South Africa and Malta entered into a Double Taxation Agreement in 1998. Growing trade and investment between the two states has led to further investment opportunities for individuals and companies, particularly for South Africans in offshore and property investment. Malta offers fiscal benefits to foreign investors remaining consistent with its international obligations.
Maltese exports to South Africa reached €878 897 in 2008, down from nearly €2 million in 2006 and an increase of €561 553 from 2007. The main exported items are pharmaceuticals, machinery and mechanical equipment. Malta also imported €1.7 million worth of products from South Africa during 2008, up from €665 323 in 2006. The main imported items are fruit and nuts, beverages, spirits, and paper.
During a recent visit to South Africa, Dr Jean-Philippe Chetcuti emphasised the strengthening of economic ties between South Africa and Malta. “There are many good reasons to consider investment in Malta. These include its location in the centre of the Mediterranean, its excellent communication structure, its educated and skilled English-speaking labour force, a stable political situation, a strong industrial relations record and a great climate. Malta is still a reasonably priced location where the cost of living and labour costs are relatively low by European standards. Malta’s business laws and practices are very standard and the work and business ethics are high. A strong international tax treaty network is in place, which can provide competitive tax advantages.”
South Africa also represents a significant business opportunity for many Maltese. Dr. Chetcuti held that “There is a lot of scope for Maltese investors to consider investment opportunities in SA. Closer links between the countries can enhance their co-operation initiatives to include new areas that have not been considered before, including financial services.”
“SA has enormous potential with a combination of highly developed first world economic infrastructure and a vibrant emerging market economy. SA is the EU’s largest trading partner in Africa, with exports to the EU growing and becoming more diverse. The country is gradually moving from mainly commodity-based products to a more diversified export profile that includes manufactured products.
“All this is an attractive package to any Maltese or European investor desiring a base on the African continent,” said Dr. Chetcuti.
[Full List of Malta Double Taxation Agreements]
