Relocating
your business to a new country is a big step which
is usually a strategic business decision based
on the location, tax incentives, cost of living,
education, cost of work force and most importantly
the system and the logistics of dealing with the
Government in that specific country. J&K Properties
has a specific task force that specialises in
coordinating and managing any services you may
require. From setting up your business to relocating
families to Malta, we have the know-how and the
contacts to make sure that your move is smooth.
Being pioneers in providing this comprehensive
service, the J&K Properties team have the
answers to most frequently asked questions and
most resources to guide any ex-patriot in the
right direction for advice on various matters
including taxation, setting up of offices/commercial
activity in Malta, legal advice, residency permits,
schooling for children and other services that
may be required depending on the individual.
Identifying the right location and the best suitable
office space is an important task that companies require
professional guidance on. Our experience in dealing with
key clients and helping them acquire and finish office
space to the highest specifications can prove a major
asset to any company planning to set up an office in
Malta.
LOCATION The Maltese Archipelago lies virtually in the centre
of the Mediterranean Sea, some 93kms south of the Italian
island of Sicily. Yet Malta is just a few hours’ flying
time from most mainland European cities (London Malta
flying time only 3 hrs) and has excellent intercontinental
connections. Malta has a long tradition of international
business that goes back as far as the Phoenicians in
the first millenium BC. The Carthaginians, Romans, Arabs,
Knights of St John and others, along with the French
and British, all realised the economic potential of the
Maltese islands. For close to two centuries Malta was
the Royal Navy's Mediterranean home port. This laid the
foundations for the islands' subsequent industrial development.
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SETTING UP YOUR BUSINESS IN MALTA
Over the years, J&K Properties has built
very good relations with International auditing
firms and legal offices that have representation
in Malta. We recommend that companies seek advice
from real professionals when they get to Malta.
If required, we will be happy to recommend to you the
best auditing firm or legal office that should best suit
your requirements. We can also supply you with a list
of firms and contact details of the right people to talk
to.
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WHY SET UP YOUR BUSINESS IN MALTA
Malta’s solid background has led to today's favourable
industrial climate that together with its pro-business
environment makes Malta an ideal location for foreign
direct investment. There are now well over 200 foreign-owned
enterprises on the island - involved in electronics production,
medical equipment, pharmaceuticals, software development,
plastics, automotive components, tool-making, aviation-related
services and maintenance, furniture and food. Economic
stability, healthy industrial relations and competitive
labour costs have been the pillars sustaining the success
stories of many a foreign company over the last four
decades.
Foreign direct investors have found that Malta offers
definite advantages in short production-runs, product
development and research, sales and marketing. Furthermore,
a number of bilateral and multilateral tax treaties and
agreements ensure favourable export conditions to Europe,
United States, Japan, North Africa and the Middle East.
Education
The standard of education in Malta is high, with English
as an official language, it is also the language utilised
for instruction in most subjects across the board. The
business languages practiced are mainly Maltese and English,
with English being the most spoken. The Maltese are fluent
in Italian and also speak German and French.
The Malta University today provides free education to
some 8, 000 students in disciplines that range from medicine,
to law, architecture, engineering, IT, business studies,
management and accountancy and communications amongst
others. 1800 students graduate from University every
year.
In addition the Malta College of Arts and Technology
provides vocational and professional training of an international
calibre in several disciplines including information
and communications technology, art and design, electronic
and engineering, building and construction, mechanical
engineering, community services, business and commerce
and maritime affairs. All this has a marked effect on
the calibre of labour available for recruitment.
The Workforce
Despite the absence of raw materials and minerals, Malta
has one seriously valuable asset – its labour force.
The Maltese people today remain as hardworking and enterprising
as they have been throughout their colourful history.
They are highly educated and easily trained. On the shop
floor this makes rejection rates in any industry operating
in Malta the lowest in the Mediterranean and elsewhere.
The Maltese people have drawn every lesson there was
to learn from their history. As a result they made every
experience work to their advantage. There probably
is no workforce in Europe today that matched the many
attributed
Maltese workers bring to one’s business. This,
in great measure, explains Malta’s ongoing economic
success.
