Usually experienced entrepreneurs invest in Malta because they understand the numerous benefits that Malta offers to develop the foreign investments, but it is not a general rule. Those who have invested in Malta, agree that Malta offers a great deal more than simply holiday home and villa investment opportunities. Because of Malta's geographic location, investors have a variety of investment choices. For investors wishing to do business in Southern Europe and North Africa, the region is a natural hub.
Did you know that more than 31,000 companies have been established in the country with foreign shareholders? With the proper information, guidance, and expertise it's not complicated at all to open your business in Malta. Before explaining the reasons why you should invest in Malta, we would like to talk about the top industries that are attracting foreign investments here.
Top Industries to invest in Malta
The three most important industries in the country are electronics, medicines, and communications. According to Statista Research Department, the revenue from the manufacture of electronic components in Malta is expected to reach approximately 16.9 million US dollars by the end of 2022.
Other sectors include agriculture and tourism. Tourism accounts for around 20% of the country's GDP. Malta has a unique market for internet gaming. Over 300 multinational remote gaming enterprises have established themselves in this city. Malta's geographic location attracts foreign investors to the Mediterranean region and aids business people looking to invest in tourism. Malta's location between Europe and Africa makes it a crossroads for several cultures. The agricultural sector in the Maltese Islands has been drastically changed as a result of Malta's membership in the European Union. In 2018, the government released a ten-year agriculture policy that aims to provide clarity to all relevant stakeholders, ranging from public entities involved in certification, permitting, and decision-making to private entities directly involved in the agricultural scenario who want to invest or diversify their business.
Malta's transition from mass-production to high-end manufacturing has been a success, with trained factory employees providing a critical source of innovation and competitiveness. Leading firms from the United States, Germany, the United Kingdom, France, Italy, Spain, and India have established operations on the island. The sector has undergone a strategic transition in recent years, moving away from large-scale production for mass markets and toward exclusivity, added value, and a focus on well-targeted niche markets.
Today, the island is a popular destination for companies that specialize in high-tech items such as electronics and precision engineering, as well as capital-intensive sectors like life sciences and aircraft maintenance.
Malta's real estate market is extremely appealing due to its low prices. This implies that finding a home for you and your family may be simple. A real estate investment, if purchased in the correct location, can provide instant income flow through rental and tourist. For investors who want to take advantage of the MEIN program, which requires a residential property acquisition of at least €700,000, a real estate investment is required.
iGaming industry, Malta is leading the way in this particular industry. Malta's iGaming industry is a buzzing place right now, with companies vying for space in a thriving sector with bright possibilities. iGaming accounts for over 13% of the country's GDP, generating a mind-blowing total of €700m a year in revenue and firmly establishing it as Europe's undisputed iGaming capital.
Malta offers a diverse range of investment opportunities, ranging from real estate to local businesses and online commercial firms to equities and bonds. Investors in all of these industries have found success in Malta, and as a full member of the European Union, the country abides by all of the unifying EU financial standards that keep things running smoothly.
Some beneficial key points how Malta sustains foreign investments:
1. The most attractive factor in Malta is the taxation system that offers a lot of possibilities for companies.
2. Malta has signed double taxation treaties with more than 50 countries. These treaties ensure that profits made in Malta are tax-free in the countries where they are based.
3. Even if the corporate tax rate is set at 35%, the tax is actually taken down to much lower values due to the participation holding shareholders are allowed to have.
4. Shareholders are entitled to ask for refunds of the 6/7th part of the tax on dividends, therefore the tax will be taken down to 5%.
5. Malta is also highly appealing to retirees, as the regulations provide a 15% tax break for foreign retirees who move to Malta, and the pensioners' capital gains or income from other countries are not taxed in Malta.
Opportunities
Growth over the past few years has therefore been broad-based and driven by a number of new activities in the services sector, such as IT, financial, insurance, scientific, technical, legal, and accounting services. The further expansion of these sectors and the ability of the economy to continue to attract high-end business services require investment into skilled labour.
The Maltese financial services sector is the fastest-growing sector of the economy. The industry is largely based on the core sectors of asset management, investment funds, insurance, private wealth, and corporate services, with the introduction of fintech, such as blockchain and e-payments, as well as the aviation and yachting or maritime services industries. Financial services accounts for approximately 11% of Malta's GDP.
Blockchain technology, trade finance, or other regional private banking business activities, venture capital banking, trust business, investment banking and advice, captive insurance, private pension funds, and all types of outsourcing and coordination services, for example, accounting and administration, insurance management, fund administration, and all types of outsourcing and coordination services exist in Malta.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
