Table of Contents Why Malta? My Two-Year Island Reality Tax Aspects: The Malta Advantage in Detail Legal Framework for International Entrepreneurs Banking and Financial Services in Malta Real Estate and Living: The Pricey Dream of a Sea View Quality of Life and the Business Environment Everyday Practicalities: From Electricity to Internet Common Pitfalls and Costly Mistakes to Avoid The Ultimate Decision Checklist: 30 Factors Frequently Asked Questions About Relocating to Malta Why Malta? My Two-Year Island Reality When I first set foot on Maltese soil two years ago, I thought—just like most people: Small island, big tax benefits, warm weather—what could possibly go wrong? Now I know: quite a lot, actually. But also, that Malta can still be one of the most attractive options in Europe for international entrepreneurs—if you’re clear on what you’re getting into. Malta isn’t just a sunny tax haven. It’s a complex ecosystem of EU advantages, Mediterranean ease, and surprisingly modern business structures. After 24 months on the island, three moves, and more trips to government agencies than in my entire life before, I’ve compiled a list of 30 factors you absolutely need to consider before making the leap to Malta. Malta for Entrepreneurs: Not Just About Saving Tax Most people associate Malta with the 5% corporate tax and non-dom status. That’s not wrong—but it’s only the tip of the iceberg. As an entrepreneur, Malta offers you: EU membership with all rights and obligations English as an official language (yes, even with the authorities!) Strategic location between Europe, Africa, and the Middle East Well-developed financial services sector Relatively straightforward company formation Strong network of international entrepreneurs But—and it’s a big but—Malta is also expensive, crowded, and sometimes frustratingly bureaucratic. The real question: Do the advantages outweigh the downsides for you? Who Malta Is (Not) Suitable For Malta is right for you if you: Make at least €100,000 annual turnover (otherwise, costs outweigh the benefits) Are able to work location-independently Speak fluent English Can handle higher living costs Have patience for bureaucracy Malta is not for you if you: Mainly serve the German/Austrian market Rely on low living costs Need large office spaces or warehouses Struggle with heat and crowded environments Tax Aspects: The Malta Advantage in Detail Let’s get to the heart of things: taxes. Malta really does offer some of the most attractive tax conditions in the EU—but the devil is in the details. Here are the most important tax factors for your decision: Non-Dom Status: The Holy Grail of Malta Taxation The Non-Domiciled Status is Malta’s trump card for international entrepreneurs. Simply put: you only pay taxes in Malta on income you remit to or generate in Malta. Foreign income not brought to Malta remains tax-free. Requirements for Non-Dom Status: You must not be a Maltese citizen Malta must not be your domicile (basically: not your “life center”) You must spend at least 183 days a year in Malta Minimum tax of €5,000 per year The catch? The definition of “domicile” is complicated and can change. What if, after five years, Malta starts to really feel like home? Then the tax office may argue that your domicile has shifted. Corporate Tax: 5% Is Not Always 5% Malta’s widely advertised 5% corporate tax is a bit of a marketing gimmick. The full truth: Company Type Tax Rate Effective Tax After Refund Passive income (dividends, interest) 35% 5% Foreign income 35% 5% Maltese income 35% 35% Trading companies 35% 5% The Maltese system works through refunds: You pay 35% upfront, then get 30% back—if all conditions are met. Refunds can take up to 18 months. If you’re tight on liquidity, that can be a problem. Personal Income Tax for Directors As director of your Maltese company, you pay personal income tax on your salary: Up to €9,100: 0% €9,101 – €14,500: 15% €14,501 – €19,500: 25% Over €19,500: 35% Smart salary for non-doms: exactly €19,500 per year. Everything above that, you take as dividends at 5% tax—if profits come from foreign sources. Hidden Tax Costs and Traps Watch out for these hidden costs: Lawyer requirement: For tax optimization, you absolutely need a Maltese lawyer. Cost: €200-500 per hour Compliance costs: Annually at least €3,000–5,000 for accounting and tax filings Substance requirements: Malta is cracking down on “letterbox” companies; you must show true local