Moving to Malta – What are the advantages?

The dream of emigration is cherished by many people who imagine a better life in the sun. Those who have chosen Malta as a destination for their emigration should be aware of the reality of life on the island. The law firm Dr. Werner & Partner has been active in Malta for many years. As a German-speaking law firm in Malta, we also receive inquiries from “emigrants” time and again. These are not our target group. Again and again we experience how emigrants land back on the hard ground of reality once they have spent half a year on the island. Many then leave the island and return to their home country. Nevertheless, I would like to recycle a popular article from our blog and talk about the advantages of emigrating to Malta—although at this point it must be pointed out that this blog is not aimed at the “classic emigrant”. Malta unfolds its charm especially for those who move to Malta as internationally active entrepreneurs, perhaps only for a limited time of 3-4 years, for example, after moving their center of life to Malta.

Original article (with updates):

Many people dream of living in another country. They usually fantasise about a warm and sunny country where other people go on holidays. It often remains a dream for most, as many people do not really gather adequate information about their options and they think that it is not possible to begin with. Quite the contrary! If you are a European citizen you can move freely to another European member state and work wherever you want.

Update: In principle, freedom of movement within the EU continues to apply. But if I want to move to Malta as an entrepreneur to save taxes, I have to consider certain things. It is only if I move my center of life to Malta and am no longer considered resident e.g. in Germany that my goal can be achieved. The authorities e.g in Germany are (correctly) very precise here. A residence can be triggered in many different ways.

If you want to live in a sunny holiday country, Malta might be a good choice for you, as people in the country do not only speak Maltese as a national language, but also English, which makes life here much simpler if you do not speak other languages. In the rest of this article, I would like to point out a few other reasons that speak for Malta.

Excellent career opportunities

The economy in Malta is booming and more and more companies are settling in the country. These companies are creating more work opportunities. Because of this the unemployment rate dropped and more people come to the islands to find work. Many of the international companies operate in the whole world, and they are often looking for qualified bilingual and skilled personnel. There are plenty of career opportunities for English-speaking professionals as well.

Update: The boom in Malta continues. Economic growth is exceptional by EU standards and unemployment is at an all-time low. All of this is not by accident. Rather, it is based on a business-friendly and innovation-oriented policy that ultimately benefits citizens as well. In recent years, many large companies have established a presence in Malta. The gaming sector can be mentioned as a prime example. And the future holds great potential. Currently, the government is preparing a bill that includes regulation of digital currencies. This is less about restriction than about “positive regulation” that sees the potential behind blockchain technology. Within the industry, Malta is already being referred to as Blockchain Island. In the wake of this, major companies, such as the second largest virtual currency exchanger Binance, have confirmed their move to Malta. 

Favourable taxation for employees and employers

If you are living and working in Malta you will usually pay income tax and contributions to the national insurance. These are lower than in other countries in Europe, which means that at the end of the day you will have more money in your own pocket. Although wages are not as high as in the UK, it depends on your qualifications and experience how much you will make. Income tax starts at 15% on income between €8,501 – €14,500 and from €14,501 – €60,000 25% are charged. Everything above will be taxed with 35%. This means that especially high earners can benefit from the low taxes in Malta.

Malta can be interesting for employers as well, as the country offers a company structure with the Malta Ltd that allows companies to apply for a refund of 6/7 of the 35% corporation tax if the company is structured according to certain rules. Many companies have already chosen Malta as a company location and moved their businesses to the islands.

Update: For employers, Malta also offers an interesting corporate structure with the Malta Limited, which even allows for a 6/7 refund of the 35% corporate tax if structured properly. Many companies have already decided to choose Malta as a company location and have moved their business operations here. There are a number of points to consider when setting up a company. The requirements are clear and must be strictly adhered to. In addition to the registration of the company with the Maltese Commercial Register, the opening of a business account is a hurdle. The requirements of the banks are very high. Why? Because the government is cracking down on money laundering and has required banks to implement very strict rules to prevent criminal activity. 

Hot summers and mild winters

For many expatriates the climate is an important factor, and Malta holds the trump card again. People can enjoy plenty of sun in the summer months and swim, snorkel or scuba dive in the Mediterranean. The temperatures are usually above 30° for a few weeks and in winter they are still very pleasant and rarely below 8°. There are also a lot of sunny days in the winter months and going for a walk or a hike can be very nice. The tough ones will also go swimming in the sea in the winter, but the waves need to be taken into consideration, as they can pose a danger.

Update: The climate is one of the few key aspects that has not changed in recent years. Living in a country where the sun shines more than 300 days a year brings a baseline high quality of life. In this respect, I can understand the dream of emigrating and can highly recommend Malta as a destination country when seen only in terms of climate.