Malta has been attracting attention for centuries simply because its geopolitical location makes it one of great importance for strategic matters. While in the past conquerors and empires, all aspired to dominate the island because its location in the Mediterranean Sea could not be overlooked, today Malta has become a strong contender to all those who are seeking to set up business abroad and, in a location, where they and their families can enjoy a good quality of life.
Many European entrepreneurs call Malta and Gozo their home base. Some choose to set up their operations in Malta, while others maintain contact with their global or business abroad remotely, managing everyday business while working from 'home'. In the age of knowledge workers, Gozo is also home to many self-employed workers who work on foreign contracts or handle their foreign clients. Their main reason for taking this approach is the quality-of-life balance that Gozo offers. There are no long commutes to get to and from work; everything is a stone's throw away, and relaxing activities like the countryside or a coastal jog can be an everyday luxury that is simply impossible in the big European cities. To this, one has to add a low criminal rate that gives peace of mind to those who have moved along with their families.
Strong economic progress
Since gaining independence in 1964, Malta has been transformed in the subsequent decades. It has an open market economy, and upon joining the EU in 2004 took the next steps towards securing the economic future of the country. Malta’s strong economic position ensured the adoption of the Euro in 2008 allowed the nation to be more competitive and to provide a safeguard against currency fluctuations.
Even the economic crisis did not impact Malta so much as many countries and Malta was one of the first to emerge from recession. Malta is pro-business and shows great flexibility in reacting to what is required internationally for the global market.
Top Positioning
Malta has a strategic location at the heart of the Mediterranean. It boasts very close links to mainland Europe, North Africa and the Middle East. It is regarded as one of the best choices for investment in high end manufacturing and the IT sectors. It has first-rate port and airport infrastructure to make it a perfect centre for logistics or travel. Plus, of course, EU membership provides superb access to the whole Euro-Mediterranean region and beyond.
Labour force
Malta boasts a highly educated workforce, very hardworking and dedicated. All levels of workers are to be found, from management, technical, the professions having a top rate staff so much easier. A utilitarian link between industry and education ensures that it is straightforward to hire the right staff and is one of the factors that makes Malta so competitive.
Language
English is one of the two official languages in Malta, the other being Maltese. It makes Malta easy to negotiate for businesspeople without having to have interpreters at all times and possible confusion or poor communication. In practical terms, the closeness of Italy means most also speak Italian. Coupled with a sprinkling of other European languages this means that Malta is perfect for business and investment.
Low taxes on corporations
While the full rate for corporate taxation in Malta is 35%, various refunds bring this down to an average of 5%.
Malta as an International Financial Centre
During the international economic crisis Malta emerged relatively unscathed because it took a common sense and conservative approach to doing business. This ensured that Malta’s financial reputation remained strong and the sector developed its standing internationally and is expected to continue its progression in the coming years.
First-rate ICT Set-up
Malta has become a world leader in this sector with fast fibre optic broadband available everywhere and an environment that encourages such businesses. This has contributed to the growth of financial services and information communication technology (ICT) and many companies now embrace Malta as the go-to place for excellence in this area.
Lower costs for wages and rents
Rents and wages remain highly competitive with most of the established EU companies and enable significant savings to be made. With lower costs than most jurisdictions, operations can be made extremely efficient when coupled with the hardworking and highly educated workforce.
Quality of life
Of course, even business is not all about money and here is where Malta scores heavily. You can combine an attractive lifestyle with knowing your business in is the best place. Malta has top class hospitals, schools, and universities combined with a sunny environment all year round. There are ample bars and restaurants and going out is enjoyable as the crime rate is very low. Beautiful fishing villages abound and you are never far from relaxing on the beach. Historical and cultural attractions are everywhere and that feeling of being in the Mediterranean yet also some where unique is truly only possible in Malta.
Why is Malta attractive to foreign investors?
The Maltese authorities put great effort into attracting foreign investment and have enacted various legislation to ensure that it continues to be a high priority for companies to establish here.
The Business Promotion Act of 2001 was designed specifically to encourage companies in the areas of manufacture, repairs and maintenance that have great development and employment prospects.
Regarding taxation, the BPA offers reduced tax rates of 5% in the first seven years, 10% for the following six years and 15% for another five years and tax credits that range between 50% and 65% provided the conditions of the Act are fulfilled.
There are other benefits for investors in Malta
Malta has many incentives for outside investors and among those are:
- Indefinite work licenses for shareholders owning more than 40% in a company
- Loans for businesses in the industrial area
- Malta Freeport which is a customs-free zone that offers companies reduced tax rates and investment credits,
- The Individual Investor Program and the Global Residence Program designed for non-EU citizens
- Malta Enterprise is one of the best agencies in the country at helping investors in choosing the right type of company and the correct steps to take.
Also, the government offers a very welcoming environment by permitting equal treatment to both foreign and Maltese companies. Another crucial feature for drawing foreign investment in Malta is the taxation system that provides generous exemptions, low tax rates and double taxation treaties with many countries.
Business legislation has also enabled special regimes for banks, investment services companies, offshore companies, and shipping companies. The Maltese government has also enabled legislation that allows for the creation of trusts.
If you’re considering relocating to Malta or Gozo and setting up a business here, we can help in many ways. Contact us today, and we will help you make the transition smoothly.