Malta - United States Department of State

2023 Investment Climate Statements: Malta

The Republic of Malta is a strategic small country located in Sitilian Island 60 miles in Sicily and 180 miles north of Libya, facing the world's most traffic. Malta, who is a politically stable democratic state and has freedom in the press, is considered a safe, secure and welcome business environment for American investors.

Malta joined the European Union (EU) in 2004, joined the Schengen Cosmetic system in 2007 and the Euro area in 2008. The population is about 533. 286, the total area is only 122 square miles, and the Geographical size is the smallest EU country. The economy is mainly based on services such as shipping, banking and financial services, online gambling, tourism, and specialized, scientific and technical activities. The manufacturing industry also plays an important role in a small scale. The official language is Malta and English.

Malta recognizes that international trade and investment are important contributions to the creation of national wealth, because it is located in the world's most busy trade area and has a relatively small economic scale.

Before COVID-19, Malta was one of the highest economic growth rates in the EU. In 2022, the real GDP growth rate is estimated to reach 6. 6%. In 2023, it is expected that the real GDP growth rate will slow down to 3. 1%following the economic deceleration of Malta's major trading partner. In 2024, it was supported by pure exports and increased domestic demand, and the real GDP growth rate is expected to reach 3. 7%. Malta's unemployment rate in February 2022 was 3. 1%.

The top three rating agencies evaluate that Malta's economy is stable. The current rating is A-A-2 (visibility stable) (S & amp; P), A2 (outlook stable) (Moody's), and A+(outlook stable) (Fitch). The Republic of Malta is a strategic small country located 60 miles south of Sicily and 180 miles north of Libya, facing the world's most traffic. Malta, who is a politically stable democratic state and has freedom in the press, is considered a safe, secure and welcome business environment for American investors.

Before COVID-19, Malta was one of the highest economic growth rates in the EU. In 2022, the real GDP growth rate is estimated to reach 6. 6%. In 2023, it is expected that the real GDP growth rate will slow down to 3. 1%following the economic deceleration of Malta's major trading partner. In 2024, it was supported by pure exports and increased domestic demand, and the real GDP growth rate is expected to reach 3. 7%. Malta's unemployment rate in February 2022 was 3. 1%.	The top three rating agencies evaluate that Malta's economy is stable. The current rating is A-A-2 (visibility stable) (S & amp; P), A2 (outlook stable) (Moody's), and A+(outlook stable) (Fitch). The Republic of Malta is a strategic small country located in Sitilian Island 60 miles in Sicily and 180 miles north of Libya, facing the world's most traffic. Malta, who is a politically stable democratic state and has freedom in the press, is considered a safe, secure and welcome business environment for American investors.	Malta joined the European Union (EU) in 2004, joined the Schengen Cosmetic system in 2007 and the Euro area in 2008. The population is about 533. 286, the total area is only 122 square miles, and the Geographical size is the smallest EU country. The economy is mainly based on services such as shipping, banking and financial services, online gambling, tourism, and specialized, scientific and technical activities. The manufacturing industry also plays an important role in a small scale. The official language is Malta and English.	Malta recognizes that international trade and investment are important contributions to the creation of national wealth, because it is located in the world's most busy trade area and has a relatively small economic scale.
Before COVID-19, Malta was one of the highest economic growth rates in the EU. In 2022, the real GDP growth rate is estimated to reach 6. 6%. In 2023, it is expected that the real GDP growth rate will slow down to 3. 1%following the economic deceleration of Malta's major trading partner. In 2024, it was supported by pure exports and increased domestic demand, and the real GDP growth rate is expected to reach 3. 7%. Malta's unemployment rate in February 2022 was 3. 1%.	2022	The top three rating agencies evaluate that Malta's economy is stable. The current rating is A-A-2 (visibility stable) (S & amp; P), A2 (outlook stable) (Moody's), and A+(outlook stable) (Fitch).	In 2020, the Maltese government revised its citizenship program to grant citizenship by naturalization to applicants (and their dependents). The new program provides a slight delay in obtaining citizenship by introducing a residency requirement before obtaining Maltese citizenship: i) if you invest at least 750. 000 euros (875. 000 dollars), you can apply after one year of residency; ii) if you apply after three years of residency, you pay 600. 000 euros (700. 500 dollars). The IIP conditions include a minimum investment of 16. 000 euros/year for real estate, 16. 000 euros/year for rental property (which must be maintained for a minimum of five years), and a minimum of 150. 000 euros/year for investments in stocks, bonds, and bonds. Applicants are also required to make a charitable donation of 10. 000 euros (11. 600 dollars) before applying and must pass a due diligence test. In March 2022, the government suspended processing applications for nationals of the Russian Federation and Belarus. The suspension applies to both the Maltese citizenship scheme and the investment scheme, and must be renewed annually. Table 1: Basic measurements and classifications
Measurement method	2022	Year	Indicator/ Ranking
Indicator Indicator Indicator Indicator	2021	Corruption Perceptions Index	54 of 171
http://www. transparency. org/research/cpi/overview	2021	Global Innovation Index	21 of 132

1. Openness To, and Restrictions Upon, Foreign Investment

Policies Towards Foreign Direct Investment

https://www. globalinnovationIndex. org/analysis-indicator

US direct investment in partner countries (million USD, past stock position)

USD 2. 3 billion

https://apps. bea. gov/international/factsheet

World Bank GNI per capita
30.
http://data. worldbank. org/indicator/ny. gnp. pcap. cd
Malta is seeking foreign direct investment (FDI) to boost its economic growth. Malta has established incentives to attract investment in high-tech manufacturing (including plastics, precision engineering, electronics, automotive parts, and medical technologies such as pharmaceuticals and biotechnology), information and communications technology (ICT), research and development (R& D), aerospace, maintenance and aircraft equipment, education and training, ship and aircraft registration, transport and related services, financial services, and the automotive industry.
Malta's comparative advantages are its membership of the EU, Eurozone, and Schengen Area; its proximity to European and North African markets; excellent communications and transport links; a fair and transparent business environment; a skilled, English-speaking workforce; and competitive wages (the cost of living is comparable to many EU countries, but labor costs are comparatively lower). Malta also offers financial, tax, and other investment incentives to attract foreign direct investment, although tax incentives are subject to change to reflect Malta's agreement with global tax harmonization outlined by the OECD. Foreign investment plays an integral role in the Maltese government's policy to reduce the state's role in the economy and increase private sector activity. FDI has also played a key role in building Malta's economic recovery since the show, as Malta has developed an economic strategy based on specific market opportunities to help it recover in the new economic context.
Malta Enterprise is the government agency that promotes direct investment in Malta, providing information to prospective investors, processing applications for government investment incentives, and acting as a liaison between investors and other government agencies. Malta Enterprise offers attractive investment packages to US and other investors.
As a top priority, the government is seeking companies operating in the following sectors:
High-end manufacturing

Limits on Foreign Control and Right to Private Ownership and Establishment

ICT, augmented reality, virtual reality and digital gaming.

Medical technology, medical devices, pharmaceuticals, emerging medical sectors including medical cannabis and MedTech.

Back office and local support businesses

Digital technology such as distributed library, artificial intelligence, innovative technology, e-sports, fintech.

Knowledg e-based services such as education, training, research and development.

Other Investment Policy Reviews

Logistic s-based service including marine technology, storage, oil and gas service. and

Movie industry (Malta has one of the few water and ship sets in the world).

Business Facilitation

Private foreign investors can freely provide capital ti e-ups from joint ventures to complete shares, but FDI in Malta establishes foreign direct investment management frameworks in the EU. According to the EU Regulations 2019/452, it is subject to Chapter 620 of Malta's law. The Malta government has established the Direct Investment Management Bureau (NFDIS), and the scope and mission of NFDIS are new FDI projects, joint ventures that use foreign countries as components, the owner, the owner, or the final recipient. Is composed of companies that are derived from countries outside the European Union.

The fields to be judged by NFDIS are as follows:
(A) Physical or virtual, including energy, transportation, water, health, communication, media, data processing, data processing, aerospace, defense, election, economic infrastructure, and confidential facilities to use these infrastructure. Important infrastructure. (b) Important technologies and dual use items such as artificial intelligence, robot engineering, semiconductors, cyber security, aerospace, defense, energy storage, quantum technology, nuclear technology, nanotechnology, biotechnology. (C) Supply of important inputs including energy, raw materials, and food security. (E) Freedom of the media and polygamy. Digital technology such as distributed library technology, artificial intelligence, innovative technology, e-sports, fintech.
Knowledg e-based services such as education, training, research and development.
Logistic s-based service including marine technology, storage, oil and gas service. and

The movie industry (Malta has one of the few water and ship set in the world).

