Many Investors and founders, from various areas around the world, choose to base their business’s in Malta. So what is it that’s so attractive about this island republic, and why does it continue to gain attention from entrepreneurs?

As an aspiring entrepreneur, you might have heard of the pro- business environment of Malta and might be wondering about the process of starting a business in Malta.

Competitive Tax Rules

Taxation in Malta is fairly liberal compared to other parts of the continent, in spite of its membership of the EU and the fact that the Euro has been its official currency for a decade.

People who move there from other countries can enjoy a 15 percent flat rate ( applying for the Global Permanent Residency Programme of the Retirement Residency Programme)of income tax while working in Malta, as well as being able to avoid any tax on income from overseas work, capital gains and other key sources.

When it come to corporate tax, upon initial inspection, the tax rate of 35% may seem exorbitantly high and un-competitive in contrast to the rest of the countries within the European Union.

However, it is very possible for your company to lower this tax rate to between 5 and 7% through full imputation. In addition, various sources of credits are available when dividing profits amongst the different shareholders, thus allowing your business to further minimise its tax burdens.

This makes it attractive for businesses as well as their employees, as transplanting a workforce from elsewhere in Europe is inexpensive and has plenty of tax-related perks. There is also no inheritance tax, which has long-term relevance for anyone who is thinking of sticking around and starting a family there.

Telecommunications

Although it is not home to the fastest average connection speeds around, Malta remains well connected when it comes to internet access and all-purpose telecoms solutions. Malta ranked 37th in the world for mobile speeds and 35th for fixed broadband speeds during August 2022.

This is important for businesses in the world of finance, as well as to emerging online gaming providers who clearly find the island’s existing network infrastructure more than adequate to fuel its expansion.

Quick facts

  • 3 Major providers in Malta, best 4G coverage offered by Vodafone and GO, best value from Melita
  • Similar rates for telephony, SMS and data, with Melita being cheapest for international calls
  • Heavier data users are likely to prefer Vodafone (fastest 4G/LTE network, better rates for more data)
  • SIM cards available from provider’s shops, top up cards and other top-up methods widely available (also via website account or smartphone app with credit/debit card).

Geographic Location & Transport Links

Malta has the  benefit of being located in the southern reaches of European territory, in the Mediterranean, bordering Africa and the Middle East. This means that it effectively has straightforward access to a trio of continents, rather than being entirely beholden to a single geographic region.

As a hub for business and tourism,  daily flights from many of the major international destinations land on Malta, making Malta hugely accessible

The Weather

Sitting in the Mediterranean sea to the south of Sicily and the east of Tunisia, Malta is surrounded by rich, blue waters and is bathed in warm sunshine throughout much of the year. Malta boasts of 300 days of sunshine a year and has been a hotspot for tourists for decades

In the summer, things can get a little hot, with average temperatures in July and August sitting at around 30 degrees. Malta’s winters can be very pleasant, when comparing them to northern Europe, hovering around 20 degrees even in November and December.

The Lifestyle & the Language

Malta also benefits from good living standards, covering everything from housing and utilities to general amenities and leisure. With its growing business boom and the abundant tourist market, money does flow into the country, which in turn means that public services and general infrastructure are of a high quality.

Amongst the perks for opening a business in Malta is that English is the other official language together with Maltese.This means that there is not a huge cultural shift for people to make when they move to Malta.

Safe environment with low crime rates

The crime rates of Malta are relatively low, offering a safe environment for foreigners, contributing to the willingness of your foreign employees to work in Malta. Security and safety can contribute to the ease of setting up or even expanding your business to the country of Malta.

Conclusion

On almost every level, Malta has a lot to offer businesses, which is why its rise in popularity looks set to continue.

Navigating a new country’s different and unique business climate might be a challenging process. However, with the key business and corporate benefits outlined above, it is easy to see why many entrepreneurs will consider starting a business in in Malta as a foreigner.