Latest updates

Legislative changes: ship sale contracts and charterparties
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • November 22 2017

While primarily introduced to amend and update the Aircraft Registration Act and other ancillary-related laws, Act LII/2016 also promulgated particular amendments which go beyond aviation law into the realm of shipping. These recent changes are making Maltese law an ideal legal regime to govern and regulate disputes which may arise under certain types of shipping contract – namely, ship sale and purchase agreements, promise of sale agreements and charterparties.

New guidelines on private yachts carriage capacity
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • April 12 2017

At the start of 2017 Transport Malta, the authority responsible for the administration of the Malta flag, introduced new guidelines that allow more than 12 persons on board privately registered yachts. The new guidelines stem both from a recognition that there is a gap in the superyacht market and the administration's continued effort to remain at the forefront as a leading yachting flag.

Court lifts physical bunker supplier's arrest of vessel
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • March 22 2017

Following the issuance of a provisional arrest warrant at the request of a physical bunker supplier, the Maltese court determined that it was not vested with jurisdiction in rem and accordingly lifted the arrest. This judgment sheds important light on the onus of proof with which an arresting creditor is burdened. The court held that it was insufficient merely to procure evidence of knowledge of the supply or proof of acceptance of the product from the supplier.

'Maritime Malta' – legal perspective
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • November 30 2016

The term 'Maritime Malta' perfectly describes Malta – a country which has always had close connections with the sea and maritime sector. In addition to its strategic position, Malta has a stable and reliable legal regime and laws which give investors and their financiers a high degree of confidence. These achievements are a direct result of careful planning, a strong workforce that is prepared to deliver value for money and a 'can do' attitude.

Unnecessary risks constitute breach of marine insurance policy
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • April 27 2016

The Maltese Civil Court recently held that underwriters need not make payments under an insurance policy when the loss or damages occurred due to a fault or negligence on the part of the assured and where the assured's behaviour constitutes a breach of policy. This judgment highlights the importance of ensuring that owners are familiar with the content of their insurance policies – in particular, with the responsibilities arising thereunder.

Animo compensandi purchase of a vessel sold by court-approved private sale
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • March 02 2016

In a recent court-approved private sale, the Maltese Civil Court unprecedentedly permitted a mortgagee to purchase a vessel animo compensandi, meaning that rather than paying the purchase price from its own pocket, the amount was offset against the existing debt owed to the mortgagee. This judgment is significant, as it offers mortgagees more flexible enforcement options.

Wrongful arrest of ships – part two
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • December 23 2015

While the arrest of vessels is an exceptionally effective and powerful tool which genuine creditors have every right to use, it is paramount that the rule of law is observed and the law's high standards are maintained. Otherwise, there is a risk of increased lawlessness. The Maltese courts have addressed arresting parties' failure to follow the law in several cases, taking immediate action to correct any misinformation.

Penalty proceedings following escape of arrested vessel
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • September 30 2015

A Maltese civil court recently considered whether the penalty proceedings under Article 865 of the Code of Organisation and Civil Procedure can be brought against a vessel in rem. The court found that such proceedings can be commenced only against the person or persons that removed the vessel from Maltese waters in violation of the court order, not against a vessel in rem.

Aviation finance and security interests in Malta: a new impetus
  • Aviation
  • Malta
  • July 08 2015

Over the last few years, the government has sought to promote the development of the aviation sector through the introduction of legal and administrative infrastructure modelled on the common law system and international conventions, including the adoption of the Cape Town Convention, the creation of a dynamic aircraft and mortgage register and the introduction of comprehensive laws on trust.

FATCA – implications for financial institutions
  • Banking
  • Malta
  • May 15 2015

In 2013 Malta and the United States entered into an intergovernmental agreement to implement rules and regulations under the Foreign Account Tax Compliance Act (FATCA). Under this agreement, Maltese and US financial institutions must comply with certain due diligence, reporting and withholding requirements under FATCA. Financial institutions that fail to comply with these obligations will not only face penalties, but may also be penalised for violating domestic laws.