The fields to be judged by NFDIS are as follows:

(a) Physical or virtual, including energy, transportation, water, health, communication, media, data processing, data processing, conservation or preservation, and confidential facilities for using these infrastructure Important infrastructure. (b) Important technologies and dual use items such as artificial intelligence, robot engineering, semiconductors, cyber security, aerospace, defense, energy storage, quantum technology, nuclear technology, nanotechnology, biotechnology. (C) Supply of important inputs including energy, raw materials, and food security. (E) Freedom of the media and polygamy. Digital technology such as distributed library, artificial intelligence, innovative technology, e-sports, fintech.

Knowledg e-based services such as education, training, research and development.
Logistic s-based service including marine technology, storage, oil and gas service. and
The movie industry (Malta has one of the few water and ship set in the world).
Private foreign investors can freely provide capital ti e-ups from joint ventures to complete shares, but FDI in Malta establishes foreign direct investment management frameworks in the EU. According to the EU Regulations 2019/452, it is subject to Chapter 620 of Malta's law. The Malta government has established the Direct Investment Management Bureau (NFDIS), and the scope and mission of NFDIS are new FDI projects, joint ventures that use foreign countries as components, the owner, the owner, or the final recipient. Is composed of companies that are derived from countries outside the European Union.

The fields to be judged by NFDIS are as follows:

(A) Physical or virtual, including energy, transportation, water, health, communication, media, data processing, data processing, aerospace, defense, election, economic infrastructure, and confidential facilities to use these infrastructure. Important infrastructure. (b) Important technologies and dual use items such as artificial intelligence, robot engineering, semiconductors, cyber security, aerospace, defense, energy storage, quantum technology, nuclear technology, nanotechnology, biotechnology. (C) Supply of important inputs including energy, raw materials, and food security. (E) Freedom of the media and polygamy.
The Malta government acknowledges the right to the private property in both theoretically and on the theory. Private companies can be screened, acquire, and dispose of business companies, after receiving NFDIS screening as needed. Many US companies sell products and services in Malta through license contracts, franchise contracts, or similar agreements. In general, the government acknowledges that foreign companies operate in the commercialization of commercialization, especially when foreign companies operate licensing, franchise contracts, or similar agreements through local agencies.
The government's policy is that public companies are not allowed to operate at the expense of private companies. In some fields such as power generation, the entry of private companies is also allowed. The government provides private companies with similar opportunities to public companies for access to market and other business activities.
In 2018, the Economic Cooperation and Development Organization (OECD) published the fourth batch of the peer review report on the implementation of the minimum erosion and profit transfer standard (BEPS) under action 14 on the improvement of the tax dispute resolution mechanism. Malta is one of the countries and regions that were rated in the fourth installment of Australia, Ireland, Israel, Japan, Mexico, New Zealand and Portugal.

As a whole, the report concludes that Malta satisfies almost all of the minimum standards of action 14, but at this stage, the experience of Malta's mutual consultation procedures (MAP) is limited, so at this stage. I couldn't evaluate the elements. Despite this limited experience, the first pea r-reviewed report indicates that Malta generally has a means of solving the Charter project. Malta has stated that it will work on the drawbacks pointed out in the first stage of the Pierce Report.

When establishing a company in Malta, the Malta Commercial Code stipulates the establishment of various types of entrepreneurs in accordance with the needs of individual investors. The following is a available structure:

Private liability company

Private limited liability compan y-Private Liability Compan y-Public Limited Liability Company

Outward Investment

General partnership

Foreign companies can also establish subsidiaries and branches in Malta. The Malta government acknowledged the right to the theoretical and above the right of private property. Private companies can be screened, acquire, and dispose of business companies, after receiving NFDIS screening as needed. Many US companies sell products and services in Malta through license contracts, franchise contracts, or similar agreements. In general, the government acknowledges that foreign companies operate in the commercialization of commercialization, especially when foreign companies operate licensing, franchise contracts, or similar agreements through local agencies.

The government's policy is that public companies are not allowed to operate at the expense of private companies. In some fields such as power generation, the entry of private companies is also allowed. The government provides private companies with similar opportunities to public companies for access to market and other business activities.

2. Bilateral Investment and Taxation Treaties

In 2018, the Economic Cooperation and Development Organization (OECD) published the fourth batch of the peer review report on the implementation of the minimum erosion and profit transfer standard (BEPS) under action 14 on the improvement of the tax dispute resolution mechanism. Malta is one of the countries and regions that were rated in the fourth installment of Australia, Ireland, Israel, Japan, Mexico, New Zealand and Portugal.

3. Legal Regime

Transparency of the Regulatory System

Private liability company

Private limited liability compan y-Private Liability Compan y-Public Limited Liability Company

General partnership

Foreign companies can also establish subsidiaries and branches in Malta. The Malta government acknowledges the right to the private property in both theoretically and on the theory. Private companies can be screened, acquire, and dispose of business companies, after receiving NFDIS screening as needed. Many US companies sell products and services in Malta through license contracts, franchise contracts, or similar agreements. In general, the government acknowledges that foreign companies operate in the commercialization of commercialization, especially when foreign companies operate licensing, franchise contracts, or similar agreements through local agencies.

International Regulatory Considerations

Legal System and Judicial Independence

Private liability company

Private limited liability compan y-Private Liability Compan y-Public Limited Liability Company

General partnership

Foreign companies can also establish subsidiaries and branches in Malta.

Laws and Regulations on Foreign Direct Investment

When establishing a Malta private company, the minimum acceptance of stock capital is 1. 165 euros ($ 1. 300). The lowest public company is about 46. 600 euros ($ 51. 670), and 25 % must be deposited before registering. In the case of a private company that has a share share capital exceeding the minimum requirement, only 20%must be deposited.

Competition and Antitrust Laws

The limit of the number of shareholders of the limited liability company is 50, and the lower limit is two (however, the company law can register by one company).

The main procedures necessary for establishing a company in Malta are as follows:

Expropriation and Compensation

Dispute Settlement

ICSID Convention and New York Convention

We will maintain the registered company name of the mother company.

Investor-State Dispute Settlement

Create the Memorandum of Association and the Articles of Incorporation (Memorandum of Undertaking and Memorandum of Association).

International Commercial Arbitration and Foreign Courts

Bankruptcy Regulations

The documents to be submitted to the Malta company registration office are as follows:

Memorandum and Articles of Incorporation

Reservation confirmation of the company name

A bank receipt to check the capital deposit.

4. Industrial Policies

Investment Incentives

Passport copy of shareholders, directors, secretary role

Investment Aid

Malta Commercial Registration Office (MBR) has a new commercial partnership, registration of commercial partnerships, issuing certificates including excellent certificates, reservations of company names, collecting registration fees, and issuing notifications. I am in charge of imposing and collecting penalties. MBR also conducts company surveys and manages the company / partnership registration book.

Access to Finance

This memorandum needs to be submitted to MBR. MBR provides online systems, and users can register the company and submit a commonly used form (including a bank receipt that proves the first stock capital payment). All legal forms and notifications are available on the website for free. MBR also requests Dew Dirgiance to provide directors, shareholders, or substantive owners before the company is established. At the time of the establishment of the company, the company must pay the MBR according to the amount of stock capital held by the company. When establishing a Malta private company, the minimum acceptance of stock capital is 1. 165 euros ($ 1. 300). The lowest public company is about 46. 600 euros ($ 51. 670), and 25 % must be deposited before registering. In the case of a private company that has a share share capital exceeding the minimum requirement, only 20%must be deposited.

The limit of the number of shareholders of the limited liability company is 50, and the lower limit is two (however, the company law can register by one company).
The main procedures necessary for establishing a company in Malta are as follows:

Research and Development

We will maintain the registered company name of the mother company.

Create the Memorandum of Association and the Articles of Incorporation (Memorandum of Undertaking and Memorandum of Association).

Incentives for Green Energy, Business Regeneration and Sustainability

The documents to be submitted to the Malta company registration office are as follows:

Memorandum and Articles of Incorporation

Reservation confirmation of the company name

A bank receipt to check the capital deposit.

