Various factors contribute to making Malta an extremely attractive country for foreign investment. Discover some of the reasons that make Malta the ideal jurisdiction to establish and manage your business.
Why invest in Malta?
Just like Tourism, Financial Services became one of the main pillars of the Maltese economy.
This activity is currently responsible for a significant part of the success of Malta’s economy that continues to reveal a growth above average, in spite of the current European economic context.
- It is a Parliamentary democracy, politically and socially stable;
- Only two major political parties, both of which focus on attracting cross-border investment and offering a safe, stable and open business environment;
- Part of the Eurozone and the Schengen Area;
- It is a sovereign country and a member of the EU and the Commonwealth;
- It has a modern and diversified economy based on international business;
- It has a stable macroeconomic environment (low unemployment, controlled public sector deficit and public debt);
- It has a strong and modern legal system based on Roman law, but a great part of administrative, financial and tax legislation is based on British law.
The Maltese Economy
The Maltese economy is founded on industry, trade, tourism and financial services, which contribute significantly to the country’s economic development.
Despite the current economic situation in Europe, Malta continues to enjoy above-average growth in its GDP, thanks mainly to government investment in industry and the service sector, and direct foreign investment. The country continues to have a stable macroeconomic environment with low unemployment, and government deficit and debt under control.
In terms of industry, the government’s strategy has involved supporting operators’ in restructuring operations and helping them to internationalize their business, while also attracting foreign investors for high added-value export activities. Target sectors include electronics, pharmaceuticals, health, plastics and aircraft maintenance and other capital-intensive industries that offer high added-value per employee.
Growth in financial services has been unprecedented in recent years. The Maltese government wants to improve the sector’s competitive framework and consolidate Malta’s position as a benchmark financial centre, specifically in health, investment service administrative operations, software development, e-business, call centres, distance teaching, international booking systems and Electronic Exchange areas.
Tourism is another pillar of Malta's economy. The overriding strategy has been to sell Malta as an all-year-round holiday destination to attract visitors who appreciate its culture and history. There has been investment in other areas, like cruise ship tourism and conferences, as well as in other niche areas such as religious, sport and health tourism.
The online gaming industry has recently seen unparalleled growth and Malta is now home to over 300 international operators who represent 10% of the world’s online gambling sites. Similarly, there has been significant growth in information and communications technology. It is expected that the Smart City project, with an investment of more than $300 million USD to create a technological city, will transform Malta into a centre for excellence in the Mediterranean and create more than 5,000 new jobs.
The Maltese government has identified seven (7) strategic priorities for its future economic development: advanced manufacturing, creative industries, financial services, international education services, life sciences, tourism, transportation and advanced logistics.
Why invest in Malta?
As a European Union (EU) Member State since 2004, Malta offers:
- A credible and rapidly expanding financial services centre, supported by all 28 EU Member States;
- All EU Treaty principles apply to Maltese companies and their investors, specifically the principle of the freedom to establish and provide services; Maltese companies can register for a VAT number which will give them access to the EU market, whenever they wish;
- Malta is part of the European Monetary System (euro), which means lower operating costs and no currency exchange risk on intra-community (EU) transactions;
- All EU directives apply in Malta, guaranteeing a regulated, modern legal system protecting your investors’ best interests.
Its entire political, economic and legal framework helps to attract foreign investment:
- Parliamentary democracy, politically and socially stable;
- Only two major political parties, both of which focus on attracting cross-border investment and offering a safe, stable and open business environment;
- Modern and diversified economy based on international services;
- Stable macroeconomic environment (low unemployment, controlled public sector deficit and public debt);
- Strong and modern legal system based on Roman law, but a great part of administrative, financial and tax legislation is based on British law.
Malta also offers other important advantages when forming and managing international businesses:
- A flexible, competitive tax regime with effectively very low tax rates;
- Schengen and Commonwealth member;
- Productive, qualified bilingual workforce (Maltese and English) with advanced knowledge of other languages;
- Highly specialised and efficient professional services providers;
- Highly attractive for overseas personnel;
- Low operational costs;
- Excellent technological infrastructure;
- Strategic geographical location, close to Europe, North Africa and the Middle East, with very good air and sea connections;
- Excellent logistics for transhipment and distribution;
- A mild climate, natural beauty, good network of hotels and accommodation, safe environment and low crime rates.
Tourism in Malta
Malta is located in the heart of Mediterranean Sea, between the European Mainland and the North of Africa. The strategic location of the country and its majestic natural harbours certainly explain why Malta, up to independency, has been looked for by the established powers that have exercised their dominion over the region as a centre of trade and a defensive harbour.
As a consequence, the islands have, today, a most rich and varied history. However, history could not explain, in itself, the yearly huge influx of tourists in the Summer. The heat of the sun, the clarity of the sea and the welcoming attitude of the Maltese people have also contributed to conquer the hearts of visitors.
