13+ Pros And Cons of Doing Business in Malta (Explained)

Malta is a country located in the centre of the Mediterranean sea. It is a small country having strong business perspectives in the EU market.

It links with many countries for business and has maintained a profitable business relationship with its neighboring countries. The GDP of Malta also has had strong growth over the past few years.

This attracts a large number of business owners and investors to the country. This article will highlight some important aspects of doing business in the country.

Benefits of Doing Business in Malta The Drawbacks of Doing Business in Malta 
Investor friendly marketHigh working hours 
Gender equality Small Population 
High Resources available Strict business rules

Advantages of Doing Business in Malta

  • Starting with business:

The procedures for starting a business in Malta are very easy and rapid. It takes up to 48 hours on an average to complete legalization and documents preparation to start a business in the country.

This is a highly remarkable benefit for business owners and entrepreneurs, which helps them to get started with less time and energy-consuming processes. 

  • Less Investment Capital:

The minimum capital investment required to start a company is 20% of €1,165, which is €245. This makes it easy to start a business with less capital investment and gradually expand and increase the amount of investment.

  • Tax incentives:

The government of Malta has designed business-friendly and investment-friendly tax policies. The corporate tax is 35%. However, companies can apply for a tax refund by following proper procedures.

One can establish an offshore company in the country. It gives more tax relaxation to foreign companies.

The profit tax is also according to the company’s year turnover. This attracts numerous foreign business owners and entrepreneurs to the country.

pros living in malta
  • High education:

The education system in Malta is highly remarkable. The education system provides theoretical knowledge and develops practical skills in the students. The country successfully produces skilful young graduates every year. 

  • Skilled Labour:

Many successful companies have originated from the country due to the qualified workforce available in the country.

The workforce is dedicated and compassionate towards their respective roles and company. This leads to the rapid growth and development of the business in the country.

  • Technology:

Technology in Malta is highly remarkable and makes the country work rapidly. The government departments also work on the internet, making many procedures and services easy, efficient, and fast to complete.

The internet service is available in every corner of the country, effectively connecting the entire country.

Moreover, the business can be expanded globally due to the availability of technology. The credit goes to the telecommunications department of the country. 

  • Trading across Borders:

Malta’s business market connects with various countries, including Germany, Italy, France, the UK, the USA, Hong Kong, etc. This leads to exposure of services and business industries to large markets and populations.

Moreover, the country is situated in the centre of the Mediterranean sea, which makes it easier to connect with the EU market.

The exemption duty on imports and exports is also very less than OECD norms. The documentation process is also very efficient and rapid. This helps supply goods at a proper timeline and does not cause any delay.

  • Judiciary System:

The Judiciary System in the country is powerful and succeeds in maintaining a safe environment in the country.

The crime rate in Malta is low compared to the EU crime rate. This makes it easier for businesses and industries to grow in the country without fearing fraud. 

  • Safe Environment:

Strict rules and laws are implemented in the country, and if anyone goes against the law, strict actions are taken against the person. This creates a safe and sound environment that attracts many business leaders and entrepreneurs to the country.

pros doing business in malta

Disadvantages of Doing Business in Malta

  • Construction Permits:

The construction permit is quite a time-consuming process. It takes a lot of procedures to follow and visit multiple government departments to get documents legalized.

The government authorities carry out multiple inspections at the construction site before giving permission. This takes a lot of time for the company and causes a delay in starting the construction process. 

  • Getting credits:

In Malta, the private sector are not given equal credits to the public sector. However, the country’s development and growth are equally leveraged by both private and public sectors.

This causes unhealthy feelings among the business community and leads to contradictions. 

top education institutes in malta
  • Enforcement of contracts:

Dealing with contract enforcement also takes a lot of time. It takes many procedures and visits to multiple government departments to enforce any contract. This causes a major delay in starting with the contract.

Moreover, some contracts require approval from the local business community before getting enforced.

  • Getting electricity:

Electricity connection also requires legal assistance. Applications are needed to file for an electricity connection in the company estate. Multiple inspections are carried out by the government departments to ensure the safety measures, and then meter installation is done.

External wiring is done under the company’s capital. This all takes a lot of time to start with the business and brings hurdles in the company’s development and growth.

  • Solving Insolvency:

In Malta, if a business company gets caught in the whirls of insolvency, it gets very difficult to solve and get rid of the problem.

The recovery rate is also meager, and the company faces a large downfall in the economic graph while solving the insolvency. After facing bankruptcy, it takes up to years to get a satisfactory solution and redevelop the company.

  • Culture:

Malta believes in strong culture and traditions. It somehow makes the country work on more conventional and old-fashioned ways of business. Maltese doesn’t appreciate the change easily, making less development in business strategies.

The local business community does not warmly welcome foreign companies and investors, and thus it becomes difficult for foreigners to start with business in the country.

cons doing business in malta

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