Despite its small size, Malta offers no shortage of business opportunities in 2024. As one of the fastest-growing economies in the European Union, Malta is brimming with potential waiting to be explored.
In this article, we highlight some of the many business possibilities in Malta, many of which you can start today.
Malta is a much sought-after destination for expats and business owners for variable of reasons. A few of these include the Mediterranean lifestyle, high standard of living and its renowned climate.
As you will discover in the article, Malta is a unique place to foster both new businesses and expats looking to relocate to the island. It is also worth mentioning that starting a business in Malta is highly beneficial as the island facilitates trade and freedom of movement within the EU.
Continue reading to explore the best business opportunities the island has to offer.
Top Business Opportunities in Malta
There is no denying the fact that Malta, in financial services, has garnered an excellent reputation on an international level. Essentially, Malta has several attributes like the low set up cost, favourable tax rates, tax incentives and human resource effectiveness, making it an attractive base for a business.
These benefits provide financial service operators with flexible and EU-compliant domicile. Additionally, Malta’s impressive record continues to attract investors from around the globe. These advantages extend to diverse sectors for starting a business, including the following. Primarily, these are the business opportunities that one can capture in Malta:
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Financial Services
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ICT
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Electronics
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Knowledge Centre/Back-office Services
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Generic Pharmaceuticals
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Oil and Gas
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Maritime
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Training and Education
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Gaming
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Aviation
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The Film Industry
Being part of the EU, Malta has embraced an encouraging approach to business elevation, expansion and standard of living.
Malta’s strength and stability lie in its:
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Excellent telecommunications
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Strategic geographical location
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Economic and political stability
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State of the art transshipment and distribution facilities
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Highly skilled workforce
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Dedicated and competitively priced human resources
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A safe and pleasant lifestyle, rich in culture and entertainment
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Top business support services; and
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Corporate tax benefits
Why is Malta Better for Business?
Malta may be a small island nation; however, its impact on Europe is a considerable one.
Firstly, one must look at Malta's location. In the middle of the Mediterranean sea, it is surrounded by Sicily, North Africa and Gibraltar. This positioning establishes the Maltese islands as a doorway to the European, African and Middle Eastern markets.
Due to its strong geographical position paired with its stable GDP growth during times of global recession, Malta has positioned itself as a profitable domain to conduct business affairs.
Moreover, Malta offers an environment that promotes consistent professionalism and regulation. The island also provides fantastic benefits such as a tax-efficient platform which permits business owners based in Malta to offer their goods and services throughout the EU. Fundamentally, the several incentives applied in Malta continue to draw individuals and investors to the island, ensuring stable business growth.
The national development agency, Malta Enterprise, is authorised to promote and facilitate international investments throughout the EU.
Related article: Discover Malta - The best destination for second citizenship in 2024
Why Set-up a Holding Company in Malta?
Besides the fact that it is a member of the European Union, Malta’s laws are set based on the European Acquis. It offers a competitive 35% Corporate Tax Rate on worldwide income to all businesses incorporated in Malta.
Furthermore, shareholders are entitled to claim a refund, which generally amounts to 6/7ths of the tax paid by the company to Malta.
Business Promotion Regulations provide additional sector-specific tax incentives in:
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Biotechnology
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Electronics
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Plastics
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Pharmaceuticals
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Electrical equipment
More incentives include tax rebates based on the duration of an operation, ranging from 5% for the initial 7 years, up to 15%.
Holding companies which are based in Malta can enjoy several benefits, including an exemption from stamp duty and capital gains on transfers of shares by non-residents and a favourable participation exemption regime. This makes Malta an attractive jurisdiction for holding companies.
It is interesting to note that Malta has established a network of over 70 double tax treaties, most of which are based on the OECD Model Convention. All of these factors (and more) combine to make Malta one of the most desirable jurisdictions for business opportunities.
Best Locations to Set up a Business in Malta
On an island like Malta, location plays a key role in the success of your business and is dependent on the kind of business you would like to set up. Maximum exposure and constant footfall are important factors to consider.
Sectors such as Finance, iGaming and Information Technology have experienced accelerated growth in recent years. This has strengthened Malta’s position as a hub for new business ideas, entrepreneurs and creativity.
The locations we have highlighted below offer great potential as a business and commercial property.
Sliema
Located across from Valletta, Sliema is a thriving location for several businesses. Situated along the coast, it combines a residential area with many shopping, food and entertainment destinations. Sliema is a centre for tourism, and this town is always bustling.
St. Julians
Located just a few minutes north of Sliema, St.Julians is one of the busiest towns in terms of business. This old fishing village is renowned for its vibrant nightlife, seaside restaurants, cafes, bars and hotels. It is popular among locals and foreigners alike throughout the year, making it a viable option for steady business.
San Gwann
Located more centrally than the former seaside locations, San Gwann is a mix of residential, commercial and industrial zones. Among the more affordable areas, San Gwann is ideal for startups wishing to make a name for themselves, yet keep costs down.
Mriehel
Mriehel is known as the industrial area in Malta, filled with showrooms and factories. It is centrally located and suitable if you intend on opening a business which requires a production area or storage facilities.
Gzira
Located in the middle of Sliema and Valletta Gzira is a hub for igaming offices, financial institutions and hospitality businesses. Due to its location, Gzira is an evolving town, full of potential and perfect for startups. Office space is in high demand and offers a unique opportunity to form part of the growing business movement.
Valletta
The capital city boasts beautiful offices and spaces for bars and restaurants. Business is booming in the cultural city and draws in people every day for commerce or entertainment, especially at the weekend. Valletta is popular among law firms, maritime businesses, as well as entrepreneurs, venturing in the hospitality industry.
Conclusion
In conclusion, as outlined in this article, there are several reasons why Malta is a good option to establish your business. Not only is the economy thriving, but it is also supported by a generous taxation system which allows you to build and expand your business.
The climate and easy connections to Europe are a bonus, making business opportunities in Malta exceptional.
