Why do so many individuals choose to live, work and invest in the smallest member state of the European Union? If you find yourself pondering this, you’re in good company. Malta, a de facto pair of small islands in the heart of the Mediterranean, continually intrigues with its remarkable success story.
You will be hard pressed to find more compelling evidence for the adage that “the best things come in small packages.” With a population of just over half a million living on a tiny group of islands situated 80km south of Sicily and just under 300km off North Africa, Malta is known for punching far above its weight internationally. Its diversified economy has rendered it resilient to global economic upheaval, with residents, visitors and investors benefitting from the modern physical and communications infrastructure and air connectivity to most regional capitals. These factors have helped it enjoy decades-long renown as a jurisdiction of choice among discerning investors who see Malta as a byword for trust and the perfect platform for international activity.
Currently, the country is registering the highest economic growth in the EU. The European Commission’s official forecast highlights Malta’s achievements, noting that the Maltese economy continues to grow robustly, driven by strong exports and domestic demand. Tourism flows have bounced back to well above pre-pandemic levels, and a strong inflow of workers is boosting domestic demand. After reaching 5.6 per cent GDP growth in 2023, the Maltese economy is expected to achieve a growth rate of 5 per cent in 2024 and 4.3 per cent in 2025.
Malta’s appeal is multifaceted. Its adoption of the euro in 2008 has provided stability and ease of business within the European market. An agile, highly skilled local workforce, proficient in English – an official language and the primary language of business – adds to its competitive edge.
The island nation offers abundant opportunities for investment and employment across various sectors, from finance and iGaming to shipping, aviation, pharmaceuticals, aquaculture, ICT, and chemical manufacturing.
Strategically located at the crossroads of north and south, east and west, Malta’s geographical significance has been recognised for millennia, shaping its rich cultural heritage. The island enjoys excellent year-round weather conditions, further enhancing its appeal as a desirable place to live and work. This makes it a popular destination for investors, global companies seeking a European presence, digital nomads, and thousands of expats.
Additionally, Malta has made significant investments in education, cultivating a workforce capable of driving economic progress and innovation, which strengthens its position as an attractive hub for business and living.
Connectivity is another of Malta’s assets. Malta International Airport links the islands to around 100 destinations, ensuring easy access to major European cities. This robust connectivity is complemented by a solid digital infrastructure, facilitating seamless business operations.
Moreover, Malta is experiencing a boom in tourism, a strategic industry that has attracted substantial investment to its shores. With over 3.5 million visitors, 2024 is expected to be crowned the record year in tourism, surpassing the previous year, which was the record holder until then.
Foreign investment flows have increased significantly over the years, driven by the efforts of both Government and private entities to warmly welcome and facilitate such investment. as well as by service providers offering tailored, cost-effective solutions. With a history of welcoming investors dating back to the 1950s, private and public Maltese service providers alike are well-attuned to the needs of incoming operations, making setting up in the country a straightforward and transparent affair.
Governmental support is available throughout the process via Business First, a specialised unit providing a single point of contact for interactions with various government departments.
Although the current domestic corporate tax rate stands at 35 per cent, Malta offers foreign investors an exceedingly competitive EU-authorised imputation tax regime allowing for effective tax rates as low as 5 per cent, backed up by an extensive list of double taxation agreements with over 70 countries.
A diversified and mature financial services sector is meanwhile ever ready to maximise value for investors, and corporate services providers are always on hand to aid in company registration, access to banking facilities, legal advice, recruitment, and everything else required to get a business up and running. Such professional services come at a far lower cost than in other major European cities. The same can be said for technical services, human resources, rental costs, and support services, which remain significantly below the continental standard, without compromising on quality.
The overall cost base, from human resources to real estate, remains competitive, rendering Malta an attractive destination for investors.
Beyond the practical advantages, Malta offers excellent healthcare, a culture of innovation and a vibrant community that attracts individuals, families, startups, and multinationals. Safety is a hallmark of life in Malta, providing a secure environment for residents and businesses alike.
Despite being recognised as a major European financial centre, Malta retains its island culture, with its relaxed Mediterranean lifestyle being a major selling point for those considering relocating. The unique cultural attractions, beautiful Blue Flag beaches, vibrant nightlife, and flourishing culinary landscape that make Malta a top tourist destination are similarly enjoyed by locals and expats alike. Over 300 days of sunshine every year allow for the full enjoyment of all the leisure activities Malta has to offer.
So, whether you are an entrepreneur or a wealth holder, whether you are approaching retirement or raising a young family, or whether you are looking for new corporate headquarters or a strategic bridge to Europe, Africa, or the Middle East, Malta might be just the place for you.
