a few reasons why…

Reasons Why People Want to Bank Here:

1. Looking to purchase Maltese real estate
2. Required to make local business transactions
3. Looking to establish Maltese residency
4. Living or working in Malta (required to pay local expenses)

So, if you plan on moving to Malta, doing business in Malta, or purchasing real estate in Malta, then an account here can make sense. For everyone else, you may want to look elsewhere. But, before considering alternatives, let’s look at the challenges you’ll face if you do decide to bank in Malta.

Challenges of Opening a Bank Account in Malta

Like opening bank accounts in most countries, opening accounts in Malta as a non-resident can be very challenging. In fact, for most applicants, these challenges will prove insurmountable. But, with some guidance, the right applicants can get bank accounts here successfully.

So, let’s take a look at the challenges you’ll most likely face when opening accounts here…

1. Banking limitations for non-resident individuals and foreign business owners
2. Minimum deposit amounts (vary from bank to bank)
3. Remote opening is not always possible
4. Personal visit to the branch may be required to keep an account active
5. Lack of customer support compared to elsewhere
6. Intense due diligence process (extensive paperwork)
7. Strict regulations & protocols (constantly changing)
8. High transfer fees than comparable banking hubs
9. Strict conditions in order to secure debit & visa cards
10. Clear ties to Malta required (difficult for foreign companies)
11.  Economic substance conditions (difficult for non-resident companies)

Again, these are just some of the top challenges you may face when opening accounts in Malta. Of course, depending on which bank you contact, these challenges can vary.

However, even if you’re lucky enough to pass the account opening process, you’ll probably still run into issues. For instance, don’t be surprised if the bank freezes your account without notice and requires an in-person visit to unlock your account.

Additionally, clients of Maltese banks often complain about transfer restrictions. For example, you may not be able to transfer money between countries in a timely manner and the fees associated with transfers can be very expensive.

Bottom line, if you don’t actually need a local account in Malta, you’ll probably be better off elsewhere. In fact, there are other alternatives to opening an account in Malta that may be better suited and more beneficial to your client profile.

Alternative Banking Jurisdictions

Before you start applying for accounts here, you should really understand whether or not Malta is the best place for you to bank. Not surprisingly, for most client profiles, there are better options available elsewhere.

In fact, many Maltese residents even choose to bank in other countries.

So, if you’re starting to rethink your decision to bank in Malta, you’re in luck! In this section, we’re going to review some of the better alternatives you may want to consider.

Of course, whether a jurisdiction is suitable for you or your business will depend on your specific client profile and banking needs. For now, let’s consider some of these alternatives so you can make a more informed decision about whether you want to bank in Malta.

Cyprus Business Banking

Like Malta, Cyprus is in the EU. However, banks in Cyprus still accept non-resident individuals and foreign companies, including offshore entities. So, if you’re looking to bank in the EU for a foreign, offshore, or non-resident entity, Cyprus may be worth considering.

We detail the entire account opening process in Cyprus, which banks you can consider, and how to get started opening accounts in our premium report “Banking in Cyprus: Transactional Business Banking in the EU”.

You can access this report immediately when you join GlobalBanks IQ.

Opening Expat Accounts With Banks in the Isle of Man

In terms of personal banking, Malta typically caters to residents. However, many people interested in opening bank accounts here are often looking for non-resident banking services. Unfortunately, this isn’t a good match. But, there are other options that specifically cater to non-resident individuals, such as the Isle of Man.

In fact, many banks in the Isle of Man offer specific bank accounts for foreigners, expats, and individuals looking for offshore banking services. We cover all of the available expat banking options in the Isle of Man in our premium report “Banking in the Isle of Man: Expat Banking Goes Mainstream”.

You can access this report immediately when you join GlobalBanks IQ.

Other Alternatives

If you’re looking to start an account for an offshore or non-resident business, our premium report “How to Open International Bank Accounts for Offshore Companies” will help you identify the best-suited option and navigate the account opening process.

This report includes account opening strategies, recommendations on specific banks, and actionable strategies for offshore and non-resident businesses. In other words, it shares which banks cater to your business profile. To access this report, you just need to join GlobalBanks IQ.

That said, if you feel like Malta is a good fit (or have suitable ties to the island), here’s how to get started opening an account with here right now…

Opening Bank Accounts in Malta

If you’ve decided to move forward with opening an account in Malta, it’s important to understand the account opening process and exactly how to get started.

While the requirements may vary from bank to bank, you’ll almost always need to provide certified documents and go through a lengthy due diligence process.

With that said, let’s take a look at the specific documents that may be required when opening a business or a personal account with banks in Malta.

Documentation Required for Personal Bank Accounts

• Two forms of government-issued identification
• Accepted proof of address (varies from bank to bank)
• Proof of income and source of wealth
• Proof of residency (varies from bank to bank)
• Any bank-specific application forms
• Reference letters (banking and personal)

Documentation Required for Corporate Bank Accounts

• Two forms of government-issued identification for all shareholders and managers
• Copy of incorporation documents
• Reference letters of all shareholders and managers
• Proof of address of all shareholders and managers
• Certificate of good standing
• Any bank-specific application forms
• Completed KYC questionnaire

Again, these documents can vary depending on the bank and banker you deal with. However, preparing as many of these documents as possible before applying can ensure an easier account opening experience. That said, it’s always best to confirm which documents are required before investing time or money in collecting them.

Of course, as we’ve already shared, perhaps the most important question you need to ask before applying for an account in Malta is: Are you sure Malta is the best place for you to bank?

Well, we’d be happy to help you answer that question…

Ready to Open an Offshore Bank Account?

If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.

GlobalBanks Insider is a dedicated account opening solution that involves direct support from our team and direct introductions to the banks of your choosing. It gives you instant access to the…

+ Direct support from a team of banking experts

+ Direct introductions to your desired banks

+ Answers to your most pressing questions and challenges

+ Expert insights on which banks to choose & why

+ Plus, FULL access to our entire suite of account opening tools and intelligence!

And “yes!” GlobalBanks Insider is designed to help foreign and non-resident individuals and companies open bank accounts.

Use this link to see how GlobalBanks Insider can help you successfully open accounts.