Passport copy of shareholders, directors, secretary role

This memorandum needs to be submitted to MBR. MBR provides online systems, and users can register the company and submit a commonly used form (including a bank receipt that proves the first stock capital payment). All legal forms and notifications are available on the website for free. MBR also requests Dew Dirgiance to provide directors, shareholders, or substantive owners before the company is established. At the time of the establishment of the company, the company must pay the MBR according to the amount of stock capital held by the company. When establishing a Malta private company, the minimum acceptance of stock capital is 1. 165 euros ($ 1. 300). The lowest public company is about 46. 600 euros ($ 51. 670), and 25 % must be deposited before registering. In the case of a private company that has a share share capital exceeding the minimum requirement, only 20%must be deposited.

The limit of the number of shareholders of the limited liability company is 50, and the lower limit is two (however, the company law can register by one company).

The main procedures necessary for establishing a company in Malta are as follows:

Foreign Trade Zones/Free Ports/Trade Facilitation

We will maintain the registered company name of the mother company.

Create the Memorandum of Association and the Articles of Incorporation (Memorandum of Undertaking and Memorandum of Association).

Performance and Data Localization Requirements

The documents to be submitted to the Malta company registration office are as follows:

Memorandum and Articles of Incorporation

Reservation confirmation of the company name

A bank receipt that confirms the deposit of capital.

Passport copy of shareholders, directors, secretary role

5. Protection of Property Rights

Real Property

When all the above requirements are satisfied, MBR usually establishes a company within 2-3 business days. Once the establishment is completed, MBR issues a certificate of establishment of a corporation with the company registration number. MBR website: https: // mbr. Mt/

Intellectual Property Rights

The Malta Government also provides a on e-stop service, "Business First," which provides services and information necessary for the establishment of a company. Business First collects more than 50 major services from various government agencies under one roof. We support all companies based in Malta, such as small and mediu m-sized enterprises, large companies, and foreign investors.

Trademalta, founded in 2014, is a publi c-private partnership of the government and the Chamber of Commerce to support the internationalization of companies based in Malta. Trademalta is also a national institution that conducts marketing, inbound and outbound trade missions, promotes participation in international trade fair, promotes the tw o-country trade meeting, and investigates new market opportunities. Trademalta promotes foreign investment and provides incentives for companies to explore international business, but does not provide financial incentives to establish FDI in other jurisdictions. The sem i-government agencies are obliged to maintain a business relationship with the countries where Malta is engaged in trade activities, and are losing resources to discover new markets that are not considered to be a traditional trading partner. (For the past three years, North African countries have been subject to foreign trade missions).

This organization provides specialized training programs on international business development and marketing, and operates encouraging programs and internationalization programs for beginners and experienced exports.

The Malta government is actively supporting and promoting international business opportunities between franchise, joint venture, and other Malta companies and foreign companies. When all of the above requirements are satisfied, MBR usually establishes a company within 2-3 business days. Once the establishment is completed, MBR issues a certificate of establishment of a corporation with the company registration number. MBR website: https: // mbr. Mt/

6. Financial Sector

Capital Markets and Portfolio Investment

The Malta government is actively supporting and promoting international business opportunities between franchise, joint venture, and other Malta companies and foreign companies. When all the above requirements are satisfied, MBR usually establishes a company within 2-3 business days. Once the establishment is completed, MBR issues a certificate of establishment of a corporation with the company registration number. MBR website: https: // mbr. Mt/

Money and Banking System

The Malta government is actively supporting and promoting international business opportunities between franchise, joint venture, and other Malta companies and foreign companies.

In 2010, the United States entered into a bilateral tax treaty with Malta, and in December 2021, the United States and Malta concluded an Authorized Arrangement (CAA), the Malta Tax Convention (Treaty), which confirms the United States and Malta's understanding of the concept of pension funds for U. S. income purposes. Malta also benefits from treaties with investment clauses with the ACP (Association of African, Caribbean and Pacific States), Albania, Algeria, the Andean Community, Armenia, ASEAN (Association of Southeast Asian Nations) and Bosnia and Herzegovina. Bosnia and Herzegovina, Brazil, Cambodia, Cameroon, Canada, Cambodia, Cameroon, China, Chile, China, Colombia, Egypt, Côte d'Ivoire, Ecuador, CACM (Central American Common Market), Chile, Chile, ETTA (European Free Trade Association), Egypt, Côte d'Ivoire, Egypt, ESA (Eastern and Southern Africa), GCC (Gulf Cooperation Council), Georgia, India, Iraq, Israel, Jordan, Iraq, Jordan, Kazakhstan, Republic of Korea, Kyrgyzstan, Laos, Lebanon, Libya, Macau SAR, Lao People's Democratic Republic, Macau SAR. A. S., Moldova, Mongolia, Montenegro, Morocco, Nepal, North Macedonia, Oct (Overseas Countries and Territories), Pakistan, Palestinian Territory, Paraguay, Peru, Russia, SADC (Southern African Development Community), Serbia, Singapore, South Africa, Sri Lanka, Singapore, South Africa, Sri Lanka, South Africa, Pakistan, Pakistan, Paraguay, Peru, Russia. Sri Lanka, Tajikistan, Thailand, Tunisia, Turkey, Turkmenistan, Ukraine, Uruguay, Uzbekistan, Vietnam, Yemen.

Foreign Exchange and Remittances

Foreign Exchange

The United States has had a commerce and navigation treaty with Malta since 1815, initially as a British colony and on behalf of Malta after its independence in 1964. The main purpose of the agreement is to ensure non-discrimination in trade and investment between the two countries. Malta has similar investor protection agreements with Albania, Austria, Belgium/Luxembourg Economic Union, Bulgaria, China, Croatia, Cyprus, Czech Republic, Egypt, France, Germany, Italy, Kuwait, Libya, Montenegro, Netherlands, Serbia, Slovenia, Sweden, Switzerland, Tunisia, Turkey, Switzerland and the United Kingdom.

Remittance Policies

There are currently no ongoing systemic tax disputes between the government and foreign investors. Malta is one of 141 jurisdictions that have agreed to the OECD's Inclusive Framework on Base Erosion and Profit Shifting (BEPS).

Malta has transparent and effective policies and regulations to promote competition. It has amended its labor, safety, health and other laws to align them with EU standards.

All proposed regulations are published on the consolidated website, the relevant ministry or regulator website and disseminated directly to stakeholders. Stakeholder participation is now mandatory for all subordinate regulations and for certain primary legislation in certain policy areas as part of the Regulatory Impact Assessment (RIA) process. Each online consultation is accompanied by a feedback report summarizing participants' views and providing feedback on the comments received. According to the 2019 OECD report on indicators of regulatory policy and governance, the transparency of Malta's regulatory framework could be further improved by making RIAs available for stakeholder consultations, by systematically engaging with stakeholders during the development of major legislation, especially at an early stage before identifying priority regulatory decisions. The Small and Medium Enterprises Act (SBA), adopted in 2011 and recently amended in 2021, introduced an impact assessment framework to be applied by ministries when developing subordinate regulations, including the SME test, and more recently for the development of primary legislation. The European Commission's (EC) Corporate Sustainability Reporting Directive (CSRD) came into force on 5 January 2023. The EC Directive introduced extensive mandatory reporting requirements for large companies and separate proportionality standards for listed SMEs, which also apply to Malta. Companies will now have to report on how sustainability issues affect their business, society and the environment, and vice versa. As a result, around 50, 000 companies in EU member states, including Malta, will have to submit sustainability reports. External audits will be required to verify the reported information. Companies will have to report/label the information digitally, so that it is machine-readable.
The CSRD revises, extends and strengthens the rules introduced by the Non-Financial Reporting Directive (NFRD), introducing a standardised common language for sustainability information and reporting sustainability alongside financial reporting. Member States have 18 months to transpose the provisions of the NFRD into national law (i. e. no later than 4 July 2024). All proposed regulations are published on the consolidated website, on the websites of the relevant ministries or regulators and disseminated directly to stakeholders. Stakeholder participation is now mandatory for all subordinate regulations and for certain primary legislation in certain policy areas as part of the Regulatory Impact Assessment (RIA) process. Each online consultation is accompanied by a feedback report summarizing participants’ views and providing feedback on the comments received. According to the 2019 OECD report on indicators of regulatory policy and governance, the transparency of Malta’s regulatory framework could be further improved by making RIAs available for stakeholder consultations, by systematically engaging with stakeholders during the development of major legislation, particularly at an early stage before identifying priority regulatory decisions. The Small and Medium Enterprises Act (SBA), adopted in 2011 and recently amended in 2021, introduced an impact assessment framework to be applied by ministries when developing subordinate regulations, including the SME test, and more recently when developing primary legislation.

