Why set up a company in Malta?

Why set up a company in Malta? With a diversified and stable economy and an attractive tax regime, Malta is one of the best European countries for setting up or relocating an international business.

Malta offers lower operating costs compared to other European jurisdictions. Due to its strategic location in the middle of the Mediterranean, Malta has air links to and from several European and African cities.

Why Should you Consider Setting Up a Company in Malta?

Malta offers a favorable framework for setting up international companies.

Malta's strategic location between Europe and North Africa is a decisive factor for international companies wishing to expand their operations into the European market.

However, its strategic location is just one of the reasons why you should set up a company in Malta.

Attractive Tax Regime

When you set up a company in Malta you’ll benefit from an attractive tax regime. Malta has an extremely attractive tax regime, approved, and regulated by the European Union.
At the same time, Malta has more than 70 agreements to avoid double taxation with countries all over the world. Another advantage when you set up a company in Malta is its participation exemption regime (link), which is one of the most comprehensive in the EU.

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Tax Refund System

Malta offers a unique tax system of full imputation in which the tax paid on profit by the company that distributes the dividends is made available to the shareholder as a tax credit. This allows companies in Malta to avoid double taxation of the same income (at both company and shareholder levels).

Strong and Diversified Economy

The Maltese economy is diverse and attractive. The key sectors are industry, commerce, tourism, and financial services. Malta has strong but flexible, business-friendly tax and financial regulators.
Companies in Malta have no trouble finding good employees. The Maltese are highly educated and bilingual (English and Maltese), with a large part of the population also fluent in Italian.

Quality of Life

Malta offers an excellent quality of life. When you decide to set up a company in Malta, this should not be overlooked.
The climate is typically Mediterranean, with hot summers and mild winters. It is a safe, calm destination with good education, health care, and transport systems.
The cost of living in Malta is comparatively lower than in major European cities.
What is more, Malta has modern infrastructure. Its internet speed is among the fastest in the world and 5G coverage is practically all over, creating a favorable environment for setting up companies in Malta.
Malta has regular and frequently scheduled flights to major European and African destinations through its national air carrier Air Malta, as well as other private airlines. Thanks to its location in the center of the Mediterranean, Malta's ports are a stopping point for countless cargo and passenger ships.

EU and Commonwealth Member

Since 2004 Malta has been a member of the European Union and the Eurozone. It is also a member of the Schengen area. This is a great advantage for setting up companies in Malta, as they benefit from barrier-free access to the huge European market. As a former British possession, Malta is also a member of the Commonwealth.
This means that Malta is an accredited, safe, and attractive destination for all investors and a gateway to Europe and the Commonwealth.

Investment Opportunities in Malta

It is important to highlight some of the investment opportunities that mean you can take advantage of the many benefits of setting up a company in Malta.

International Trading, Holding and Intellectual Property Companies

An attractive tax system, a flexible and comprehensive participation exemption regime, a beneficial legal framework, and its tax refund system make Malta one of the most advantageous jurisdictions for setting up international trading or holding companies, as well as companies that own and manage intellectual property.

Maritime Activities and Shipping

This country is also an advantageous jurisdiction for shipping activities. The Maltese shipping registry is one of the 10 largest in the world.

In addition, Malta offers efficient solutions for the purchase of yachts and private airplanes, and for the chartering of short-term yachts.

Trusts and Foundations

Trusts are a popular instrument, offering advantages in various business structures. Malta is one of the few civil law jurisdictions that has developed its own legal regime on trusts, which allows the creation of trusts governed by the law of another jurisdiction.

Malta also offers the opportunity to create foundations, which have their own tax treatment and are very advantageous in some cases. Foundations have the advantage of having legal status and of being a widely accepted and recognized concept.

Gaming

Malta is one of the world's leading jurisdictions in the video games industry. According to some analysts, the gaming industry already accounts for around 9% of Malta's Gross Value Added (GVA) and it has some of the world's biggest players in this sector.

An efficient licensing process, simplified regulatory procedures and a competitive tax regime are some of the advantages of setting up companies in Malta for the international gaming sector.

Blockchain Technology

Malta was the first country in the world to regulate blockchain technology, having set up the Malta Digital Innovation Authority – MDIA to attract and protect investors. The many advantages of setting up companies in Malta in this sector include a very competitive tax regime, qualified human resources fluent in English and a comprehensive regulatory framework.

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