Malta’s economy has boomed in the past decade. Dramatically transforming the quite holiday island into a flourishing Mediterranean business hub. Now the country offers exceptionally welcoming business environment to foreign investors. It has become home to both, successful multinational corporations, such as HSBC, Microsoft and PWC, as well as SMEs and start-ups.
So, what makes Malta an attractive business destination?
Once a primarily agricultural country, Malta has diversified its economy significantly. The industries in which the government has invested heavily include aviation, financial services, gaming, ITC, pharmaceuticals, shipping, technology and tourism. However, variety is not the only advantage of Maltese economy. The island boasts one of the most stable economies in Europe, which has experienced positive growth since 2004. Remaining unshaken even during 2008 credit crunch.
The island of Malta is located on the crossroads of three continents. Providing easy sea access to Europe, Middle East, Africa and even Asia. Despite the small size, the country accepts cargo and passenger ships from all over the world. For instance, Malta Freeport is the third largest transhipment and logistics centre in the Mediterranean region, redistributing not only goods and containers, but oil and gas products aimed for North America and most of the EU.
Favourable tax system
Another good reason to expand your company into Malta is taxation benefits. Although Malta’s corporate tax is rather high (35%), local tax regime provides a number of reductions and exemptions. Consequently, foreign businesses enjoy net tax rate of approximately 10% or 5%, depending on the source of the income.
Moreover, the island state has entered into over 70 double tax treaties which provide relief from double taxation.
Both, the EU and local government has invested heavily into attracting foreign investment. They have developed several programs which support companies of every size at every stage of their development. Micro Invest, Strengthening Market Entry and Internalisation, Venture Capital Malta are just a few of them.
Access to skilled workforce
Malta may not have large population, but it definitely offers access to one of the most varied talent pools in Europe. It inhabits high-skilled multilingual professionals from all over the world. On the other hand, even though you struggle to source your next talent locally, many experts would gladly agree to re-locate here. It is one of the safest countries in the world, offering pleasant all-year-round climate. But most importantly, it is relatively easy to get work permits.
Surprising as it may sound at first, this tiny Mediterranean country has many ways in which you could benefit from starting your business here. Nevertheless, if you decide to establish your next company here, you would need help to navigate through local legislation. It may seem straightforward at first, yet there are many nuances to bear in mind.
Thinking of starting business in Europe? Get in touch with our compliance experts to get assistance.