Malta fifth most tax-friendly country and the most attractive in the EU

The 2008 Forbes Tax Misery and Reform Index, which measures the amount of increased 'misery' or 'reform' towards company tax friendliness, indicates that Malta is the most attractive country in the EU in terms of taxes and social security contributions paid by companies.

Malta stood at 63. Cyprus at 71.3 and Luxembourg at 107.2.

Malta's entry into the eurozone has strengthened further its appeal to international investors and secured ever greater economic stability. Malta has been commended by the EU and the IMF for its consistent and prudent economic and structural reforms in recent years with a stable GDP growth.

Malta has attracted significant investment in the financial sector and, taken with the related and support services, accounts for some 12 per cent of GDP, which is predicted to double its contribution over the coming decade.

The island offers international firms an excellent services and communications infrastructure and offers the benefits of an exemplary regulatory environment and a network of double taxation agreements.

Last month, Malta signed a double taxation agreement with the US that is currently awaiting ratification by the Senate. The agreement is widely expected to facilitate growth in bilateral trade and services (particularly financial services). Malta now has double taxation agreement with some 50 countries.

The index reports that "Malta is an EU country with a stable government, a good tax system, excellent infrastructure, a skilled workforce of English-speaking locals, an enviable quality of life and a clement Mediterranean climate.

"The archipelago, comprising Malta, Gozo and the virtually uninhabited Comino, has always been loved by the British, and in recent years this has increased substantially due to increased tourism, cheaper flights and the re-emergence of Libya on the business radars of multinationals, placing Malta in an enviable location in the Mediterranean. There is a flat income tax rate of 15 per cent on remittance by permanent residents and no council taxes. In addition, property prices have made steady increases in value year on year."

"There are currently excellent opportunities to invest in Malta," says James Vassallo, senior manager at Tignè Point Marketing, who are promoting the superior development at Tignè Point overlooking Valletta, a combination of private properties, leisure and commercial facilities.

"Malta is being recognised as an ideal destination for property investors and companies considering relocation. It offers a wonderful Mediterranean lifestyle, a low crime rate, English as an official language, low taxation, steady and rising property values and beautiful blue waters. Add the convenience of proximity that comes with living on a small island and the added leisure time that this often-overlooked aspect offers, and it is not hard to understand why Malta is such an attractive place in which to live and work."