With a Gross Domestic Product growth rate of 6.6% in 2018, Malta remains one the best performing economies in the European Union.
When a prospective business investor takes into account the country’s advantageous tax regime, skilled workforce, modern infrastructure and connectivity to European and other markets, the appeal becomes greater.
As an EU member, Malta provides business operators with an EU-compliant, yet flexible domicile. In addition, Malta’s allure also lies in the fact that it has a vibrant Mediterranean culture and excellent standard of living for investors and potential employees relocating from overseas.
Language and Sectors - More Business Opportunities
The vast majority of Maltese are also naturally bilingual, speaking English and Maltese while a good third of the population also has a working knowledge of Italian.
Malta offers opportunities in various sectors of business, including Financial Services, Information and Communication Technology, Igaming, training and education in the service based economy.
Malta also offers business opportunities in the manufacturing sectors of generic pharmaceuticals, and electronic components.
The country is also a hub of activity for oil and gas exploration, Maritime and Shipping, Aviation and a rapidly growing filming industry.
Stability and Growth - more opportunities - better business
Malta is a good place to do business for a variety of reasons which include: Economic and political stability, social stability, a highly skilled and competitively priced workforce, strategic location, excellent telecommunications and infrastructure, corporate tax benefits and excellent transhipment and distribution facilities.
Malta’s Corporate Tax Rate is 35 percent on global income of all businesses incorporated in the country. In addition, shareholders may claim a refund of six sevenths of the tax paid by the company to Malta. This makes Malta’s tax regime a very attractive proposition to any prospective investors.
There are also industry specific tax incentives for companies to set up shop in the sectors of electronics, plastics, pharma and electrical equipment. These incentives include tax rebates starting at 5% for the first 7 years, increasing up to a rate of 15%.
Businesses setting up shop in Malta can rely on the support of Malta Enterprise, which is the national business development agency.
Malta also offers the option or the setting up of a holding company. Holding company owners are entitled to tax refunds.
Maltese holding companies are allowed to operate both within and outside the European Union.
If the holding company satisfies the criteria according to law as a participating holding, there is generally no tax withheld on the payment of any dividends from a Maltese holding company, for a non-resident ultimate beneficial owner.
There are two ways of setting up holding companies in Malta, depending if the company will have a private or public status and the process is simple and straightforward.
The first way is to register a private limited liability company with a minimum share capital of EUR 1,200, which may be 20% paid up.
The second way to do so is by registering a public limited company with a minimum shareholding of EUR46,000.