Investing in Malta

Why Investing in Malta?

Malta has created the right economic environment to meet the demands of the global investment market. It has strong and long-standing links with Europe, North Africa and beyond and has a liberal foreign investment policy.

Advantages of Investing in Malta

Malta offers numerous advantages to foreign investors seeking to set up shop on the island, including:

• Membership of the EU
• Adoption of the Euro in January 2008
• Financial Services account to 13% of GDP
• Highest percentage share of hi-tech imports and exports within the EU
• High inward Foreign Direct Investment (FDI) performance and high inward FDI potential (World Investment Report 2007)
• Stable credit ratings
• Established trade links with Europe, North Africa and Middle East
• Dedicated and well educated workforce
• High quality educational facilities, easy to set up courses tailor made for specific industries, able to quickly adapt to the needs of industry
• Close ties to Europe as well as North Africa
• Smart City Malta, Second Dubai Internet City in the world
• Hub for knowledge based industries
• Centre for excellence
• Multilingual workforce - English is a primary language and Italian, French, German and Spanish are widely spoken.
• Modern developed telecommunications system, wireless internet connections, VOIP, WiMax, and 3.5G
• Malta Freeport, servicing 115 ports worldwide
• International Airport has direct flights to 37 major cities
• High quality health care services.

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Investing in Malta through Permanent Residency

The Malta Permanent Residence Programme (MPRP) offers non-EU nationals the opportunity to acquire permanent residency in Malta through investment. This program is particularly attractive due to its straightforward requirements and the benefits it provides. Applicants must invest in real estate, make a government contribution, and donate to a local philanthropic organization. The minimum investment in property starts at €14,000 annually for property rental or €375,000 for property purchase.
Once approved, residents enjoy the right to live indefinitely in Malta, as well as visa-free travel within the Schengen Area. The program also allows for family members to be included in the application, providing a comprehensive solution for those looking to relocate to a secure and stable country.

Read more on Malta Permanent Residence Programme

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Investing in Malta through Maltese Citizenship

Maltese citizenship by investment is a prestigious program that grants full citizenship to individuals and their families who make significant contributions to the country. Applicants can choose between astandard residency period of 36 months with a €600,000 investment or an expedited 12-month residency with a €750,000 investment. Additionally, a property investment of at least €700,000 or an annual rental of €16,000 is required, along with a €10,000 donation to a local charity. Maltese citizenship offers numerous benefits, including visa-free travel to over 190 countries, the right to live, work, and study in any EU country, and the ability to pass citizenship to future generations. This program is ideal for those seeking a strategic investment that provides both security and global mobility.

Read more on Malta Citizenship by Investment

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A Centre of Business Excellence

Malta boasts a thriving industrial sector with over 200 foreign and approximately 400 locally-owned manufacturing companies. Products made in Malta are exported worldwide and include semiconductors, electronic components and sub-assemblies, pharmaceuticals and medicinals, rubber and plastics, fabricated metal products and machinery, software, garments, food products, and more.

The flexible and highly-trained multi-lingual workforce remains Malta’s main asset, ensuring the country’s competitive edge through high-quality production at costs that are competitive relative to mainland Europe. Malta's workforce is continually evolving, with ongoing training and development programs to keep up with industry advancements.

Malta offers a modern transportation infrastructure, state-of-the-art telecommunications networks, and frequent air links to Europe, North Africa, and Middle Eastern destinations. The strategic location in the centre of the Mediterranean, along with excellent harbours and the Freeport, makes Malta an ideal manufacturing location. Recent investments in infrastructure have further enhanced Malta's connectivity and logistics capabilities, making it even more attractive for businesses looking to establish a presence in the region.

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Helping Entrepreneurs: The Business Promotion Act

The Business Promotion Act (BPA) has succeeded the Industrial Development Act in attracting foreign investment and encouraging foreigners to do business in Malta. Since its inception in 2001, the BPA has introduced greater scope and flexibility to the incentives available for the promotion of business, covering a much wider range of qualifying sectors and activities than before. The BPA provides incentives for industries demonstrating growth and employment potential, including manufacturing (such as software development), repair, improvement, and maintenance activities.

The Business Promotion Regulations, issued in terms of the BPA, offer attractive fiscal incentives for companies engaged in specific manufacturing and qualifying activities. These incentives can be categorized into two main types: tax-related incentives and non-fiscal incentives for doing business in Malta.

Recent updates to the BPA have further enhanced its appeal by incorporating modern business needs and aligning with international standards. This includes support for innovative sectors and emerging industries, ensuring that Malta remains a competitive and attractive destination for foreign investment.

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General Investment Benefits and Economic Stability

Malta offers a strategic location in the Mediterranean, making it an ideal environment for successful transhipment and distribution. This geographical advantage, combined with a favourable tax environment, has attracted numerous foreign investments and highly skilled individuals. Malta's preferential tax structure includes benefits such as tax neutrality, no tax on dividends from subsidiaries, and no withholding taxes on distributed dividends.

Moreover, Malta's economy has demonstrated remarkable resilience during global financial crises, further cementing its position as a stable and sound investment choice. The country's robust economic framework and proactive regulatory environment provide a secure foundation for investors looking to capitalize on Malta's growth potential.

Invest In Malta - Commercial Property

Investing in commercial properties in Malta can be highly lucrative, with various types of properties available, including office spaces, retail units, industrial properties, mixed-use developments, and hospitality properties. These investments offer significant potential returns but require substantial financial resources.

The Maltese real estate market has seen recent developments, particularly in Special Designated Areas, which have impacted property transactions positively. Additionally, different ownership solutions, such a strust ownership and property SPVs, provide flexibility and tax efficiency for investors. Understanding the tax and legal implications of these ownership solutions is crucial for making informed investment decisions.

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Our Malta Investment Experts

Our firm has evolved in tandem with Malta's growth as an international centre of business excellence. Our lawyers and professionals have for over a decade assisted businesses of all kinds with all aspects of their Maltese operations, helping them to leverage the benefits which the jurisdiction offers to their advantage. We understand that working in a new and unfamiliar jurisdiction can be daunting, and seek to facilitate every aspect of the experience including locating immovable property and potential recruits. Our professionals will not just give you a high standard of advice and guidance; we will also provide you with valuable local knowledge.