Foreign direct investment in Malta

Ranking on the 84th position out of 190 economies in the world bank, Malta’s economy stands as one of the most attractive economies for foreign investment. To add on to its attractiveness is the fact that it is a member of the European Union and it is also famous for a highly skilled English speaking Labour force. Its powerful accessibility to the Mediterranean and North American markets is greatly contributed by its astounding geographical orientation. 
 
Advantages of Investing in Malta

  • Political Stability

Malta is politically stable and an active member of the EU. It also offers a favorable tax environment and investment incentives to investors interested in doing business in Malta. You will mostly benefit from these incentives if you are investing in pharmaceutical manufacturing, IT and financial services.

  • Strategic position.

Malta’s strategic position between the eastern and western Mediterranean and North America makes it a spherical influence in these regions It’s geographical location greatly contributes to its powerful economy and a competitive job market compared to other EU nations.

  • Investment incentives

The Maltese government is in great support of the business sector and it constantly implements a number of schemes and incentives to attract foreign investment into the country. Expatriates and anyone interested in settling in Ireland can benefit from Malta’s “Individual Investor Programme.” This citizenship programme gives anyone who contributes to the economic development of Malta the privilege of becoming a Maltese citizen by naturalization. 
 
Another similar scheme is the Malta Freeport, a free trade zone set up in place by the Maltese jurisdiction to attract investment in certain business sectors. If your business is operating within the free trade zone, you can benefit from investment credits and low taxation.
 
Malta’s International airport also offers a very convenient business network providing direct flies to 37 major foreign cities from Malta. Thus you can easily travel to and fro Malta on business agendas. Its seaport is for free and serves 115 ports around the world hence a vast global network. Last but not least, is it strong and seamless communication system

As mentioned earlier, Malta has many investments in certain business sectors such as manufacturing, transshipment and servicing industries. Generous tax incentives will mostly be given for investments in industrial projects and companies that provide job creation. These companies will also incur lower taxes on reinvested profits. 

Disadvantages of investing in Malta 
Despite its massive infrastructure and environment, Malta has its own shortfalls which can hinder success. Its smaller domestic market size translates that it cannot welcome everyone who wants to invest in the country—limiting some investors. 
 
Furthermore, Malta lacks natural resources. This makes the Maltese market a bit unstable, forcing the nation to rely on sectors such as tourism and e-commerce. The road infrastructure is also deficient for diverse networking and the nation is still dependent on global economic conditions. This altogether makes Malta a bit weak in the business sector.
 

Professional Assistance

It is quite indisputable that Malta is a successful nation to invest in and securing a manageable business network. For further details and assistance, reach out to SIGTAX. Our team comprises of expert lawyers, accountants, and consultants ready to help you anytime and in any way possible regarding business issues in Malta.
 

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