The European Commission (EC) Corporate Sustainability Reporting Directive (CSRD) came into force on 5 January 2023. The EC Directive introduced extensive mandatory reporting requirements for large companies and separate proportionality thresholds for listed SMEs, which also apply to Malta. Companies will now have to report on how sustainability issues affect their business, society and the environment, and vice versa. As a result, around 50, 000 companies in EU member states, including Malta, will have to submit sustainability reports. External audits will be required to verify the reported information. Companies will have to report/label the information digitally, so that it is machine-readable.

The CSRD revises, extends and strengthens the rules introduced by the Non-Financial Reporting Directive (NFRD), introducing a standardized common language for sustainability information and reporting sustainability alongside financial reporting. Member States have 18 months to transpose the provisions of the NFRD into national law (i. e. no later than 4 July 2024). All proposed regulations are published on a consolidated website, on the websites of the relevant ministries or regulators and disseminated directly to stakeholders. Stakeholder participation is now mandatory for all subordinate regulations and for certain primary acts in certain policy areas as part of the Regulatory Impact Assessment (RIA) process. Each online consultation is accompanied by a feedback report summarizing participants' views and providing feedback on the comments received. According to the 2019 OECD report on indicators of regulatory policy and governance, the transparency of Malta’s regulatory framework could be further improved by making RIAs available for stakeholder consultations, by systematically engaging with stakeholders during the development of primary legislation, particularly at an early stage before identifying priority regulatory decisions. The Small and Medium Enterprises Act (SBA), adopted in 2011 and recently amended in 2021, introduced an impact assessment framework to be applied by ministries when developing subordinate regulations, including the SME test, and more recently in the development of primary legislation.
The European Commission’s (EC) Corporate Sustainability Reporting Directive (CSRD) came into force on 5 January 2023. The EC Directive introduced extensive mandatory reporting requirements for large companies and separate proportionality thresholds for listed SMEs, which will also apply in Malta. Companies will now have to report on how sustainability issues affect their operations, society and the environment, and vice versa. As a result, around 50, 000 companies in EU member states, including Malta, will have to submit sustainability reports. External audits will be required to verify the reported information. Companies will have to report/label the information digitally, so that it is machine-readable.

The CSRD revises, extends and strengthens the rules introduced by the Non-Financial Reporting Directive (NFRD), introducing a standardized common language for sustainability information and reporting sustainability alongside financial reporting. Member states have 18 months to transpose the provisions of the NFRD into national law (i. e. by 4 July 2024 at the latest).

In December 2021, Malta launched its first Environmental, Social and Governance (ESG) Portal, allowing the public and investors to assess the environmental, social and governance performance of large companies listed in Malta. The ESG Portal makes it easier for domestic and international investors to access data measuring a company's ESG focus. The platform will serve to further promote sustainable investment as investors increasingly attach importance to ESG credentials before investing. These companies are listed on the Malta Stock Exchange and their ESG credentials can be found at https://sustainabledevelopment. gov. mt/esg/.

Sovereign Wealth Funds

Malta's regulatory system is derived from the Acquire Communiquerre, a totality of laws, rights and obligations binding on all EU member states. As a result, trade and investment relations with third countries are the responsibility of the EU under the Common Commercial Policy. However, with regard to investment, Malta has certain state competences in certain investment areas. In particular, where the EU does not have or is not negotiating an investment protection agreement, Malta can unilaterally conclude or negotiate one. Malta also holds competencies in the areas of transport, portfolio investment and corporate tax. The NFDIS implements the EU Mechanism for Investment Cooperation required by the EU's new framework for investment screening, which came into force on 10 April 2019.

Malta joined the WTO on 1 January 1995. However, all draft technical regulations in the WTO's Committee on Technical Regulations on Trade are currently prepared at EU level.

7. State-Owned Enterprises

Malta ratified the Trade Facilitation Agreement on 5 October 2015 and is in full compliance with its implementation commitments.

Privatization Program

The Maltese Commercial Code regulates commercial activities and related laws such as the Banking Act, the Central Bank of Malta Act and insolvency. In insolvency cases, the court appoints a trustee to liquidate the assets of the insolvent company, organisation or individual and distributes the proceeds to creditors.

Malta's judiciary is independent and the courts are divided into a High Court presided over by a judge, and a Lower Court presided over by a judge. The Lower Court has jurisdiction over minor criminal offences and minor civil matters. The judiciary has traditionally been administered through the Criminal, Civil and Constitutional Courts. The First Civil Court deals with commercial matters. Malta has a Criminal Appeal Court and a Second Appeal Court which deals with all other matters. The Constitutional Court has jurisdiction to hear and determine constitutional matters and appeals. There are also various administrative courts, including the Industrial Court, the Rent Control Board, the Sanctions Supervision Board and the Special Board (Income Tax). Malta adopted the European Convention on Human Rights as part of its domestic law in 1987.

8. Responsible Business Conduct

The Maltese judiciary has a long tradition of independence. Once appointed to the bench, judges and magistrates have a fixed salary and do not require annual confirmation. Judges cannot be removed from office without a two-thirds majority in the House of Representatives if they are proven to have committed misconduct or are unable to perform their duties properly. The Maltese Constitution guarantees separation of powers between the executive and the judiciary, and a fair trial. In December 2018, the European Commission for Democracy through Law, known as the Venice Commission, issued its opinion on Malta's constitutional arrangements, separation of powers, and independence of the judiciary and law enforcement agencies. Malta is currently in the process of implementing changes in line with the recommendations of the Venice Commission. To date, various laws have been enacted to address reforms including constitutional provisions delegating power to appoint judicial and law enforcement officials from the Prime Minister, and separation of powers between the judiciary and law enforcement agencies.

In its latest Rule of Law Report 2022, country edition for Malta, the European Commission noted that Malta's reforms implemented in 2020, in particular the transfer of prosecution from the police to the Attorney General and the review of the independence of specialized courts, were announced by the government. The government adopted a National Strategy to Combat Fraud and Corruption, the implementation of which is overseen by an inter-ministerial committee. The concern expressed by the EC was that no further steps have been taken on the appointment system for Supreme Court judges and that the lack of judicial participation in this system requires further attention. Regarding the quality of justice, several initiatives have been taken, such as the publication of the first National Digital Justice Strategy (2022-2027) and improvements to the legal aid framework.

Foreign investment in Malta is regulated by several laws. The Income Tax Act 1948 (amended in 1994) provides for a flat tax rate of 35% on the income of Maltese limited liability companies. This rate may be reduced to 5% through a dividend refund scheme. The Business Promotion Act empowers the Maltese government to grant financial and other incentives to companies engaged in manufacturing (including software development), repair and maintenance activities. The Malta Business Act 2003 allows the Corporate Malta Act to develop and administer incentives and other forms of support to liberalise and update FDI-related legislation. The Companies Act 1995 provides for the formation of limited liability companies. The Companies Act also provides for the formation of variable interest investment companies (SICAVS) and companies with foreign currency-denominated share capital. The Malta Financial Services Authority Act 1989 established the Malta Financial Services Authority (MFSA) and is responsible for regulating banking and investment services in Malta. The Investment Services Act 1994 regulates investment services in the banking and insurance sectors. In 2018, the Malta Financial Services Authority (MFSA) was established in 2007. Foreign investment in Malta is regulated by several laws. The Income Tax Act 1948 (amended in 1994) provides for a flat rate of tax of 35% on the income of Maltese limited liability companies. This rate may be reduced to 5% through a dividend refund scheme. The Business Promotion Act empowers the Maltese government to grant financial and other incentives to companies engaged in manufacturing (including software development), repair and maintenance activities. The Malta Business Act 2003 allows the Corporate Malta Act to develop and administer incentives and other forms of support to liberalize and update FDI-related laws. The Companies Act 1995 provides for the formation of limited liability companies. The Companies Act also provides for the formation of variable interest investment companies (SICAVS) and companies with foreign currency denominated share capital. The Malta Financial Services Authority Act 1989 establishes the Malta Financial Services Authority (MFSA) and is responsible for regulating banking and investment services in Malta. The Investment Services Act 1994 regulates investment services in the banking and insurance sectors. In 2018, foreign investment in Malta is regulated by several laws. The Income Tax Act 1948 (amended in 1994) provides for a flat tax rate of 35% on the income of Maltese limited liability companies. This rate may be reduced to 5% through a dividend refund scheme. The Business Promotion Act empowers the Maltese government to grant financial and other incentives to companies engaged in manufacturing (including software development), repair and maintenance. The Malta Business Act 2003 allows the Corporate Malta Act to develop and administer incentives and other forms of support to liberalise and update FDI-related legislation. The Companies Act 1995 provides for the formation of limited liability companies. The Companies Act also provides for the formation of variable interest investment companies (SICAVS) and companies with foreign currency denominated share capital. The Malta Financial Services Authority Act 1989 establishes the Malta Financial Services Authority (MFSA) and is responsible for regulating banking and investment services in Malta. The Investment Services Act 1994 regulates investment services in the banking and insurance sectors. In 2018,

