Malta: the Crypto Core of the Mediterranean
Situated at the middle of the Mediterranean, guarding the passages between east and west, sits the island nation of Malta.
Long a country of traders and seafarers, Malta has adapted and thrived with the changing fortunes of the global economy.
Known for its financial services and leading position in the shipping industry, Malta is also a major center for digital services, especially e-gaming and crypto. Owners of crypto and blockchain projects should have it on their radar.
Mature, reliable, and durable: early hype has matured into long-term success
Malta’s crypto industry was born in the heady days of 2017.
Challenged both by the industry’s boom and bust cycle and the inevitable growth pains of crypto regulation, initial hype around Malta’s future as ‘Blockchain Island’ has given way to a more durable and sustainable reality, one based upon the unique skill sets of Malta and its people.
Matured, Malta’s ambitions have now led to it becoming something far more attractive - the EU’s best place in which Web 3 entrepreneurs can base themselves, their teams, and their projects.
With attractive tax rates, a flourishing tech ecosystem, experienced regulators, and an excellent standard of living, Malta should be a candidate base for any globally mobile Web3 or indeed Web2 business.
A thriving tech cluster in which to grow your business
Anchored by the country’s leading role in e-gaming, Malta is possessed of a flourishing tech ecosystem.
Many software engineers, development houses, design companies, and other specialised service providers are based on the island, providing fast growing Web3 projects with the all the specialised resources they need.
Flexible immigration and residency laws make it great base for tech talent
Without any natural resources to speak of, Malta’s government and people are well aware that its economy relies on the talent and ingenuity of the people who work there - and as such, it prides itself on attracting skilled foreign workers.
As a result, liberal immigration and residency laws make it an excellent place in which to base tech talent. Among other things, its welcoming attitude towards globally-mobile tech and entrepreneurial talent is shown by its digital nomad visa.
Highly competitive corporate and intellectual property taxes
With an effective corporate tax rate of 5%, Malta is an attractive prospect to many internationally-mobile entrepreneurs and businesses.
Malta’s tax rebate system means that while corporate tax stands at 35%, foreign shareholders of Maltese businesses can claim a 6/7ths reduction in the corporate tax paid by the business.
It also has a highly attractive tax regime for royalties and IP; passive royalties, for instance, can be taxed as low as 10%, and IP revenues generated under Malta’s IP box regime are the lowest in Europe - 1.75%. This makes it a great location for cost-conscious entrepreneurs.
EU passporting
As an EU member state, financial products and services licensed in Malta can be passported elsewhere in the European Union.
Notably for the owners and facilitators of blockchain projects, this will include licensed gained under the EU’s new MiCA regime
An experienced and well-resourced regulatory authority
Malta’s financial regulator, the MFSA, is highly experienced in Web3.
Boosted by its early success in the e-gaming industry, Malta’s regulatory authorities have led the way in regulatory rigour. The EU’s MiCa system very strongly resembles Malta current VASP regime, meaning that local regulators and advisors have a pre-existing familiarity with its rules
Great lifestyle
Drenched in the Mediterranean sun, Malta has a very attractive quality of life.
A major tourist destination in its own right, Malta offers everything from beautiful beaches to the stunning baroque architecture of Valletta, one of Europe’s most beautiful cities.
History geeks can feast upon the rich archeological legacy of Malta’s millennia long history, while those who prefer bars and restaurants have their pick of a thriving nightlife scene.
English speaking
Worried about the linguistic hassle of basing you and your company abroad? Then Malta could be a good choice for you.
As a former British colony, almost all Maltese are fluent in English as well as Malta’s own language, Maltese.
Indeed, the quality of English spoken here is so high that people from all over the world come to study English on Malta and its sister island, Gozo.
CONCLUSION
New European crypto rules, the first chapter of which is set to kick in later this year, will require a local establishment in the E.U. if your activities fall under the new regime. Malta is a natural candidate for an E.U base to meet this requirement.
Burt even if you are not subject to MiCa, if you work on a project that needs access to the EU market, Malta can be your bridgehead.
Talk to us today if you want to learn more by booking a call.
