When it comes to doing business in Europe, Malta is a country that company owners should consider. This country has become extremely attractive for doing business in recent years due to its geographical location and a number of other favorable factors. Find out more about 10 reasons why you should start your own business in Malta

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Malta is a small island in the Mediterranean Sea, located between Europe and Africa. This thriving island nation has become an increasingly attractive place to do business in recent years. All this is thanks to the approval of a favorable taxation system and a number of other favorable conditions for entrepreneurial activity.

Is it worth starting a business in Malta in 2024? 10 reasons to start your own business on the island this year further in our material.

Advantageous geographical position

Malta has a strategic geographical location in the Mediterranean Sea, between Europe, Africa and Asia. Also, thanks to the developed transport network, the country is very accessible. Malta Airport operates flights to major airports around the world, including Singapore, Shanghai and New York. In addition, cities such as London, Paris and Frankfurt are less than a 3-hour flight from Malta. Therefore, it will be much easier for you to manage your international business if you register your company in Malta.

Dynamic economy

Given the limited amount of natural resources, Malta's economy is driven by aviation, maritime transport, finance, services, tourism, real estate and manufacturing, particularly electronics.

Tax benefits

Malta is widely known for having the lowest corporate tax rates in the European Union. The standard tax rate in Malta is 35% of the company's profits. However, the shareholder is entitled to a refund of the tax paid by the company. This is due to the Maltese corporate tax system, where the income tax paid by the company in Malta is credited to the shareholder through receipt of dividends. This reduces the effective tax rate to around 5-7% by distributing the profits of the holding companies.

The second advantage is that as a resident of Malta you will be liable to pay taxes only on income remitted to Malta. Note, however, that the refund may be reduced if a claim for double taxation relief is made under certain circumstances.

Thus, low tax rates are one of the advantages of starting a business in Malta.

No double taxation

Malta has signed agreements on the avoidance of double taxation with more than 70 countries of the world, including almost all important countries of the Organization for Economic Co-operation and Development (OECD).

This document guarantees the businessman that he does not need to pay taxes in Malta and in the country of origin, and also serves as a tool for attracting investments from certain countries. In this way, you will be able to reduce business costs, as well as expand your company's potential for global investors, bringing significant benefits to your company.

The official language is English

An entrepreneur does not have to worry about the language barrier when starting a business in Malta, as English is one of the country's official languages. Most of the people who live in the state speak English well, so it is much easier to open an international business here. It will also be easy to find customers and employees, due to the absence of language misunderstandings. Thus, this is an important advantage of starting a business in Malta.

Qualified workforce

The level of education in Malta is very high, so the local workers are highly qualified. Also, the cost of living on the island is lower than in other countries of the European Union. These two factors have a positive effect on starting your own business in Malta, because the wages you have to pay to employees will be slightly lower than in neighboring countries, and the quality of work will be high.

High level of social security

The social insurance rate for an employee in Malta is 20%, of which 10% is paid from the employee's wages and another 10% is compensated by the employer. Thanks to this, you do not need to worry about the level of social security of employees, as well as the costs necessary for this.

Developed infrastructure and telecommunication services

  Malta has excellent transport links thanks to a diverse network of roads and ferry crossings. In addition, telecommunication services are well developed on the island, as there are about 300 Wi-Fi access points.

Low cost of business registration

One of the advantages of setting up a business in Malta is the low registration costs. The size of the minimum share of capital to create a private company with limited liability is only 1165 euros. In addition, two standard registration fees of €375 and €245 must be paid. The cost of starting a business in Malta is certainly very affordable, so this will not be a major problem.

High standard of living

Compared to neighboring countries of the European Union, Malta ranks high in terms of GDP per capita, the level of development of the health care system, life expectancy and social support. In addition, Malta has a low cost of living. Therefore, if you wish to migrate to Malta to start a business, you can enjoy a high quality of life here at reasonable prices.

Malta is becoming an increasingly attractive country for doing business in the European Union, as it has excellent infrastructure and telecommunications services, a highly skilled workforce, a favorable tax regime, a high quality of life and strong social security.

When planning to move abroad, consult an employment lawyer, a specialist will help you understand the specifics of the legislation of the new country, learn about the necessary permits and prepare a package of documents for moving.

Igor Usyk - Head of Migration department at VisitWorld

To ensure a safe move to a new country, I advise you to consult a specialist. My colleagues, qualified specialists with a legal education, will help you avoid unpleasant situations during migration.

Products from Visit World for a comfortable trip:

Checklist for obtaining a visa and necessary documents in Malta;

Legal advice on immigration issues in Malta;

Travel insurance for foreigners in Malta;

Medical insurance around the world.