The GDP in the euro zone at the end of the year 2014 is still lower than the GDP that was recorded before the economic crisis started in 2008. However, Malta’s economy is doing exceptionally well, and the GDP has been rising significantly in the last years.
As explained by the Central Bank Governor Josef Bonnici, the GDP of the euro zone is 1,9% lower than it was before the economic crisis hit in 2008. The economy in Malta has recovered well, and the output is currently 12% higher than it was in 2008.
Some of the reasons for this good result are the changes that Malta’s government implemented to attract investors, companies and skilled workers to settle on the island. For example, companies can take advantage of a tax refund if certain criteria are met, and top earners have considerably lowers taxes than in other countries. The re-structuring efforts have paid off, providing great future prospects for the country.
The fiscal and structural policies in Europe need to be improved in order to stabilise the economy and get it back on track. Economic growth is important, not just for employment, but also for preventing deflation.
The government plans more measures for next year, and also mentioned in the budget for 2015 was a further tax reduction for top earners income tax from 29% to 25% for income of up to €60,000. Malta’s government focuses heavily on the growth of the iGaming and financial sector, and more companies settle in Malta every year.
If you are interested in the company formation in Malta you are welcome to contact the office of Dr. Werner & Partner. We are specialised in developing the best structure for your company in order for you to take full advantage of the tax incentives that Malta has to offer.
