Malta and Italy: A Close Connection Between Neighbours

Italy is Malta’s direct neighbour. Everyone has a clear image of Italy—it is a global brand in itself—whereas Malta often remains a bit more of a mystery to the uninitiated. Yet, these two EU nations share a deep connection. In today’s post, I want to highlight the ties that bind them, as well as the differences that set them apart.

Strong Economic Ties

As a small island nation, Malta relies heavily on imports, and Italy plays a massive role here. This is particularly obvious when it comes to food. If you walk into a Lidl in Malta, for instance, you will notice the assortment is heavily Italian. This is because the local branches are managed by an Italian franchisee, so the product range mirrors what you would find in Sicily or Rome.

But the connection goes beyond just groceries. The service sectors are deeply intertwined. At DW&P, we frequently advise Italian clients who are setting up companies in Malta to benefit from the island's favourable tax framework and business environment.

Malta’s Economic Resilience

Despite their geographical proximity, the two countries have experienced very different economic trajectories in recent years. Italy was hit hard by the Eurozone banking crisis. Governments changed hands, and while measures were taken to prevent a total collapse, the country faced significant instability, drawing comparisons to Greece at the time.

Malta tells a different story. Thanks to a conservative and robust banking sector, the island weathered those financial storms with relative ease. Unemployment figures in Malta have consistently remained significantly lower than in Italy. Overall, the Maltese economy has proven to be more stable and resilient than that of its larger neighbour.

Shared Culture and Climate

Culturally, the two nations are cousins. Both are deeply rooted in the Catholic faith and place a huge emphasis on family life. The Mediterranean climate is the same, and naturally, the cuisines are very similar. The temperament is also comparable—if it weren't for the language difference, it might be hard to tell if a heated discussion was taking place between two Maltese or two Italians.

However, there is a distinct difference: the British legacy. Malta’s history as a British colony has left a layer of British reserve and a sense of order—not to mention the English language—that distinguishes it from Italy. Despite all they have in common, each country retains its own unique character.