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Malta is an EU Member State with an Exceptionally Advantageous Tax Regime

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Malta Confirms Appeal as Competitive Market Hub

Malta Confirms Appeal as Competitive Labour Market Hub

Malta maintains its position as one of the most stable and one with the lowest social security contributions and employment costs to businesses. On the other hand, the costs of social security and other employment costs have registered substantial increments for employers in other EU countries such as France and the Netherlands. Increased labour costs may act as catalysts for employers to lay off employees, thereby stifling job creation increasing unemployment, particularly youth unemployment.

In addition to the competitive labour market in Malta, the country is a host to and attracts a pool of talent and skilled labour which obviously are necessary to meet the requirements of the dynamic market demands.

There is a strong case for the increase in the social security contributions to sustain the pension system and the ageing population, however Malta has consistently adopted a no- more-costs-policy to employers, whilst at the same time tightening controls and eliminating abuse of the social welfare system. Furthermore, the welfare system is being boosted by the government’s ongoing efforts to create employment, through the implementation of a series of tax credits to employers and incentives to increase the work force, such as the popular free government-run childcare and women returning to work scheme. These implementations together with other tax appealing measures designed to attract foreign business and investment in Malta have managed to reduce unemployment levels to their lowest in the decades.

These sustained policies have over the medium longer term created a stable system which in turn has become a major contributor towards attracting businesses to set up companies and businesses in Malta.

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