There are many reasons why you might set up a business in Malta. Aside from the friendly people, the climate, weather, amazing scenery and heritage, Malta also offers many other financial, practical and lifestyle benefits.
As a location Malta is made for business, in fact business is at the heart of this small country’s culture and boasts a very strong financial and professional services industry.
Here’s just a few reasons why you might consider Malta as the location for your new business.
1. Member of the EU
Malta has been a member of the European Union since 2004. Being a member of the EU brings some fantastic benefits including free trade between member states, a vast potential market, and the freedom of movement within the EU in addition Malta operate the currency which makes trading between nations simpler.
2. Lowest effective corporate taxes in the European Union
The Malta system aims to attract investors, entrepreneurs, and high net worth individuals to the island by offering excellent tax incentives and schemes for businesses and individuals.
Most of the companies incorporated in Malta are subject to a corporate tax rate of 35%. However, foreign shareholders can claim a 6/7th tax refund on any tax paid by the company on profits, distributed as dividends. This system makes the effective rate of tax 5%.
It is also possible to get exemption from taxation should a company have a participating holding.
Malta has several tax benefits which will reduce the company income tax through the full imputation and tax credits available when distributing profits to the shareholders.
3. Malta Income Tax Rates
Malta income tax rates work off a progressive tax rate, meaning that the more income you generate, the more tax you pay. The tax brackets do alter dependent upon your individual circumstances, for example if you are single, married and/or a parent.
For illustration, these are the income tax bands at the time of writing:
4. Quality of workforce
Malta has a lower-cost and highly qualified workforce compared to the rest of Europe. The cost of living in Malta is 18% cheaper compared to its EU counterparts. Most importantly, the standard of education in Malta is world-class, making Malta an excellent spot to find your perfect team.
5. Lower wage bill
Malta has a minimum wage requirement of €792 per month, with the monthly salary averaging at €1,613 for a full-time position.
6. Company set up time and cost
Setting up a company in Malta can be relatively quick to do, with most companies registered within 48 hours of receiving the relevant documentation. Generally speaking, though the total time to start a business in Malta is about 10-14 working days. Here’s a rough example of the timings:
- Name Reservation – 2-3 hours
- Drafting and Notarizing Incorporation Documents – 1 day
- Depositing Share Capital – 1 day
- Company and Tax Registration – 2 days
- VAT Registration – 1 week
- Employer ID Number – 3 days
- Employment Registration – 2 days
The cost of setting up a business is also relatively cheap This is due to the minimum amount of capital required to start a business is just 1,164.69 EUR. Individuals must pay at least 25% of that capital when they form the company, meaning it takes less physical money to start up in business.
7. Low Language barrier
Malta is an English-speaking country, although Italian is also widely spoken. This makes doing business with the rest of the world a much easier task. Moreover, as Malta attracts many EU citizens, it is more than likely, you will find a multilingual workforce here than anywhere else in the EU.
8. Excellent transport links
Positioned between Europe and Africa, Malta benefits from being one-hour ahead of UTC. Moreover, access to Malta is simple thanks to excellent transport links via air and sea, with the government investing to create continuous improvements.
9. Advanced IT infrastructure
Despite the small scale of Malta, the IT infrastructure is also excellent with satellite technology and high capacity fibre-optic submarine cables linking Malta with Europe.
10. Malta Climate
Ok so, we couldn’t finish the list without mentioning the stunning climate that Malta enjoys, with around 3000 hours of sunshine per year. The island receives its fair share of rain during the winter season, but this is very concentrated, and rainfall usually only lasts a few hours at a time.
View our Infographic
To help you see why Malta might be a great location to start (or even relocate) your business we’ve created this simple infographic. For all the key facts and figures – why not take a quick look?
Need more Help?
If you’re considering setting up (or relocating) your business in Malta and would like more help and advice we offer a FREE consultation. Simply complete the form below, let us know the best time for you and we’ll do the rest.
 Chris Armstrong |  Szabolcs Toth |
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