Malta is a free trade, open economy country. The government does not approve or restrict any FDI as long as it complies with EU and domestic regulations. The Government of the Republic of Malta screens FDI before granting incentives to private companies and businesses. A due diligence process is carried out before greenfield investments are approved. The MFSA performs notification and regulatory review of financial investments.

The Competition Bureau is currently housed within the Malta Competition and Consumer Authority (MCCAA) and is the authority responsible for protecting competition in Malta. Malta's competition law is modelled on EU competition law. The most recent amendments to the Competition Law in 2011 strengthened the deterrent effect by expanding the Competition Bureau's decision-making powers and further aligned the substantive and procedural rules with those based on EU law.

The Government of Malta may, in exceptional circumstances, expropriate private property for public purposes. In such cases, the Government must act in a non-discriminatory manner and in accordance with established principles of international law. Investors and lessors of expropriated property receive prompt, adequate and effective compensation. In 1993, the government's Real Estate Department began accepting expropriation applications from public authorities only if they were accompanied by compensation to the landowner. In 2002, this practice became law. As a result, the government can only expropriate private property if the presidential decree includes the deposit of compensation. In recent years, the government has mainly allocated land for road expansion. However, there are no specific sectors subject to expropriation or similar measures, and no laws enforcing local ownership.

Malta signed the Convention on the Settlement of Investment Disputes (ICSID) in 2002. Malta is also a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (UNCITRAL), concluded in 1958.

In recent years, there have been only a handful of significant investment disputes involving U. S. and other foreign investors or contractors in Malta. Of the limited number of cases, U. S. investors have found it difficult to obtain fair legal resolutions, especially in disputes with Maltese parties. Maltese courts are slow to process cases. Reforms to increase the efficiency of the judicial system are part of ongoing constitutional reform efforts, including recent progress in implementing the Venice Commission recommendations. In December 2019, the National Advocate Act came into force as part of reforms in Malta's judiciary, abolishing the advisory and prosecutorial roles of the Attorney General (AG).
Malta respects the enforcement of foreign court judgments and external arbitral awards. The bilateral investment treaties that Malta has with several countries (see Section 3 "Bilateral Investment Treaties") provide avenues for resolving disputes involving nationals of those countries.
Malta's Companies Act, Insolvency Act, Commercial Code and Insolvency Act 2003 regulate insolvency. The latter provides for enforceable discharges and set-offs of the parties, whether before or after bankruptcy or insolvency, in respect of mutual credits, mutual debts and other mutual transactions.
The Maltese insolvency law system distinguishes between the insolvency of individuals and that of commercial partnerships other than companies. Insolvency proceedings can be commenced when a company is unable to pay its debts. In such cases, the court will carefully consider whether the financial position of the company justifies the insolvency or whether it is possible for the company to continue its business and pay its debts.
Any employee of a company who, during the 12 months preceding the deemed dissolution date, conceals assets or documents disposing of assets or commits any other fraudulent act may be held criminally liable. Apart from this, the court may find such officers liable for such acts and require them to repay all amounts of money due from the company. The Act also provides for procedures in cases of unlawful trading by directors and fraudulent trading by officers of a company.

In recent years, there have been only a handful of significant investment disputes involving US and other foreign investors or contractors in Malta. In the limited caseload, U. S. investors find it difficult to obtain fair legal resolutions, especially in disputes with Maltese parties. Maltese courts are slow to process cases. Reforms to increase the efficiency of the judicial system are part of ongoing constitutional reform efforts, including recent progress in implementing the Venice Commission recommendations. In December 2019, the National Advocate Act came into force as part of reforms in Malta’s judiciary, abolishing the advisory and prosecutorial roles of the Attorney General (AG).

Malta respects the enforcement of foreign court judgments and external arbitral awards. The bilateral investment treaties that Malta has with several countries (see Section 3 “Bilateral Investment Treaties”) provide avenues for resolving disputes involving nationals of those countries.

Malta’s Companies Act, Insolvency Act, Commercial Code and Insolvency Act 2003 regulate insolvency. The latter provides for enforceable discharges and set-offs of the parties, whether before or after bankruptcy or insolvency, in respect of mutual credits, mutual debts and other mutual transactions.
The Maltese insolvency law system distinguishes between the insolvency of individuals and that of commercial partnerships other than companies. Insolvency proceedings can be commenced when a company is unable to pay its debts. In such cases, the court will carefully consider whether the financial position of the company justifies the insolvency or whether it is possible for the company to continue its business and pay its debts.
Any employee of a company who, during the 12 months preceding the deemed dissolution date, conceals assets or documents disposing of assets or commits any other fraudulent act may be held criminally liable. Separately, the court may find such officers liable for such acts and require them to repay all amounts of money due from the company. The Act also provides for procedures in cases of unlawful trading by directors and fraudulent trading by officers of a company. In recent years, there have been only a handful of significant investment disputes involving US and other foreign investors or contractors in Malta. In the limited caseload, U. S. investors find it difficult to obtain fair legal resolutions, especially in disputes with Maltese parties. Maltese courts are slow to process cases. Reforms to increase the efficiency of the judicial system are part of ongoing constitutional reform efforts, including recent progress in implementing the recommendations of the Venice Commission. In December 2019, the National Advocate Act came into force as part of reforms in Malta’s judiciary, abolishing the advisory and prosecutorial roles of the Attorney General (AG).
Malta respects the enforcement of foreign court judgments and external arbitral awards. The bilateral investment treaties that Malta has with several countries (see Section 3 “Bilateral Investment Treaties”) provide avenues for resolving disputes involving nationals of those countries.

Climate Issues

Malta’s Companies Act, Insolvency Act, Commercial Act and Insolvency Act 2003 regulate insolvency. The latter provides for enforceable discharge and set-off of parties, whether before or after bankruptcy or insolvency, in respect of mutual credits, mutual debts and other mutual transactions.

The Maltese insolvency law system distinguishes between the insolvency of individuals and that of commercial partnerships other than companies. Insolvency proceedings can be commenced when a company is unable to pay its debts. In such cases, the court will carefully consider whether the financial position of the company justifies the insolvency or whether it is possible for the company to continue its business and pay its debts.

Any employee of a company who, during the 12 months preceding the deemed dissolution date, conceals assets or documents disposing of assets or commits any other fraudulent act may be held criminally liable. Apart from this, the court may find such officers liable for such acts and require them to repay in full any amount of money due from the company. The Act also provides for procedures in cases of unlawful trading by directors and fraudulent trading by officers of the company.

9. Corruption

The Malta Credit Management Association (MACM) is a non-profit organisation that provides a central national organisation for the promotion and protection of all credit interests relating to Maltese companies. For more information, please visit https://www. macm. org. mt/.

The Maltese government offers a number of investment incentives to attract foreign direct investment. All investment incentives are set by law and cannot be allocated on an ad-hoc basis. However, due to the way the incentives are designed, there is an opportunity to offer relatively bespoke solutions, although domestic and foreign investors are treated the same. There are no reported requirements that foreign investors must transfer technology, employ Maltese nationals or reduce their participation interest in the long term. However, these factors may influence Malta's decision on companies' requests for assistance. Malta Enterprise monitors compliance with the conditions set by the government as a condition for government assistance. Investors are not required to disclose proprietary information.

