Despite being the smallest member state in the European Union, the Mediterranean Island of Malta has one of the fastest growing economies and the lowest unemployment rate among its peers. Robust regulation, booming economic activity in a vast array of industries, a skilled talent pool and pro-business government policies have all ensured Malta's attractiveness as a jurisdiction of choice, both for investment and for economic migration.
With small and medium sized enterprises being the backbone of its economy, Malta is strengthening its fast-growing startup environment, and promoting the country as a sound and competitive entry-point and base, for entrepreneurs to launch their innovative ventures and access the EU's single market.
Here are five ways through which Malta is rapidly growing a vibrant and dynamic eco-system for startups and scale ups.
Access to funding
Funding is crucial for startups and can significantly increase their chances of success. Acknowledging this, Malta Enterprise, the government's economic development agency offers dedicated funding packages for startup ventures, backed by a dedicated team that handholds entrepreneurs throughout the entire business journey.
From funding opportunities to non-dilutive assistance, startups can benefit from anything between €200,000 to help start of their business to up to €800,000 repayable advance for highly innovative ventures. Grants of €200,000 are also available for go-to-market or high value adding projects. The Agency also helps entrepreneurs harness EU funding programmes and also assist with their internationalisation journey, towards Africa, the Middle East and beyond, via another government agency – Trade Malta. Investment and tax credits are also available.
Incubators and accelerators
Startup entrepreneurs thrive on the sharing of knowledge, experiences and expertise and are usually hungry for training. Malta Enterprise is well connected with world renowned accelerators, mentors, investors and advisors. Regular meet ups are organised for like-minded people to get together and share their stories. Pitch competitions give startups a platform to showcase their projects and match up with investors. And the Kordin Business Incubation Centre provides an industrial space for early-stage businesses, doubling up as an additional communication channel for tenants via networking events.
Access to services
Malta is the idea test base for the launch of new products and services as the market is small, yet it is fully developed. Its small size also means that processes are agile and that access to decision makers is easier.
The market is also well serviced by corporate service providers who will help startups with their business registrations, tax planning and accounting and legal needs and requirements.
A straightforward migratory pathway
Non-EU startup entrepreneurs wanting to launch in an EU jurisdiction now have a straightforward migratory pathway to medium-term residence in the country. In order to facilitate the migration process for non-EU entrepreneurs, the Malta Startup Residence Programme grants a 3+5-year residence permit, during which beneficiaries are able to reside in Malta while launching their startup venture. This ensures a seamless residency period that provides peace of mind to entrepreneurs while they focus on launching their business or direct their energy and focus on scaling up.
The Programme is run by Residency Malta and Malta Enterprise and is open to founders, co-founders, core employees and immediate family members. The Programme offers beneficiaries long term business and family stability as well as the opportunity to attract and retain international talent and reach business contacts around Europe with visa-free access to countries in Schengen, for 90 out of 180 days.
For business and applicant eligibility click [here]
Malta's attraction for expats
Malta in itself, both as a business jurisdiction and as a place to live, work and settle in, has unique selling propositions for foreigners wanting to make Malta their second home while launching their ventures. It is one of the safest countries in the world and its healthcare ranks in the top five globally, giving expats peace of mind.
English is an official language which is widely spoken and the preferred language for doing business. This means expats can communicate easily with no barriers – an advantage not many countries can boast of. The Island offers the widest broadband coverage in the EU, nationwide 5G and hundreds of free public wifi hotspots, ensuring excellent connectivity. The country is well connected to Europe, North Africa and the Middle East via daily air and sea links while its business hours coincide with those of many other countries across the world.
Of course, residents then enjoy a pleasant Mediterranean lifestyle, with a mild climate, hospitable people, outdoor activities, a vibrant cultural scene, and a rich heritage and history to discover.
All in all, these are strong reasons which should tip the scale in favour of this gem of an Island if you are thinking of launching your startup, or scaling up in Europe.
More information about the Malta Startup Residence Programme and Malta Enterprise initiatives and funding can be found here Start in Malta.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
