Malta is inarguably one of the fastest-growing economies of the European Union. Due to its economic and sociocultural framework, it has many opportunities to be discovered locally and internationally. International investors have already found that Malta is a young start-up country trying to establish itself in its start-up ecosystem. Malta is today a most sought-after business hub by international investors for various reasons: the high standard of living in the Mediterranean lifestyle, its renowned climate, and freedom of trade and movement within the European Union countries, among other benefits. Therefore, it is the perfect place to set up new businesses and garner a global market reputation.

Government initiatives for supporting start-ups in Malta

Several governmental initiatives have been in place to support various industries in the country. Most efforts focus on helping start-ups, including citizenship for foreign investors, equity capital, advisors, and opportunities to participate in start-up events nationwide.

News sources such as Karl Schranz say that Malta has more than 250 start-ups in place, and more are coming up due to several tense economic changes. It is gradually transitioning from an economy that focuses on large-scale industries and small-scale start-up businesses. The Maltese government provides generous tax benefits on personal and corporate income, allowing entrepreneurs to move to the country and confidently materialize their business aspirations. Start-ups and entrepreneurs are levied only 35% of the total revenue, which, after the dividend distribution, it translates to an effective 5% tax rate. If eligible, getting a share of the company’s dividends can apply for tax refunds.

There are a few hurdles to starting a business in Malta, which is attracting many international investors. Its business regulations are favorable, providing a free economy supporting companies such as tech start-ups. The UK’s exit from the EU has made Malta the most promising goodies start-up in the region. It has an advantageous location and produces good tech talent required for the tech sector. More subsectors of the tech industry that have been thriving here include fintech start-ups and blockchain start-ups.

Fintech start-ups

Due to the country’s healthy financial sector, fintech start-ups have grown incredibly. The industry has 25 credit institutions responsible for bringing in a 15-17% of the region’s total capital venture funding. One of the motivating reasons for fintech start-ups in Malta is the tax benefits that the government has provided over the years.

Blockchain start-ups

The Maltese government has also prioritized the blockchain industry, leading to blockchain start-ups, a tech industry subsector. One most notable activities are the establishment of fiat-to-crypto exchange by the giant currency finance. It is the biggest exchange in the global crypto market, and the fact that it has tapped into the Malta start-up potential shows the country has opportunities. The government favors the sector in regulating blockchain and crypto activities to secure investors and traders.

Gaming start-ups

Another booming business start-up in Malta is the gaming industry. It has seen substantial growth in the last couple of years attracting international entrepreneurs to establish themselves in their gaming industry.

The takeaway

Although Malta is a small island, it is suitable for investors who want to explore European markets favorably.