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February, 15 2019
February, 15 2019
Invest in Malta
As an investor you are in need of a research before choosing where to invest. An observation that should firstly study the prospects of growth a jurisdiction has. In this article we would like to facilitate the research of each individual or business entity interested to invest in Malta.
Some key factors that an investor should bear in mind are of course the safety of a location, whether its economy is solid or not, which tax incentives it provides, its ICT infrastructure.
To start off Malta, has slowly but steady reclaimed its role as an important financial center. Malta has until today never faced a real financial crisis due to its conventional approach. The financial services sector is a strong point of the economy which helped the island to the quick emergence. The local financial services are expected to fuel further development.
Malta’s strategical location plays a major role in the economy as close bonds to continental Europe, North Africa and the Middle East makes it fast and easy to make business trips around the area. Malta’s first-rate port infrastructure makes the island an ultimate logistical hub. The island with its EU membership becomes a perfect gateway to the Euro-Mediterranean.
Malta got transformed after the independency 1964 succeeding to have a functioning open market economy. The main characteristics of Malta’s economy today are progress and the ability to swiftly adapt in international trends. The external shockwaves of the global recession unavoidably influenced the local economy but noteworthy is the fact that Malta had minimal impact on the private and governmental sector and was also one of the first countries that recovered from the recession.
For every businessperson or trader interested to invest in another country it is essential to understand the country’s culture and being able to communicate with the locals. English as one of the official languages in Malta makes it much easier to connect. Practically all Maltese are bilingual and a significant majority is also familiar in Italian. Foreign language fluency as a percentage of the population is as follows: English 88%, Italian 66%, French 17% and German 6%.
Knowhow and expertise of the locals can be of high importance depending of what sector you’re planning to be active in. Malta has a good accessibility of highly educated people in every field embracing all industry areas such as technology, IT, financial or building.
The demands of our globalized society make it more frequent with international business trips therefore its necessary to invest in a country which is well connected with the world. Malta highly values this and have therefor invested in order to create a reliable Information Communication Technology (ICT) infrastructure. It is well known that Malta’s liberalized and developed ICT infrastructure has definitely contributed to Malta to be transformed to a regional financial centre.
The tax advantage is a strong incentive of moving your business to another country. The corporation tax is relatively low which stands at 35%. However there are several exceptions upon distribution of dividends where shareholders may be suitable for a refund generally corresponding to 6/7th of the paid tax which results in a paid tax rate of 5%.
If you are planning to move to another country in order to run a business it is good to consider how safe, convenient and enjoyable the lifestyle is. Malta scores highly on these aspects. Malta’s regulations are framed by the European laws and mentality. Malta shows high respect of the diversity of cultures and people, its travelling distances are minimal, the healthcare facilities, ranks among the best in Europe, are first-class in both public and private hospitals and the crime rate is very low.