Malta is the smallest country in the European Union but should not be overlooked! This sunny Mediterranean country is the sunniest nation in the EU. It offers wealthy investors the opportunity to access European, African, and Middle Eastern markets, which is excellent because the local government offers investment and tax incentives for global investors. The country’s primary language is English, making it even easier to take advantage of investment perks. Investment options and the easy-going attitude of the locals have also made it a hotspot for ex-pats looking to change up their pace of life, not uncommon for Northern European retirees. This article will cover the benefits of investing in Malta, where to place your money in the country, and how Alpen Partners is equipped to help you get started.
Why should you invest in Malta?
Many of our clients are unhappy with your current portfolio, and it may be time to explore new options. Looking into offshore options is a great way to open up your investment portfolio to great markets, secure banking and tax advantages. One of the biggest draws to making offshore investments is diversification. Diversification is one of the cornerstones of a successful portfolio. Diverse portfolios outperform concentrated ones. By owning a large number of investments in more than one sector or asset class, investors can protect themselves from unsystematic risk, the risk that one encounters when investing in one particular asset. Some investors seek out offshore investment for tax benefits. These incentives benefit the investor and encourage the growth of their economy by attracting wealth from other countries.
Healthy Investment Environment
For years, the Maltese government has welcomed foreign investment and offers many great benefits for those who choose the country for their next investment. As a member of the European Union since 2004 and the Eurozone since 2008, Malta has proven to be a valuable location for international investors. The island country offers political stability with two major political parties, both of which focus on incentivizing investment by non-residents. There has been healthy economic growth as well, with an estimated 4.8% growth for 2021. According to a 2020 report, Malta reached nearly 3.6 billion USD in foreign direct investment. A year before that, it was 4 billion USD. 97% of that figure was thorough financial and insurance activities.
One way they entice non-residence is through tax incentives. There is a 35% corporate tax rate, but many investors still pay less in taxes due to one of the most attractive incentives: the “full imputation tax system” for Maltese companies’ shareholders. This means dividends distributed to shareholders are not subject to personal tax, preventing double taxation on the dividends. The only countries that offer an incentive like this currently are Australia, New Zealand, and Malta. Also, Malta has signed double taxation treaties with over 50 countries. In the World Bank’s 2020 report, Malta was ranked 88th out of 190 economies.
Another reason to invest in Malta is the highly popular residence by investment option. The former residence by investment program reached its 1800 applicant capacity, so in late 2020 Maltese government introduced a new program. Known as the Malta Citizenship by Naturalization for Exceptional Services (MEIN), the program allows foreign individuals and their families to earn a Certificate of Naturalization by making significant contributions to the country’s economic development.
Where to Invest in Malta
Because of Malta’s location, investors find themselves with a range of options for investments. The region is a natural hub for investors looking to do business in Southern Europe and North Africa. Over 31,000 companies have been established in the country with foreign shareholders. Further, it can be relatively easy for a non-resident to establish their own business in Malta. This is even more enticing when looking at how attractive it is for industrial investment, with modern infrastructure and a flexible force. The manufacturing sector is strong, making up about 17% of the nation’s GDP, because of all of these factors and the island’s location. Electronics, pharmaceuticals, and communications are the three leading sectors in the nation. Other sectors include agriculture and tourism. Tourism makes up roughly 20% of the country’s GDP. One niche sector found in Malta is online gaming. Over 300 international remote gaming companies have been set up here.
Real estate is also attractive in Malta since prices are relatively low. This means it can be easy to find a home for you and your family. If bought in the right location, a real estate investment can mean immediate cash flow due to renting and tourism. An investment in real estate is required for investors hoping to take advantage of the MEIN program, which requires a residential property purchase of at least €700,000.
Invest in Malta with Alpen Partners
Are you interested in the investment services offered by Alpen Partners? We are ready to help every step of the way. Our experts can guide you through finding the offshore investment options that work best for you. If you don’t know how to begin investing offshore, we will examine your goals and help the program that best suits your needs. If the residency by investment option sounds attractive to you, we also work closely with residency lawyers to guide you through that process as well. Beyond international investment, our team is prepared to guide you through all the personal and financial planning you need. If you feel trapped by your local investment options and want to spread your wings a bit, consider investing in Malta with Alpen Partners.
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