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 considers 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
A vast majority of Maltese are also naturally bilingual, speaking English and Maltese. A good one-third of the population has a working knowledge of Italian.
Malta offers opportunities in various business sectors, 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 oil and gas exploration, Maritime and Shipping, Aviation and a rapidly growing filming industry.
Stability and Growth – More Opportunities, Better Business
Malta is an excellent place to do business for a variety of reasons: 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 the global income of all businesses incorporated in the country. In addition, shareholders may claim a refund of 1/6th or 1/7th 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 electronics, plastics, pharma, and electrical equipment. These incentives include tax rebates starting at five percent for the first seven years, increasing to a rate of 15 percent.
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 of 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 the 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 on whether the company will have a private or public status. The process is 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 percent paid up.
The second way to do so is by registering a public limited company with a minimum shareholding of EUR46,000. Which one would suit your plans better?