substance EU reporting obligations: Automatic information exchange with German/Austrian authorities My rule of thumb: With less than €100,000 annual profit, Malta rarely pays off from a tax perspective. Additional costs eat up the savings. Legal Framework for International Entrepreneurs Tax is only half the equation. Equally important: are you even legally allowed to live and work in Malta? Legal aspects are complex but manageable—if you know your way around. Right of Residence: Easy for EU Citizens EU citizens: You have the right to free movement. In theory, you can just move. In practice, you should still register with Identità Malta if you stay more than three months. This takes about 4–6 weeks and costs €27.50. Non-EU citizens: Significantly more complicated. You’ll need a residence permit. The most common options: Residence Programme: Minimum investment €300,000 in real estate Malta Permanent Residence Programme (MPRP): €300,000 donation + property purchase Nomad Residence Permit: For remote workers, valid for one year Self-Sufficiency Visa: Proof of at least €2,700 monthly income Company Formation in Malta: Step by Step Setting up a Maltese Limited (equivalent to a German GmbH) is surprisingly straightforward. Here’s how it works: Reserve company name: Check with Malta Business Registry (free) Memorandum & Articles: Draw up articles of association (using a lawyer is recommended) Minimum capital: Deposit €1,165 Registration: With Malta Business Registry (€245 fee) Tax registration: With Commissioner for Revenue (free) VAT registration: Required if turnover exceeds €35,000 Total duration: 2–4 weeks. Total cost without lawyer: approx. €1,500. With lawyer: €3,000–5,000. Director and Shareholder Requirements Key rules for Maltese companies: At least one director must be an EU citizen At least one director must be resident in Malta Registered office must be in Malta (can be rented) Company secretary must be a Maltese citizen or resident At least one shareholders’ meeting per year The trick: You can appoint a local “nominee director” who formally fulfills Malta’s requirements while you retain economic control. Cost: about €1,500–2,500 per year. Compliance and Reporting Obligations Malta takes compliance seriously. Here’s what you need to know: Obligation Deadline Penalty for Delay Annual accounts 10 months after year-end €100 + €5 per day Annual return By May 31 €100 + €5 per day Tax return By June 30 €100 + interest VAT return Monthly by the 15th €50 + 5% interest Pro tip: Never miss VAT deadlines. Malta is ruthless here, and fines can quickly reach into four figures. Work Permit for Employees Want to bring employees to Malta? EU citizens can start right away. For non-EU citizens, you’ll need a Single Permit (combined residency and work permit). This takes 3–6 months and costs about €280 per person. Note: Malta has strict quotas for non-EU workers. In popular sectors like IT, quotas are often filled early in the year. Banking and Financial Services in Malta This is where it gets tricky. Malta may be an EU country, but banking here is… different. After two years and three bank switches, I know the challenges firsthand. Opening a Bank Account: An Obstacle Course Opening a business account in Malta is much harder than in Germany or Austria. Due to money laundering scandals, banks have become paranoid and scrutinize every application down to the smallest detail. Required documents (minimum): Passport and Maltese residence card Proof of Maltese address (rental contract or utility bill) Company’s Certificate of Incorporation Memorandum & Articles of Association Directors’ resolution for account opening Business plan (yes, really!) Proof of source of funds References from previous banks Processing time: 6–12 weeks. Yes, months. And they can still say “no” in the end. Main Banks at a Glance Bank For Entrepreneurs Fees Online Banking Bank of Valletta Good for locals High Stone Age HSBC Malta International focus Very high Okay Lombard Bank Entrepreneur-friendly Medium Good APS Bank Flexible Medium Okay My recommendation: Lombard Bank. Not perfect, but generally the best fit for international entrepreneurs. Banking Fees: More Expensive Than Expected Maltese banks are expensive. Really expensive. Here’s what you can expect for business accounts: Account maintenance: €15–50 per month SEPA transfer: €5–15 International transfer: €25–50 + 0.1–0.3% of amount Card payment (monthly): €20–40 Cash deposit: 0.5–1% of