Investment Report Doing Business in

Prepared by: Research and Policy Review Malta Enterprise

Date: June 2015

Document Control Information

1 Document Reference

EMRU/BD001/2015

2 Document Type

Adobe Acrobat Reader - PDF

3 Security Classification

Non-Restricted Distribution

4 Synopsis

The objective of the report is to provide investors who are seeking to set-up operations in Malta with basic information about the country. The information provided covers aspects such as lifestyle, utility tariffs, petroleum prices, communication costs, property prices, salaries, graduate figures, corporate and personal taxation systems together with double taxation agreements Malta has entered into with other countries. A section is also dedicated to Business First the one stop shop for the business community.

5 Document Control

Name Designation

Author Brian J. Camilleri Head, Research (National Statistics)

Change Controller Brian J. Camilleri Head, Research (National Statistics)

Distribution Controller Fleurette Zarb Cocks Manager Communications Unit

6 Authorisation

Marco Abela Chief Officer Research & Policy Review 28th July 2015

7 Modification History

Version: 1.0 Date: 28th July 2015 Comments: N/A

Contents

Investment Report ...... 1 Malta Basic Data ...... 1 Fact Sheet ...... 1 Malta Enterprise ...... 2 Who we are? ...... 2 Projects approved by Malta Enterprise ...... 2 Foreign Owned Projects ...... 2 Local Owned Projects ...... 4 Incentives Offered ...... 6 Investment Aid Tax Credits ...... 6 Research and Development ...... 6 Access to Finance Schemes ...... 7 Main Economic Indicators ...... 9 ...... 10 Investors Outlook ...... 12 Company Formation ...... 14 Fees ...... 14 Taxation ...... 16 Double Taxation Agreements ...... 16 Personal Taxation ...... 17 Implicit Tax Rates on Labour...... 19 Tax for Highly Qualified Persons ...... 21 Foreign Workers ...... 21 Corporate Tax ...... 22 Operating Surpluses as a percentage of GDP (2013) ...... 23 Electricity ...... 24 Residential Tariffs ...... 24 Residential Installation Charges ...... 24 Residential Service Charges...... 25 Residential Rates ...... 25 Domestic Rates ...... 25 Non-Residential Tariffs ...... 26 Non-Residential Service Charges ...... 26 Non-Residential kWh ...... 26

Non-Residential kVah ...... 27 Water ...... 28 Domestic Water ...... 28 Domestic Installation and service charges ...... 28 Domestic Water Tariffs ...... 28 Non-Domestic Water ...... 29 Non-Domestic Water Installation and Service Charges ...... 29 Non-Residential Water Tariffs ...... 29 Gas ...... 30 Price of Gas ...... 30 Deposits on New Gas Cylinders ...... 30 Tariffs for cylinders to be carried in flats/apartments ...... 31 Petroleum ...... 32 Communication Costs ...... 33 GO Group Fixed Line Telephony ...... 33 Residential connection and rental charges ...... 33 Residential Fixed Line Telephony Tariffs ...... 34 Business Connection and rental charges ...... 34 Business Fixed Line Telephony Tariffs ...... 35 Melita Fixed Line Telephony ...... 35 Connection and Rental Charges ...... 35 Tariffs for Fixed Telephony ...... 36 Mobile Telephony ...... 36 Provision of Internet Services ...... 37 GO Group Residential Internet Costs ...... 37 GO Group Business Internet Costs...... 37 Melita Residential and Business Internet Costs ...... 38 Vodafone (Malta) Residential and Business Internet Costs ...... 39 Human Resources Language Proficiency, Training, Salaries and Graduate Statistics ...... 40 Language Proficiency ...... 40 Education ...... 42 Pre-Primary Education (Age 3 to 5) ...... 42 Compulsory Education (Age 5 to 16) ...... 43 Upper Secondary Education ...... 43 Vocational Upper Secondary Education ...... 44 Tertiary Education ...... 44

