Malta’s open market economy is highly industrialised and service based. It has been classified as a high-income country (World Bank, 2015) and an innovation-driven economy (World Economic Forum, 2014). Geographically, Malta is ideally placed in the Mediterranean Sea and acts as a crossroads between Europe, Africa, and the Middle East. Its robust infrastructure includes a world-renowned reputation as a flag of quality for its ports.
Malta sees its economy soar to the top of European ranks. The European Commission predicted, in its Winter Economic Forecast, that the country will have the second-largest European growth rate in 2023. They add that Malta would see an annual economic growth of 3.1%, surpassing Europe’s average by 2.3%.
Malta saw extraordinary results in 2022, with a growth of 6.6%, the third-largest in Europe. The performance has been credited mainly to solid growth in the service and tourism sectors, the latter recovering swiftly from the pandemic. Despite the Maltese Government’s efforts to subsidise energy prices, inflation in Malta stands at 6.1%.
The country has its eyes on the future, embracing innovation, sustainability, and digitalisation – the administration is increasing investments in attracting opportunities in information technology, financial services, tourism, and manufacturing to the archipelago.
Small and Medium-Sized Companies (SMEs) play a significant role in Malta’s economy. They account for 95% of all Maltese companies while providing 140,000 people jobs! In 2022, 33,442 SMEs were operating in the country – with 30,903 micro-sized enterprises employing between 0-9 people.
On February 1, 2023, a new €2 million grant scheme opened to help SMEs purchase equipment and machinery through European Funds. This new program will make it simpler and easier to apply funds and help businesses become more efficient.
This opportunity perfectly aligns with Malta’s government strategy of digitalising companies and making them stronger and more resilient.
According to a Malta Chamber of SMEs’ “Business Performance Survey”, 6% of SMEs plan to take their business overseas in 2023, while 39% reported that 2022 was better than 2019 (pre-pandemic).
Malta (Republic of Malta – Repubblika ta’ Malta, in Maltese)
Mainland: CET (UTC+1 /+2 in Summer DST)
1 January – 31 December (calendar year)
National Minimum Wage (2023):
EUR 835/month (EUR 192.73/week)
Taxpayer Identification Number (TIN):
Maltese nationals can use their Maltese ID Card Number as the TIN.
TIN for non-Maltese nationals is issued by the IRD once they complete a registration form.
Entities registering with the Maltese Registry of Companies are automatically registered with the IRD and issued a TIN.
Main trading partners (2021):
Main Customers: Germany (14%), Italy (9.5%), France (6%), Japan (5.7%), Singapore (4.6%), Hong Kong (4.3%), the USA (4.2%), and the UK (4.1%).
Main Suppliers: Italy (23%), Canada (7%), France (7%), Spain (6,2%), Germany (5.6%), China (5.4%) and the UK (5.1%).