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Investing in Malta; industries, Benefits and Opportunities

London, Wednesday, 22 March 2023

Experienced businesspeople typically invest in Malta because they recognise the many advantages it provides to grow international investments, but this is not always the case.

Those who have made investments in Malta concur that the country has a lot more to offer than just chances to buy vacation homes and villas. Investors have many options due to the geographical position of Malta. The area is a logical centre for investors looking to conduct business in Southern Europe and North Africa.

Did you realise that more than 31,000 businesses with foreign shareholders have been founded in the nation?

The process of starting a company in Malta is not at all difficult if you have the right knowledge, advice, and experience. Prior to outlining the benefits of investing in Malta, let's discuss the top sectors that are luring foreign capital to the country.

Best Industries to Invest in Malta

Electronics, pharmaceuticals, and communications are the three most significant sectors in the nation. By the end of 2022, the production of electronic components in Malta is anticipated to generate about 16.9 million US dollars in income, according to Statista Research Department.

Agriculture and leisure are other industries. 20% of the nation's GDP is made up of the tourism industry. The online gaming industry in Malta is distinct. In this metropolis, more than 300 international remote gaming businesses have opened. Malta's geographic position benefits businesspeople looking to engage in the tourism industry and draws foreign investors to the Mediterranean region. Malta serves as a cultural nexus because of its position at the intersection of Europe and Africa. Due to Malta's inclusion in the European Union, the agricultural industry in the Maltese Islands has undergone a significant transformation.

The government unveiled a ten-year agriculture policy in 2018, with the intention of bringing clarity to all relevant stakeholders, from private entities directly involved in the agricultural scenario who want to invest or diversify their business to public entities directly involved in certification, permitting, and decision-making.

Malta has successfully made the shift from mass production to high-end manufacturing, with trained industrial workers serving as an essential source of innovation and competitiveness. Major corporations have developed operations on the island, including those from the United States, Germany, the United Kingdom, France, Italy, Spain, and India. The industry has recently experienced a strategic shift, shifting away from mass production on a large scale and towards exclusivity, added value, and a focus on precisely targeted niche markets.

Companies that specialise in high-tech products like electronics and precision engineering, as well as capital-intensive industries like life sciences and aircraft repair, frequently locate on the island today.

The low costs in Malta's real estate market make it very alluring. This suggests that it might be easy for you and your family to locate a home. If purchased in the right area, real estate investments can generate immediate cash flow from rentals and tourists. A real estate venture is necessary for investors who want to benefit from the MEIN program, which necessitates the purchase of a residential property worth at least €700,000.

Malta is setting the standard for the global iGaming market. The iGaming sector in Malta is currently humming with businesses vying for room in a thriving industry with promising prospects. Over 13% of the nation's GDP is devoted to iGaming, which brings in a staggering €700 million annually and makes it the uncontested iGaming capital of Europe.

Malta offers a wide variety of investment possibilities, including real estate, regional companies, online retailers, equities, and bonds. Investors in each of these sectors have prospered in Malta, and as a complete member of the EU, the nation abides by all of the guiding EU financial standards that keep things in order.

Attractive Benefits for Foreign Investors

1. The taxation structure in Malta, which gives businesses many options, is its most alluring feature.

2. More than 50 nations have double taxing agreements with Malta. These agreements guarantee that earnings produced in Malta are exempt from taxes in the nations where they are based.

3. Despite the fact that the corporate tax rate is fixed at 35%, the tax is actually reduced to much lower amounts due to the permitted participation holdings of shareholders.

4. Since shareholders have the right to request refunds of the 6/7ths of the income tax, the tax will be reduced to 5%.

5. Malta is also very attractive to retirees due to the laws that offer a 15% tax break for foreign retirees who relocate there and do not impose taxes on pensioners' foreign capital gains or income in Malta.

Services Sector Drives Growth and Creates Opportunities

As a result, recent growth has been broadly based and fuelled by a number of new service-related activities, including IT, financial, insurance, scientific, technical, legal, and bookkeeping services. Investment in skilled labour is necessary for these industries to continue growing and for the economy to be able to draw in high-end business services.

The segment of the Maltese economy with the fastest growth is financial services. With the introduction of fintech, such as blockchain and e-payments, as well as the aviation and yachting or maritime services industries, the industry is primarily based on the core sectors of asset management, investment funds, insurance, private wealth, and corporate services. 11% or so of Malta's GDP is made up of financial services.

In Malta, you can find blockchain technology, trade finance, or other regional private banking business activities. You can also find venture capital banking, trust services, investment banking and advice, captive insurance, private pension funds, and all kinds of outsourcing and coordination services, like accounting and administration, insurance management, and fund administration.

(Research and edit by: The Decision Maker – FDI editors)

(Pic by: Reveal Malta)


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