Fitch Ratings confirms A rating and stable economy from Malta

The renowned sta­tis­ti­cal rat­ing agency Fitch Rat­ings recent­ly con­firmed Mal­ta’s rat­ing with A and affirmed that Mal­ta’s econ­o­my has a sta­ble out­look. Accord­ing to the agency, Mal­ta’s econ­o­my has out­per­formed the oth­er coun­tries in the euro­zone. The agency also esti­mat­ed that the real GDP grew by 3.4% in 2014, which is more than the 2.5% growth in 2013. The aver­age of the euro­zone is 0.9%. It is esti­mat­ed that this trend will con­tin­ue this year, and that Mal­ta will remain above the euro­zone aver­age.

Pri­vate con­sump­tion is the main con­trib­u­tor to the eco­nom­ic growth. It is sup­port­ed by the increase of dis­pos­able income, the low­er unem­ploy­ment rate and the decrease of ener­gy prices.

Fitch Rat­ings also esti­mat­ed that the gov­ern­ment deficit decreased by 2.3% of the GDP in 2014, com­pared to 2.7% in 2013. The year 2015 has an equal­ly pos­i­tive out­look. The agency also not­ed that gov­ern­ment debt has decreased 68.8%, which was main­ly due to a repay­ment of arrears by Ene­mal­ta. Fitch also said in their report that the deal between Shang­hai Elec­tric Pow­er and the Mal­tese gov­ern­ment has the poten­tial to increase the prof­itabil­i­ty of Ene­mal­ta and to reduce their debt.

Over­all, Mal­ta received very pos­i­tive rat­ings. The out­look for the future is sta­ble and very pos­i­tive. It is a good time to think about relo­cat­ing a busi­ness to the Mal­tese islands, as the gov­ern­ment offers attrac­tive incen­tives for com­pa­nies that move their busi­ness oper­a­tions to Mal­ta, or indi­vid­u­als that relo­cate due to career oppor­tu­ni­ties or per­son­al rea­sons. Com­pa­nies in Mal­ta can enjoy an attrac­tive tax­a­tion struc­ture, and indi­vid­u­als can ben­e­fit from a low tax rate on high income. If you would like more infor­ma­tion about a com­pa­ny relo­ca­tion to Mal­ta, you are wel­come to con­tact us at the office of Dr. Wern­er & Part­ner.

About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT ‑Advanced Diplo­ma in Inter­na­tion­al Tax.

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