Benefits Of Starting A Business In Malta
Malta’s Mediterranean beauty and charm falls over you like a wash of the azure’s window. Boasting historical monuments such as St John’s Co Cathedral, medieval history, and coastal shores that make you marvel at the sheer glory of nature, it’s no surprise that people opt to start their business empires there. The following reasons are why you should be one of them.
Trade in tax nightmares for sweet dreams
Malta has one of the lowest effective corporate tax rates in Europe with considerable allowances made for foreign employers. If you have a holding company in another country that receives a distribution of profits you don’t have to feel the brunt of being taxed the full 35% tax rate. Plus, you can enjoy many other tax benefits above and beyond this.
For instance, foreign companies aren’t liable for tax and are only required to pay for value-added tax.
The cherry on top is Malta’s intuitive tax system that only charges income tax on the surplus amount of earnings that exceed the €8500 threshold. This means if you earn €17000, you’ll only be charged income tax on the €8500 surplus. The key here would be to only draw earnings you need from the business to decrease your tax rate.
Apart from its great infrastructure, Malta has a stable economy and successful banking industry that can put any business owner’s stresses at ease. Malta has a relatively low minimum wage of €720 per month, which means you will spend less money on wages and still have skilled motivated employees.
Both yourself and your employees will contribute 10% of your salaries toward social security, making the cost of recruitment cheaper. There are also less stringent laws on the expenses you can claim back, such as business travel costs. As the accounting principle goes, fewer expenses mean higher profits.
Swift and easy start-up
Setting up a business in Malta puts the idiom ‘Rome wasn’t built in a day’ to shame. It’s much easier and cheaper than many think it is. You only need 20% of the required capital in your bank account, and with an annual fee of €100 your start-up costs are far less than what you would ordinarily need. Licensing is also not required for doing business in Malta, making it one less hassle for you to worry about.
Malta’s market is your oyster
Malta’s economy has broadened its horizons in recent years. From agriculture to pharmaceuticals, blockchain technology, tourism, finance, gaming and aviation. These industries aren’t too highly regulated apart from finance and the medical sector. Therefore, you have the creative freedom to create a profitable niche and set your own benchmarks.
Also, it’s sun’s out, wallet’s out all year round in Malta, so you won’t have to worry about running a seasonal business unless that’s what you want.
The most commonly spoken languages are English and Maltese meaning that you can easily connect with others. Important financial documents can also be written in English so that they’re easy for everyone to read, understand and keep things in order.
Of course, moving to Malta presents a unique opportunity to learn a new language and interact with like-minded people that not only add value to your business but to your quality of life too. Other entrepreneurs may be among these people which can open up new business avenues. After all, business success isn’t always about what you know but who you know.
Help is always on the way
Malta has investment projects that are designed to assist small start-ups. Some of these include:
– Tax credits that absorb a certain percentage of your profits.
– Financing participation in international trade fairs that give businesses the opportunity to network and meet new contacts
– Funding equity capital for micro enterprises
– Assisting business owners with advice as part of greater projects towards the social development of the country
– Allowing foreigners to invest in Malta in exchange for citizenship perks
Taken together, these projects help start-ups to grow regardless of what stage they’re in.
Conclusion The above reasons are enough to convince even the most skeptical of business owners to consider Malta as the pot of gold at the end of their rainbow. You can either choose to do it yourself (Business First can help you with the process) or go the done for you route, and hire a corporate services company like CSB Group.