Malta offers unique opportunities for investors, entrepreneurs, and remote workers. The country’s residency-by-investment program provides solutions for investment migration and economic mobility, allowing individuals to work for an employer registered outside of Malta, conduct business activity for a company registered outside of Malta, or offer freelance or consulting services to clients whose permanent establishments are in a foreign country. Malta’s size and composition make it a fully-fledged test market for new products and services, and the country’s booming industries include hospitality, aviation, pharma, maritime, financial services, gaming, film, and the knowledge industry. Malta’s strong broadband infrastructure and e-government services support these industries, and the country’s safe environment and English as the official language for doing business make it an attractive destination for expats.
Malta’s economy, prior to COVID-19, was one of the EU’s fastest-growing, with strong tourism, financial services, online gaming, and telecommunications industries. The country’s GDP in 2020 was $13.2 billion, and its economy grew at a quarter-on-quarter rate of 1.9, driven mainly by service exports. Malta’s government is interested in pursuing new public-private partnership (PPP) opportunities, and the country’s major market sectors include information communications technology (ICT), oil and gas, infrastructure, construction, information handling, pharmaceuticals, medical equipment, automotive components, light engineering, alternative and renewable energy, research and development, franchising, security, environmental waste technology, and agriculture technology, including medical marijuana.
Despite the opportunities, Malta’s location and size have deterred entry for some suppliers, and bilateral trade between Malta and the United States has been limited due to a lack of direct flights or major shipping connections. Transparency International’s Corruption Perception Index for 2020 scored 49 of 175, and the country’s slow judiciary can draw out legal proceedings for years. Malta’s struggle to close successful prosecutions makes rule of law a significant concern, and the Financial Action Task Force (FATF) placed the country on its list of jurisdictions under increased monitoring. Malta seeks foreign direct investment (FDI) to increase its rate of economic growth, and the country provides incentives to attract investment in high-tech manufacturing. Malta’s economy is considered stable, and the country’s sovereign credit ratings are A-/A-2 with a stable outlook (S&P); A2 with a stable outlook (Moody’s); and A+ with a stable outlook (Fitch). In 2020, the Government of Malta revamped its citizenship-by-investment program, which provides citizenship by naturalization to applicants (and their dependents).
