Malta has become a member of the European Union in 2004 and since then its legislation has been directed towards attracting foreign investments in order to enhance its economic growth. The Maltese government has created pro-investment regulations with the purpose of reducing the state’s implication in the economy and to actively involve the private sector in increasing the economy.
Malta’s strong points when it comes to attracting foreign investments are based on the access to European markets, tax incentives for many activity areas, such as manufacturing, pharmaceuticals, computer technology and financial services, and a reduced taxation system compared to other EU member states.
Legislation for foreign direct investment in Malta
The most important provisions for foreign investments in Malta are:
The main incentives of the Malta Financial Services Authority are:
- investment tax credits for companies in domains like pharmaceutics, electronic and electrical;
- 50% investment allowance for plants and machines and 20% for industrial buildings;
- a reduced rate of 19.25% for reinvested profits;
- loan guarantees and loan interest subsidies.
Malta has signed double tax treaties with over 60 countries and companies have the possibility to operate with Malta Freeport and the Maltese custom-free zone.