Malta is a well-positioned in terms of foreign
direct investment island state. Being a member of European Union and the Euro
zone, Malta has interesting strong point for foreign investors.
First
of all, we should underline that Malta offers a highly-skilled,
English-speaking labour force at a competitive cost. Moreover, it holds a
privileged geographical position that helps the development of the trade
economy. More specifically, it is like a natural hub for companies involving
doing business with the southern part of Europe and Northern Africa.
In
addition to this, is offers a stable political environment that provides fiscal
incentives for new businesses. Furthermore, Malta has a modern infrastructure
and a well-known international airport providing direct flights to thirty seven
major cities in the world.
Although
Malta has a small domestic market as well as an economy with no natural
resources, it provides incentives in many sectors to attract foreign direct investment
mainly in manufacturing, transshipment and servicing industries, in particular
the manufacturing of generic pharmaceuticals, information technology and
financial services. Some of the most generous tax incentives are the
preferential taxation rates that limits up to 5% as well as the tax credit on
investments including up to 50% tax credit of the amount invested of 50% of the
first two years’ salary of new jobs created.
To
sum up, Malta government offers generous tax incentives for investments in industrial
projects. This fact in combination with the geographical location gives Malta
the comparative advantage in the field of foreign investments.
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