Malta, a small country with enormous potential. It is strategically situated in the middle of the Mediterranean and is of unrivalled importance as it offers a bridge between Europe and Africa, supporting investments in multiple sectors and verticals. IGaming has for many years been the focus for those looking to invest in Malta. Lately however, investors have started to broaden their range, from citizenship and residence programmes to starting your own company or investing in Maltese stocks and bonds. The opportunities are there for the taking.
Who can invest in Malta?
Anyone who wishes to invest in Malta is free to do so. Maltese regulations, requirements and obligations need to be adhered to regarding all kinds of investments, including a comprehensive due diligence process. Malta Invest can introduce you to corporate service providers and investment brokers, so you can make use of their expertise to make the right decision
As Malta is a fully-fledged EU Member State with a thriving economy, the possibilities are plentiful.
Buying stocks and bonds
The Malta Stock Exchange is the sole stock exchange in the country. If you are looking to make the most of local opportunities, investing in well-known and trusted Maltese companies, is one way of being in a Malta-related fund. Funds are a popular and easy way to get you going as they offer diversification across a number of different investments, while you do not shoulder the risk alone since you invest together with other individuals.
If you want to invest in Malta Stock Exchange, buying stock in some of its most prominent companies, you should go through an authorised stockbroker or fund manager. The Exchange includes big names such as HSBC Malta, FIMBank, GO, Mapfre Middlesea, and the Bank of Valletta.
Corporate or government bonds are also up for purchase in Malta. It’s advisable to always seek professional advice and guidance before investing in stocks or bonds.
Private investment funds
There are a variety of private investment funds available to those wishing to invest in Malta. The most notable are the Professional Investor Fund (PIF), the Crypto PIF, Alternative Investor Fund, Notified Alternative Investment Fund, and Undertakings for Collective Investment in Transferable Security. Benefits of an investment fund in Malta include adherence to EU regulations, increased investor safeguarding, and an approachable regulator.
Malta provides several pension plans for foreign citizens. This dynamic sector provides frameworks for both corporations and individuals who wish to base their funds in the country. Benefits include favourable taxation, full regulation by the Malta Financial Services Authority, a plan in an EU Member State, and provisions that facilitate fully customised structures.
Malta’s real estate sector is booming and has been on an upward path over the last decade. According to figures published in February 2022 by the National Statistics Office in Malta, 2021 was indeed a record year. With over 14,300 final deeds signed, this represented a 30 per cent increase when compared to 2020.Frank Salt are property leaders in Malta having the necessary local expertise . Looking for a property?
Buying a company
Due to Malta’s thriving business sector, there are multiple opportunities for mergers and acquisitions.
Private M&A transactions make up the lion’s share of M&A activity in Malta, in terms of both value and volume, particularly since there are fewer than 70 listed companies on the Malta Stock Exchange, with only 25 of them having equity listings.
Most private deals tend to take the form of equity acquisitions through a Malta-registered special purpose vehicle (SPV) which effectively acts as the holding company for that investment. Alternatively, an SPV is established for the purpose of acquiring some or all of the target’s assets.
Public M&A transactions, on the other hand, are regulated by Chapter 11 of the Malta Stock Exchange Listing Rules, which effectively transposes the provisions of the EU Takeover Directive (2004/25/EC), empowering the listing authority (a function performed by the Malta Financial Services Authority) to supervise the mechanics of any public offer made to the holders of securities in a publicly listed and traded company. These rules have a significant bearing on the structuring and mechanics of each individual transaction involving a Malta-listed public company.
Starting a company
Incorporating a company is a great way to invest in Malta. The country is very welcoming to new business because of its favourable business regime. Because of Malta’s situation in the middle of the Mediterranean, setting up a company gives convenient access to the European and North African markets. I-Gaming has been the backbone of Malta’s corporate sector but Fintech, crypto and blockchain, financial services, and even aviation and maritime are all burgeoning sectors. Furthermore, Malta offers a full imputation taxation system which can bring down corporate tax rates to as little as 5% instead of 35%. This makes Malta a cost-effective jurisdiction for businesses and enterprises of all kinds.
Malta Permanent Residence Programme
The Malta Permanent Residence Programme is open to non-EU nationals who invest in Malta and provides a way for third-country nationals and their families to live and work in Malta. Aimed at high-net-worth individuals and business owners, it makes conducting work in Europe more straightforward and more efficient. It also gives them the chance to live in an English-speaking country with excellent safety, transport links and high levels of stability and security.
Citizenship by Investment
It’s also possible to acquire Maltese citizenship if you invest in Malta and satisfy various requirements. Maltese citizenship gives applicants and their families the right to visa-free travel in over 170 countries, residence in Malta and the EU, and optimised treatment when setting up businesses, being taxed, or applying for educational institutions. Investment in Maltese citizenship is seen by many as an investment in them and their children’s future.
Global Residence Programme
Developed as a response to the needs of private clients, the Malta Global Residence Programme is suited to wealthy individuals from outside the EU, EEA, and Switzerland. It provides them tax residency within the EU in return for investment in property in the form of owning or holding a rental contract. Foreign income remitted to Malta will be taxable at a flat rate of 15% in Malta, though this will also be subject to a minimum tax of €15,000 per annum.
Why should I invest in Malta?
There are a myriad of reasons why you should invest in Malta. These include:
- Malta is a fully-fledged EU Member State;
- Its workforce is multilingual, including English, Italian, French, and German;
- They are also highly skilled and educated;
- Malta is a hub for iGaming, fintech, finserv, IT, eCommerce, crypto, blockchain, and more;
- Malta is a safe and stable country with low crime rates;
- The business environment is welcoming and flexible;
- Regulators are approachable and fair;
- There is a vast network of double taxation treaties;
- Malta implements a full tax imputation system on corporate tax;
- Its corporate service sector is professional and well developed;
- Plenty of opportunities for returns on investments;
- Access to multiple markets and sectors;
- Strategically located between Europe, North Africa, and the Middle East.
The content of this article is intended to provide a general guide to the subject matter. Contact our investment associates .