In an ideal world, every individual would be free to travel and do business anywhere in the world. In reality, every sovereign state has the right to establish its own conditions in terms of entry, residence and work permits.

Although the motivations may vary from country to country, one has to ask whether such requirements could be of detriment to an economy when implemented in such a way as to provide a disincentive for people to enter, reside or work within a country.

Specific requirements for a person to take up employment in another country differ widely from one country to another. EU-citizens and EEA country citizens do not require a work permit within the EU, yet Croatians still face restrictions in some countries in the EU.

Free movement of workers also applies to Malta, being an EU Member State. On the other hand, employment licences are required for non-EU foreigners to work legally in Malta, which are applied for by the employer.

Malta offers the Single-Work Permit for third-country nationals to reside and take up employment. This permit, which can be requested when the applicant is still abroad or upon arrival in Malta, continues to apply only while the applicant remains in employment here.

The application for this permit has to be accompanied by a number of supporting documents which the applicant must provide for their application to be accepted by the ETC. This process may pose difficulties since it also requires proof of job candidate searches by the prospective employer. Regulations stipulate that this should include the placement of two adverts designed to attract Maltese/EEA/Swiss candidates to fill this post before an application by a non-EU worker can be considered.

Nevertheless, a step forward in this regard has been the introduction of the Malta Vacancy Exemption List, by which employers of professionals falling within this list would be exempted from the need to advertise the post, before the submission of the application. To date, this list is limited to health, technical and building, IT, finance and education professionals. Moreover, the application would still need to be vetted not only by Identity Malta but also by the Police Immigration Office and the ETC.

Malta offers the Single-Work Permit for third-country nationals to reside and take up employment

The above requirements should also be viewed in the light of the need of a visa by the applicant. EU nationals and nationals of countries, including Croatia, Switzerland, Norway and the US, do not require a visa for any stay of up to three months in Malta. On the other hand, individuals originating from other countries that require a visa prior to travelling to Malta may need to add up to 15 days to the waiting time for documents to be issued. Additionally, citizens of countries not forming part of Schengen would require a Schengen visa to enter one of the countries within the area.

A comparative study by ECOVIS International on visas and permits found that, in principle, foreign workers require a work visa or a related permit to work abroad. As to the EU, workers from third countries generally require a work permit to take up employment within the Union, which they have to apply for prior to entry. This rule is subject to a number of exceptions.

For example, in the case of Germany, citizens of Australia, Israel, Japan, Canada, New Zealand, South Korea and the US, who would like to work in the country may enter initially without a visa. Within three months of arrival, however, and before commencing employment, these must apply for what is termed as a ‘residence permit for purposes of employment’.

The study highlighted the global, non-harmonious situation relating to the need for a work permit, together with the diverse conditions that must be fulfilled for a work permit to be issued. In this respect, requirements mainly differ with respect to qualifications, but also vary by profession, position or minimum income. The study also analysed the different kinds of work permits in existence. For example, in France, an applicant may apply for a visa or for a different type of authorisation, depending on the type of work the prospective employee envisages to carry out.

In Malta, foreign nationals, particularly third-country candidates, face disproportionate obstacles to take up employment here. Prospective employers need to go through time-consuming and stringent permit applications for their employees before having had the chance to assess job suitability through a probation period. The formulation of a system like the one in France, in terms of issuing permits and visas, especially in respect of third-country nationals, would be more beneficial to our economy. The fact that Malta is fortunate enough to boast an unemployment rate of 4.3 per cent means that we need to import labour, especially in sectors where a specialised workforce is required.

This issue has long been stressed by employers facing significant difficulties in finding the right people to fill certain specialised posts. On top of this, employers who wish to expand their business have to undergo a lengthy bureaucratic process.

The difficulties faced lead employers to question the feasibility of employing foreigners. Are the stringent requirements and bureaucratic procedures in granting visas and permits acting as a disincentive and a brake on efficiency and productivity? An improved system will lead to a win-win situation, especially where the business income is generated from outside Malta, which in turn is paid out as salaries to licensed foreign employees.

Ultimately, when one considers the increased prosperity that specific tweaks in the system can bring to a wide range of small businesses, the sound economic sense behind such potential developments becomes evident.The full article by ECOVIS International may be found at https://www.ecovis.com/en/visa-requirements.

Anthony Vella is managing director of ECOVIS Malta, a local firm forming part of the ECOVIS international network, specialising in tax, accounting, auditing and legal services.

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