Malta-UK Relations
The United Kingdom and Malta share a historical and diplomatic relationship that spans centuries. Malta, a former British colony, gained independence in 1964 but remains a member of the Commonwealth of Nations. The two nations have strong ties in various aspects, including trade, defense cooperation, and cultural exchange. The UK has a significant Maltese diaspora while the number of British expats in Malta has continued to rise of the years. Malta and the UK collaborate closely on various policy matters within the European Union, where Malta is a member state. Despite the UK's departure from the EU in 2020, efforts have been made to maintain cooperation and address mutual interests. Overall, UK-Malta relations continue to be characterized by shared history, cooperation, and a commitment to preserving their partnership in the face of evolving international dynamics.
Malta-UK Trade
Total UK-Malta trade in goods and services (exports plus imports) between the UK and Malta was £2.9 billion in the four quarters to the end of Q1 2023, an increase of 50.8% or £969 million in current prices from the four quarters to the end of Q1 2022. Of this £2.9 billion: • Total UK exports to Malta amounted to £1.4 billion in the four quarters to the end of Q1 2023 (an increase of 28.2% or £305 million in current prices, compared to the four quarters to the end of Q1 2022); • Total UK imports from Malta amounted to £1.5 billion in the four quarters to the end of Q1 2023 (an increase of 80.3% or £664 million in current prices, compared to the four quarters to the end of Q1 2022). Malta was the UK’s 60th largest trading partner in the four quarters to the end of Q1 2023 accounting for 0.2% of total UK trade.1 In 2021, the outward stock of foreign direct investment (FDI) from the UK in Malta was £931 million accounting for 0.1% of the total UK outward FDI stock. In 2021, the inward stock of foreign direct investment (FDI) in the UK from Malta was £1.8 billion accounting for 0.1% of the total UK inward FDI stock.
Malta for the British
Malta offers significant advantages to British entrepreneurs, high net worth individuals and investors seeking safe yet attractive business environment and a cost-effective yet high quality European / Mediterranean lifestyle and free movement within the European Union and the Schengen Area.
British Taking up Residence in Malta
More easily, British families can apply for a Permanent Residence permit that does not require annual renewal or any minimum presence every year. Only after receiving the in-principal approval, the investor must pay a one-time government fee of €70,000 if the investor buys a property (minimum €300,000) or €100,000 if the applicant rents a property (€10,000 per year). In both cases, the property must be kept for just 5 years with no further obligations after that. Applications can include up to 4 generations of the family, including the main applicant and the spouse, parents and grand-parents of both, and financially dependent children with no age limitations.
British Buying Property in Malta
British citizens are increasingly buying property in Malta. British families relocating to Malta and taking up a job in Malta, typically start by renting a property in Malta but eventually familiarise enough with the Maltese property market to get on the property ladder. More and more of our British clients buy a second home, a holiday home or a buy-to-let investment property in Malta. A British citizen can buy property in Malta without any limitation within specially designated areas, and would be able to obtain a special permit (an Acquisition of Immovable Property / AIP permit) to buy property in other areas.
Maltese Citizenship for British Investors
After holding a Maltese residence Malta for 3 years, investors who pass a high standard of background checks may make an exceptional direct investment that qualifies for naturalisation as a Maltese citizen.
British Setting up a Business in Malta
The Maltese economy is one of the fastest growing economies of the European Union.Malta has experienced exponential growth and presented opportunities for startups, innovation businesses, sustainable businesses to flourish in Malta and within the EU. Limited liability companies pay 35% tax on company profits but shareholders often qualify from a refund of 30%, reducing the effective Malta tax rate on company profits.
British Setting up a European Rep Office in Malta
For the international business, Malta acts as the European platform for international activities, providing a business-friendly environment, legal certainty, high-level professional advisors, a skilled workforce and a lower overall cost of operating.
British Setting up a Holding Company in Malta
A full member of the European Union, the Island Republic of Malta acts as a European gateway to opportunities presented by the opening Latin American markets. The Maltese holding company is an established method of acquiring participations in companies around the world, and holding real estate, investment portfolios and other high-value assets internationally. Maltese companies benefit from a tax exemption on dividends and capital gains on the transfer of shares in subsidiaries.
British Studying in Malta
Malta is a safe, English-speaking place for young and mature students to study English as a foreign language, or to attend Maltese or international universities on various international campuses present in Malta. English is an official language of Malta and is widely spoken, being the language of education, business and government communication.
British Taking up a Job in Malta
British families can relocate to Malta on a work permit by demonstrating skills that are not available in Malta or other European countries. Senior positions may qualify for a fast-track work permit under the Key Employee Initiative. More senior company executives in some sectors benefit from personal tax incentives for highly skilled persons.
Our UK-Malta Lawyers and Tax Advisors
Our UK-Malta team enjoys a wealth of experience in assisting transactions between the two friendly nations. Our multi-disciplinary team of lawyers, accountants, financial advisors and relocation specialists have assisted British clients take up alternative residence in Malta for business, study or tax purposes. We have advised British nationals on the tax benefits of taking up residence in Malta, investing in property in Malta and of basing their international business activities in the Mediterranean Island of the European Union.
