In 1999, a CNN journalist described Malta as “Hollywood in the Mediterranean” alluding to Malta’s ideal combination of baroque architecture and modern freshness. This, evidently, makes Malta a popular filming location in the European and Mediterranean region. Chetcuti Cauchi’s media and entertainment law team offers legal advice to clients in both the local and international film industry, this to make the projects such clients have in mind more feasible.
Our Malta Entertainment Law Team
Our media and entertainment law team gives advice on copyright issues, attainment of permits and authorisations, sourcing of funding, complex tax advice, corporate structure planning, and representation of film development needs.
International Co-Productions
Since filmmaking is an expensive exercise, films outside the country of inception usually take the form of international co-productions. An international co-production would qualify as a national production in each of the partner nations, and the production team would have access to benefits that are available to the local film and television industry. Such benefits include governmental financial assistance and tax concessions. These productions open new markets for films and television programmes, as well as increase the output of high quality productions through the sharing of equity investment.
Legal Basis
- Bilateral Co-Production Treaties
Apart from ratifying the European Convention on Cinematographic Co-Production, Malta also has in place bilateral co-production treaties with Canada and 28 European countries: Austria, Cyprus, Denmark, Finland, Germany, Italy, the UK, Ireland, Azerbaijan, the Czech Republic, Denmark, Estonia, France, Latvia, Lithuania, Luxembourg, Greece, Hungary, Iceland, Georgia, Poland, Portugal, Belgium, Croatia, Slovenia, the Netherlands, Romania, Russia, Slovakia, Spain, Sweden, Switzerland, Armenia, Turkey and the Holy See.
- Malta Tax Structures and Solutions for Entertainers and International Sports Professionals
In Maltese Entertainment Law, there is no definition which amounts to a description of am entertainment or sports professional. However, the Organisation for Economic Co-operation and Development (OECD) Model Convention is helpful in this regard. Article 17 of the OECD Model provides that the income derived from the personal activities of a resident of a contracting state as an entertainer in the other state, may be taxed in that other state.
In addition, something more specific to the Maltese legal scenario is that professional sportsmen and entertainers who are not resident in Malta may benefit from advantageous tax opportunities since any royalties derived by any person not resident in Malta are exempted from tax. Income of entertainers or sports professionals may be received in Malta or routed through Malta in the form of royalties.
- Financial incentives
There has been a noticeable climb in the filming industry in Malta during the past 10 years since the tax rebate has been introduced. This was intended to attract foreign productions to Malta and as we can see, it has reached its aim. However, currently, the government intends to revise this financial package to give producers a bigger incentive when hiring more Maltese behind and in front of the camera.
This new film policy is also expected to regulate employment in the film industry by introducing features like film crews working on payroll instead as freelancers. This would be very efficient for productions filming for a considerable amount of time and is the next logical step to make Malta a more professional filming destination. It is evidently important to incentivise such productions since the film industry has become an integral and ever-growing part of the Maltese economy.
- The Malta Film Commission and the Malta Film Fund
This Commission is a government body which serves to promote, develop, and support the audio-visual industry. It is the medium through which the financial incentives are put into practice. Both the Malta Film Commission and the Maltese government are placing an emphasis on educating the workforce, ensuring that it is skilled and specialised.
Furthermore, the Malta Film Fund encourages both emerging and experienced film-makers to develop their potential and support original ideas for new works or the completion of film projects.
