Malta, one of the smallest countries in the world, is very well positioned in terms of attracting foreign investors who want to set up a company in Malta. Its most appealing factors are: the EU membership, the cheap and well-trained English-speaking workforce and, not at last, its geographical position between Europe and North Africa which is a way of access towards two markets. The government has also helped a lot by establishing pro-investment provisions.
Foreign companies will, without a doubt, be attracted to the full imputation tax system that makes Malta an offshore tax-heaven.
During the last 40 years, this country has attracted foreign investors, interested in setting up a company in Malta, by switching from workforce-based industry to know-how based industry and so attracting foreign direct investment from important EU member states like Germany, Italy and France.
The workforce costs together with the high productivity make Malta competitive with other member states. Malta adapted to the international business environment bringing innovative and competitive strategies to attract foreign investment. The whole conglomerate of competitive skilled workforce, financial benefits and the fact that Malta is a member of the European Union make this country appealing to foreign investors even in the context of a difficult economy.
Malta has a stable political climate, a very good infrastructure and a modern telecommunication system that made the United Nations declare it a “frontrunner” for foreign direct investment.
Government measures to motivate foreign direct investment in Malta
The government has taken measures to attract foreign direct investment, such as financial incentives in areas like: manufacturing, pharmaceutical industry and telecommunication industry.
The government also offers a reduced tax rate of 5% for businessmen who want to invest their money in the industrial sector, a special tax credit of 50% of the amount invested, a reduced tax for companies reinvesting their profits, bonuses for the creation of new jobs, loans for those promoting industrial projects.
Malta has also benefited from EU funds during 2007-2013 and it has a customs-free zone called Malta Freeport that helps companies working with it to benefit from reduced taxes and tax credits for investments.
Also, in 2014 the Individual Investor Program, also called the Citizenship Program, was
initiated for people outside the EU. These persons will receive certificates of naturalization in exchange for their participation to the economic growth of Malta.
If you want to open a company in Malta, our agents in company formation can provide you with all the necessary information.