Private Institutions ...... 45 International Schools ...... 45 Graduates ...... 46 Training ...... 56 Salaries ...... 58 Sick leave entitlement to employers and self employed ...... 62 Sick Leave Statistics ...... 63 Property and Residence ...... 63 Industrial Property ...... 63 Office Spaces ...... 66 Standard Office Spaces ...... 66 Luxurious Office Spaces ...... 68 Rental Rates for Residential Apartments ...... 70 Standard Apartments ...... 70 Luxurious Apartments ...... 72 Acquisition of Property in Malta ...... 74 Global Residency Scheme ...... 74 Individual Investment Programme ...... 75 Development Planning ...... 75 Transport Infrastructure ...... 76 Land ...... 76 Bus Service ...... 77 Taxi Services and Chauffeur-driven Vehicles ...... 77 Car Rental ...... 77 Air ...... 77 Airport ...... 78 Airlines ...... 78 Cargo ...... 78 VIP services ...... 79 Maintenance ...... 79 Sea ...... 79 Malta Freeport...... 79 Valletta Gateway Terminals ...... 80 Valletta Waterfront ...... 80 Gozo Channel ...... 80 Virtu Ferries ...... 81

Malta Motorways of the Sea ...... 81 Palumbo ...... 81 Lifestyle ...... 82 Healthcare ...... 83 Public and National Holidays ...... 84 Business First ...... 85 Useful Websites ...... 86

List of Figures

Figure 1-Contribution of Various Economic Sectors to GVA (2014) ...... 11 Figure 2-Interviewed Companies considering an Expansion of their Maltese Operation ...... 12 Figure 3- -à-vis investment criteria ...... 13 Figure 4-Implicit Tax Rates on Labour (2012) ...... 20 Figure 5-Operating Surpluses as a percentage of GDP ...... 23 Figure 6-Hourly Labour Costs for the Whole Economy (2014) ...... 61 Figure 7-Labour Costs per hour by economic activity (2014)...... 62 Figure 8-Graphical Analysis for Warehouses/Garages Rental Rates ...... 65 Figure 9-Graphical Analysis for Standard Offices Rental Rates ...... 67 Figure 10-Graphical Analysis for Luxurious Offices Rental Rates ...... 69 Figure 11-Graphical Analysis for Standard Apartments ...... 71 Figure 12-Graphical Analysis for Luxurious Apartments Rental Rates ...... 73

List of Tables

Table 1-New and Expansion FDI projects Approved...... 3 Table 2-New and Expansion Local projects Approved ...... 5 Table 3-Main Economic Indicators ...... 9 Table 4-Fees required to setup a Company ...... 14 Table 5-Double Taxation Agreements in Force ...... 16 Table 6-Double Taxation Agreements Signed but not yet into Force ...... 17 Table 7-Single Personal Taxation Computation (2015) ...... 17 Table 8-Married Rates (2015)...... 17 Table 9-Parent Rates (2015) ...... 18 Table 10-Class 1 Social security Contributions ...... 18 Table 11-Residential Installation Charges ...... 24

Table 12-Residential Service Charges (inclusive of 5% VAT) ...... 25 Table 13-Residential Rates (inclusive of 5% VAT)...... 25 Table 14-Domestic Rates (inclusive of 5% VAT) ...... 26 Table 15-Non-Residential Service Charges (exclusive of VAT) ...... 26 Table 16-Non-Residential Rates per kWh (exclusive of VAT) ...... 27 Table 17-Non-Residential Rates per kVah (exclusive of VAT) ...... 27 Table 18-Domestic Water Installation and Service Charges ...... 28 Table 19-Domestic Water Tariffs ...... 29 Table 20-Non-Residential Water installation and Service Charges ...... 29 Table 21-Non-Residential Water tariffs ...... 29 Table 22-Price of Gas (inclusive of VAT) ...... 30 Table 23-Deposits on new gas cylinders ...... 31 Table 24-Tariffs for cylinders to be carried in flats/apartments ...... 31 Table 25-Petroleum Prices (May 2015) ...... 32 Table 26- Residential Fixed Line Telephony Connection and Rental Charges ...... 33 Table 27-Residential Tariffs for Fixed Telephony ...... 34 Table 28- Business Fixed Line Telephony Connection and Rental Charges ...... 34 Table 29- Business Tariffs for Fixed Line Telephony ...... 35 Table 30-Connection and Rental Charges...... 36 Table 31-Tariffs for Fixed Line Telephony...... 36 Table 32-Residential Internet Costs ...... 37 Table 33-Business Internet Costs ...... 38 Table 34-Residential and Business Internet Costs ...... 38 Table 35-Languages Spoken ...... 41 Table 36-University Graduates by Faculty...... 47 Table 37-MCAST Graduates by Faculty ...... 54 Table 38- Average Weekly Wages September 2014 ...... 58 Table 39-Warehouses/Garages Rental Rates by Size (September 2014) ...... 64 Table 40-Warehouses/Garages Rental Rates by Region (September 2014) ...... 64 Table 41-Office Rental Rates by Size (July 2012) ...... 66 Table 42-Office Rental Rates by Region (July 2012) ...... 66 Table 43-Luxurious Offices Rental Rates by Size (September 2014) ...... 68 Table 44-Rental Rates for Standard Apartments by Size (September 2014) ...... 70 Table 45-Rental Rates for Standard Apartments by Region (September 2014) ...... 70 Table 46-Rental Rates for Luxurious Apartments (September 2014) ...... 72 Table 47-New Fees Regulations ...... 76

