Table of Contents
- 5 Reasons to Start a Business in Malta
- Wrapping Up: Malta has a Perfect Climate for Businesses
You need a safe and successful place to start a business. One such place with a promising future is Malta in the Mediterranean. Here are the reasons that will convince you to start your business in Malta for more growth and success. ~ Ed.
Malta is one of the world’s most beautiful islands, and with over 300 days of sun every year, it also has one of the best climates, too. But that’s not all that’s drawing people to this jewel of the Mediterranean.
Malta has one of the fastest service-based economies in the European region. It is the one that has been showing significant growth since it entered the Eurozone in 2008. This, along with its attractive tax system, has been attracting companies from across Europe to Malta.
Recent developments in Malta, and the continued healthy performance of its stock exchange, mean that confidence in its financial market and economy continues to rise, bringing real opportunities for companies based there.
5 Reasons to Start a Business in Malta
Things have changed for the better and are still progressing regarding starting a business in Malta. Here are the top five reasons that you’d like to know.
Malta is the Fastest Growing Economy in the European Union
The United Kingdom’s impending exit from the European Union may bring some uncertainty, but it has not prevented the EU as a whole from enjoying economic growth. However, it is a former member state of the British Empire, Malta, which is experiencing the fastest growth of all.
Malta’s GDP growth was an astonishing 6.9% in 2017, and the latest European Commission interim economic forecast predicts further growth in GDP of 5.8% in 2018 and 4.9% in 2019.
This is by far one of the fastest growth within the European Union, and the forecast for growth in Malta is double that of the average across the EU region.
Rising Malta Employment Bringing Benefits for all
Malta has a vibrant economy that is reaping the benefits of moving with the times.
Its traditional economic backbone of fishing and tourism continues to perform well. But it’s increasing success in attracting investors within the financial and gaming sectors is also helping to create a sunny fiscal outlook. This is borne out by Malta’s unemployment figures, which continue to drop.
The latest figures from statistical experts Eurostat reveal that Malta’s unemployment level as of January 2018 is 3.6%, which is the second lowest in the whole of the European Union, behind only the Czech Republic.
Malta’s employment figures look even more impressive when compared to an average rate of unemployment of 8.7% across the Euro Zone. And, this further cements the island’s reputation as a forward-thinking, high employment economy.
Increased numbers of people in work bring increased revenue from taxation, which will help to fuel economic growth.
Malta’s Booming Service Industry
Analyzing the unemployment figures in greater detail provides further encouragement for Malta’s future prosperity and growth.
Rising employment was found in every age group. But was particularly pronounced in the 24 to 29-year-olds, which saw an impressive 44% drop in unemployment compared to the previous year.
24% of workers entering employment became clerical support workers, and 16% entered the service industry. And, it is these areas that continue to show exponential growth, and that are also attracting businesses from overseas.
Requests for a financial and corporate service provider in Malta has increased in the past three years, putting pressure on the employment market with some companies struggling to find talent.
Malta is a Safe Investment Location
Over the years, Malta has seen an increase in trade and investment. In fact, the country was named 13th most open economy among 75 nations, according to the 2015 Open Market Index. This has significantly affected the country’s economic growth, as evident with its current status.
Malta has also secured numerous foreign direct investments (FDI) in different fields, such as financial services, high-end manufacturing, online gaming, and aircraft maintenance. In total, the country’s FDI stock position in 2016 was at a whopping €156.7 billion. This makes Malta a safe investment location for many foreign businesses.
In the future, this small island country is expected to continue its economic growth with the help of additional investments. With its upward trend, many are hoping to see a more successful Malta not only for investors but its citizens as well.
The Future of Outdated Infrastructures
While it’s true that Malta is growing rapidly, its public infrastructure hasn’t kept up effectively. In fact, sectors such as transportation and housing need major changes in order to meet the demand of a thriving economy.
In the next few years, it is expected that Malta will continue to attract more investments, thus getting more population and heavier traffic as well.
To address this, economists are pushing for long-term solutions. Such as, the major development of infrastructures in the soonest time possible. These include better roads, updated commercial buildings, and even additional residential structures.
However, it is worth noting that improving such infrastructures will take a lot of time and money. With its current situation, experts are hoping to see these changes in the next 10 to 20 years.
Wrapping Up: Malta has a Perfect Climate for Businesses
It has long been known that Malta has a perfect climate for holidaymakers. But more and more companies are also discovering that Malta has the perfect climate for business.
The government in Valetta is committed to creating ideal conditions for businesses from across the EU to prosper in. And those that make a move quickly find that Malta has a highly skilled and educated workforce ready to fill their vacancies.
Regulatory and tax systems are designed to encourage investment in the country. It’s a philosophy that is also shared by the Malta Gaming Authority. This is one of the major reasons why companies are turning to local experts to help them gain gaming licenses or for setting up or redomiciling hedge funds.
Malta’s tax and fiscal policies are a clear example of the government’s highly flexible and innovate approach to regulation, making this an ideal location for companies to do business in.
The recent unemployment figures and the buoyant predictions for growth in GDP are helping to increase confidence in the nation’s economy at home and abroad.
Malta continues to show growth that is unparalleled within the rest of the European Union. By coupling this with low bureaucracy and a flexible tax system, it is making clear that it is open for business with companies from across the EU.
Over to You
Would you want to start a business in Malta? Share your views in the comments.