amount For €10,000 in monthly transactions, you’ll quickly rack up €200–300 in banking fees. Factor this into your calculations. Alternative: EU Banking with Malta Substance Many Malta entrepreneurs use a workaround: They do operational banking through German or Baltic banks (Revolut, N26 Business, Wise) and keep only a “showcase account” in Malta. Advantages: Lower fees Better online banking experience Faster account opening Disadvantages: Maltese authorities don’t like it May be judged as lacking “substance” Potential tax complications Payments and Fintech Malta lags behind in fintech. While Germany has Apple Pay and instant transfers, Malta is still largely stuck with cash and cheques. What works: SEPA transfers (slow, but reliable) Credit cards (Visa/Mastercard accepted everywhere) PayPal (for online business) Wise and Revolut (for international payments) What doesn’t work: Instant payments (scheduled only from 2025) Contactless over €50 (PIN required) Mobile payments outside tourist areas Direct debit (virtually non-existent) Banking summary: harder than expected, pricier than hoped, but doable with patience and the right partner. Real Estate and Living: The Pricey Dream of a Sea View Now for the painful topic: living in Malta. After three moves in two years, I can assure you—the Maltese real estate market is a nightmare. But there are ways to navigate the madness. Rental Market Malta: Welcome to the Craziness The Maltese rental market is severely overheated. Prices have risen 80–120% in the last five years. Reasons include: Mass influx of EU citizens Construction boom, but not for rentals Speculative investors Airbnb taking units off the rental market Malta is tiny—space is limited Current Rental Prices (as of 2024): Location 1-Bedroom 2-Bedroom 3-Bedroom Sliema/St. Julians €1,200–1,800 €1,800–2,800 €2,500–4,000 Valletta €1,000–1,500 €1,500–2,500 €2,200–3,500 Gzira/Msida €900–1,400 €1,400–2,200 €2,000–3,000 Attard/Balzan €800–1,200 €1,200–1,800 €1,600–2,500 Gozo €600–1,000 €900–1,500 €1,200–2,000 Important: These prices are without utilities. Electricity, water, and internet are extra—and can be substantial. Apartment Search: Guerrilla Tactics Needed Finding an apartment in Malta is a full-time job. Here are my survival tips: The best platforms: Property.com.mt: Largest local platform Frank Salt: Established agency Simon Estates: Many rental listings Facebook Groups: “Flats and Apartments for Rent Malta”—this is where the real deals happen Airbnb: Good for the first few weeks, not long-term Guerrilla tactics for apartment hunting: Be available: Good places are gone within hours View immediately: Appointments the same day—or it’s gone Bring everything: ID, employment contract, bank details, first deposit in cash Don’t bargain: In hot markets, the first price is final Use your network: Word-of-mouth beats online portals Rental Contracts: Pay Attention to the Details Maltese rental contracts have their quirks: Deposit: Usually 2–3 months’ rent, often required in cash Term: Minimum 1 year, often 2–3 years Furnished vs. unfurnished: “Furnished” often means just basic furniture Utilities: Usually not included, can be an extra €200–400 Notice period: Often only at contract end; sometimes 2–3 months’ notice Red flags in rental contracts: No written agreement Deposit not held in escrow Landlord wants “cash only” rent No handover protocols Exorbitant flat utility charges Buying Real Estate in Malta: For the Brave with Deep Pockets Buying property in Malta is theoretically possible without restriction for EU citizens. In practice, it’s a minefield of overblown prices, questionable build quality, and complex financing. Current purchase prices (€/m²): Location Apartment Penthouse Villa Sliema/St. Julians €6,000–12,000 €10,000–20,000 €8,000–15,000 Valletta €5,000–10,000 €8,000–15,000 – Mdina/Attard €4,000–7,000 €6,000–12,000 €5,000–10,000 Gozo €3,000–5,000 €4,000–8,000 €3,500–7,000 Particularities when buying property: Stamp duty: 5% of purchase price Notary fees: 1–2% of purchase price Legal fees: €1,500–5,000 Financing: Usually max. 80% of value, higher interest rates than Germany Due diligence: Always check for full planning permission The Best Places to Live for Entrepreneurs Sliema/St. Julians: Pro: Best infrastructure, restaurants, nightlife, seafront Con: Most expensive, crowded, noisy For: Singles, young couples without kids Gzira/Msida: Pro: Central, slightly cheaper, good bus connections