Fact Sheet

Full Name: Republic of Malta Population: 425,384 Area: 316km2 Capital: Valletta Independence: 1964 Republic: 1974 EU membership: 2004 Currency: (2008) President: H.E. Marie-Louise Coleiro Preca Prime Minister: Hon. Joseph Muscat Opposition Leader: Hon. Simon Busuttil Official Languages: English and Maltese Major Religion: Roman Catholic GDP at market prices: 8.0 bn (2014) Real GDP Growth 2014: 3.5% Unemployment: 5.9% (2014) Inflation Rate (HICP): 0.8% (2014) Government Deficit as a % of GDP: 2.1% Government Debt as a % of GDP: 68.0% Main Trading Partners: Italy, of America, Germany, Egypt, and Turkey Life Expectancy: 79.6 years (males) and 84.0 years (females) Time Zone: Central European Time Zone, GMT +1

1 Malta Enterprise

Who we are?

Malta Enterprise (ME) is the national development agency responsible for promoting and facilitating international investment into Malta. It does this by offering investors tailored services designed to maximise the business opportunities inherent in a Malta operation. Malta Enterprise operates in various countries around the world, with offices or representation in embassies and consulates in North Africa, the Middle East, Asia, the United States and . The Corporation also coordinates

Moreover, Malta Enterprise is also responsible for facilitating the growth and development of Malta- based enterprises on an international level. Malta Enterprise works hand-in- hand with businesses to help set up, expand, innovate and access global markets; thus sustaining economic growth and retaining and increasing employment.

Projects approved by Malta Enterprise

Foreign Owned Projects

Table 1 shows the number of projects approved by Malta Enterprise during the period 2006 to 2014. within the Republic of Malta by foreign nationals/enterprises and excludes projects undertaken by Maltese owned companies/ Maltese entrepreneurs which are presented under Table 2.

The operational definition of FDI adopted below refers to all companies with 50% or more of equity held by foreign nationals; this differs from the OECD and World Bank definition of FDI as requiring 10% or more of voting stock held by foreign nationals.

2 Table 1-New and Expansion FDI projects Approved

New FDI Projects Approved FDI Expansion Projects Approved Total FDI Projects Approved

Total Forecast Forecast Forecast Forecast Total FDI Forecast Total Forecast 3 Year of New FDI 3 Year FDI Expansion 3 Year 3 Year FTE 3 Year FTE Projects 3 Year Year FTE Approval Projects Investment Projects Investment Employment Employment Approved Investment Employment

2006 24 1,224 17 729 41 1,953

2007 25 .0 982 11 .0 338 36 .0 1,320

2008 13 518 9 140 22 658

2009 12 649 6 297 18 946

2010 2 115 2 145 4 260

2011 9 399 6 257 15 656

2012 2 38 10 222 12 260

2013b 36 1,199 15 334 51 1,533

2014 28 1,047 15 593 43 1,640

b=break in series. From 2013, definition of what constitutes a project was amended to include only productive projects. Source: Malta Enterprise, Board of Directors - Approvals

3 investments in real estate and financial services amongst others..

28 new foreign Greenfield projects were approved during 2014, which reflects a sustained positive performance following the record approvals in 2013.

The forecast three-year investment of the Greenfield foreign projects approved in 2014 was nearly half the value of that recorded during the previous year.

The Greenfield foreign projects approved during 2014 had a forecast three- year employment of 1,047. This compares well with the corresponding figure for 2013 (1,199).

The number of foreign expansion projects approved in 2014 was at par with those in 2013. 15 foreign expansions were approved. Their forecast three-year investment exceeded that of foreign expansions Moreover, 2014 was the best year since 2006 in terms of forecast investment associated with foreign expansions.

The foreign expansions approved in 2014, had a forecast three-year employment of 593. This was by far better than 2013 and previous years since 2007.

The information presented with respect to FDI projects approved by Malta Enterprise shows clearly that 2014 compared relatively well with 2013 which was considered to be a record year.

