5 Reasons Why Your Business Should Be Based In Malta

For business, Malta is the diamond in the European Union’s crown. 

The nation’s:

  1. Historically Dynamic Economy
  2. Advantageous Tax Regime
  3. Uncomplicated Business Legislature
  4. Diverse Business Infrastructure
  5. Asset Rich Workforce

coupled with the island’s cosmopolitan lifestyle, warm hospitality, and climate are the essential 5 reasons why your business should be based in Malta.

Historically Dynamic Economy

Malta joined the European Union in 2004. Since Malta’s ascension in the EU, it has consistently maintained a stable credit rating and succeeded — in the last few years — in achieving budget surpluses. 

Astute debt management and robust financial legislation enabled this ‘tiny nation’ — Malta is one of the smallest member states — to fare better than most of its European neighbours during the global economic and financial crises of 2008-09.

After the economic impact of COVID-19, the forecasted projections as issued by the Central Bank of Malta (CBM) are optimistic. Depending on the country’s successful vaccine rollout, Malta’s Gross Domestic Product (GDP) should grow by;

  • 5%    in 2021
  • 5.5% in 2022
  • 4.7% in 2023

Malta’s economic contributors by sector 

Malta’s tertiary and industrial sectors are the highest contributors to the country’s historically dynamic economy.  

Economic Contribution by Sector Agricultural Industrial Tertiary
% Employment 1 18 81
% of GDP 0.7 12.5 75.6

Malta’s  economic stability is rated at:

A-/A-2 : by Standard & Poor

A+:        by Fitch Ratings

‘Malta passes MoneyVal test after a raft of reforms’ Times of Malta

Advantageous Tax Regime

Malta’s tax legislature is based on the European Acquis

  • Malta has over 70 double taxation treaties,– most of which are based on the OECD Model Convention — in place,
  • Malta’s corporate tax incentives, including income and business tax, and VAT rates

are ranked among the lowest and most advantageous for business in the European Union. 

Uncomplicated Business Legislature

Less bureaucracy.

In Malta:

  1. Businesses are structured by either forming a ‘Limited Liability Company (Ltd) or a ‘Partnership.’ Unless the business falls under a regulated sector such as; igaming, finance, medical or aviation, that do require a special business licence to operate, Registration of Companies in Malta is a straight-forward process and applicants do not require a licence to operate. 
  2. Entrepreneurs that wish to conduct any type of economic activity, need only to register for Value Added Tax (VAT).

Business First is the governing body that provides relevant information, free support and guidance to entrepreneurs and SME’s looking to establish their business in Malta. 

  • Favourable company regulations
  • Swift registration applications

Malta is reputed to be among the most business-friendly in the European Union. 

Diverse Business Infrastructure

The Maltese government’s pro-business approach towards the development of new investments, upgrade to its national infrastructure and forward-looking policies, have been key to the successful impact of Foreign Direct Investment (FDI) in Malta. 

A cross-section of diverse modern business infrastructure that has contributed to Malta’s exponential GDP growth include: 

  • iGaming
  • Financial Services
  • Communication Technologies
  • Aviation
  • Film Industry
  • Pharmaceuticals
  • Maritime Management

According to the:

  1. Malta Gaming Authority (MGA), in 2019 iGaming generated €1.56 billion in VAT. 
  2. Malta Financial Services, as of June 2018, Malta had more than ‘665 investment funds that had a combined net asset value of almost €13.7 billion.’
  3. 2020 Digital, Economy and Society Index (DESI) report: 
  • Malta ranks in 5th place (out of the 28 EU member states)
  • The nation’s level of digitisation among businesses operating out of Malta is relatively high and they rank 1st on the use of big data
  • ICT specialists in the workforce rank at 4.8% vs the EU average of 3.9%

“Malta can boast of a resilient infrastructure and solid management styles within the tech sector and beyond.”  Dana Farrugia, Chief Executive Officer of Tech.mt.

To propel foreign investment, the government has set up incentive programs for entrepreneurs looking into basing their business operations in Malta. These additional support schemes are: 

The Micro Investment Scheme encourages undertakings to invest in their business to innovate, expand and develop their operations. Entrepreneurs benefit through a tax credit — equivalent to 45% — based on eligible investment.’ 

The Strengthening Market Entry and Internationalisation Scheme ‘facilitates access to foreign markets by allowing enterprises to explore growth opportunities, establish business contacts and consolidate existing markets.’

