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Foreign Investments in Malta

Foreign Investments in Malta

Updated on Tuesday 19th April 2016

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Foreign-Investments-in-MaltaMalta is a small country situated at the confluence of Europe and Africa that provides excellent opportunities for foreign investors. Malta’s economy is mainly based on foreign investments as the government has put a lot of effort into creating a very attractive environment for the registration of new businesses. Malta has a skilled and educated workforce and very good infrastructure providing thus also logistic means for investors.

Business environment in Malta

When it comes to encouraging businessmen to invest in Malta, it is worth noticing all the agencies the government has created in order to sustain foreign investments. Malta Enterprise is one of the most prolific agencies in the country meant to help investors in choosing the right type of company and the directions to follow.

Moreover, the government also provides a very welcoming environment by allowing equal treatment to both foreign and Maltese companies. Another key factor for drawing foreign investment in Malta is the taxation system that provides generous exemptions, low tax rates and double taxation treaties with many countries. The business legislation has also enabled special regimes for offshore companies, shipping companies, investment services companies and banks. The Maltese government has also enabled a legislation that allows the creation of trusts.

The Business Promotion Act in Malta

As mentioned above, foreign investments are encouraged by the government that tries to create benefic conditions for those wanting to open a company in Malta. The Business Promotion Act (BPA) was created after the success of the Industrial Development Act that allowed many foreign investors to do business in Malta. The Business Promotion Act was enabled in 2001 and it covers many sectors of activities that can benefit from incentives and low tax rates.

In terms of incentives, the BPA encourages companies in the domains of manufacture, repairs and maintenance that have great development and employment prospective. In terms of taxation, the BPA offers reduced tax rates of 5% in the first seven years, 10% for the following six years and 15% for another five years and tax credits that range between 50% and 65% provided if the conditions of the Act are fulfilled.

Benefits for investors in Malta

Malta offers a lot of incentives for foreign investments and among those we can mention:

  • -        the Malta Freeport  which is a customs-free zone that offers companies reduced tax rates and investment credits,
  • -        the Individual Investor Program designed for non-EU citizens,
  • -        loans for businesses in the industrial area,
  • -        indefinite work licenses for shareholders owning more than 40% in a company.

If you want to know more about the legislation on foreign investments, you can contact our law firm in Malta for details.



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