Con: Less charm, lots of construction For: Pragmatists looking to save money Attard/Balzan: Pro: Quieter, cheaper, more space Con: Need a car, less international community For: Families, people seeking peace and quiet Gozo: Pro: Cheap, pretty, authentic Maltese Con: Isolated, poor infrastructure, dependent on ferries For: Escape artists, nature lovers My tip: Rent for 6–12 months before you buy. Malta is small but the differences between areas are huge. Quality of Life and the Business Environment Malta boasts work-life balance and a Mediterranean lifestyle. The reality is more nuanced. After two years, I can say: its partly true, but Malta isnt paradise on earth. Climate and Weather: Not Just Sunshine Malta does have more than 300 days of sun per year, which is true. But the extreme summers can be brutal, and winters are damper and colder than you might expect. Malta’s Seasons in Detail: Season Temperature Rainfall Business Suitability Spring (Mar–May) 18–25°C Low Perfect Summer (Jun–Sep) 25–35°C Virtually none Challenging Autumn (Oct–Nov) 20–26°C Moderate Very good Winter (Dec–Feb) 12–18°C High Okay Summer reality check: July and August are hardcore. 35°C, 80% humidity, no wind. Air conditioning runs 24/7 (electric bill: €300–500/month). Many local entrepreneurs holiday on the mainland during this time. Winter reality check: Malta has no central heating. Your flat gets damp and cold. Youll need electric heaters or split AC units with heating mode. Business Networking: Small but Dynamic Malta is tiny (30km x 15km), which has pros and cons for business networking: Pros: Everyone knows everyone—doors open quickly Short distances to decision makers Strong international community Regular networking events Cons: Gossip travels fast Limited pool of potential partners/clients Cliquiness Hard to fly under the radar The most important business events: Malta AI & Blockchain Summit: Annually in autumn iGaming Europe: Major gambling conference Malta Business Network: Monthly meetups Chamber of Commerce Events: Established local contacts Startup Grind Malta: Tech scene Healthcare System: Basic Coverage Yes, Comfort No Malta has a public health system that’s free for EU citizens. The quality is… modest. Public system: Pro: Free, basic care works Con: Long wait times, outdated equipment, language barriers Private healthcare: Pro: Fast, modern equipment, English-speaking Con: Expensive (health insurance: €150–400/month) My recommendation: Get private health insurance. The price difference to Germany isn’t huge, but the comfort difference is. Key medical facilities: Mater Dei Hospital: Largest public hospital St. James Hospital: Private, good reputation AX Healthcare: Private clinic group SiSu Health: Modern private clinics Education System: International but Costly For entrepreneurs with children: Malta has a three-tiered education system—public (Maltese/English), church (English), and private international (English/other languages). International schools (annual fees): Verdala International School: €8,000–15,000 QSI International School: €12,000–18,000 St. Edward’s College: €6,000–12,000 San Andrea School: €4,000–8,000 Plus: School bus (€1,500/year), uniforms (€300–500), books and supplies (€500–800/year). Infrastructure: Better Than Expected, Worse Than Hoped Internet: Surprisingly good. GO Fiber offers up to 1Gbit/s for €40–60/month. Usually stable in business districts. Electricity: Reliable but expensive. €0.20–0.25/kWh (Germany: €0.30). But due to AC use in summer, your total consumption will be higher. Water: Desalinated seawater, safe but odd-tasting. Most buy bottled water. Public transport: Buses are cheap (€2 for a 2-hour ticket) but unreliable. As an entrepreneur, you’ll need a car. Waste disposal: Serviceable, but Malta has a waste problem. Recycling is basic. Everyday Practicalities: From Electricity to Internet Beyond the big policies, it’s the small daily hassles that shape your new life. Here are the practical aspects that will determine your day-to-day in Malta: Mobile and Internet: Better Than Its Reputation Malta has two main providers: GO and Melita. Network coverage is good, prices are fair. Mobile tariffs (monthly): Provider Data Price Special Features GO Unlimited €25 Best network Melita 100GB €20 Cheaper Epic 50GB €15 Budget option Home internet: GO Fiber: 100–1000 Mbit/s, €30–60/month Melita Cable: 50–500 Mbit/s, €25–50/month Install time: 1–4 weeks Contract term: Usually 12–24 