The Venture Capital Malta Program (VC-MT) in collaboration with Malta Investment Management Company, Malta Enterprise and private financial service providers, ‘provides businesses with the ability to gather funds through private equity or venture capital.

The Business Development Scheme ‘facilitates value-added projects, including new business initiatives, expansion and transformation activities that shall contribute to the regional development of Malta.’

The Business Advisory Program ‘is designed to support business undertakings operating in Malta access to advisory services that suit their specific circumstances. It assists in formulating business strategies to ensure sustainability and growth.’

Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment ‘grants foreign investors (including their family members) who contribute to Malta’s economic development a route — after specific criteria is met before eligibility into the program — to becoming citizens of Malta.’

Asset Rich Workforce

Malta boasts to have a highly skilled and multilingual workforce. English is the predominant language spoken in Malta. Despite a sharp contraction in the last few months due to COVID-19, Malta still has on record one of the lowest unemployment rates in Europe.

“While other EU states record unemployment and crashing economies, Malta was on track to one of its best unemployment records in history.” The Hon. Dr Robert Abela, Prime Minister of Malta.

Malta’s labour market “has shown remarkable resilience.” Its unemployment rate in:

  • 2019 stood at 3.6% (historically low)
  • 2020 stood at 3.9% (March)
  • 2021 stood at 4.1% (March)

Factoring:

  • a successful vaccine rollout program 
  • the return of foreign tourists and large-scale investment projects,

the employment growth rate in Malta will “gradually pick up to reach 2.7% in 2023.”

Where are the best locations to set up a business in Malta?

Location is key. Sliema, Gzira, Valletta, and St. Julian’s continue to be Malta’s top and most sought after commercial districts.

 These areas are vibrant and popular with both the locals and expats who live on the island. They are also within walking proximity to public amenities and numerous facilities.

Are you looking for office space in Malta?

Finding the right office space is a huge investment. With a SOHO office, all your business needs have already been taken into account.

SOHO excels at providing;

  • Specific 
  • Measurable
  • Achievable
  • Realistic
  • Timely

SMART goals for business success.  

With a business portfolio featuring;

  • 4.5k sqm of office space spread across three commercial buildings in Malta’s most prestigious and sought after business districts
  • 200+ companies
  • 300+ individuals who work out of SOHO’s offices
  • 500+ members

SOHO is the Leading Provider of Office Space in Malta.

SOHO Offers:

Exclusive Memberships:

  1. Private Office
  2. Dedicated and Hot Desk
  3. Business Presence 

In an Eco-Friendly Environment:

70+ office spaces fully furnished, bright, modern, spacious, ergonomically designed and ready to move in

That is Affordable and Flexible:

  • No long-term fixed lease contracts
  • Option to upgrade or downgrade
SOHO’s Platform of Services include:

SOHO’s Signature Commercial Amenities:

  • Company Address Certification Document (Certificate of Incumbency) signed by SOHO’s director
  • Industry-leading Digital Technology 

*SOHO’s encryption technology software provides clients with layers of added security in all of their business communication

  • IT support
  • Administrative Support
  • Print and Scanning
  • On-site Private Mailboxes

 

SOHO’s Tangible Amenities:

  • Conference Executive Suites 
  • Boardrooms and Meeting Rooms

*Interactive and intuitive technology throughout 

  • Skype and Podcast rooms (soundproof)

SOHO’s Social Amenities:

  • Members Lounge
  • Events Space
  • BBQ area
  • In-House Restaurant and Bar
  • Cafe
  • Rooftop and Patio Terraces
  • Weekly Social Community Events
  • Fully Serviced Kitchen

Peace of Mind:

  • 24/7 Key-card entry
  • CCTV round the clock video surveillance
  • Mail and Package Handling

Access to:

SOHO’s Complimentary Wellness Programs:

  • Chill Out Room
  • Gym (open 24 hours, 7 days a week)
  • Sauna (open daily 06:00-22:00)
  • Yoga Classes (every Tuesdays and Thursdays)

*Complete with showers and changing rooms

SOHO’s Extra Benefits:

SOHO members enjoy product and service benefits including discounts from select partners in our community

Extra Services:

  • Parking
  • Maintenance
  • Housekeeping

And much more…

Connect with SOHO on:

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For more information and to visit one of SOHO’s Business Centres: Savoy Gardens, The Strand or St. Julian’s contact us on +356 99 334 333 or email: [email protected] and book your free tour today.

Come and meet Your SOHO Team today!

SOHO Malta Your SMART Working Office Solution Is Here.

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