LOW TAX COUNTRIES
Andorra
Anguilla
Antigua & Barbuda
Aruba
Australia
Bahamas
Barbados
Belize
Bermuda
British Virgin Islands
Cayman Islands
Cook Islands
Costa Rica
Cyprus
Dominica
Dominican Republic
Gibraltar
Hong Kong
Isle of Man
Jersey & Guernsey
Liechtenstein
Luxembourg
Malta
Mauritius
Panama
Singapore
St.kitts & Nevis
Switzerland
Turks & Caicos
Vanuatu
Index of Articles
|
|  |
|
MALTA
About Malta
Malta, officially the Republic of Malta, is a small and densely populated island nation consisting of an archipelago of seven islands in the middle of the Mediterranean Sea
Great Britain formally acquired possession of Malta in 1814. The island staunchly supported the UK through both World Wars and remained in the Commonwealth when it became independent in 1964. A decade later
Malta became a republic. Since about the mid-1980s, the island has transformed itself into a freight transshipment point, a financial center, and a tourist destination.
Malta became an EU member in May 2004
Until 1800, Malta had very few industries except the cotton, tobacco, and shipyards industry. The dockyard was later used by the British for military purposes. At times of war, Malta's economy prospered due to its strategic location. This could be seen during the Crimean War of 1854. This did not only benefit those who had a military role, but also the craftsmen.
In 1869, the opening of the Suez Canal benefited Malta's economy greatly as there was a massive increase in the shipping which entered in the port. Entrepot trade saw many ships stopping at Malta's docks for refuelling, this brought great benefits to the population.
By the end of the 19th century, the economy began declining and by the 1940s, Malta's economy was in serious crisis. This was partially due to the longer range of newer merchant ships which required less frequent refuelling stops.
Nowadays, Malta’s major resources are limestone, a favourable geographic location, and a productive labour force.
Malta produces only about 20% of its food needs, has limited freshwater supplies, and has no domestic energy sources. The economy is dependent on foreign trade (serving as a freight trans-shipment point), manufacturing (especially electronics and textiles), and tourism. Tourism infrastructure has increased dramatically over the years and a number of quality hotels are present on the island.
Malta has recently privatised some state-controlled firms and liberalised markets in order to prepare for membership in the European Union, which it joined on May 1, 2004.
Malta and Tunisia are currently discussing the commercial exploitation of the continental shelf between their countries, particularly for petroleum exploration.
| Malta |
|
| Capital |
Valletta
35°48′N 14°28′E |
| Official languages |
Maltese, English |
| Area |
316 km² (185th)
121 sq mi |
| Population
|
404,039 (166th) |
| GDP (PPP)
|
$7.574 billion (144th) |
| per capita
|
$19,302 (37th) |
| Currency |
Maltese lira (Lm)
Euro (€) (EUR) in 2008 |
| Time zone |
(UTC+1) |
| Dialling code |
+356 |
MALTA ECONOMY
Malta is less affluent than its European neighbours. The economy is heavily dependent on tourism, which accounts for 35% of GDP; there are about 1.1 million visitors a year. Manufacturing industry represents about 25% of GDP. GDP per head is about $19,000 (2005), at the lower end of the range of EU figures, but roughly equivalent to Cyprus, and above those of the other new EU member states. GDP growth in 2005 was only 1%.
Unemployment was at 7.8% in 2005 and has risen in recent years; inflation rose to 2.9% in 2004; public debt has stabilised after rising quickly to 95% (including nationalised industries) in 1997 due to lax public finances. The labour government in 1996/98 adopted prudent fiscal policies, restraining public expenditure and improving Malta's structural trade deficit. However the government deficit was still running at nearly 7% of GDP by 2004.
Exports are rising, but with limited agricultural land and wholly lacking in energy resources,
Malta inevitably imports a great deal. The new PN administration has continued with sound financial policies, and has begun liberalisation and privatisation of various parts of the economy in line with EU requirements.
The unit of currency is the Maltese Lira (Lm) which is divided into 100 cents. The Central Bank of Malta applies exchange control under the terms of the Exchange Control Act 1972. Current transactions were freed from exchange controls in 1994;
capital controls were removed in 2004 as part of EU entry. The Maltese corporate forms likely to be used as offshore or non-resident entities were in any case all exempt from exchange controls. See Offshore Legal and Tax Regimes for further details.
In May, 2005, Malta was accepted into the EU's ERMII (Exchange Rate Mechanism), setting the country on a path towards full adoption of the Euro.
The ERM II mechanism is based on stable but adjustable central rates to the euro for the participating currencies, with standard fluctuation bands being +/-15% around the central rate. For the Maltese lira the pivot rate will be 0.429300.
Interest rates used to be controlled in Malta, but were effectively liberalised in 1995 when the Central Bank increased the ceiling on lending rates to 10% above the discount rate. There remain some controls on interest rates on loans for the purchase of residential property.
Malta will be home to a World Trade Centre as its application for membership to the World Trade Centres Association (WTCA) was accepted in March 2001. World Trade Centres provide crucial support services to international businesses such as temporary office accommodation, secretarial and translation services, corporate training, meeting and exhibition facilities. The government has stated that it sees the establishment of a World Trade Centre as 'an additional and very important step in the promotion and development of Malta as a principal hub for trade in the Mediterranean region
Malta has an excellent business infrastructure with good telecommunications; this coupled with the widespread use of the English language and a reasonably open and efficient public administration makes the island a very convenient and effective business base. Valletta, the administrative capital, is also the chief business centre.
The Government, after a bad period in the 70's, is welcoming to external investment, and foreigners are permitted 100% ownership of enterprises in almost all sectors. There are extensive investment incentive schemes (see below). More than 200 foreign companies have set up manufacturing operations in Malta
~ Books About Malta ~
Be sure to check out our range of expert reports from The Property-Seekers Tax Bookshop
Property-Seekers has teamed up with Taxcafé to bring you a variety of useful resources to help you pay less capital gains tax, inheritance tax & other taxes.
Though written originally for the UK market, this acclaimed informative series, written by highly qualified tax authors and tax experts, is equally relevant for residents of North America, Europe and Australasia.
 ...if you are looking for a new home, an investment or somewhere to rent
 ...if you have a property to sell or to let (including vacation properties)
Whether you are a buyer or a seller, whether you have a property to let or want to rent somewhere for your next vacation, Property-Seekers is here to help.
P.S. Special low-cost deals available at Property-Seekers.com until midnight,
Real Estate Investing For Real | A BiggerPockets Investment Property Blog
Learn, Network, Invest
• Green logic, Bertrand Russell and a Girl Named Meka
by Jim Simcoe
3 Sep 2010 at 9:51am
When I was a freshman in college I took an Introduction to Logic Class. As a business major I ...
• The SAFE Act: Most Confusing Legislation of 2010?
by Shae Bynes
2 Sep 2010 at 4:09pm
Today marks my 40th post for the BiggerPockets blog and yesterday I realized that up to this poin...
• Introduction to Internal Rate of Return (IRR)
by J Scott
2 Sep 2010 at 7:09am
Today?s Quiz: What is my return on the following investment: I bought my first investment property ...
• Real Estate Investing Rules from Richard Branson
by Julie Broad
1 Sep 2010 at 3:10pm
“Even after careful research, not all ideas are good; sometimes your competitors have better idea...
|
