Invest in Malta

Malta, officially known as the Republic of Malta, is a Southern European Country. It is one of the smallest yet densely populated countries in the world. One of the added advantages of Malta is its geographical location. The geographical location of Malta has really given it lots of strategic importance. It lies in the centre of the Mediterranean Sea and this has really worked in the favor of Malta. It is blessed with natural resources and the modern infrastructure, political stability and a flexible English speaking labor supply just add a distinct advantage to the country.

Malta’s main resource includes limestone and it is known as a fishing destination. Just like its natural resources it also has state of the art infrastructure. Malta also has one of the best infrastructures in the EU. It has excellent telecommunications system coupled with a good and efficient air transport which handles all kinds of passenger a well as cargo traffic.


Malta has always been known as a tourist destination; it is an international tourist resort and has nine UNESCO World heritage sites. It became a member state of the European Union in the year 2004 and liberalized its economy and markets. It also privatized some of its government controlled firms. Ever since it joined the EU it has become one of the most favored destinations of investors to conduct business. Malta doesn’t have a property tax and also offers one of the best tax incentives to foreign investors in the entire European Union.


There is a stronger than expected rebound for the Maltese economy in the year 2010 and in the year 2011-12, Malta is bound to grow at a steady rate with majority of its growth being accelerated by the heavy domestic demand.

Market Size

Though small in size, Malta is quite densely populated and has a population of near half million. However, the market in Malta is vast and needs foreign investment for development. Majority of sectors in Malta remain unexplored and hence investors can heavily bank of these opportunities.

Growth figures and FDI figures

There has been a rapid and continuous growth in recent years in the Maltese economy. The Real GDP growth of Malta in the year 2010 was expected to increase by 3.1%. As far as Foreign Direct Investment (FDI) is concerned there has been a gradual increase in the FDI inflows in the country. The FDI inflows in Malta shot up from $80.8 million to $267 million in a period of one year from 1997-98. In the year 2000, the FDI inflows of Malta stood at $652 million. It is even now considered as one of the front runners in terms of attracting investment based on its potential and performance. The World investment Report of 2008 has ranked Malta as the 3rd favored destination in attracting inward investment.

Key investment areas

Malta is a highly competitive location for foreign investment. Some of the sectors that are booming in Malta include niche manufacturing and many others in the service sectors. Some of the key industries for foreign investors to explore in Malta include Bio-technology, Maritime activities, financial services, Electronics, ICT and Software development, Automotive and Pharmaceutical and Healthcare. Another sector worth investing in Malta is the financial sector, thanks to the tremendous growth it has registered in the recent past. According to the Global Financial Centers Report Index, the financial service sector of Malta is identified as one of the top three financial sectors in the entire world.

FDI/Investment policy

Malta has one of the best investment policies in the European Union. The government of Malta heavily encourages the role of foreign investment in its overall development especially in the technology sector. For this, the Maltese government also enacted incentives and benefits for foreign investors under the Industrial Development Act 1988. The Maltese government allows foreign investors to provide jobs to expatriates only after an approval. To attract more foreign investment in the country, the Maltese government also launched a new body known as the Malta enterprise to attract more FDI.

Special incentives offered by Maltese government to foreign investors

There are loads of business incentives which the Malta government offers to foreign investors. These mostly include provisions of immovable property, soft loans, loan guarantees, loan interest rate subsidies, work permits and providing training assistance. There are also many tax incentives which the Malta government provides to investors. These include tax credits on investment. The government also provides investment allowances such as 50% tax deduction on plant and machinery and 20% deduction on industrial buildings or structures. There are also incentives for job creation and tax treaties.

Related policies, reports

To promote foreign investment in the country, the Malta government has implemented several legislations that work in favor of investors. Some of these legislations include the Malta Enterprise Act and the Business Promotion Act.


The Maltese government established an agency known as Malta enterprise to attract more FDI in the country. The main objective of this agency is business development under which it has to attract FDI and promote trade practices. It is also responsible to carry out services such as client relationship management and managing deals with third party corporate services. For more information about this agency you can visit

An upward growth trend, a massive infrastructure, a strategic location and highly efficient labor supply, all these really make Malta a best destination for foreign investment.

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