Companies in key sectors can receive assistance for their initial investment and for the expansion of their current investment. For SMEs, the assistance amount is up to 30% of the expenditure on eligible tangible or intangible assets or the first 24 months of salary related to the role created by the investment, 20% for medium-sized enterprises and 10% for large enterprises. The assistance amount is granted as a tax credit against future income tax and in some cases may be a cash grant. Supported projects can also facilitate access to financing means by reducing the total grant amount equivalent to the access to financing means from the assistance granted as a tax credit.

Malta Enterprise provides assistance to companies carrying out initial investment projects through:

Guarantees that can be used to partially guarantee investment loans issued by commercial banks, or

Loan interest subsidies on the interest paid on bank loans.

Soft loans to support companies making investments that cannot be met by regular bank loans. This financial product targets business activities such as the establishment of new products, entering new geographic markets and digital businesses. Such businesses can be supported through soft loans that cover part of the financing requirements up to a maximum of €1 million.

The Malta government offers special incentives to companies engaged in industrial R & D. Malta companies provide incentives to support and encourage companies engaged in industrial research and experimental development, including the use of intellectual property by providing patent knowledge. The government does not distinguish the participation in the encouragement program from US companies and other foreign companies.

US companies can also partner with local companies to participate in the EU research and innovation funding program, Horizon Europe. Horizon Europe was implemented until the end of 2027, with a budget of 95. 5 billion euros.

Malta's fiscal plan has a lon g-term vision for the purpose of supporting the economic Renaissance after parallel imports, using the environment and social responsibilities as the most important issue of the country. Malta Enterprise is providing support for international ESG expectations for Malt a-based companies to migrate two greens and digital. Malta Enterprise has a "smart and sustainable investment subsidy" that encourages companies to invest more in sustainability, such as reducing waste, using sustainable materials, improving energy and water efficiency. , We have launched many specific support measures. The target company can benefit from up to 100, 000 euros per project and covers 50 % of the target cost.

Furthermore, as part of the efforts to achieve Malta's emission goals and build a more sustainable future, Malta Enterprise, including a project to support companies replacing fossil vehicles with electric vehicles. The project has been launched.

In order to recognize the current global issues related to the supply chain and reduce the price increase in international transportation costs, the government will especially cover rental costs in warehouses for storage. We have expanded rental subsidy incentives to spread to companies.
As a relevant movement, Malta plans to launch a blu e-med hub, especially in connection with the Circular Economy. The hub aims to attract various Blue Economy experts to attract domestic and foreign companies and small and mediu m-sized businesses related to this area. The hub will partner with companies in Africa and the Middle East to pioneer investment opportunities in this field. The Malta government offers special incentives to companies engaged in industrial R & D. Malta companies provide incentives to support and encourage companies engaged in industrial research and experimental development, including the use of intellectual property by providing patent knowledge. The government does not distinguish the participation in the encouragement program from US companies and other foreign companies.
US companies can also partner with local companies to participate in the EU research and innovation funding program, Horizon Europe. Horizon Europe was implemented until the end of 2027, with a budget of 95. 5 billion euros.
Malta's fiscal plan has a lon g-term vision for the purpose of supporting the economic Renaissance after parallel imports, using the environment and social responsibilities as the most important issue of the country. Malta Enterprise is providing support for international ESG expectations for Malt a-based companies to migrate two greens and digital. Malta Enterprise has a "smart and sustainable investment subsidy" that encourages companies to invest more in sustainability, such as reducing waste, using sustainable materials, improving energy and water efficiency. , We have launched many specific support measures. The target company can benefit from up to 100, 000 euros per project and covers 50 % of the target cost.
Furthermore, as part of the efforts to achieve Malta's emission goals and build a more sustainable future, Malta Enterprise, including a project to support companies replacing fossil vehicles with electric vehicles. The project has been launched.
In order to recognize the current global issues related to the supply chain and reduce the price increase in international transportation costs, the government will especially cover rental costs in warehouses for storage. We have expanded rental subsidy incentives to spread to companies.
As a relevant movement, Malta plans to launch a blu e-med hub, especially in connection with the Circular Economy. The hub aims to attract various Blue Economy experts to attract domestic and foreign companies and small and mediu m-sized businesses related to this area. The hub will partner with companies in Africa and the Middle East to pioneer investment opportunities in this field. The Malta government offers special incentives to companies engaged in industrial R & D. Malta companies provide incentives to support and encourage companies engaged in industrial research and experimental development, including the use of intellectual property by providing patent knowledge. The government does not distinguish the participation in the encouragement program from US companies and other foreign companies.
US companies can also partner with local companies to participate in the EU research and innovation funding program, Horizon Europe. Horizon Europe was implemented until the end of 2027, with a budget of 95. 5 billion euros.

In order to recognize the current global issues related to the supply chain and reduce the price increase in international transportation costs, the government will especially cover rental costs in warehouses for storage. We have expanded rental subsidy incentives to spread to companies.

As a relevant movement, Malta plans to launch a blu e-med hub, especially in connection with the Circular Economy. The hub aims to attract various Blue Economy experts to attract domestic and foreign companies and small and mediu m-sized businesses related to this area. The hub will partner with companies in Africa and the Middle East to pioneer investment opportunities in this field.

For more information on the incentives offered by Malta Enterprise, please visit https://www. maltaenterprise. com/support.

10. Political and Security Environment

Employment and Training The Malta Employment Company helps companies recruit and train new employees. Malta Enterprise offers skills development programmes that allow companies to benefit from training their employees. Malta is home to several overseas universities offering courses for both local and international students, with Barts School of Medicine, Queen Mary, University of London, joining the ranks recently.

11. Labor Policies and Practices

Business Support Trade Malta, Malta's export and trade promotion agency, offers support for export-focused trade promotion activities.

NATUS: Malta is Open for Startups Enterprise Malta is a national initiative to strengthen the start-up ecosystem. Its finance programmes can support start-ups with up to €1. 2 million to cover costs such as salaries, equipment, relocation and equity. The support is a combination of seed funding, upfront grants and scale-up grants.

12. U.S. International Development Finance Corporation (DFC), and Other Investment Insurance or Development Finance Programs

In recent years, it has invested primarily in establishing incubators and attracting accelerators such as Plug and Play, shared workspaces, seed funding schemes and other financial incentives, and strengthening the startup ecosystem by launching a national gateway for startups. For more information, please visit www. startinmalta.

13. Foreign Direct Investment Statistics

A new initiative launched in 2022 is the Startup Programme, a mechanism to keep Malta an attractive place for startups and entrepreneurs. A new residence visa for startup founders and co-founders will make it easier to set up a business in Malta.