Local Owned Projects

Table 2 shows the number of local projects approved by Malta Enterprise during the period 2006 to 2014 by Maltese nationals/companies.

4 Table 2-New and Expansion Local projects Approved

Local New Projects Approved Local Expansion Projects Approved Total Local Projects Approved

Total Forecast Forecast Forecast Local Forecast Total Local Forecast Total Forecast 3 Year of New Local 3 Year 3 Year 3 Year FTE Expansion 3 Year FTE Projects 3 Year Year FTE Approval Projects Investment Investment Employment Projects Employment Approved Investment Employment

2006 23 368 25 264 48 632

2007 5 4 60 14 201 19 261

2008 11 167 4 100 15 267

2009 3 68 7 119 10 187

2010 12 64 10 132 22 196

2011 17 186 10 56 27 242

2012 31 197 7 31 38 228

2013 50 703 31 295 81 998

2014 21 198 73 651 94 849

Source: Malta Enterprise, Board of Directors - Approvals

5 Incentives Offered

Investment Aid Tax Credits

Investment Aid Tax Credits sustain industrial and economic development within Malta. This measure facilitates both initial investments by encouraging the setting up of new enterprises as well as the expansion and development of existing operations. Eligible activities include manufacturing; IT; call centre activities; R&D; eco-innovation, waste treatment and environmental solutions; biotechnology; pharmaceuticals; facilities for filming and audiovisual productions; provision of tertiary education; provision of private health care services; freeport and logistics operations; hotels, resort hotels, suite/apartment hotel and guest houses; knowledge intensive business services; cultural restoration; large scale cultural, creative and trade facilities; and industrial packaging.

Source: http://www.maltaenterprise.com/en/support/investment-aid-tax-credits

Research and Development

R&D Feasibility Studies 2014 2020

Since Research & Development initiatives are associated with high risk, it is advisable that undertakings undergo R&D feasibility studies in order to determine whether the key elements of the proposed research project are based on sound principals. This incentive supports undertakings intending to embark upon industrial research and experimental development projects by carrying out R&D feasibility studies in preparation for these projects.

Source: http://www.maltaenterprise.com/en/support/preparatory-technical-feasibility-studies

Research and Development 2014 2020

This measure supports industrial research or experimental development carried out for the acquisition of knowledge leading to the development of innovative products and solutions.

Source: http://www.maltaenterprise.com/en/support/industrial-research-and-experimental- development-scheme

6 Access to Finance Schemes

Micro Guarantee

The Micro Guarantee Scheme provides eligible undertakings with a guarantee of up to 80% on loans ement, growth and development.

Source: http://www.maltaenterprise.com/en/support/micro-guarantee-scheme

Soft Loans

Soft loans support enterprise through loans at low interest rates for part-financing investments in qualifying expenditure. Soft Loans are available to manufacturing enterprises and are only awarded subsequent to Malta Enterprise completing a due diligence exercise on the applicant and its proposed project. Soft Loans granted by Malta Enterprise usually cover 33% of the approved project , but cannot exceed 75% of the cost of plant, machinery and equipment. The main objective of this incentive is to support new investment projects undertaken by enterprises engaged in manufacturing.

Source: http://www.maltaenterprise.com/en/support/soft-loan

Interest Rate Subsidies

Loan Interest Rate Subsidies is an access to finance tool that helps increase competitiveness and innovative capacity of enterprises by supporting the acquisition of tangible and intangible capital assets that lead to a more effective and efficient production and supply of service. This incentive supports new investment projects undertaken by enterprises engaged in manufacturing.

Source: http://www.maltaenterprise.com/en/support/interest-rate-subsidies

Loan Guarantees

Loan Guarantees facilitate access to finance to assist enterprises in the acquisition of capital assets that will lead to a more effective and efficient production and supply of service/s. This incentive supports new investment projects undertaken by enterprises engaged in manufacturing.

Source: http://www.maltaenterprise.com/en/support/loan-guarantees

7 Business Development

The scheme is intended to facilitate typically large, high-value adding projects that are likely to offer a significant contribution to the regional development of Malta through substantial job creation. The scheme supports various activities such as the initial development phase of enterprises establishing an operational base in Malta.

Source: http://www.maltaenterprise.com/en/support/business-development-scheme

Gozo Transport

This scheme is designed to support manufacturers operating from Gozo by reducing any additional inter-island transport costs incurred in transporting materials, goods and finished products between Malta and Gozo. This assistance serves to reduce the cost-disadvantages for manufacturers based in Gozo, putting these businesses in a better position to compete effectively within the single market.

