Malta: Investing

FDI in Figures

Malta ranks amongst the first ten countries in the world in terms of direct foreign investment appeal. The country offers a certain amount of advantages to foreign investors:
- The country is an EU member;
- The competitive cost of a highly-skilled English-speaking labor force;
- The geographical position of the country which gives a privileged access to the Mediterranean and North African markets;
- The government has established a global pro-investment policy;
- The country has developed a niche economy, which is favorable to foreign investments, especially in the area of pharmaceuticals.

However, FDI flow has decreased due to the international economic crisis.

Why You Should Choose to Invest in Malta

Strong Points

Malta is a member of the European Union and the Eurozone since January 1^st, 2008 and has interesting strong points for foreign investors, like for example its geographical location (making it a natural "hub" for companies seeking to do business with the southern part of Europe and Northern Africa), a stable political environment, competitive labor costs (compared to other European Union countries), fiscal and investment incentives, a modern infrastructure (Malta freeport services 115 ports worldwide, the international airport has direct flights to 37 major cities in the world) and telecommunications system (wireless internet connections, VOIP, Wimax). In a recent report, the United Nations listed Malta as a "frontrunner" in the high foreign direct investment potential category. Over the past 5 years, foreign direct investment in-flow has generally followed an upward trend, reaching 10% of the GDP.

Weak Points

Malta main weak points are:
- A small domestic market;
- The population's relatively limited purchasing power;
- An economy with no natural resources and dependent on certain sectors like tourism or e-trade.

Government Measures to Motivate or Restrict FDI

Malta provides incentives in many sectors, to attract foreign direct investment mainly in manufacturing, transshipment and servicing industries, in particular the manufacturing of generic pharmaceuticals, information technology and financial services. The government offers generous tax incentives for investments in industrial projects:
- Preferential taxation rates (5% instead of 35%);
- Tax credit on investments (up to 50% of the amount invested or 50% of the first two years' salary of new jobs created);
- Reduced tax on reinvested profits;
- Incentives for job creation;
- Soft loans for promoters of industrial projects; and
- Indefinite work permits for shareholders with more than 40% share.
Additionally, Malta has a customs-free zone, Malta Freeport, which offers companies operating within it, reduced taxation and investment tax credits.

The country also benefits from structural EU funds for the period of 2007-2013, which will allow it to sustain its economic development, improve its competitiveness and thus attract new foreign investors.

Procedures Relative to Foreign Investment

Freedom of Establishment

Freedom of establishment is guaranteed.

Acquisition of Holdings

The acquisition of holding is possible in Maltese law.

Obligation to Declare

Licenses should be obtain when dealing with investment services. For more information please visit http://www.qubeservices.com/04investment.asp

Competent Organization For the Declaration

Malta Financial Services Authority

Requests For Specific Authorizations

All fields of the economy are virtually open to investment. Certain sectors dominated by the State, are currently being liberalized because of EU requirements and therefore energy distribution still remains at the hand of a parastatal company.

Investment Opportunities

Investment Aid Agency

Invest in Malta

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Malta
Ted - Tenders Electronic daily, Business opportunities in EU 27
Globaltenders, Tenders & Projects from Malta
DgMarket, Tenders Worldwide

Other Useful Resources

World Bank Group services website

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