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What are the benefits of doing business in Malta?

Malta has emerged as a popular destination for businesses and investors due to its numerous advantages. Here are some key benefits of doing business in Malta:

Tax Advantages:

  • Favorable corporate tax rate: While the standard corporate tax rate in Malta is 35%, the country operates a full imputation system. This means that shareholders can claim a refund of most of the tax paid by the company on distributed dividends, effectively reducing the effective tax rate to around 5-7%.
  • Extensive network of double taxation treaties: This network helps businesses avoid double taxation on their income earned in Malta and other countries.
  • No withholding tax on dividends, interest, and royalties: This makes it easier and more efficient for companies to conduct international transactions.

Strategic Location:

  • Situated in the heart of the Mediterranean: This prime location grants easy access to European and North African markets, facilitating trade and expansion opportunities.
  • Strong connections to the EU: Being a member state of the European Union allows businesses to benefit from the free movement of goods, services, and capital within the bloc.

Business-Friendly Environment:

  • Streamlined business setup process: Malta offers a relatively fast and straightforward process for registering a company.
  • Skilled and multilingual workforce: The Maltese workforce is well-educated and proficient in English, making it easier for businesses to find qualified employees.
  • Developed infrastructure: Malta boasts a modern and efficient infrastructure, including a reliable telecommunications network and transportation system.

Additional benefits:

  • Stable political and economic environment: Malta enjoys a long history of political stability and a healthy economy, making it a secure and reliable location for businesses.
  • High quality of life: Malta offers a high standard of living, attracting and retaining skilled workers.
  • Government incentives: The Maltese government offers various incentives and programs to attract and support businesses, particularly in specific sectors like innovation and technology.

It’s important to note that these are just some of the major benefits, and the specific advantages for your business will depend on your unique circumstances and industry. However, Malta’s attractive tax regime, strategic location, and supportive business environment have made it a compelling destination for a wide range of businesses and investors.

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