EU Membership

Malta has been a full member of the EU since 2004 , adopting the Euro currency in 2008.This brings many benefits to the island including freedom of movement and by adopting the Euro, the elimination of exchange rate risks and foreign currency transaction costs for trade, tourism and investment among the 26 participating member states. This has all helped the island develop into what it is today. As an investor or businessman, Malta as a business-ready European location, has become a highly desirable destination. As a free-market economy, with no restrictions or legal prohibitions on Foreign Direct Investment and no exchange controls, Malta benefits from few obstacles to trade and enterprise. Any banks or financial services companies that are authorised members of the EU are able to trade freely in any other member state with minimal additional authorisation.

Cost of doing Business

Malta ranks very favourably as a value-for-money location in which to do business. Salaries in Malta are +/- 20% lower than some of the established EU members Germany, France, Belgium, the Netherlands and Luxembourg. According to Eurostat, Malta’s hourly wage cost in the Q3 2022, has not increased while the rest of the EU has increased by between 2% in Slovenia to 14% in Hungary . This makes Malta’s total labour costs very competitive.

Tax Benefits

Malta offers a highly efficient tax regime which avoids double taxation on taxed company profits distributed as dividends. Companies are taxed at a rate of 35% but through the use of the full imputation tax system, when dividends are distributed to individuals out of taxed profits, the dividend carries an imputation credit of the tax paid by the company on the profits, giving an effective corporate tax of 5%. Over and above this, Malta has signed double tax treaties with some 70 countries.

Capital Gains Tax

Maltese law stipulates that capital gains derived by non-residents on the transfer of shares or an increase of share capital, will not be subject to taxation if garnered outside of Maltese jurisdiction, provided that the assets of the company do not include immovable property based in Malta. Instead you will only be liable for capital gains which occurred within Malta

Networking

Over the past two decades, Malta has developed as a centre point for selected business sectors, such as financial services, gaming and blockchain. Many leading organisations within these industries have chosen Malta as a home for some (if not all) of their major operations. In addition, numerous conference and convention events, such as the annual Summit of iGaming Malta (SiGMA), the AIBC Summit Europe a conference and exhibition dedicated to Artificial Intelligence, Blockchain and IoT technologies, bring together professionals, stakeholders, operators and regulators to provide unique networking opportunities for all participants.

Company Legal Framework

Similar to many other Commonwealth countries, the Maltese Companies Act is broadly based on British common law principles, but is also in-line with the relevant EU directives. Such a legal framework means it is recognised worldwide, and makes it easy to understand and practical to do business. Maltese companies are useful, flexible vehicles which allow rapid formation of Maltese companies, capital requirements are low, bank accounts can be held in third countries and business can be conducted internationally. As a result, Malta is a popular and reputable destination for both start-ups and well-established businesses that wish to set up headquarters, branches, or finance and investment companies in a European jurisdiction.

The Language

Malta was part of the British Empire for over 150 years before independence in 1964. As a result, English (along with Maltese of course) continues to be an official language in Malta. This means that well over 90% of the population is fluent in English, while all legislation and official information is available in both English and Maltese.

Location

Strategically located at the centre of the Mediterranean, between Europe and North Africa, Malta has historically been the link between the two continents. Malta’s internal market is relatively small, and the real business opportunity lies in using the country as a stepping stone to other markets. As an EU member state, Malta offers instant access to the EU’s massive single market of over 500 million people, while it also has strong historical and cultural ties with North African and Middle Eastern countries.

The Island

Malta enjoys around 300 days of sunshine a year and is surrounded by some of the clearest and cleanest waters in the Mediterranean. Offering an appealing Mediterranean lifestyle, welcoming people  and superb weather, makes living on the island or visiting the island an exceptional experience. With a heavy dependence on international trade and business, Malta is connected by air to almost every major city in Europe and to key destinations in North Africa and the Middle East.