Good relations between Malta and China
On January 31, 1972 Chinese and Maltese leaders made the decision to establish diplomatic ties and over the past 46 years has developed a strong and committed relationship. They worked hard together to create a win-win situation: from assisting Malta with developing carpet, glassware and chocolate industries, to the export of many Chinese products which have been well received by Maltese citizens. Malta has also entered the Chinese market with products like Cisk beer and Kinnie which have become popular with Chinese customers.
Malta’s offers benefits for foreign countries
In 2014, Malta and China have signed a 5-year Medium-Term Cooperation Plan which will enhance the economic ties between the two countries and cooperation, e.g. in the area of finance, have helped take the already well established relationship between the two countries to a greater level. China-Malta relations will continue to strengthen political, economic and cultural relations and strengthen the benefits and friendship between them.
Malta attracts richer Chinese
Malta is becoming increasingly attractive for Chinese millionaires for its lifestyle and property investment opportunities according to a survey done by the Hurun Research Institute. The survey was based on a counties investment opportunities, immigration policy, purchasing of property, personal tax rates, health care and visa free travel.
The results also showed that the main reasons for the Chinese to emigrate was pollution and education along with the yuan and the worry it will continue to diminish in value.
Business-friendly environment in Malta
Malta has a business-friendly financial environment with many tax incentives such as: access to EU directives, no Maltese withholding tax on dividends, a tax regime for highly qualified persons and a very extensive tax treaty with currently 70+ treaties in action. Malta is also an appealing location for capital-in leisure companies and equity-funded headquarters due to the “National Interest Deduction” (NID) which was introduced in 2017. The NID enhances tax benefits and reduces tax discrimination between debt and equity financing by allowing companies to deduct a notional interest amount based on the ‘risk capital’ of a company.
Global Connect Admins has an extensive knowledge, expertise and network. We engage with partners from Malta and China to offer our clients the most up-to-date and relevant information. Please feel free to contact us with your questions concerning these two countries.
Sources (up to date on 10th July 2018)
Times of Malta: Malta-China: 45 years on
Times of Malta: Malta’s relations with China
Independent: Malta becomes fifth-most popular country for rich Chinese emigrants
International tax review: Malta: Key international tax updates