Why Is Malta Attractive for Foreign Investors?

A presentation brought to you by CompanyIncorporationMalta.com

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Why Open a Company in Malta?

Malta has a sound legislation for company registration and one of the most attractive taxation systems in the European Union.

Boasting a skilled workforce and cheap labor costs, Malta is one of the best countries to do business in Europe.

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Malta as a Foreign Investment Destination

Malta is now an EU member which has led to the increase of its export market, as foreign investors setting up companies take advantage of the facilities offered the country’s freeport. 

The Government also has offered numerous incentives throughout the years which has contributed to the large number of foreign investors coming to Malta during the last years.

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Foreign Investments in Malta

Malta offers a lot of incentives for foreign investments and among those we can mention:

the Malta Freeport  which is a customs-free zone that offers companies reduced tax rates and investment credits;

the Individual Investor Program designed for non-EU citizens;

loans for businesses in the industrial area;

indefinite work licenses for shareholders owning more than 40% in a company.

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Governmental Support for FDI in Malta

The government has taken measures to attract foreign direct investment, such as financial incentives in areas like: manufacturing, telecommunications and pharmaceutical industry.

A reduced tax rate of 5% for businessmen who want to invest in the industrial sector, a reduced tax for companies reinvesting their profits and bonuses for the creation of new jobs are also available.

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Tax Incentives in Malta

Due to Malta’s full imputation taxation system, 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.

For example, 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%.

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Laws Related to Foreign Investments in Malta

The most important laws on foreign investments in Malta are:

The Income Tax Act of 1948 and its amendments that set an unique tax rate of 35% for Maltese limited liability companies.

The Business Promotion Act that offers incentives to companies that act in the areas of manufacturing, repairs or maintenance.

The Malta Enterprise Act enabled in 2003 that provides rules and regulation for granting incentives.

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Other Laws Related to Foreign Investments in Malta

Other laws encouraging foreign investments in Malta are:

The Companies Act of 1995 is the main source of law regarding the incorporation of limited liability companies in Malta. 

The Malta Financial Services Authority Act of 1989. The Investment Services Act of 1994 contains a set of rules regarding investment services and insurance.

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Company Formation Services in Malta

We provide a wide range of services for foreign investors interested in starting a business in Malta or expending their activity in this country. 

For assistance with the company registration procedure, you can contact our Maltese agents.

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Thank you for your attention!

For more information, please contact us at:(+44) 203-287 0408 (for international clients)

office@lawyersmalta.eu

www.companyincorporationmalta.com

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