The Maltese archipelago comprises a group of islands in the Mediterranean Sea, of which the main islands are Malta, Gozo and Comino. These cover an approximate land area of 316 square kilometres, with a population of around 390,000 people. Being situated in the middle of the Mediterranean (90 Km off Sicily and 290 Km off North Africa) it has an indeed strategic geographic location. Its Mediterranean climate implies limited rainfall between March and October and an average of 300 days of sunshine each year with a relatively mild winter (averaging 15o C) and the hottest temperatures experienced in August.
Malta has a democratic system and the population goes to the polls approximately once every five years to elect a political party. There are three main political parties with two parties enjoying the support of the large proportion of the population. Malta’s laws area already harmonised to a large degree to the European legislation with most of the commercial law being based on the English legal system.
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It boasts one of the best financial services centres in the region and is an attractive country for investors, whether these are actively involved in serving a foreign market, using the establishment to spearhead investment in Southern Europe or North Africa and equally so for investors with the intention of penetrating the Maltese market.
Foreign trade dominates the economic orientation of the State, with significant dependencies relating to manufacturing, tourism and financial services. The country offers a bold infrastructure and a plethora of incentives intended to encourage investment.
There are several reasons why established companies and investors choose Malta as the ideal jurisdiction for their business or base for their Group. These include:
- A stable political scenario and a member of the EU since 2004;
- Highly skilled workforce with English widely spoken and most persons who are multilingual;
- Competitive cost of labor and cost of living;
- An EU approved tax refund system with a participation exemption;
- Tax exemption on share transfers in companies owned by non residents (provided it does not hold immovable property in Malta);
- No witholding and exit taxes;
- An extensive (and increasing) double tax treaty arrangements with several countries;
Malta’s strong infrastructure is capable of supporting considerable international economic activity as well as favourable fiscal planning opportunities. Malta’s strategic geographical location, convenient time-zone, mild climate, stable political environment and democratic government, advanced and efficient infrastructure, comparatively low running costs, rent and wages, advanced telecommunication systems and a well trained multi-lingual workforce and professionals serve to further enhance the island’s attractions as an international business, financial and maritime centre.
Find out why multi national successful companies already chose Malta as their financial base:
Credits: HSBC Malta