COUNTRY PROFILES
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COUNTRY PROFILE
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Malta |
Print article Valetta harbour |
Malta is an archipelago of islands in the Mediterranean. Although the islands have a dry, barren climate, they have proved a fertile base for financial service companies in particular. Tourism is also a major source of income. Major trading partners are Singapore, the US and the UK.
A recent (2004) entrant to the EU, Malta retains attractive tax rates that it hopes will continue to attract business to its shores. “Economic and political stability, healthy industrial relations and competitive labour costs have been the pillars sustaining the success stories of many a foreign company for the last 40 years,” says Malta Enterprise Corporation, the government’s pro-business task force, and the country aims to maintain that success. English is very widely spoken on the islands, a further feature in Malta’s favour as an international business location.
An attractiveness survey carried out by Ernst and Young in 2005 showed that 70% of foreign companies registered in Malta would definitely or probably consider expanding their operations in the country.
Banking
Malta has long been a popular location for financial services, initially due to its lowtax status, and subsequently as a result of its excellent infrastructure and high financial and accounting standards. The 2006 “Index of Economic Freedom” rates Malta at 2.6 on a scale of 1–5 for business freedom. It scores particularly highly for monetary policy and property rights, with high scores in areas including banking and finance, wages and prices, and regulation.
Industry and manufacturing
Some 200 foreign companies currently operate manufacturing and/or distributing operations in Malta — an impressive figure for a country with a population of less than half a million people, and one which shows that Malta has much more to offer than the size of the internal market might at first suggest.
Malta initially attracted investment in this sector as a result of low labour costs. These are now a thing of the past, but the high productivity and flexibility of the workforce ensure that Malta continues to be attractive. Various government initiatives are in place to support the sector, in addition to the standard EU programmes. These include training support and help with setup costs.
Maritime Malta
Malta is the base of a “maritime cluster” that includes businesses in a variety of related fields, including shipmanagement, a large and successful ship registry, legal services, a shipyard and repair yard. The government is keen to support the development of industry clusters of this type, where an established sector attracts related services.
Tax incentives
Malta has double-taxation treaties with 25 other countries, including almost all OECD members. It does not, however, have such a treaty with the US — something that Ernst & Young highlighted as a weakness in their attractiveness survey. Despite this, though, 90% of those responding to Ernst & Young’s survey said that corporate taxation was a very or fairly attractive aspect of doing business in Malta. Investment tax credits and investment allowances are available in certain sectors — more details can be found in the Business Promotion Act.
Company information
Full foreign ownership of a Malteseregistered company is permitted in almost all sectors. According to IMF reports, however, foreign ownership is restricted to 50% in the case of IT service companies.
Facts in brief
 View in the hall of the Grand Master’s Palace at La Valetta |
Malta’s location is Southern Europe, islands in the Mediterranean Sea, south of Sicily (Italy). The country comprises an archipelago, with only the three largest islands (Malta, Ghawdex or Gozo, and Kemmuna or Comino) being inhabited; numerous bays provide good harbours; Malta and Tunisia are discussing the commercial exploitation of the continental shelf between their countries, particularly for oil exploration
Its climate is of the Mediterranean; mild, rainy winters; hot, dry summers
Natural resources include limestone, salt, arable land
Agricultural products are potatoes, cauliflower, grapes, wheat, barley, tomatoes, citrus, cut flowers, green peppers, pork, milk, poultry, eggs
Industries include tourism, electronics, shipbuilding and repair, construction, food and beverages, textiles, footwear, clothing, tobacco
Malta’s legal system is based on English common law and Roman civil law; accepts compulsory ICJ jurisdiction, with reservations
Diplomatic representation in the US — Chief of mission: Ambassador John Lowell
Diplomatic representation from the US — Chief of mission: Ambassador Molly Bordonaro
Contact Information
Maltese-American
Chamber of Commerce
Exchange Buildings,
Republic Street
Valletta VLT 05
Malta
Tel: +356 2124 7233
Website: www.malta-uschamber.com
Useful websites
| valletta.usembassy.gov | US Embassy |
| www.maltaenterprise.com | Government inward investment portal |
| www.msfc.com.mt | Financial Services Authority |
| www.malta-tax.com | Taxation for companies and individuals |
| www.legal-malta.com | Legal directory, guide to immigration, taxation, business law etc. |
| www.timesofmalta.com | Daily newspaper |
| www.visitmalta.com | Holiday information |