Malta has created the right economic environment to meet the demands of the global market for doing business in Malta. It has strong and long-standing links with Europe, North Africa and beyond and has a liberal foreign investment policy. Malta offers numerous advantages to foreign investors wanting to set up shop on the island and those already doing business in Malta.
Reasons for Doing Business in Malta
- Member of the EU
- Adoption of the Euro in January 2008
- Financial Services 12% 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)
- AAA rating by Moody’s
- 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
- 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
- 17 high quality health care services.
Industries doing Business in Malta
Malta has a thriving industrial sector with over 200 foreign and some 400 locally-owned manufacturing companies doing business in Malta. Products made in Malta are exported worldwide and comprise semiconductors, electronic components and sub-assemblies, pharmaceuticals and medicinals, rubber and plastics, fabricated metal products and machinery, software, garments, food products and others. The flexible and highly-trained multi-lingual workforce is Malta’s main asset and helps to ensure the country’s competitive edge through high-quality production at costs that are highly competitive relative to mainland Europe.
Malta offers a modern transportation infrastructure, state of the art telecommunications networks, and frequent air links to Europe, North Africa and Middle Eastern destinations. Malta’s strategic location in the centre of the Mediterranean as well as its excellent harbours and Freeport make it an excellent manufacturing location.
Doing Business in Malta Incentives
The Business Promotion Act (BPA) which succeeded the Industrial Development Act in attracting foreign investment and encouraging foreigners to do business in Malta. It which has been in force since 2001, introduces greater scope and flexibility to the incentives available for the promotion of business, and covers a much wider range of qualifying sectors and activities than before.
The BPA provides incentives for those industries demonstrating growth and employment potential that are engaged in manufacture (including software development), repair, improvement and maintenance activities. The Business Promotion Regulations, issued in terms of the Business Promotion Act, provide attractive fiscal incentives for companies engaged in particular manufacturing and qualifying activities. The incentives available under the Business Promotion Act may be subdivided under two headings namely, tax related incentives and non-fiscal related incentives for doing business in Malta.
