Over the years, the Maltese business environment has smoothly transitioned from an agro-based economy to a diversified one. In fact, at the moment, it is the fastest-growing economy in the European Union.
The Island has invested in various industries including engineering, pharmaceuticals, technology, financial, aviation and maritime, to mention a few.
In the process, a lot of investment opportunities have been created in these niches. This article looks at five reasons why it would be a good idea to start a business in Malta.
In the past years, Malta has been enjoying steady economic growth. The Island’s financial sector is large and well connected to the rest of the world. Recently, Malta has also been experiencing an influx of investors who are moving to the Island to grow their businesses.
All this creates a lucrative opportunity for those who want to start a business in Malta. A stable growing economy means that your investments will be safe and are less likely to get affected by unexpected recessions.
The financial industry, in particular, is quite large. Key metrics indicate that the banking system is in good shape. A large percentage of the banks are well capitalised, with ample liquidity as well. A look at the banks’ balance sheets indicates that they are continuously experiencing healthy profitability.
Lower Minimum Wage
One of the reasons why you might strongly consider starting a business in Malta is that their minimum wages are not as high as surrounding nations. This can go a long way in decreasing the day-to-day costs of running your business.
Records show that Malta’s minimum wage is the lowest in the EU. Apart from that, the minimum wage earners on the Island pay the sixth-lowest tax rates in the region as well. This means that even though they don’t get much, they are still able to sustain themselves.
Favourable Business Climate
The business climate in Malta is very favourable for both Foreign and Local investors alike. Unlike a lot of countries which have very stringent law, processes and tax regulations, the conditions for company formation in Malta are quite relaxed.
There are certain types of businesses on the Island that won’t even need you to get a licence so that you can start operating. This means there is minimal bureaucracy. You will only need a licence if you want to run a regulated business like a financial firm or medical practice.
Even for those businesses which require a licence and registration, investors will enjoy a super-fast and easy registration process. You will also find that the taxation system is among the most advantageous in Europe. The Island has some of the lowest corporate tax rates and personal income taxes in Europe. This makes it quite appealing to foreign businessmen and also to foreign citizens coming to live and work in Malta.
The official language in Malta is Maltese. Under normal circumstances that would be a worry for anyone trying to establish a business in the country but in this instance, it shouldn’t be. The majority of the population on the Island fluently speaks the English language.
This eliminates the language barrier that many foreigners face in various countries. Apart from Maltese and English, many of the locals in Malta also speak Italian, French and a bit of German.
It is a Safe and Beautiful Country
Starting a business in a crime-ridden or violent area might not be such a good idea. You are more likely to lose your proceeds to robberies, and your property might get vandalised from time to time. You will be pleased to know that is not the case with Malta.
The country is actually an archipelago; however, only three of its most prominent islands are operational and inhabited: Kemmuna Malta, and Gozo.
Whether you are bouncing from Island to island or cruising on a boat, wherever you go, you grow friends every day. That is how kind everybody is in Malta. The little crime that is there keeps on dwindling. Malta has seen a 2.1% drop in crime in the year 2019 and an average decrease of 10% over the past three years.
The crime rate is so low that Malta is considered one of the safest places in the EU. If all else hadn’t convinced you, this probably will; no one enjoys running a business in an unsafe area. Even if you do enjoy profits, there’s nothing interesting about dodging bullets from time to time.
Malta’s policies and environment make it an ideal location for investors to do business in. The buoyant predictions for economic growth are also assisting to boost confidence in the nation’s economy both at home and abroad.
The Island continues to display growth that is unmatched in the European Union. All these factors, combined with their low bureaucracy and a highly friendly tax system, make it clear that Malta is a favourable business destination.