Other tax incentives The Maltese government offers generous incentives to commercial and financial companies registered with the Malta Financial Services Authority. Legislative reform in 1994 eliminated the distinction between offshore and onshore companies, and all companies in Malta are taxed at 35% on profits. However, since Malta's tax system is fully attributable, the only one remaining in the EU, taxes paid by the company remain effectively prepaid taxes on behalf of the shareholders' tax liability. Shareholders have the right to claim a tax refund, which amounts to approximately 85% (in the case of trading income) of the taxes paid at the company level. Companies operating in the Maltese Freeport, a tax-free zone, can also benefit from reduced tax rates and investment tax allowances. Additional tax incentives recently introduced should be given to companies that reinvest a certain percentage of their retained profits in eligible projects, either in the same company or in another company. Freeport Container Port Malta offers modern transportation, storage, assembly and processing facilities, as well as an oil terminal and tank farm facility. Following a corporate restructuring in 1998-2001, Malta established a distinction between the freeport authority and operator. Malta Freeport Corporation Ltd. ("Malta Freeport Authority") acts as the owner and operator, while Malta Freeport Terminals Ltd. ("Malta Freeport") acts as the operator. Malta Freeport Terminals Ltd. is a single company that operates the storage facilities and two container terminals handling containers over 20. 000 TEU. In October 2004, the Maltese Government granted CMA CGM a 30-year concession to operate and develop Malta Terminals, and CMA CGM transferred half of its shares to Malta Freeport Terminals Ltd. In June 2013, the interests in the port terminal were transferred to China Merchant Holdings (International) Company Ltd.		For a company to carry out business activities within the Freeport Zone, the Malta Freeport Authority must grant the company a license and the activities must be complementary to those of the Freeport. These facilities allow customers to engage in a wide range of handling activities including cargo consolidation, breakbulk, storage, reconnection, relocation and supervised shipping. The Malta Freeport also offers assembly and processing options in accordance with the Malta Freeport Act. Operators must ensure that goods processed in the Freeport do not show Malta as the country of origin. Companies operating in the Freeport can benefit from reduced tax rates and investment tax credits without customs interference.		Malta Freeport offers round-the-clock industrial warehousing operations, supported by a highly developed and customized infrastructure and an extensive transport network that regularly connects Malta to several major markets, including ports in North, Central and South America. The storage facilities are located just 6 km from Malta's international airport, providing excellent sea and air transport opportunities that extend across the globe.
Currently, there are no performance requirements other than the targets that investors attach to their applications to support businesses in Malta. Foreign investors can repatriate or reinvest profits without restrictions and can bring disputes to the International Centre for Settlement of Investment Disputes (ICSID).	The top three rating agencies evaluate that Malta's economy is stable. The current rating is A-A-2 (visibility stable) (S & amp; P), A2 (outlook stable) (Moody's), and A+(outlook stable) (Fitch). The Republic of Malta is a strategic small country located in Sitilian Island 60 miles in Sicily and 180 miles north of Libya, facing the world's most traffic. Malta, who is a politically stable democratic state and has freedom in the press, is considered a safe, secure and welcome business environment for American investors.	Foreign IT providers established in Malta that process personal data in the course of their establishment's activities are classified as data controllers under the Data Protection Act and come under the jurisdiction of the Data Protection Commission. The Data Protection Commissioner has stated that in the course of his investigations, there has never been a case in which the Commissioner has requested access to source code or encryption functions.	The top three rating agencies evaluate that Malta's economy is stable. The current rating is A-A-2 (visibility stable) (S & amp; P), A2 (outlook stable) (Moody's), and A+(outlook stable) (Fitch). The Republic of Malta is a strategic small country located in Sitilian Island 60 miles in Sicily and 180 miles north of Libya, facing the world's most traffic. Malta, who is a politically stable democratic state and has freedom in the press, is considered a safe, secure and welcome business environment for American investors.	Foreign IT providers established in Malta that process personal data in the course of their establishment's activities are classified as data controllers under the Data Protection Act and come under the jurisdiction of the Data Protection Commission. The Data Protection Commissioner has stated that in the course of his investigations, there has never been a case in which the Commissioner has requested access to source code or encryption functions.
Data controllers that process personal data are subject to rules derived from the General Data Protection Regulation (GDPR) and must comply with these rules to ensure that processing activities are carried out fairly, lawfully, and in relation to the subjects' fundamental rights and freedoms. The competent authority in Malta that regulates and monitors compliance with this law is the Office of the Information and Data Protection Commissioner.	2022	Property rights and contract rights are executed by (a) legal warning, (b) seizure order, (c) prohibition order, (d) if the procedure belongs to the jurisdiction of a criminal court). 。 And (e) Sale of property by judicial auction. The Organizational Law and Civil Procedure Law provide registration and execution procedures for foreign courts. Rights and vested interests on mobility cannot be executed unless they are registered publicly. The Malta government has participated in international arbitration at any time and follows the court's decision.	2021	The Malta Securities Act (Malta SecurityATITION Act 2006) stipulates various securities transactions in the framework of the safe regulations and provides various legal and international tax incentives. Malta has been permitted to build a securitized cell structure, and multiple cells have clearly separated assets and liabilities between cells. This means that companies registered in the European economic region (EEA) do not require further approval from each country, and enable businesses in other EEA member countries, and also invest in the EU. It will be applied. Investors usually use this system to securitize real estate.	Malta's legal system is appropriately protecting and promoting the acquisition and disposal of intellectual property rights. In 2000, Malta implemented WT O-related provisions on trad e-related property rights (TRIPS). Malta has completely transferred EU and WTO rules to domestic law. For additional information on the EU-level regulations regarding copyright, patent, trademark, and design, see https: // ec. EU/Trade/Policy/Policy/Accessing-Markets/Intellectual-Property/.
In addition, Malta is a member of the World Intelligence Agency (WIPO), the Paris Convention on Protection of Industrial Ownership, the Berne Convention on the Protection of Literary and Artificial Works, and the UCC (UCC). < SPAN> Property rights and contract rights are (a) legal warnings, (b) seizure orders, (c) prohibition orders, (d) departure ban instructions (when procedures belong to the jurisdiction of criminal court) Exercise. And (e) Sale of property by judicial auction. The Organizational Law and Civil Procedure Law provide registration and execution procedures for foreign courts. Rights and vested interests on mobility cannot be executed unless they are registered publicly. The Malta government has participated in international arbitration at any time and follows the court's decision.	Other tax incentives The Maltese government offers generous incentives to commercial and financial companies registered with the Malta Financial Services Authority. Legislative reform in 1994 eliminated the distinction between offshore and onshore companies, and all companies in Malta are taxed at 35% on profits. However, since Malta's tax system is fully attributable, the only one remaining in the EU, taxes paid by the company remain effectively prepaid taxes on behalf of the shareholders' tax liability. Shareholders have the right to claim a tax refund, which amounts to approximately 85% (in the case of trading income) of the taxes paid at the company level. Companies operating in the Maltese Freeport, a tax-free zone, can also benefit from reduced tax rates and investment tax allowances. Additional tax incentives recently introduced should be given to companies that reinvest a certain percentage of their retained profits in eligible projects, either in the same company or in another company. Freeport Container Port Malta offers modern transportation, storage, assembly and processing facilities, as well as an oil terminal and tank farm facility. Following a corporate restructuring in 1998-2001, Malta established a distinction between the freeport authority and operator. Malta Freeport Corporation Ltd. ("Malta Freeport Authority") acts as the owner and operator, while Malta Freeport Terminals Ltd. ("Malta Freeport") acts as the operator. Malta Freeport Terminals Ltd. is a single company that operates the storage facilities and two container terminals handling containers over 20. 000 TEU. In October 2004, the Maltese Government granted CMA CGM a 30-year concession to operate and develop Malta Terminals, and CMA CGM transferred half of its shares to Malta Freeport Terminals Ltd. In June 2013, the interests in the port terminal were transferred to China Merchant Holdings (International) Company Ltd.		For a company to carry out business activities within the Freeport Zone, the Malta Freeport Authority must grant the company a license and the activities must be complementary to those of the Freeport. These facilities allow customers to engage in a wide range of handling activities including cargo consolidation, breakbulk, storage, reconnection, relocation and supervised shipping. The Malta Freeport also offers assembly and processing options in accordance with the Malta Freeport Act. Operators must ensure that goods processed in the Freeport do not show Malta as the country of origin. Companies operating in the Freeport can benefit from reduced tax rates and investment tax credits without customs interference.		In addition, Malta is a member of the World Intelligence Agency (WIPO), the Paris Convention on Protection of Industrial Ownership, the Berne Convention on the Protection of Literary and Artificial Works, and the UCC (UCC). Property rights and contract rights are executed by (a) legal warning, (b) seizure order, (c) prohibition order, (d) if the procedure belongs to the jurisdiction of a criminal court). 。 And (e) Sale of property by judicial auction. The Organizational Law and Civil Procedure Law provide registration and execution procedures for foreign courts. Rights and vested interests on mobility cannot be executed unless they are registered publicly. The Malta government has participated in international arbitration at any time and follows the court's decision.
The Malta Securities Act (Malta SecurityATITION Act 2006) stipulates various securities transactions in the framework of the safe regulations and provides various legal and international tax incentives. Malta has been permitted to build a securitized cell structure, and multiple cells have clearly separated assets and liabilities between cells. This means that companies registered in the European economic region (EEA) do not require further approval from each country, and enable businesses in other EEA member countries, and also invest in the EU. It will be applied. Investors usually use this system to securitize real estate.	2022	Malta's legal system is appropriately protecting and promoting the acquisition and disposal of intellectual property rights. In 2000, Malta implemented WT O-related provisions on trad e-related property rights (TRIPS). Malta has completely transferred EU and WTO rules to domestic law. For additional information on the EU-level regulations regarding copyright, patent, trademark, and design, see https: // ec. EU/Trade/Policy/Policy/Accessing-Markets/Intellectual-Property/.	2021	In addition, Malta is a member of the World Intelligence Agency (WIPO), the Paris Convention on Protection of Industrial Ownership, the Berne Convention on the Protection of Literary and Artificial Works, and the Remarks Treaty (UCC).	Malta is not listed in the US Trade Representative (USTR )'s special No. 301 report or a famous market report. The Copyright Theft Association claims that Malta's local law does not contain enough fines to suppress pirated sales. See the wip o-specific profile section in http: // www. Wipo. Int/directory/ja/for details on the duty of the Treaty and the local intellectual property Agency.
The Malta Trading Bureau of the Economic, European Fund, and the Ministry of Territories is in charge of intellectual propert y-related matters.	2022	Metal Copyright Malta- The Enforcement Directorate is based on the borders of European intellectual property rights. Considering the strategic position of Malta on the Mediterranean route, Malta Customs plays an important role and needs an office to inspect transit / passage cargo at the Malta Free Port Terminal. In recent years, Malta Customs has a high yield of products for North African countries from Asia. Customs has stopped million millions of counterfeit items, including tobacco, sports shoes, sports wear, toothpaste, shampoo, deodorant, clothing accessories, and clothing. Since Malta joined the EU, the number of counterfeites of counterfeit products in customs in Malta has been the highest at the EU level. The annual statistics can be viewed from the following link: https: // Taxation-customs. EU/Customs-4/Prohibility VIOLATIONS/INTELLECTUAL-PROPERT Y-RIGHTS-FACTS-and-FIGURES_JA	2021	For more information about domestic laws and the contacts of the intellectual property Agency in each country, see the http: // www.	Malta is not listed in the US Trade Representative (USTR )'s special No. 301 report or a famous market report. The Copyright Theft Association claims that Malta's local law does not contain enough fines to suppress pirated sales. See the wip o-specific profile section in http: // www. Wipo. Int/directory/ja/for details on the duty of the Treaty and the local intellectual property Agency.
The Malta Stock Exchange was established in 1993. In 2002, the Financial Markets Act was effectively enacted, replacing the Malta Stock Exchange Act of 1990, as the law governing the operation and regulation of the Malta Stock Exchange. This act ended the regulatory functions of the stock exchange in Malta and transferred these functions to the Malta Financial Services Authority (MFSA). The Financial Markets Act also created the Registration Authority, which is responsible for granting "permission to register" to companies seeking to list on the stock exchange.	2021	To date, the few companies listed on the Malta Stock Exchange have not faced the threat of a hostile takeover. Apart from EU Regulation 2019/452, which established a framework for the management of foreign direct investment and was subsequently incorporated into Maltese law as Chapter 620, Malta has no legislation permitting the adoption of articles of association for investment, holding and management. The laws, regulations and accounting regime are transparent and consistent with international rules. Several US accounting firms have offices locally.	2021	Malta's banking system is considered healthy. In recent years, local commercial banks have expanded their loan portfolios. Capital is available from both public and private sources. Both foreign and local companies can obtain capital from local lending institutions. Commercial banks and their subsidiaries can lend at commercial interest rates. New investors can also negotiate soft loans from the government that cover up to 75% of planned funding.	There are no US banks with branches in Malta. BNF and HSBC Malta currently maintain direct correspondent relationships with US banks. Some local banks have correspondent relationships with several US banks through other EU banks, but such relationships often lead to higher transaction costs.

