HISTORY
Malta has a rich history spanning 7,000 years which have seen a succession of foreign conquerors ruling the island until 1964, when Malta gained its Independence after 160 years under the British rule. Ever since the Maltese islands were first colonised thousands of years ago, they have never been far from the centre of events and have often played a crucial role in the making of history due their strategic location in the centre of the Mediterranean Sea.
LOCATION
The Maltese Archipelago lies virtually at the centre of the Mediterranean:
- 93km south of Sicily
- 290km north of Africa
- 1,826km east of Gibraltar
- 1,940km west of Tel Aviv
- 2 to 3 hours is all you need to get to Malta by air from most European cities. Frequent and direct flights to Malta from major European cities are readily available. Other frequent flights are also operated from North African and Middle East destinations. As an EU country, Malta’s requirements on visas fall in line with EU policy. The Islands also forms part of the Schengen travel area. Daily high speed catamaran services for passengers, cars and heavy vehicles connect Valletta, Malta and Sicily. Other ferry services connect Valletta with Italy and North Africa.
FACTS & FIGURES
- Nationality: Maltese
- Capital: Valletta
- Timezone: GMT+1
- Area: 316 sq km (spread over 3 quaint islands)
- Malta – Length: 27.359 kms
- Width: 14.480 kms
- Gozo – Length : 14.484 kms
- Width: 7.242 kms
- Malta – Shoreline: 196.80 kms
- Gozo – Shoreline: 56.01 kms
- Population: 421,000
- Climate: Mediterranean climate with mild, rainy winters and hot dry summers. Sunny climate with a daily average of 6 hours sunshine in mid-winter to more than 12 hours in summer.
- Official languages: Maltese and English
- European Union Member: Since May 2004
- Currency: Euro (since 2008)
- GDP per Capita (€) at market prices: 17,000 (2013)
- Main economic sectors: Tourism, high value added manufacturing, life sciences and pharmaceuticals, ICT, financial services, education and training, creative arts, aviation, maritime.
- Main trading partners: Italy, Germany, France, UK, Singapore, USA and Libya.
- Labour force: 165,000
- Unemployment: c. 6.5%
- Departing tourists: 1.6 million (Dec 2013)
- Religion: Main religion is Roman Catholic, but other religions are also followed.
- International dialling code: +356
- Internet: Domain suffix for Malta is .mt
- Electricity Supply: Conforms to UK standards (230 volts AC, 50 Hz). UK-style three-pin plugs and sockets are used.
LIFESTYLE
No other group of islands can offer as much natural beauty, art and architecture, entertainment and activity as Malta can. Everything in Malta is close and easily accessible. Lifestyle is typically Mediterranean with warm summers and mild winters. Thus, one can enjoy the outdoor life 365 days a year.
Living in Malta is a unique experience, especially for those used to hectic city environments and long commutes between work and home. The island’s small size and wealth of entertainment options means that in Malta, it is possible to have it all: work hard, play hard and relax by the sea – all in one day!
There is scarcely another place of its size that offers so many archaeological sites, cultural monuments, architecture, artefacts and other treasures spanning the entire history of mankind. For those who enjoy the night life, Malta offers many bars, restaurants, cafes, discotheques and Casinos while for the sportive visitor, many activities can be enjoyed throughout the year including tennis, golf, sailing, windsurfing, horse riding and paragliding.
For music, theatre and the arts lovers, Malta boasts an abundant calendar of cultural events that are staged throughout the year including operas, plays, exhibitions, classical performances and also rock concerts.
Malta also offers culinary experiences to suit every palate. The food in Malta is mainly European and tends to be based primarily upon Italian tastes. Domestic menus are often set by the food currently in season, particularly in summer with its varieties of fish and fruit.
However, a relaxing heaven in which to live and work is not the only benefit Malta has to offer. Residents enjoy an exceptional standard of living with an average living cost substantially lower than that of Mainland Europe. At the same time, the island’s very low crime rate means that Malta is a safe country to live in and is an ideal place to base families if one is engaged in commercial activities within the region. As a business destination Malta has much to offer, and as a home, there can be few places more idyllic.
Of course, the educational system is first rate, offering numerous private, international and public schools, institutes and a university of the highest standards. The Government of Malta has always placed great emphasis on the importance of having an educated workforce, so much so that education is compulsory from age five till sixteen.
In the area of healthcare, Malta boasts first-class facilities available all over the island. One finds Mater Dei hospital, which became operational in November 2007, as well as two private hospitals and a number of privately-owned clinics. The competence of the Maltese medical profession is well known and the island’s hospitals are able to handle even the most complicated surgical interventions. Not without reason is Malta establishing itself as a centre for health, medical and dental tourism.
Business offices are usually open from 08.00hrs to 17.00hrs Monday to Friday while some operate on ‘half-days’ – usually until 14.00 hrs – during July and August. Shops open from 09.00 hrs until 19.00 hrs in the main commercial areas, namely Valletta, Sliema and St Julians. Shops generally remain closed on Sundays and public holidays, however it is becoming more common that they remain open in the main tourist centres.