Wrongful arrest of ships
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • May 06 2015

A recent case has highlighted a weakness in Maltese law in relation to the right to claim damages resulting from an illegal arrest. Despite finding that the arrest was illegal, the court stopped short of ordering reparations because it held that the defendants' failure to satisfy the criteria outlined in Article 742(D) Code of Organisation and Civil Procedure was not malicious, frivolous or vexatious and thus no damages could be sought.

Malta – logical choice for superyacht owners
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • April 15 2015

The third annual Opportunities in Superyachts Conference was recently held in Malta. Over the past eight years Malta has enjoyed success within the superyacht sector, steadily increasing the size of its registered fleet and the number of yachts which benefit from the solutions offered by the jurisdiction. As such, the conference largely focused on what Malta offers owners and operators of private and commercial yachts.

Court-approved private sales
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • March 18 2015

In 2006 the Organisation and Civil Procedure Code was radically overhauled in relation to the provisions governing Maltese enforcement mechanisms, among other things. The changes to enforcement mechanisms included the introduction of court-approved private sales, under which mortgagees can source private buyers at the highest possible agreed price and, on court approval, sell vessels free and unencumbered.

Bunkers excluded from judicial sale on basis of retention of title clause
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • February 11 2015

The Civil Court recently upheld a request to have bunkers supplied to the defendant vessel excluded from a court-approved private sale on the basis that retention of title clauses existed, which governed the supply of the bunkers. The decision demonstrates that the inclusion of retention of title clauses can help to mitigate any possible losses in relation to bunkers.

Fiscal advantages for aviation sector
  • Aviation
  • Malta
  • November 19 2014

The Aircraft Registration Act revamped the Maltese aviation regime, introducing tax incentives and other measures to increase competitiveness within the Maltese aviation sector. Among other things, it created interesting tax-planning opportunities, which can be availed of to ensure that income derived by non-residents from leasing aircraft or aircraft engines to Maltese-resident lessees is not subject to Maltese income tax.

Malta – a reputable flag of choice
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • August 13 2014

With its centuries-old maritime tradition and as an EU member state, Malta has become the largest European maritime flag and also the seventh largest flag worldwide. Thanks to the unstinting efforts of the government and the maritime industry, Malta has developed into a reputable flag of choice and quality, which offers a wide array of international maritime services and fiscal incentives.

A guide to Malta's corporate fiscal regime
  • Corporate Tax
  • Malta
  • August 01 2014

Malta is an attractive destination for business and investment, in part by virtue of its full imputation system, which prevents double taxation; a tax refund system that allows shareholders in receipt of dividends of a Maltese company to claim refunds for taxes; and a double-tier structure that allows taxpayers to defer foreign tax charges without incurring any further tax in Malta.

New regulations on consumer rights introduced
  • Company & Commercial
  • Malta
  • February 03 2014

Malta recently transposed into law the EU Directive on Consumer Rights by means of the new Consumer Rights Regulations. In line with the EU directive, the new regulations cover all contracts concluded between consumers and traders. Administrative fines of not less than €500 and not more than €47,000 may be imposed on anyone that fails to comply with the regulations.

Authorities launch guidelines on tax treatment of charters
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • August 21 2013

Following similar announcements recently made by France and Italy, the Maltese authorities published the Guidelines for the Value Added Tax Treatment of Short-Term Yacht Chartering. The guidelines address situations in which a short-term charter of a yacht with a crew (or on a bareboat charter basis) is entered into between the owner or operator and the charterer for a consideration.

Failure to file sea protest correctly can scupper your case
Fenech & Fenech Advocates
  • Shipping & Transport
  • Malta
  • July 10 2013

Following an incident at sea, the master of a ship can make a so-called 'sea protest' in which he or she can declare the facts of the incident as known to him or her. Under Maltese law, a sea protest tends to hold significant probative weight in subsequent settlement negotiations or litigation, since it is often taken as being a correct statement of facts. However, failure to submit a sea protest properly can prove detrimental.