International investors are increasingly assessing business infrastructure, management presence and long-term opportunities when choosing where to establish operations, speakers at the Mobility Elite Summit said.

Corporate tax rates and company registration procedures are no longer the principal considerations driving international investors' decisions about where to establish their businesses, according to speakers at the Mobility Elite Summit held on Friday (today).

During a panel discussion at the Marriott Hotel in Sliema, international legal and business advisory professionals examined how the criteria used by entrepreneurs and investors to select jurisdictions have evolved.

Marina Kharchenko, Founder and Managing Director of Pravo Ltd, said that around 15 years ago, clients considering establishing themselves in another country would typically begin by asking two questions: Whether they could register a company and what corporate tax rate would apply.

Those considerations frequently influenced where investors ultimately chose to settle.

However, she explained that clients now approach such decisions with a broader understanding of what establishing an international business entails.

Rather than focusing exclusively on incorporation and taxation, investors increasingly examine whether a jurisdiction can support their commercial operations and long-term development.

Dr Kharchenko emphasised the importance of assessing where a company's actual economic activity takes place, including the location of its employees, management and strategic decision-making.

She questioned whether a prospective jurisdiction could realistically become a hub for the investor's business.

Business substance increasingly important

The discussion highlighted the growing importance of business substance when evaluating potential investment destinations.

Dr Kharchenko explained that substance should not be understood solely in terms of where a company's employees or management are physically located.

Consideration must also be given to where strategic decisions are taken and where senior management carries out its responsibilities.

This reflects the wider distinction between registering a company in a particular jurisdiction and establishing a business with meaningful operational activity there.

For international investors, the choice of jurisdiction therefore involves examining whether the local environment can accommodate the company's management structure, business activities and future growth. The discussion also pointed to the need for investors to assess the suitability of different jurisdictions according to their individual circumstances, rather than relying on a single set of criteria.

Government policy and development influence investment decisions

Ellina Iofiadou, Attorney at Law at Iofiadou Law, meanwhile, highlighted the role of government policy and national development in attracting international talent and investment.

She argued that a country's ability to attract investors depends partly on the direction of its development and the choices made by both government and society.

Iofiadou said it was important for governments to recognise the value of programmes designed to attract skilled individuals and international business activity.

Referring to Greece, she explained that the country had traditionally been associated with its geographical location, beaches and lifestyle.

However, she said its appeal had developed beyond these characteristics, with progress across different sectors creating additional reasons for investors and professionals to consider relocating there.

According to Dr Iofiadou, this development has contributed to the country's ability to attract skilled individuals.

Nevertheless, she acknowledged that challenges remain and that attracting prospective investors does not necessarily translate into immediate relocation.

Some individuals may be interested in establishing themselves in a particular country but are not yet prepared to make the move.

Her remarks highlighted the importance of sustained development and government policy in converting international interest into actual investment and relocation decisions.

Read more about the conference here.