If you are looking for an effective EU jurisdiction to set up your business in then Malta could provide the perfect solution.
Whilst you might be hard pushed to locate Malta on a map, you should know that Malta possesses one of the strongest economies in Europe at a time when others are struggling. With a strong investment network and an ever-increasing amount of businesses either relocating or setting up shop there.
Previously known as one of the world’s leading jurisdictions for iGaming and ancillary services, in recent years the country has rebranded as “The Blockchain Island”. Of course, this doesn’t mean that it is still not the jurisdiction of choice for hundreds of online gaming companies, on the contrary, the industry provides over 12% of the GDP- it just means that Malta has diversified.
Along with crypto, blockchain, and iGaming, a thriving fintech industry has also evolved. There are now a vast number of payment providers and merchants, apps, exchanges, banking solutions, and more that have decided to call Malta home. Of course, in order for these to function, ancillary services have also now accounted for a huge chunk of the market- think specialist marketing firms, IT consultancies, and software providers, all geared towards this bustling industry.
Thanks to the highly educated, English-speaking local workforce as well as a large number of expats who come there to work, there is no shortage of skilled and experienced staff to suit your needs.
The country also benefits from a great strategic position between the European and African continents as well as having direct links to all major European capitals and Dubai. The country is very stable politically and both of the main parties are keen on creating incentives to attract more foreign investment and creating a secure business environment.
Malta is also a fully fledged member of the European Union as well as the Schengen zone, meaning there are few obstacles when it comes to doing trade, or business within the EU. In terms of its macroeconomic environment, Malta has the fourth lowest unemployment rate in Europe, hovering at around the 3.5% mark.
So why should you consider setting up in Malta?
Malta Enterprise is the government’s business development agency and it has created a number of incentives for businesses and start-ups operating in the country. One such incentive is the Innovation Aid for SMEs that is open to all small to medium enterprises, as long as they meet certain criteria. This programme allows them to claim back a portion of the costs they incurred on the loan of highly qualified staff from other companies, in the form of tax credits that are capped at 50% of all eligible costs.
In addition to this, the Investment Aid Tax Credits are another incentive that encourages initial investments by facilitating the creation of new businesses and helping existing ones to expand and grow. The amount of Aid available depends on the size of the business or project as well as the industry that it operates within.
Another option available is the Aid for Research and Development Projects which enables businesses to collect tax credits on costs that arriseas a result of a Research and Development project, or projects that are in some way relevant to the company’s sector. For a project to be eligible, it should pursue some kind of advancement in technology or science. They can then receive a tax credit of around 25% of applicable costs, medium sized businesses can enjoy up to 35%, and SMEs, up to 45%.
It is also worth remembering that not only does Malta enjoy a large network of double taxation treaties, but its corporate taxation rate can be as low as 0%, if the right conditions are met.
Fast Offshore
Fast Offshore have been active in Malta for many years and during that time have built up a trusted list of contacts and partners. This means that we are perfectly placed to assist clients from a range of industries with their corporate needs. iGaming, crypto, financial services, investments, bank accounts, company formation– you name it, we can help, If you are interested in incorporating a company in Malta or you just want to chat over your options with someone who knows the business environment, don’t hesitate to get in touch!
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