“No one in the world knows Malta, how can you possibly start a company there!” This is what my friends and acquaintances told me when I told them about my plans of moving to Malta to work in the office of Dr. Werner & Partner. I would say it took me about five minutes to confront and surprise them with the facts about the island. For example, there are a number of German companies that have a branch in Malta. Lufthansa, Bosch and Playmobil are among the most prominent examples.
I have visited the Playmobil factory in Malta on several occasions. Visitors can see a small castle in front of the production facility, and you can register for tours around the factory in the shop and fun park. Many tasks are automated, and since everything is kept incredibly clean, one might even think that it is a pharmaceutical company producing medication.
Playmobil is not just only a toy manufacturer anymore, they generate a yearly turnover of more than €550 million, which is no longer taken for granted in times of online gaming and game consoles. However, these figures can only be achieved when the cost of production is kept a close eye on. In 1971, the Playmobil founder chose to move part of the production to Malta (and not to Asia!) in order to keep 100% of the production, and to ensure high quality.
Playmobil is without doubt one of the largest employers in Malta. The Maltese appreciate the company, and a very positive working relationship has developed over the years.
Even though Malta was not a member state of the European Union in 1971, and the taxation was different, the island nation has now become a very interesting option for German and other European companies due to the current tax laws. With the right company structure, it is possible to achieve an effective tax rate of just 5%, which is the lowest in the whole of the EU. The office of Dr. Werner & Partner can give you advice, and even if you are not a global player such as Playmobil, it may be possible to reduce the tax burden for your own company as well.
