Expanding with an EOR:
Why you should consider Malta
As the smallest country in the EU, this pocket-sized nation sure knows how to pack a punch.
Katie Jones
Content Writer
In just a few short years, Malta has undergone an incredible business revolution. This charming Mediterranean island is now gaining widespread recognition as a hub of innovation and fast-paced entrepreneurship.
If this wasn’t enough to entice businesses and expatriates, Malta also boasts a Mediterranean climate with sunshine guaranteed almost all year round (on average around 300 days a year!)
By combining the advantages of an EOR with the numerous benefits that Malta offers for international expansion, businesses can streamline their entry into the market, navigate local regulations with ease, and position themselves for growth and success in the dynamic Mediterranean region.
Let’s explore why Malta should be at the top of your list when considering international expansion.
Why Malta?
Strategic Location and Access to Markets:
With its proximity to Europe, North Africa, and the Middle East, this tiny nation is an ideal gateway for businesses seeking access to markets in these regions. The nation’s advantageous position in the Mediterranean means that businesses with an EOR here can easily reach a large and diverse customer base. And as a member of the European Union, Malta also offers businesses the opportunity to reach over 450 million consumers within the EU single market.
Stable and Attractive Business Environment:
With its stable political climate, pro-business policies, and robust regulatory framework, Malta is considered a safe, secure, and welcoming environment for investors and businesses.
The country’s robust economy, significant fall in unemployment rates, and diverse economic landscape can be attributed to the government’s successful implementation of an appealing tax regime that attracts both local and global investors. In fact, Malta’s corporate tax rate if one of the lowest in the world at 5%.
English Proficiency and Multilingual Workforce:
English proficiency is a great asset in the business world, and Malta’s embrace of the language enhances its position as an international business hub. Spoken fluently by around 88% of the population, it is the second official language of the country alongside Maltese.
Additionally, many Maltese professionals are multilingual, so it’s not unusual to hear languages such as Italian, French, and Spanish, facilitating interactions with a broader clientele.
Thriving Financial Services and Gaming Sectors:
This country has gained a reputation as a hub for financial services, fintech, and gaming companies. The country’s financial services sector is well-regulated and offers a wide range of financial products and services. Similarly, the gaming industry in Malta is flourishing, with a comprehensive regulatory framework that attracts numerous gaming operators and service providers.
Skilled and Educated Workforce:
Malta boasts a skilled and educated workforce, with a strong emphasis on education and professional development. The local workforce is well-trained in various industries, including finance, information technology, hospitality, and maritime services, providing a diverse talent pool for businesses expanding into the country.
Mediterranean Lifestyle and High Quality of Life:
Malta offers an exceptional Mediterranean lifestyle with a pleasant climate, beautiful beaches, and a rich historical and cultural heritage. The island’s high quality of life, affordable cost of living, and welcoming local community make it an appealing destination for expatriates and their families.
Using an Employer of Record (EOR)
Venturing into new markets can entail a multitude of challenges such as legal compliance, HR management, and payroll administration. An EOR significantly reduces the burden of these challenges, while also aiding businesses to establish a legal presence in foreign territories (by assuming the role of the employer for all local recruits).
An EOR can facilitate businesses expanding into Malta by supporting in the following areas:
- Legal Compliance: An EOR possesses profound knowledge of local labor laws, regulations, and employment practices, ensuring businesses’ compliance to all legal requirements. This encompasses handling employment contracts, tax obligations, social security contributions, and other legal aspects associated with hiring in Malta. Collaborating with an EOR enables businesses to mitigate the risks of non-compliance and concentrate on their core operations.
- HR Management: Managing human resources in a foreign country is a complex endeavor, particularly regarding recruitment, onboarding, and employee benefits. An EOR diligently undertakes these responsibilities on behalf of the expanding business, providing comprehensive HR support throughout the entire employee lifecycle. This encompasses sourcing and hiring local talent, managing payroll and benefits, and handling employee relations. By leveraging the expertise of an EOR, businesses can streamline their HR processes, ensuring a seamless transition into the Maltese market.
- Flexibility and Scalability: One of the most notable advantages of partnering with an EOR is the inherent flexibility and scalability it affords. Businesses can swiftly scale up or down their operations in Malta without the need for establishing a legal entity or making long-term commitments. This flexibility proves particularly beneficial for businesses testing the market or seeking a cost-effective gateway to enter Malta. By enlisting the services of an EOR, businesses can focus on executing their expansion strategies while being provided with the necessary infrastructure and support.
Summary
It goes without saying that Malta makes a compelling case for businesses eyeing international expansion. This small but mighty nation boasts a strategic location, providing access to EU markets and beyond. Its stable business environment and favorable taxation system create a welcoming atmosphere for foreign investment.
When embarking on an expansion journey, it is crucial to partner with an experienced EOR service provider who can navigate the local regulations and ensure compliance with employment laws. By leveraging Malta’s advantages and embracing the opportunities it offers, your company can establish a strong presence in this dynamic island nation, unlocking its potential for growth and prosperity.
To learn more about expanding your business into Malta, explore our Maltese country guide. To begin your global expansion journey, contact us today.