Malta is currently one of the most remarkable and fast-growing countries in the European Union, offering high standards of living, innovative technology services, and great business opportunities to both its citizens and foreign entrepreneurs. Being the European Union’s member state, Malta also belongs to the Eurozone, Commonwealth, OECD, and Schengen Area, which helps it provide Malta-based businesses with instant access to the EU’s market of over 500 million people.
Appreciated for its favorable geographical position, business-centric attitude, modest costs of setting up a business, and flexible taxation, Malta has become a dream center for investors, entrepreneurs, and multinational companies from all over the world.
Malta’s regulatory framework is one of the main reasons why thousands of startups and investors choose setting up a business here. Being fully onshore, transparent, and more than flexible, the Maltese tax system is fully compliant with the European Union legislation and backed by more than 70 (!) Double Taxation agreements with the countries from all over the world.
Malta’s corporate income tax rate is 35%, however tax credits may be offered to shareholders which result in an effective tax rate of 5% corporate tax or even less in certain cases. This makes Malta one of the top tax-friendly countries in the world and the state with the lowest taxes in Europe.
Moreover, over the past 3–4 years, the Maltese government has introduced a number of tax incentive programs for both acquiring Maltese residency and setting up a company in Malta to make living and doing business in Malta as smooth as possible.
Since 2008, the Maltese economy has been growing steadily. Thanks to its economic predictability, security, and stability, Malta has become an exceptional success story among other global financial centres. Being a well-known tourist destination (the tourism industry contributes 25% to the state’s GDP), Malta has been actively developing its financial and business services sectors such as fintech, ICT, healthtech, etc., that currently contribute up to 75% to its GDP.
That said, Malta’s manufacturing sector still adds to its economy, with a contribution of 10% to the country’s GDP. Besides, Malta is a great home to the world’s maritime industry services.
As an island known for lacking natural resources, Malta has focused on developing effective human resources, positioning itself as a country with a highly productive, flexible, and innovative workforce that brings great impact to its economy.
Strategic Geographical Location
Despite its small size, Malta can boast of possessing a great geographical position. It is situated in the heart of the Mediterranean – just between Europe and Africa. This makes connecting the country and doing international business with other countries from Europe and Africa pretty comfortable. Malta is in a three hours’ flight from important European financial centers. Besides, its famous Freeport makes Malta the busiest and most important transshipment hub in the Mediterranean region.
Doing Business in Malta
Despite being the EU’s smallest member state, Malta is one of the world’s most innovative business hubs to discover and invest in. Thanks to the great support of its governmental bodies (like Malta Enterprise or Malta Financial Services Authority), a variety of startup support plans, and tax incentive programs for both acquiring residency and setting up your business in Malta, the country has created a competitive business environment and favorable development conditions for different companies, both big and small, to grow. No wonder, why millions of investors seeking diversified business undertakings find Malta the right place.
The process of setting up a business on the island is regulated, quite straightforward, and transparent, and the costs required for establishing one are relatively low. Besides, the country offers a variety of forms to establish your business in Malta, like a limited liability company (private or public), a limited partnership, or a general partnership.
Currently, the most actively developing industries that offer investment opportunities in Malta include financial services, ICT, electronics, iGaming, oil and gas, maritime, training and education, aviation, and even the film industry.