TOP REASONS TO INVEST IN MALTA
STRATEGIC LOCATION
Malta is very strategically located at the heart of the Mediterranean with very close ties to mainland Europe, North Africa and the Middle East. The island is considered the best choice for investments in knowledge based sectors and high end manufacturing.
Malta is also considered an ideal logistical hub due to its excellent port infrastructure. This, together with EU membership, makes the country a perfect gateway to the Euro-Mediterranean region and further.
NIMBLE ECONOMY
Malta has undergone an incredible transformation in the few decades since independence was gained in 1964. Four decades later, with a fully functioning open market economy, joining the EU in 2004 was seen as a natural step towards securing the economic future of the country. The adoption of the Euro in 2008 ensured that the economy would not be vulnerable to currency fluctuations and would allow the nation to be more competitive.
Progress and flexibility are key factors in the success of Malta’s ability to react quickly to international trends and the global market place. Our pro-business government continually seeks to strengthen Malta’s attractiveness as an open market economy.
The exogenous shocks of the global recession inevitably had an impact on the local economy. However, it should be noted that Malta was one of the last countries within the European Union to enter the recession and it was also one of the first countries to rebound from the economic downturn. In essence Malta showed great resilience and emerged in a strong position.
LANGUAGE FLUENCY
The country’s national language is Maltese but both the latter and English are official languages in Malta. This certainly adds to the destination’s appeal for visitors, traders and investors. Practically all Maltese are bilingual and many are also conversant in Italian. Some may also have at least a working knowledge of French or German. Foreign language fluency as a percentage of the population is as follows: English 88%, Italian 66%, French 17% and German 6%.
WORKFORCE
The success of a business is not achieved by financing or technology but is ultimately determined by people power. The labour force in Malta is a very productive one, highly educated and extremely flexible with an excellent work ethic. The country has good availability of professional, managerial and technical staff as well as a ready supply of top graduates most of whom are technology-experienced. The link between education and industry is vital for our competitiveness. Education and HR-related strengths top the criteria for choosing Malta as an investment destination.
INTERNATIONAL FINANCE CENTRE
Malta is now an internationally recognised financial services hub. However, due to the sector’s traditional and conservative approach it never experienced a real financial crisis. Indeed, the strength of the financial services sector was a critical contributing factor to the speedy emergence of Malta’s economy from the recession.
In fact, the reputation of the Maltese financial services sector improved considerably due to the resilience and stability it showed during the financial crisis. This did not go unobserved in the global scenario and the impeccable reputation of the local financial services is expected to fuel further growth in this sector.
EXCELLENT ICT INFRASTRUCTURE
It has always been considered strategically important to the country’s human and economic advancement to be well connected with the rest of the world. As such there has been a great deal of investment and consolidation in order to create and ensure a reliable Information Communication Technology (ICT) infrastructure.
Malta’s fully liberalised and developed ICT infrastructure has certainly contributed to the island fast becoming a regional centre of excellence in ICT and financial services.
LOW CORPORATION TAX
A long-standing, full imputation tax system has existed in Malta since 1948. The rate for corporate taxation in Malta stands at 35%; however upon distribution of dividends, shareholders may qualify for a refund generally equivalent to 6/7th of the tax paid, thus resulting in a paid tax rate of 5%.
SAFE AND PLEASANT LIFESTYLE
There are many reasons why investing in Malta makes good business sense but it is not enough for the figures to add up and the stars to be aligned. In this day and age – where time, health, safety and true quality of life are precious commodities – Malta scores highly on all these aspects. Travelling distances are minimal, the healthcare facilities, which rank among the best in Europe, are first-class in both public and private hospitals and the crime rate is very low.
However, the biggest selling point of the island nation is undoubtedly the lifestyle that investors and their families enjoy in the country. Indeed, those thinking of investing in Malta are highly recommended to visit the nation to explore and experience for themselves the wealth of history, culture, hospitality, bars and restaurants. That way they can also get a real taste of the flavoursome Maltese and Mediterranean cuisine that the country offers.
INTERNATIONAL RELATIONS
BILATERAL AGREEMENTS
Under the Lisbon Treaty, foreign direct investment has become an EU competence. Individual EU Member States are generally no longer allowed to conclude new agreements concerning foreign direct investment. The Commission will thus progressively, over time, substitute the effective bilateral agreements on protection of investments by EU-wide treaties.
DOUBLE TAXATION AGREEMENTS
Malta has concluded tax treaties with a significant number of countries which enhance the incentives provided by Maltese domestic legislation. Most of these treaties ensure that profits generated in Malta are either exempt from tax in the country of residence of the investor, or that such a country will provide a tax credit for the Malta tax spared as a consequence of the incentives Malta provides.
This article was brought to you by our member KayEm Consulting, from Malta.