INTERNATIONAL BUSINESS START-UPS IN MALTA
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 discovered that Malta is a young start-up country and makes efforts to establish themselves in the country’s 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 because it offers freedom of trade and movement within the European Union countries, among other benefits. Therefore, it is the perfect place to set up new businesses, which has garnered a reputation in the global market.
Government initiatives for supporting start-ups in Malta
Several governmental initiatives have been in place to support various industries in the country. Most of the efforts focus on helping start-ups, including citizenship for foreign investors, equity capital, advisors, and opportunities to participate in start-up events around the country.
News sources such as Karl Schranz say that Malta has more than 250 start-ups currently in place, and more are coming up due to the several Maltese economic changes. It is gradually transitioning from an economy that focuses not only on large scale industries but also on 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, of which after the dividend distribution, it translates to an effective 5% tax rate. Plus, getting a share of the company’s dividends can apply for tax refunds if they are eligible.
There are a few hurdles to starting a business in Malta, which is attracting many international investors. Its business regulations are quite favorable, providing a free economy that supports companies such as tech start-ups. The UK’s exit from the EU has made Malta the most favorable hub for tech start-ups in the region. It has an advantageous location, and it 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.
Owing to the healthy financial sector in the country, fintech start-ups have incredibly grown. The industry has 25credit 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.
The Maltese government has also prioritized the blockchain industry, leading to blockchain start-ups, a tech industry subsector. One most notable activity is the establishment of fiat to crypto exchange by the giant currency binance. 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 opportunities the country has to offer. The government favors the sector in regulating the blockchain and crypto activities to secure investors and traders.
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.
Although Malta is a small island, its location is suitable for investors who want to explore European markets favorably.