months Pro tip: Both providers have regular outages. As an entrepreneur, you need a backup solution (mobile hotspot or a second provider). Electricity Supply: Expensive but Stable Malta imports most of its electricity from Sicily. This makes it pricey, but supply is stable. Electricity costs: Base rate: €0.20/kWh (first 2,000 kWh/year) Higher rate: €0.25/kWh (from 2,001 kWh/year) Fixed charge: €50/year Average usage: 3,000–5,000 kWh/year (with AC) Typical electricity bills: Winter (without AC): €80–150/month Summer (with AC): €200–400/month Home office with servers: +€50–100/month Important: Malta often has short power outages (1–5 minutes). For your home office, you should get a UPS (uninterruptible power supply). Transport: A Car Is Essential Malta has the densest road network in Europe—and the worst traffic jams. As an entrepreneur, a car is essential. Car buying vs. leasing: Option Cost Advantages Disadvantages Buy used €8,000–20,000 Flexible, cheaper Maintenance, depreciation Buy new €15,000–40,000 Warranty, modern Fast depreciation Leasing €200–500/month No down payment, service included More expensive long-term Car sharing €0.30/min Flexible, no upkeep Only in tourist areas Other auto costs: Insurance: €400–800/year Road tax: €50–200/year (depending on engine size) MOT (NCT): €40/year Fuel: €1.40–1.60/liter Parking: €1–3/hour in city centers Driver’s license: EU licenses are valid indefinitely. After living in Malta for more than 12 months, you’re supposed to exchange it—practically, few people do. Shopping and Cost of Living Malta is expensive. Period. Pretty much everything must be imported, driving prices up. Supermarket prices (typical): Milk (1L): €1.20–1.50 Bread: €1.50–2.50 Eggs (12): €3.50–4.00 Chicken breast (1kg): €8–12 Bananas (1kg): €2.50–3.00 Beer (local): €1.80–2.20 Wine (bottle): €8–15 Restaurant prices: Lunch menu: €12–18 Pizza: €8–15 Main course (dinner): €15–25 Coffee: €2.50–3.50 Beer (0.5L): €4–6 Main supermarkets: Welbees: Premium, wide selection, pricey Lidl: Just like Germany, cheapest option Greens: Local chain, mid-range Park Towers: Large supermarket in Sliema Language in Daily Life: English Is Enough, Maltese Helps Malta has two official languages: English and Maltese (Malti). For business, English is all you need. A little Maltese helps in daily life. Useful Maltese basics: Bonġu (BON-ju) = Good morning Grazzi (GRAT-si) = Thank you Skużani (sku-SA-ni) = Excuse me Kemm? (kemm) = How much? Fejn? (fain) = Where? Most Maltese speak fluent English, but theyll be delighted if you try a few Maltese words. Authorities and Bureaucracy: Patience Is a Virtue Maltese bureaucracy is… unique. Here are the key survival tips: Typical opening hours: Monday–Friday: 8:00am–12:30pm Afternoons: Usually closed Saturday/Sunday: Closed Survival tips for administrative visits: Arrive early: Be at the door by 7:45am Bring everything: More documents than you think youll need Be patient: Computer is down is a standard phrase Be polite: Courtesy goes a long way with Maltese staff Have a backup plan: You’ll often need to come back again Important authorities for entrepreneurs: Identità Malta: Residence cards, ID cards Malta Business Registry: Company registrations Commissioner for Revenue: Taxes JobsPlus: Work permits MFSA: Financial services Common Pitfalls and Costly Mistakes to Avoid After two years in Malta and countless conversations with other expats, I know the classic rookie mistakes. Here are the most expensive pitfalls—and how to avoid them: Tax Traps: The Devils in the Details Trap #1: Overestimating Non-Dom Status Many think non-dom = “no tax.” Wrong. You still pay tax on Maltese income and foreign income you bring into Malta. Plus: the €5,000 minimum tax per year. Solution: Get advice from a qualified Maltese tax advisor before moving. Trap #2: Ignoring Substance Requirements Malta is cracking down on letterbox companies. You need real local substance: office, staff, real business activity. Renting just an address gets you in trouble. Solution: Plan for genuine business activity in Malta from the start. A co-working space is not enough. Trap #3: Underestimating German/Austrian Tax Liability Just because you live in Malta, you’re not automatically tax-free in Germany/Austria. Unclear deregistration or significant business interests keep you liable. Solution: Plan your deregistration with a tax advisor. Cut business ties back home. Banking Pitfalls: Hidden Hurdles Trap #4: Applying for a bank account too late Many assume, “I’m an EU citizen, opening an account is simple.” Then they spend three months without a business account. Maltese banks are paranoid and slow. Solution: Start your bank account application before your move. Have a backup plan with EU online banks. Trap #5: Hidden banking costs Advertised account maintenance fees are just the start. SEPA transfers, card payments, currency conversions—all come with extra charges. Solution: Calculate the full fee structure. For high transaction volumes, negotiate individually. Real Estate Pitfalls: Expensive Surprises Trap #6: Underestimating utilities Rent is just the beginning. Electricity (€200–400 in summer), internet (€40), water (€50), building management (€100)—it quickly adds up to €500 extra. Solution: Ask for detailed list of all costs. “All-in” rents are often cheaper. Trap #7: No legal protection in the contract Many landlords want “verbal agreements only” or contracts that heavily favor the landlord. Deposits don’t get refunded, repairs shift to tenant. Solution: Always get a written contract. For important rentals, have a lawyer review it. Lifestyle Pitfalls: Malta Is Not Germany Trap #8: Underestimating the summer heat 35°C at 80% humidity isn’t “nice summer,” it’s survival mode. Without AC, you can’t work. With AC, your electricity bill skyrockets. Solution: Pick a place with good air conditioning. Budget extra for summer utilities. Consider mainland escapes in July/August. Trap #9: The Malta glow doesn’t last The first six months are great: sun, sea, relaxed atmosphere. Then reality hits: crowding, poor service, high prices, limited opportunities. Solution: Plan a realistic 12-month test phase before you burn all bridges. Business Pitfalls: Misjudging the Market Trap #10: Overestimating the local market Malta has 500,000 inhabitants. If you need local customers, the market is tiny. Saturation is quick. Solution: Use Malta as an EU/international base only. Local business is a bonus, not your main strategy. Trap #11: Overvaluing networking events Malta has an active expat community, but it’s often the same 200 faces at all events. Real business opportunities are scarce. Solution: Treat networking as a social thing, not your growth engine. Bureaucratic Pitfalls: Hidden Complexity Trap #12: The “It’s the EU” assumption Just because Malta’s in the EU doesn’t mean everything works like Germany. Authorities have different hours, procedures, and mentalities. Solution: Respect local customs. Bring patience. Get local help. Trap #13: DIY for important issues Tax strategy, setting up a company, buying real estate—all seem doable online. But Malta has quirks only locals know. Solution: For key matters, always get local experts (lawyer, tax advisor, agent) involved. The Costliest Mistakes in Numbers Mistake Typical Cost Avoided By Poor tax advice €10,000–50,000 Choosing a qualified advisor Bad rental contract €5,000–15,000 Lawyer for contract review Banking issues €2,000–10,000 Early preparation Missing substance €15,000–100,000 Building real operations Rushed decisions €20,000–100,000 12-month test phase The good news: Every one of these traps can be avoided if you prepare and set realistic expectations. The Ultimate Decision Checklist: 30 Factors Now it gets concrete. Review these 30 factors systematically before deciding for Malta. I rate each factor from 1 (very poor) to 5 (very good) for the typical international entrepreneur: Tax and Legal Factors (1–10) Corporate tax (5/5): 5% effective rate on foreign income is EU-best Non-dom status (4/5): Very attractive, but complex and not for everyone Double tax treaties (5/5): Malta has treaties with all major countries EU legal certainty (4/5): EU law applies, but local interpretation varies Company formation (4/5): Relatively easy, takes 2–4 weeks Compliance effort (3/5): Moderate, but requires professional help Substance requirements (3/5): Stricter rules, real activity needed Residency rights for EU citizens (5/5): No issues, just need to register Work permits for staff (3/5): No problem for EU, tougher for non-EU International contracts (4/5): Good base for EU/Africa/Middle East business Financial Infrastructure (11–15) Banking quality (2/5): Weak, old-fashioned, costly Account opening (2/5): Very tough, long waiting times Fintech environment (2/5): Underdeveloped, little innovation Payment systems (3/5): SEPA works, but slowly Capital market access (4/5): As an EU country, good funding access Quality of Life and Location (16–22) Climate (4/5): 300 days of sun, but brutal summers Cost of living (2/5): Very expensive, everything imported Rental market (1/5): Nightmare—overpriced, crowded, poor quality Healthcare system (3/5): Basic coverage OK, private insurance recommended Education system (3/5): International schools good but expensive Infrastructure (3/5): Good internet, chaotic traffic, poor public transport Safety (5/5): Very safe, low crime rate Business Environment (23–27) Networking opportunities (4/5): Small but active international community Local market (2/5): Too small for most businesses Talent pool (3/5): Limited, high turnover Office costs (2/5): Very expensive, limited availability Regulatory environment (4/5): Business-friendly, EU standards Practical Aspects (28–30) Language (5/5): English as official language is a huge plus Connectivity (4/5): Well linked to Europe, but island isolation Bureaucracy (2/5): Slow, complicated, limited hours Overall Score and Recommendation Overall Score: 98/150 points (65%) Malta is right for you if: ✅ You have at least €100,000 annual profits ✅ Your business does not depend on the local market ✅ You can handle high living costs ✅ You are OK with 35°C summer heat ✅ You have patience for bureaucracy ✅ You speak fluent English ✅ You serve EU/international markets Malta is not for you if: ❌ You need low living costs ❌ You need large office/warehouse space ❌ Your main market is Germany/Austria ❌ You can’t handle heat and overcrowding ❌ You need local customers ❌ You make under €50,000 a year The Malta Decision Tree Step 1: Annual profit over €100,000? If not → Malta makes no sense Step 2: Is your business location-independent? If not → Consider other options Step 3: Can you handle 30%+ higher living costs? If not → Stop Step 4: OK with heat and island life? If not → Mainland alternatives Step 5: All boxes ✅? → Start a 12-month test phase My honest advice: Try Malta for a year before deciding long-term. The reality is much more complex than the marketing brochures suggest. Frequently Asked Questions About Relocating to Malta How long does the complete move to Malta take? Plan for 6–12 months for all key steps: setting up a company (1 month), opening a bank account (2–3 months), finding an apartment (1–2 months), government registration (1 month), tax registration (1 month). Steps can run in parallel, but any of them can be delayed. Can I benefit from Malta with €50,000 annual income? Tough. Additional costs (tax advisor, compliance, higher cost of living) usually eat up the tax savings. Below €100,000 it rarely pays off. Do I really have to spend 183 days in Malta? For non-dom status, yes. However: short visits also count. You don’t have to spend 6 months at a stretch. Documentation is key—collect all border stamps in and out. What health insurance do I need in Malta? EU citizens are entitled to free state care with the EHIC card. For comfort, I recommend private insurance (€150–400/month) with AX Healthcare or GasanMamo. Can I move my German/Austrian company to Malta? Theoretically yes, in practice it’s complicated. It’s usually easier to set up a new Maltese company and dissolve the old one. Consult a tax advisor about transferring assets. How hard is it to find qualified employees? Very hard. Malta has 3% unemployment—practically full employment. Skilled professionals are rare and switch jobs often. Expect to pay 20–30% higher salaries than in Germany and to face high staff turnover. What happens if I leave Malta after 3 years? You can leave at any time. The Maltese company must be wound up properly (3–6 months). For taxes, you’ll need to declare the year you leave. Plan your exit strategy from the outset. Is Malta suitable for families with children? To some extent. International schools are good but expensive (€8,000–18,000/year). Few leisure options for kids. Many expat families leave after 2–3 years because kids lack opportunities. What alternatives to Malta are there in the EU? Portugal (NHR programme), Ireland (low corporate taxes), the Netherlands (holding structures), Cyprus (similar to Malta). Each country has its pros and cons—no one-size-fits-all answer. Can I build a tech startup in Malta? Challenging, due to the small talent pool and local market. Malta works better as a base for already established companies. For startups, Berlin, Amsterdam, or Lisbon are usually better choices.
