It’s becoming more apparent that companies are choosing to base themselves in Malta as opposed to the UK. But the question is, why? We conducted research to find out what is so attractive about setting up a business in Malta and why it continues to gain attention from entrepreneurs.
The way taxation works in Malta is relatively liberal compared to other parts of Europe. Those who move there from other countries can benefit from a 15% flat rate of income tax whilst working and can also avoid tax on income from any overseas work, capital gains or other key sources.
This is attractive for businesses wanting to move their workforce to another country in Europe as it is inexpensive and has these tax-related advantages. There is also no inheritance tax in Malta, so it can make it a great option for those wanting to start a family there, too.
Malta has taken the position to give tax breaks to certain industry types, for example gaming and cryptocurrency, as they strive to be the new capital of technology. Tax breaks are given to these larger companies which gives motivation for them to pack up and relocate.
Despite being a small island, Malta’s power as an area for business and tourism means that you can get to it easily. Tourism is huge and booming as Malta has dedicated itself to providing entertainment and activities for guests. With tourism comes an economy boost – the country is filled with restaurants, bars and hotels. With flights heading from hundreds of destinations in the world, getting to the island is easy for most countries in Europe. Malta is in a unique location, meaning that within a 5 to 6 hour flight they have a radius of nearly every country in Europe.
Malta is surrounded by beautiful blue waters in the Mediterranean sea, and with sunshine sticking around for a huge portion of the year, Malta is an obvious location for tourists to choose to visit. However, the island can offer even more to those who want to settle down and work.
Never dropping below around 20 degrees in the winter, when the weather takes a turn for the worst in other countries, Malta stays positively warm and pleasant. – expand on why this is good for business. What other industries can thrive in this weather?
Despite not having the fastest connection speeds, Malta is still definitely well connected when it comes to the internet. As the internet is such an important tool in modern-day life, the Maltese government is working on improving the connection speeds, however, some business-quality services offer speeds of 1Gbps or more for certain organisations.
This is particularly important for businesses in the finance sector, as well as the gaming industry – which is largely present in Malta.
In Malta, English is an official language – appearing side by side with the Maltese mother tongue. This is highly attractive to entrepreneurs from English speaking countries who want to transport their workforce to the island. There is not a major cultural shift for people when they make the move to Malta.
Along with the glorious weather, Malta also has good living standards – from housing to leisure. With businesses and the tourism trade obviously present, money is able to flow into the country effortlessly – in turn allowing public services and general infrastructure are of high quality.
So, overall it is easy to see and understand why so many companies are choosing to base themselves in the small European island of Malta. On almost every level, Malta can offer a lot to budding businesses and existing organisations. It is definitely clear why Malta’s popularity is set to continue and grow with time.
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