In March 2018, Malta, a small island nation, took a vital decision to officially regulate its medical cannabis laws. The law authorised the use and possession of medical cannabis with a prescription.
Companies can now cultivate, import, process, and produce cannabis intended for medical and research purposes under a controlled and supervised environment in Malta.
Why Choose Malta for your Medical Cannabis Company?
1. Regulated medical cannabis laws in Malta
The Production of Cannabis for Medicinal and Research Purposes Act allows entities to process, import, cultivate and produce cannabis intended for medical and research purposes in Malta. This enables businesses to comply with all necessary regulations required to optimize the Medical Cannabis industry.
2. Malta’s fast-growing economy
Starting a business in the European Union’s fastest-growing economy is not only profitable, but also provides improved accessibility to the European Union (EU), the world’s largest economic zone. It provides total freedom of capital and income movements within the EU. Malta has a stable economic environment and competitive fiscal regime. These factors continue to impress and attract investors from all over the globe.
3. Market performance in Malta
Malta has emerged as one of the best-performing open market economies in Europe with steady economic growth and a low unemployment rate. The main factors contributing to this include a broad diversification strategy and a business-friendly and accessible regulatory framework, boosting the reputation as a safe investment location and secured foreign direct investment (FDI) over recent years.
4. Malta as the logistics hub
All the investments have turned Malta into a central logistics hub, offering sea and air logistics solutions with a flourishing freeport and excellent air cargo facilities. Malta also boasts extensive passenger air links with non-stop flights to some 70 cities with almost 1000 international flights per week. These flights improve connectivity and make shipping or delivery requirements easy to handle.
5. The location of the Maltese islands
Located in the centre of the Mediterranean, with the closest lands being Sicily, North Africa and Gibraltar, the Maltese archipelago is the perfect location for setting up a company. Malta is also a Commonwealth member state, a member of the EU since 2004, and a part of the Schengen area since 2007. Setting up a company in Malta facilitates trade and freedom of movement within the European Union.
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6. Malta’s skilled workforce and professional culture
Malta’s comprehensive working ecosystem has the resources, people, and culture that provides the chance to connect with like-minded individuals for efficient business execution. Malta’s workforce is diverse and consists of people from all regions employed in various sectors. The economic and political stability and the low crime rate have also helped companies attain higher levels of trust in the country.
7. Language in Malta
Maltese and English are the two official national languages and have equal importance and usage by the governmental authorities or agencies. English is the language of business and owing to its time as a British colony, most locals are fluent in the English language. This makes communicating and getting work done easier.
8. Taxation System in Malta
Malta has a highly efficient tax regime. Companies incorporated in Malta are subject to tax at the rate of 35% on their worldwide income. The tax refunds reduce the overall effective tax rate to 5%.
Malta operates the entire imputation system whereby the tax paid by the company is imputed towards the shareholders’ tax liability upon receipt of a dividend. This means that no further tax is due by the shareholder upon receipt of a dividend.
Taxation of companies is also underpinned by the double tax relief. By virtue of domestic legislation, Malta does not withhold taxes.
9. Financial Services in Malta
Malta is now an internationally recognised financial services hub. For an island the size of Malta, the country has built up a remarkably diverse financial services portfolio. Malta Financial Services Authority (MFSA) regulates the financial services sector in Malta, a one-stop shop for all license requirements in this sector.
The MFSA holds and licenses a broad range of service providers. They seek to provide a stable and efficient regulatory environment to grant a sound and professional experience to all operators and ensure a positive experience to all clients
10. Malta welcomes foreign nationals
Malta has several programmes for non-EU/EEA/Swiss nationals, offering permanent residency or citizenship in the country. Leading schemes include the Malta Permanent Residency Programme and the Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment.
If eligible, you are welcome to settle, work, study, or start businesses in the country with your family. The programmes also allow you to maximize lifetime benefits, including family security and access to 26 Schengen countries.
Legalising medical cannabis in Malta made government-sanctioned cannabis accessible as medication to patients and created an opportunity to attract foreign investors to the nascent medical cannabis industry, boosting the economy. With proper regulations and monitoring, this will reduce the illegal usage and decrease the number of detainees while increasing job creation and tax revenue and broadening Malta’s healthcare system.