Malta'a Business Environment
The Maltese business environment is one that has been marked by change and diversification. From an agrarian base Malta has expanded into bio-technology, pharmaceutical, healthcare, engineering, logistics, aviation, maritime, electronics, hospitality, ICT and software development, and financial services. Intense infrastructural development and educational investment has provided Malta with a strong base for business development and progress. Malta offers a strategic position in the Mediterranean coupled with a modern transportation system with a Freeport and frequent air link to Europe, North Africa and the Middle East, right in the centre of a strong localised hub of activity coupled with a modern developed telecommunications system with wireless internet connections, VOIP, WiMax, 3G and 4G.
To do business in Malta numerous types of company set-ups are permitted. The liberal legal system permits the definition of a company to include overseas branches of a foreign company set up in Malta and also companies that are neither incorporated nor resident in Malta if they register with the local tax authorities. Outside of serious health risks most imports are unrestricted and nor are there many volume based quotas, however clearance is required for certain products such as pharmaceuticals and livestock, as similarly found in other European Countries. Where goods are imported from non-EU countries a duty may be levied on top of VAT and is based on the transaction value, transport cost, handling charge, and insurance to the place of importation. However goods that enter through the Freeport or goods under custom control are not subject to duty. There are also tax incentives and subsidies for job creation, especially when disadvantaged groups are employed, such as registered disabled, single parents with a dependent, and those who have been long unemployed. And through the Income Tax Act electronic commerce can also benefit from tax credits on the value of their capital expenditure for developing e-Business.
Malta merges the line between business and pleasure. The strong and liberal legal and tax frameworks have provided the necessary support and protection of the industries without impeding the financial incentives they have to offer. Through the Schengen Agreement, serious licensing regimes, various physical and monetary incentives attributed to business, the favourable taxation environment and the proficient and hardworking workforce, it is no wonder that so many international business are relocating their international businesses within our shores.
Talk to an expert
EXPERT TAX AND LEGAL ADVICE
- Free Introductory Consultation
- No Commitments
- Tailor made solution for your circumstances