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MALTA ENTERPRISE’S BUSINESS PROMOTION
ACT
The Malta Enterprise has been set up by the Maltese
Government to help businesses set up in Malta. The Business
Promotion Act (BPA) which succeeded the Industrial Development
Act and which has been in force since 2001, introduces
greater scope and flexibility to the incentives available
for the promotion of business, and covers a much wider
range of qualifying sectors and activities than before.
The BPA provides incentives for those industries demonstrating
growth and employment potential that are engaged in manufacture
(including software development), repair, improvement
and maintenance activities.
The Business Promotion Regulations, issued in terms of
the Business Promotion Act, provide attractive fiscal
incentives for companies engaged in particular manufacturing
and qualifying activities.
The incentives available under the Business Promotion
Act may be subdivided under two headings namely, tax
related incentives and non-fiscal related incentives.
A. Tax Related Incentives
1. Reduced Rates of Income Tax
This incentive applies only to qualifying companies engaged
in those particular activities listed under the Business
Promotion Regulations. These activities include pharmaceuticals,
plastics, biotechnology, electronic and electrical
equipment.
Such qualifying companies benefit from the following
highly favourable tax rates, as applicable and up to
31/12/2008:
(a) 5% for the first 7 years of operation;
(b) 10% for the next 6 years;
(c) 15% for the following 5 years.
This incentive will no longer be available after the
31st December 2008.
2. Investment Tax Credits
This incentive, in terms of which the tax payable is
reduced and even eliminated, may be availed of only by
those qualifying companies that are entitled to benefit
from reduced rates of income tax.
Investment tax credits are calculated as follows:
Either
(a) 50% of investment on capital equipment;
Or
(b) 50% of the first 2 year wage costs of new jobs created.
Note: For SMEs the applicable percentage is increased
to 65%.
Tax credits unutilised during a particular year are carried
forward to the following year and increased by 7%.
The combination of the above incentives would normally
result in minimal or no taxes being paid for a number
of years.
This incentive will continue to be available after the
31st December 2008.
3. Value Added Incentive Scheme
This incentive is applicable to those qualifying companies
that are not eligible for reduced rates of income tax,
and consists of a scheme whereby such companies benefit
from reduced rates of income tax according to the increase
in value added derived from their activities.
The reduced rates of tax applicable are as follows:
(a) 5% for the first 7 years of operation;
(b) 10% for the next 6 years;
(c) 15% for the following 5 years.
The reduced rates of tax apply to part or indeed a multiple
of the increased profit when compared to a base period.
For new companies, since the base period would be Nil,
all the profits in the initial three years would be taxed
at the reduced rate of 5%.
This incentive will no longer be available after the
31st December 2008.
4. Investment Allowances
Tax deductions in addition to normal tax depreciation
are provided as follows:
Plant and machinery – 50% of the investment;
Industrial buildings or structures – 20%
of the investment.
5. Reduced Rates of Tax on Reinvested Profits
The tax on profits that are reinvested in projects
approved by Malta Enterprise is reduced by 19.25% from
35%.
6. Incentives for Job Creation
The creation of new jobs for particular persons, e.g.
persons unemployed for more than two years, disabled
persons, would entitle a company to an additional tax
deduction based on the wage cost of such persons.
7. Tax Treaties
Malta has concluded tax treaties with a number
of countries (mainly European but including Canada
and Australia)
which enhance the incentives provided by Maltese
domestic legislation.
Most of these treaties ensure that profits generated
in Malta are either exempt from tax in the country
of residence of the investor, or that such a
country will provide a tax credit for the Malta tax
spared
as a consequence of the incentives Malta provides.
B. Non-Fiscal Incentives
1. Provision of Immovable Property
Malta Enterprise approves the allocation of industrial
buildings at competitive rates of rent.
2. Soft Loans
Qualifying companies may benefit from low interest rate loans covering up to
75% of the qualifying expenditure undertaken by the company.
