Once you understand the numerous benefits that Malta offers for foreign investment you will know why so many companies and entrepreneurs have set up business in Malta
Those who have invested in Malta, agree that Malta offers a great deal more than simply holiday homes and villa investment opportunities.
Because of Malta’s geographic location, being in the centre of the Mediterranean, 93 km to the south of Sicily and 290 km to the north of Africa, investors wishing to do business in Southern Europe and North Africa regard Malta as a superb central hub.
Did you know that more than 31,000 companies have been established in the country with foreign shareholders?
Opening a business in Malta is not complicated if you have the proper information, guidance, and expertise. Before explaining the reasons why you should invest in Malta, we would like to talk about the top industries that are attracting foreign investments here.
Top Investment Industries in Malta
The three most important industries in the country are electronics, medicines, and communications. According to Statista Research Department, the revenue from the manufacture of electronic components in Malta is expected to reach approximately 16.9 million US dollars by the end of 2022.
Since 2014, the government has wanted to promote Malta as a Mediterranean health hub for medical tourism. This has led them to engage with public-private partnerships (PPPs) in the healthcare sector. The Maltese Government is also looking to expand domestic capacity and is interested in pursuing new PPP opportunities.
Other investment sectors include I-gaming and tourism. Tourism accounts for around 20% of the country’s GDP and its infrastructure is required to support over 1.1 million tourists every year.
Over 250 multinational remote gaming enterprises have established themselves in this country.Malta is leading the way and has established itself as Europe’s undisputed iGaming capital. Malta’s iGaming industry generates a mind-blowing €700m a year in revenue, accounting for over 13% of the country’s GDP.
Malta’s transition from mass-production to high-end manufacturing has been a success, with trained factory employees providing a critical source of innovation and competitiveness. Today, the island offers a prime location for companies specialising in high-technology products in areas such as electronics or precision engineering, as well as capital-intensive activities such as life sciences and aircraft maintenance. There is no question that the sector is moving forward as new and established companies are preparing to invest millions of euros in facilities on the island
Leading firms from the United States, Germany, the United Kingdom, France, Italy, Spain, and India have established operations on the island.
Malta’s real estate market is extremely appealing due to its low prices. A real estate investment, if purchased in the correct location, can provide income flow through rental and capital growth.
Malta offers a varied range of investment opportunities, ranging from local businesses, real estate and online commercial firms to equities and bonds. As Malta is a full member of the European Union, it abides by all of the unifying EU financial standards. Investors in these many diverse industries have found success in Malta.
Opportunities
There has been broad based growth over the past few years driven by a number of new activities in the services sector, such as IT, financial, insurance, scientific, technical, legal, and accounting services. To continue to expand these sectors and attract high-end business’s, investment in skilled labour is required.
The Maltese financial services sector , which accounts for approximately 11% of Malta’s GDP, is one of the fastest-growing sectors of the economy. The industry is largely based on the main sectors of asset management, investment funds, insurance, private wealth, and corporate services, with the introduction of fin-tech, such as blockchain and e-payments, as well as the aviation and yachting or maritime services industries.
Malta is the first jurisdiction worldwide to have introduced a clear legal and regulatory framework in relation to Virtual Financial Asset (VFA), Blockchain and Fin-tech. Malta has been praised for its commitment towards building and supporting the crypto ecosystem. Acting as a global trailblazer within the industry, it is proving itself to be the jurisdiction of choice and quality for various Fin-tech companies wishing to make their way into the cryptocurrency world.
How does Malta sustain foreign investment?
1. The most attractive factor in Malta is the taxation system that offers a lot of possibilities for companies.
2. Even if the corporate tax rate is set at 35%, the tax is actually taken down to a much lower value due to the participation holding shareholders are allowed to have.
3. Shareholders are entitled to ask for refunds of the 6/7th part of the tax on dividends, therefore the tax will be taken down to 5%.
4. Malta has signed double taxation treaties with more than 50 countries. These treaties ensure that profits made in Malta are tax-free in the countries where they are based.
