Malta

Malta

Malta

Various individuals relocate to the tiny island state every year and are attracted to what Malta has to offer. Malta provides the ideal legal and business environment to extend your business practices and invest in an upcoming and luxurious property market. Above all, the island is perfect for relocating your family and retiring in tranquility- a characteristic Mediterranean climate, multilingual population, expansive history and culture and a bolstering economy.

Kyshen International’s immigration services are focused towards both individuals and businesses. Upon evaluating your relocation enquiry, we will direct you and provide you with a range of options in order to facilitate your relocation to Malta. Our professional and quality-oriented guidance is tailored to assist each individual and save valuable time.

A growing number of internationals are relocating their business and or family to Malta for a multitude of factors that Malta offers through a number of programmes which grant one a special tax rate, residency and/ or citizenship.

  • A prospering economy emerging from a strong business and legal environment.
  • A European Union Member State
  • Malta is a member of the Schengen Area
  • Rich cultural history and pleasant Mediterranean climate with plenty of sun and sea
  • Excellent standard of education
  • Free movement of capital
  • Political stability and low crime rate

Malta’s Strategic Location

Malta’s geographical location in the middle of the Mediterranean has rendered it a propitious location among the individual jurisdictions of European countries. Its strategic position between Southern Europe and Northern Africa offers companies present in Malta with an opportunity for gaining access to both markets with relative ease through the advertising or exportation of products or services produced and developed in Malta.

Malta’s national airline, Air Malta, bridges the Island with over 35 major cities around Europe and the Mediterranean. Air Malta operates with partner airlines in order to provide connections to many more locations in North America and the Middle East. Airlines flying to-and-from Malta include: Lufthansa, Emirates, Turkish Airlines, Alitalia, Air France, Swiss, Austrian, Norwegian, Ryanair, Easy Jet, Monarch, Vueling, SAS, Brussels, and Air Berlin.

Malta as an EU Member State

Acceptance to the European Union (EU) in 2004 and joining the Eurozone in 2008 has undeniably helped Malta to become an attractive jurisdiction for the establishment of companies. Obtaining citizenship or residence in Malta essentially acts as a gateway for accession to the entire EU market and facilitates studying, work and residence anywhere within the European Union, and even allows visa free travel to over 165 countries including the Schengen Area.

Malta’s status as an EU member state ensures that the financial jurisdiction upkeeps the highest regulatory standards which garner increased reputability to Malta as a European financial services hub. Malta even offers considerably low set-up and operational costs and fiscal base while still maintaining European standards of compliance.

Malta’s Thriving Economy

Malta has a diversified free-market economy which mainly relies on tourism, manufacturing and financial services. Government encourages foreign investment and Malta enjoys concrete industrial relations.

Malta has developed to become a first-rate European financial centre that amalgamates high regulatory touchstones and thorough enforcement with a discerning attitude towards commerce and business. The financial services sector has attained swift growth since the country’s 2004 accession to the EU and the island is now rightly regarded as having a robust and intricate financial system. This has become a prime reason for businesses relocating to Malta, including hedge funds, insurance captives, fund managers, investment service providers, credit institutions, insurance intermediaries and forex operators of various types.

In 2016, Malta’s economy saw an improvement of 5% rendering it the fastest-growing economy throughout the EU. As stated by the the National Statistics Office (NSO), recent statistics show that Maltese GDP increased by 6.7% in nominal terms. The local Maltese economy moreover propelled across the majority of sectors, with the highest growth rates recorded by 12.4% in agriculture, forestry and fishing; 11.9% in scientific, technical and administrative support sector; and 11.6% in the information and communication sector.

A statement issued by the Government of Malta explained that this high surge in rates reverberated in many economic standards, including a €164m increase in private consumption of households, to unemployment reaching a new low at just 4.8%. 7,500 new registered jobs emerged in the private sectors in the first 9 months of the year 2016.

In October 2016, Standard and Poor’s had promoted Malta’s long-term economic rating for the first time in two decades, citing “improved credit metrics” as the criteria for upgrading Malta’s rating up to A- from BBB+. More recently in 2017, Malta preserved its A- long-term accolade with international rating agency Standard and Poor’s. The US financial services company cited Malta’s “strong growth performance coupled with consistent current account surpluses, as well as by narrowing government deficits and improved fiscal management” in its decision to retain Malta within its A- bracket. 

S&P Global Ratings pinpointed that the country’s macroeconomic growth is still exceeding the Eurozone average in 2017.  It predicted that GDP would increase by an average of 3 per cent a year between now and 2020, with government debt amounting to 47 per cent of GDP by that date. The agency moreover stated that even though the Brexit fallout could indeed have implications on Malta, the country appears to be “generally well-placed to withstand Brexit shocks”. 

Malta’s Official Languages

Maltese and English are both official languages in Malta. Maltese is a Semitic language in structure, however at present it includes many European words (mostly Italian and English). The language does have its own distinctive attributes and its own literature. It is written in Latin script. Virtually all Maltese people are bilingual.

