Malta is a great place for company owners interested in starting a business due to its outstanding port facilities and EU membership. Entrepreneurs are able to access the markets of the neighboring countries because of Malta’s advantageous location and the numerous transit options available there.
Numerous financial incentives exist in the country to encourage business owners to establish operations there. Businesses can prevent paying taxes on the same income more than once because the nation has double taxation agreements with several countries of the world. These are the numerous reasons to setup a company in Malta.
This article will briefly discuss the numerous reasons to set up a company in Malta.
Numerous reasons to setup a company in Malta
Entrepreneurs who wish to establish a company in Malta must understand the reasons for establishing a business in the nation.
The numerous reasons to setup a company in Malta are given below:
1. Strategic Location
- Malta’s position in the center of the Mediterranean Sea, close to continental Europe, North Africa, and the Middle East, is advantageous for enterprises.
- It is simpler for firms to conduct commerce with surrounding countries due to Malta’s outstanding port infrastructure.
- There are flights from Malta’s international airport to important airports throughout the globe, making doing business easier.
2. English Speaking Population
- Another one of the primary reasons to setup a company in Malta is that English is widely spoken in Malta and is recognized as one of the official languages there.
- Approximately, 88% of the individuals residing in Malta can speak English making it convenient for entrepreneurs to interact with locals in the country and conduct business there.
3. Tax Advantages
- One of the main reasons to setup a company in Malta is the nation’s tax advantages. Malta is well renowned for maintaining one of the lowest effective corporation taxes in the EU. The firm’s taxable revenue is charged at the typical tax rate of 35% in Malta.
- Nevertheless, the firm’s stockholder is qualified to receive a refund of the taxes that the corporation has already paid. This is because of Malta’s full-imputation structure of business taxes, which credits the stockholder with the taxable income that a firm in Malta has paid by distributing dividends.
- By transferring the profits to the holding company, the actual rate of taxation is reduced to roughly 5-7%.
4. Affordable and Efficient Workforce
- Another one of the primary reasons to setup a company in Malta would be the affordable, extremely competent labor found in the country.
- Malta is also renowned for its top-notch educational standards.
- Additionally, Malta’s cost of living is considerably less expensive than that of other EU nations.
- As a result, the basic salary that companies must pay to their staff is a little lower than in the country’s neighbors.
5. Double Taxation Avoidance Treaty
- Malta has signed double taxation accords with more than 70 nations all over the globe. These accords offer security from unnecessary external taxes.
- The avoidance of double taxation is made possible by double taxation treaties, which also serve as a mechanism to encourage investment from various nations.
- As a result, these agreements reduce the operating expenses while also improving your organization’s ability to draw in foreign investors, which is another one of the reasons to setup a company in Malta.
6. Low Social Security Obligations
- Although both the worker and the employer are indeed required to contribute to social security, the required contribution is now only 10% of the wage.
- This proportion is considerably below the global average for social security standards, particularly for those who live in European regions, guaranteeing that these charges do not significantly increase the cost of recruiting personnel.
7. Financial Incentives
- The Maltese government supports business developments in the country by providing loans with favorable terms that can cover up to 33% of a project’s expenses.
- In order to facilitate entrepreneurship in Malta, the government has created several incentives to encourage investment and aid in the growth of industrial and creative businesses.
- The European Regional Development Fund (ERDF), which can contribute up to 50% of the expenditure of projects that have been authorized, is another resource available to entrepreneurs in Malta.
- Company startups in Malta are eligible for grants worth up to €2,00000 for commercial growth. This is another one of the reasons to setup a company in Malta.
Conclusion
Entrepreneurs who establish a business in Malta can take advantage of the country’s numerous tax breaks, financial incentives, accessible labor force, English-speaking populace, etc. If you want to incorporate a business in Malta, get in touch with our experts at Odint Consulting.
FAQ’s
- The Maltese government supports business developments in the country by providing loans with favorable terms that can cover up to 33% of a project’s expenses.
- The European Regional Development Fund (ERDF), which can contribute up to 50% of the expenditure of projects that have been authorized, is another resource available to entrepreneurs in Malta.
- Company startups in Malta are eligible for grants worth up to €2,00000 for commercial growth.
Malta is a great place to start a business since it offers tax benefits, financial benefits, and fast company registration. A firm can be started with at least 1 shareholder and 1 director.
- The company’s taxable revenue in Malta is taxed at the standard 35% rate.
- However, the company’s stockholder is entitled to a return of the taxes that the company has already paid.
- This is because of Malta’s full-imputation structure of business taxes, which credits the stockholder with the taxable income that a firm in Malta has paid by distributing dividends.
- The actual tax rate is decreased to around 5-7% by moving the profits to the holding company.
