Malta: Booming Hub in the Mediterranean
Invest in Malta 2024 - 20 years after Malta joined the EU
Since Malta became a member of the European Union on 1st May 2004 the population of the Maltese Islands has increased from around 402,000 to almost 550,000 at the end of 2023.
Is Malta a paradise – no, certainly not. So why are the islands still attracting many people to live and work here?
I relocated to the rock in the Med in November 2012 and saw many changes happen. Let me try to give you ten reasons for this development of Malta, which is on the one hand amazing, while also being considered as difficult by others:
1. The southern-most spot of the European Union
Having been a member of the EU since 2004, Malta is celebrating its 20th anniversary this year as a "child of Europe". In 2007 Malta joined the Schengen Area.
The EU status has attracted a number of other EU citizens to relocate to the islands to either work, simply spend some time during the year here or retire. Furthermore, a considerable amount of Third country nationals (meanwhile after Brexit the Brits also belong to this category) have found their way to Malta.
2. One of the birthplaces for European culture and values
The Knights of Malta, officially the Sovereign Military Hospitaller Order of Saint John of Jerusalem, of Rhodes and of Malta, when they fought back the Ottoman invasion during the Grand Siege in 1554, were sons from European noble houses. Looking at the names of the so-called 7 "Auberges" housing the Knights, namely the five Auberges in Valletta: the Auberge d’Aragon, Auberge de Castille (now office of the Prime Minister), Auberge d’Italie, Auberge de Provence and Auberge de Baviere as well as the two Auberges in Birgu – Auberge de France and the Auberge D’Angleterre – it becomes transparent that the Knights come from different territories around Europe, being split by the languages they spoke.
3. Malta has always been and today is even more internationally oriented
Successive Maltese Governments since independence have chartered a course of active international participation in organisations such as the United Nations, the Council of Europe, the Commonwealth and the Organisation for Security and Co-operation in Europe. Today, Malta has become a tourist magnet in the Mediterranean, among others attracting thousand of language students of all ages throughout Europe and Asia.
4. A still safe place to live
Looking at the surrounding countries as well as at regions not too far away, partially on the Mediterranean shores, such as Libya, Tunesia or Egypt as well as Israel and Lebanon, not to speak about the Russian aggression towards Ukraine, Malta is still blessed with a quite safe status of the country.
5. A pro-business mentality
Malta can be characterised as a hard-working economy, living a survival of the fittest mentality. Since the Phoenician times, the population of the Maltese Islands had to organise its survival and welfare capitalising on some maritime assets and especially its trading capacities. I have a large number of Maltese partners and friends, who are hard working individuals in well managed organisations. I am no longer surprised to receive first business emails around 6am in the morning.
6. An advantageous tax environment
Malta has managed until today to maintain a corporate and tax regime which is efficient and attractive as well for individuals as especially for corporate structures, setting up shop in Malta and doing business via Malta. One main plus-point has been the introduction of the so-called "fiscal unity" structure in 2021. Such fiscal unit allows the holding company holding no less than 95 per cent of the shares in one or more trading companies, to be the main taxpayer ending up in paying – after a tax consolidation return – directly the consolidated rate of 5 per cent corporate tax for the group.
7. Maritime – an organic and well-organised sector of the Maltese economy
Malta offers a flag of repute for all kinds of vessels, including yachts and superyachts. Efficient procedures for registration and no restrictions in relation to crew nationality or directors motivate international owners to use the Maltese flag. The use of the English language for registration is extremely helpful as well as a number of fiscal benefits – from Tonnage Tax to favourable regulations for VAT, to name just a few.
8. The iGaming eco-system in Malta
The iGaming sector contributes significantly to the Maltese economy, accounting for around 12% of the country's GDP. A clear regulatory framework, a state-of-the-art technological infrastructure and especially the presence of over 300 gaming operators and a wealth of gaming related services providers (from IT, lawyers, accountants and auditors to payment services providers and other advisory firms) makes the island a perfect breeding ground for international operators and partnerships.
Furthermore, the MGA license is still recognised to be an international license of value allowing their holders global business in all jurisdictions, in which online gaming would not need an additional local license.
9. Can Malta be a kind of a Singapore in the Med?
Although the Maltese dreams to become the "crypto island" back in 2018 did not materialise, Malta benefits from a strong Financial Services industry.
With the regulation on markets for crypto-assets (MiCA), the EU created a regulatory framework for crypo-assets in order to protect investors and strengthen the stability and integrity of the market. Malta had already preceded this EU initiative with the Virtual Financial Assets Act (VFA) 2018 and was thus a pioneer in the EU when it came to crypo-assets. It was therefore necessary to adapt the requirements of the VFA to those of the MiCA which was done from early stages on to ensure a quick and seamless transition for licence-holders in Malta.
10. The Golden Mediterranean light
One of the main aspects which can contribute to positive vibes and energy, while working here on the island, is the presence of sunlight all year round.