3. Loan Interest Rate Subsidies
Alternatively, companies may qualify for a subsidy on the interest rate payable
on loans taken up from licensed financial institutions to acquire additional
assets.
4. Loan Guarantees
Malta Enterprise may guarantee up to 75% of loans taken up by qualifying companies
to finance the acquisition of assets.
5. Training assistance
Qualifying companies may benefit from substantial training assistance.
Depending upon whether a company is classified as “large”, “small or
medium” enterprise, such assistance may vary from 35% to 80% of costs
incurred on training.
6. Work Permits
Indefinite work permits are granted to shareholders (or their nominees) holding
more than 40% of the equity. Definite work permits for specialists are granted
according to company requirements.
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FINDING YOUR PREMISES
Our experienced team can assist you in searching for
your strategic business premises. With what is possibly
the largest database of commercial properties available
on the market, we are always in a position to offer a
wide range of choices to suit any client, not only with
regards to location but also size and level of finish.
If your request is for office premises, retail outlets,
small or large catering establishments, warehouses
or indeed any other type of commercial property our comprehensive
database is sure to offer an idea to suit your needs.
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RESIDENTIAL LETTINGS Any foreigner coming to Malta on a work appointment,
to retire or simply to take up residency on our island
is able to rent a property. Indeed there are no laws
stopping foreigners from finding a rental home/Property
to let to take up as a residence with the exception of
permanent residency.
Our letting department, established since 1999 under
the J&K Properties name, has moved from strength
to strength and thanks to our hard working team has increasingly
gained more market share to become a household name and
leader in the letting sector, specialising in providing
individuals, company executives, consultants, staff,
diplomats and friends, a fully comprehensive service
catering for both short term and long term letting periods
in Malta and Gozo.
In Malta, there is a vast selection of properties to
rent/to let located in various areas, suiting a wide
variety of budgets as well as style of life requirements
of each potential client.
In the case where a client is to be based on the island
on a work assignment it is most likely that the location
of your workplace would be within the Sliema, St.Julians
possibly Valletta areas. These towns are well serviced
with most of the main requirements typically necessary
for normal day-to-day living such as shopping centres,
supermarkets, beaches (rocky), a variety of restaurants
and also cinemas and night life entertainment. Properties
found in these areas range from modest (standard) apartments
to townhouses as well as the upmarket seafront apartments,
which as they overlook the promenade offer some spectacular
sea views. On the outskirts and more inland property
types will include terraced houses, more apartments and
maisonettes and also high quality villas and bungalows,
with or without pool.
If the choice is to stay away from the typical hectic
city life of the above mentioned cities a good answer
would be to move inland and look at some of Malta’s
old towns and villages, or further out still to the country
where besides the types of properties already mentioned
above one could find some unique character houses and
farmhouses with or without pool, typically renovated
to modern day standards but still retaining their two,
three and sometimes even four hundred year old charm.
The proximity between the selected home and business/work
place can make a difference. Although Malta is small,
traffic to and from areas can be slow and frustrating.
In our endeavour to make living here as pleasant as possible
for you we take an interest in giving advice regarding
travel time to workplace as well as central shopping
centres and towns.
Every client is treated with the utmost professionalism
but at the same time with the right dose of
personal
touch. At J&K Properties we know that finding
a home in what is more often than not new surroundings
can prove quite tough and tiring but we are
also confident that our years of experience will
prove
essential in the various stages of selection
right from the ability to understand the needs
of the
client right through to the time of actually
signing the lease agreement with the owners.
Our associates are professionally trained to find you
the right rental property, negotiate the best price and
keep in touch with you to make sure that you are happy
with your new home. We back this up with a 24hr, 7 days
a week service.
J&K Properties is committed
to deliver a fully comprehensive, professional,
stress free service at value for money to all
their customers.
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SCHOOLING
No doubt, schooling is an issue to be taken quite seriously
when sending families to a new destination. It is good
to know that Malta has a number of English and International
Schools. We will be very happy to put you in the right
direction.
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CORPORATE SERVICES SUPPORT
At J&K Properties we supply a twenty four
seven day a week service. So, any problems that
occur we are available on call.
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