Malta: A nation like no other

Malta is a tiny archipelago on the European Union's southern border. Acquiring its independence only four decades ago, today Malta is a fully-fledged EU Member State and is emerging as one of the fastest growing financial service centres in the world. Malta may be small, but size has not diluted its ambitions: The Island is ranked in 4th place as the financial service centre most likely to increase in importance in the next five years in the Global Finance Services Index of 2008, published by the City of London, and ranked in 5th place as the centre where most organisations are likely to begin new operations in the next years. All signs point to success, especially after the adoption of the Euro in January 2008.

Mediterranean Location

Malta has long been a sun and sea destination for holidaymakers thanks to its central Mediterranean location. Malta lies virtually at the centre of the Mediterranean - 93km south of Sicily and 288km north of Africa - at a pivotal gateway point between southern Europe and northern Africa. The Maltese archipelago consists of three, quite different main islands: rocky, rugged and historic Malta; tiny, green fertile Gozo; and minuscule sandy Comino. The main island, Malta, is 27 km long and measures 14.5 km at his widest point. It just takes 45 minutes to cross it. The official languages of Malta are Maltese and English, with most of the 400,000 Maltese inhabitants being bilingual. Italian was the official language until the 1930s, and is widely spoken as a second or third language.

Malta is incredibly rich in history and has been referred to as a big "open air museum". With 7000 years of history, Malta's past is clearly visible everywhere. Located at roughly the geographic centre of the Mediterranean, it has been of great strategic importance to both colonizers and armies for two millennia. It was occupied by the Phoenicians, the Aragonese, the Romans, the Arabs, the Knights, the French and the British.

Business in Malta

Since independence Malta has diversified its economy to become a leading centre for financial services, ICT, container and freight transhipment, high value manufacturing and tourism. Thereby Malta is drawing strength from its location, the education and skills of its people and its centuries old tradition as a hub on one of the most important trading routes of history. Malta is moving ahead, offering foreign investors the security of operating within EU borders yet within easy reach of the markets of North Africa and the Middle East and a top class legislative framework.

Malta has an excellent business infrastructure with good telecommunications, extremely well-equipped ports and a Freeport, a well-developed manufacturing infrastructure, and a relatively sophisticated and European business environment. Nevertheless, at the same time, the Island remains highly cost effective as a base to do business from. In fact, operational costs in Malta are a half to two-thirds of those prevailing in the UK.

Over the past decade, Malta has moved from being an offshore to an onshore jurisdiction. It has completed a programme to reform all its financial legislation and bring it in line with international best practice, and was one of the first six countries in the world to reach an advanced accord on fiscal matters with the Organisation for Economic Co-operation and Development (OECD). As a result of this agreement Malta is NOT considered as a tax haven, although Malta’s tax system offers fiscal efficiency to investors and companies using the Island as a base. Malta also adheres strictly to EU anti-money laundering procedures. But while adhering robustly to international best practice, the country’s approach to regulations is not over bureaucratic.