Most banks have stopped opening accounts for companies that do not operate in Malta, those operating in the online gambling sector, and those operating in the crypto sector. The few banks that still offer these services have strengthened their due diligence procedures, resulting in significant delays in account opening.

Malta is proud to be the first country to propose a legal framework that regulates the authority to regulate the Internet (IoT) device of distributed ledger, artificial intelligence, and objects. In 2018, the government has enacted three laws that provide a framework for regulations on distributed ledger technology, initial coin offering (ICO) publishers, and related service providers that handle cryptocurrency. ・ It is out of the scope of the regulation framework.

As long as the investor offers appropriate documents to the Malta Central Bank, there is no restriction on the expansion of funds for profit transmission, debt repayment, capital gain, return of intellectual property, and funds for imported raw materials. After presenting the necessary documents, there is no significant delay in conversion of investment returns to foreign currency. Malta's regulations and practices that affect the remittance of investment capital and profits have been rationalized due to some foreign exchange management to conform to the EU command. Malta joined the Euro area in January 2008.
A company established under the law of Malta is usually considered to live in Malta and have an address in Malta. Companies that usually live in Malta are taxed on global income. Companies that are not incorporated in Malta but are managed and managed in Malta are taxed on foreign income.
Companies that are taxed based on remittance are taxed for the following income:			Income and capital gain considered to have occurred in Malta
Income that occurred outside Malta and was deemed to have been transferred to Malta	Malta is not taxed for income transferred to Malta:	Income that was considered to have occurred outside Malta and was not transferred to Malta	Capital gain, considered to have occurred outside Malta, is considered to have occurred outside Malta.	Companies that are not established in Malta are considered to live in Malta if management and control move to Malta.	Income that was considered to have occurred outside Malta and was not transferred to Malta
As long as the investor offers appropriate documents to the Malta Central Bank, there is no restriction on the expansion of funds for profit transmission, debt repayment, capital gain, return of intellectual property, and funds for imported raw materials. After presenting the necessary documents, there is no significant delay in conversion of investment returns to foreign currency. Malta's regulations and practices that affect the remittance of investment capital and profits have been rationalized due to some foreign exchange management to conform to the EU command. Malta joined the Euro area in January 2008.	A company established under the law of Malta is usually considered to live in Malta and have an address in Malta. Companies that usually live in Malta are taxed on global income. Companies that are not incorporated in Malta but are managed and managed in Malta are taxed on foreign income.	Companies that are taxed based on remittance are taxed for the following income:	N/A	N/A	N/A
Income and capital gain considered to have occurred in Malta	Income that occurred outside Malta and was deemed to have been transferred to Malta	Malta is not taxed for income transferred to Malta:	N/A	N/A	N/A
Income that was considered to have occurred outside Malta and was not transferred to Malta	Capital gain, considered to have occurred outside Malta, is considered to have occurred outside Malta.	Companies that are not established in Malta are considered to live in Malta if management and control move to Malta.	N/A	N/A	N/A
Malta is (a) a resident but is not a normal resident, or (b) an individual who is not in Malta, but his spouse is a normal resident and live in Malta. If you do not allow taxation bases. In this regard, such individuals will be taxed on global income and capital gains, regardless of the receipt/ receipt in Malta, who does not live in Malta. Malta is proud to be the first country to propose a legal framework that regulates the authority to regulate the Internet (IoT) device of distributed ledger, artificial intelligence, and objects. In 2018, the government has enacted three laws that provide a framework for regulations on distributed ledger technology, initial coin offering (ICO) publishers, and related service providers that handle cryptocurrency. ・ It is out of the scope of the regulation framework.	As long as the investor offers appropriate documents to the Malta Central Bank, there is no restriction on the expansion of funds for profit transmission, debt repayment, capital gain, return of intellectual property, and funds for imported raw materials. After presenting the necessary documents, there is no significant delay in conversion of investment returns to foreign currency. Malta's regulations and practices that affect the remittance of investment capital and profits have been rationalized due to some foreign exchange management to conform to the EU command. Malta joined the Euro area in January 2008.	A company established under the law of Malta is usually considered to live in Malta and have an address in Malta. Companies that usually live in Malta are taxed on global income. Companies that are not incorporated in Malta but are managed and managed in Malta are taxed on foreign income.	N/A	N/A	N/A
Companies that are taxed based on remittance are taxed for the following income:	Income and capital gain considered to have occurred in Malta	Income that occurred outside Malta and was deemed to have been transferred to Malta	N/A	N/A	N/A
Malta is not taxed for income transferred to Malta:

14. Contact for More Information

Income that was considered to have occurred outside Malta and was not transferred to Malta

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

In October , Ambassador Attard-Pirotta was re-appointed Ambassador of Malta to the State of Israel, and presented her credentials to President Isaac Herzog. The US State Department currently recommends US citizens exercise normal precautions in Malta. Consult its website via the link below for updates to travel. An official website of the United States government. Here's how you know Office of Inspector General, U.S. Department of State. Report Fraud, Waste.

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