Both languages are truly immersive in Maltese society. Legal documents may be moreover be compiled in Maltese or in English. Official publications, including laws, are issued in both English and Maltese. Most commercial and banking documents are compiled in English, and most business communication is in English. Maltese and English are taught at primary school level, and many schools conduct teaching of subjects in English from this level. Subjects at secondary school level include at least another language, with Italian, French and German being the most widespread.

Malta’s Attractive Tax System

Entrepreneurs who desire to embark on business activities in the Maltese sector may benefit from the establishment of a Maltese Company. Maltese companies are accountable to income tax on their chargeable income (income less deductible expenses) at the standard income tax rate for companies of 35%. However, upon receiving a dividend from such company, shareholders are permitted to claim a refund of part or all of the Malta tax paid. The amount of the refund that the shareholders would be entitled to would rely on the type and origin of income collected by the company. If the company’s income is trading income, including for instance income attained from the licensing or sub-licensing of trademarks and patents, the shareholders qualify to claim a refund of six-sevenths of the Malta tax paid.

Being a member of the European Union, Malta has taken up the Parent/Subsidiary Directive, the Interest and Royalties Directive and the Merger Directive. In addition, a Maltese company may thrive from Malta’s thorough double tax treaty network, which presently stands at close to 60 Double Tax Agreements with developed and developing countries alike. Double Taxation Treaties are conventions set up between two countries that aim to eradicate the double taxation of income or gains emerging from one territory and paid to residents of another territory. They function by dividing the tax rights each country claims by its domestic laws over the same income and gains. Malta even provides several other incentives including investment allowances, incentives administered by Malta Enterprise, investment aid incentives, research & development incentives, and other potential benefits and grants offered by the European Regional Development Fund and European Innovation Programme.

Malta’s Qualified Workforce

Making up for Malta’s relative shortage of natural resources is a highly qualified, multilingual workforce. With a constant flow of university-educated graduates from various backgrounds and a choice of properly trained personnel experienced in using intricate and high-precision machinery, a robust source of human resources is continuously readily available for companies present in Malta.

Life in Malta

Despite the fact that the Maltese archipelago is made up of only three inhabited islands—the largest of which (Malta) is only 122 square miles—one will discover that these islands provide a wealth of activities to choose from. A vibrant, dynamic island where something is always happening.

Naturally, the Mediterranean Sea has much to offer itself, from snorkeling in crystal-blue waters, to exploring sequestered coves, to sailing, canoeing, or kayaking.

Made for history aficionados, the islands possess the highest density of historical sites than anywhere in the world. One could literally spend years going through the Megalithic Temples of Ggantija, Roman ruins, medieval castles, ramparts, gardens, World War II shelters, the islands’ hundreds of glorious baroque churches, and still keep coming across new observations about each.

Then there are Malta’s renowned festivals. All year round, people pour into the streets to celebrate a myriad of colorful spectacles, exhibitions, feasts, or other forms of entertainment. As a Catholic country, several of these celebrations are centred around religion, but you’ll even find that most Maltese towns have some kind of distinctive festival feature of their own (like the town of St. Julian’s “Gostra,” where locals attempt to walk to the top of a diagonal oiled pole hanging over a bay, whilst crowds cheer them on).

The island even hosts various cultural events throughout the year such as the Malta Jazz Festival, the International Fireworks Festival and the Notte Bianca—a celebratory event where the museums and palaces of the island open their doors to visitors for special public displays and performances all night long.

Malta Statistics

  • Geography and climate Malta is situated in the centre of the Mediterranean Sea, 93 kilometres south of Sicily and 290 kilometres north of the closest point on the African coast.
  • The aggregate area of the Maltese Islands is 316 square kilometres with Malta being the largest Island, occupying 95 square miles.
  • Gozo lies to the north-west, less than half an hour away by ferry.
  • The topography of the islands is low-lying to the south-east and hilly toward the north-west.
  • At several points the 192-kilometre shoreline is deeply indented, resulting in excellent natural harbours.
  • Although it has some sandy beaches, the coast of Malta is mostly rocky, including some eye-catching hills.
  • Valletta, the capital and a UNESCO world heritage city, is located on a headland between the two main natural harbours.
  • Malta has a mild climate. The hottest summer month is August, having an average maximum temperature of 31°C (87°F). The coldest winter month is February, with an average minimum temperature of 9°C (49°F).
  • The average annual rainfall is 520 millimetres (21 inches). There are about 300 days of sunshine each year.
  • The population of the Maltese Islands as at the end of 2017 is just under 420,521, with a density of over 1,300 persons per square kilometre, the highest in the EU.

Preliminary steps

Kyshen International will act as your legal and tax representatives to ensure that you have everything ready prior to relocating to Malta. We will ensure that you are prepared and well-informed before initiating the whole process. Keep in mind that travel documentation and permits are imperative for relocation to another country and a valid passport is the most essential document that one would require.

Additionally, visa applications and permits should be applied for and obtained in advance, as well as any form of official documentation such as credit cards, identity cards, driving license, residential permits, bank statements, utility bills, birth certificates, marriage certificates and insurance policies- these are all prerequisite forms of documentation when applying for an e-Residence card or a work permit through any of the Maltese Government Programmes.