Source: http://www.maltaenterprise.com/en/support/gozo-transport-grants

Certify

Certify is a fiscal measure which encourages eligible undertakings to continuously improve the quality of their products, services and processes through the attainment of industry recognised certifications and Quality Marks. The scheme boosts awareness of the added value that may be achieved through certification when competing in international markets. Through this incentive the Corporation may approve a tax credit to assist in recovering the costs of achieving approved certifications, quality marks, or licenses.

Source: http://www.maltaenterprise.com/en/support/certify-tax-credits

MicroInvest

The scheme encourages undertakings to re-invest in their business, to innovate, expand, and implement compliance directives or to develop their operations. Undertakings are supported through a tax credit representing a percentage of the eligible expenditure and wages of newly recruited employees and/or apprentices.

Source: http://www.maltaenterprise.com/en/support/microinvest

8 Main Economic Indicators

Table 3-Main Economic Indicators

Indicator 2009 2010 2011 2012 2013 2014

Population 410,926 414,027 414,989 417,546 421,364 425,384

GDP at Market Prices1 n n bn

Real GDP growth1 -2.8% 4.1% 1.6% 0.6% 2.4% 3.5%

Nominal GDP per Capita2 5,500 900 16,200 16,500 16,800

Labour Supply3 152,273 153,348 156,369 159,176 166,7294 171,730

Unemployment 6.9% 6.9% 6.5% 6.4% 6.5% 5.9%

Inflation (HICP-annual 1.8% 2.0% 2.5% 3.2% 1.0% 0.8% Average inflation)5 Government deficit as a % of -3.7% -3.5% -2.7% -3.3% -2.8% -2.1% GDP Government debt as a % of 66.5% 66.0% 68.8% 70.8% 73.0% 68.0% GDP

Exports of goods 2.1bn 2.8bn 3.8bn 4.4bn 3.9bn

Exports of Services 7.1bn 7.6bn 8.1bn 8.6bn 8.7bn

Imports of goods 3.1bn 4.3bn 5.3bn 6.2bn 5.7bn

Imports of Services 6.0bn 6.4bn 6.7bn 7.1bn 7.2bn

Source: National Statistics Office Various releases Source: Eurostat

1 Gross Domestic Product (GDP) & Real GDP Growth: Gross Domestic Product (GDP) is a measure of the economic activity, defined as the value of all goods and services produced less the value of any goods or services used in their creation. The calculation of the annual growth rate of GDP volume is intended to allow comparisons of the dynamics of economic development both over time and between economies of different sizes. For measuring the growth rate of GDP in terms of volumes, the GDP at current prices are valued in the prices of the previous year and thus the computed volume changes are imposed on the level of a reference year; this is called a chain-linked series. Accordingly, price movements will not inflate the growth rate. 2 Nominal GDP per Capita: It is derived by dividing nominal GDP by the average total population (i.e. including residents who are not Maltese nationals) for the period under review. 3 Labour Supply: The sum of the full-time gainfully occupied population and the registered unemployed population. 4 Figure as at November 2013. National Statistics Office: Gainfully Occupied Population November 2013 5 Harmonised Indices of Consumer Prices (HICPs): HICPs are designed for international comparisons of consumer price inflation. HICP is used for example by the European Central Bank for monitoring of inflation in the Economic and Monetary Union and for the assessment of inflation convergence as required under Article 121 of the Treaty of Amsterdam.

9

4 8.0 billion.6 grew at the rate of 3.5%, comparing 8 average. In fact, during 2014 the EU28 economy (in real terms) grew at a lacklustre rate of 1.3%. Forecasts for 2015 published by the European Commission in its European Economic Forecast-Winter 2015 show that real GDP growth in Malta during 2015 is expected to be higher than that within the EU28, 3.3% compared to 1.7%.7 This rate of growth projects Malta to be amongst the top growing economies amongst the EU28.

Gross Domestic Product per capita in nominal terms for 2014 17,200. GDP per capita in Purchasing Power Standards (PPS) for 2013 amounted to 86% of that recorded on average in the EU28.8

The Gross Value Added (GVA) generated by the Maltese economy after 2009 has been increasing on an annual basis, with a total GVA generated in 2014 being 4.4% higher than that recorded in 2013. This was also 29.9% higher than the GVA recorded in the pre-crisis period (2008).

Over the years, the Maltese economy has managed to increase its economic diversification and develop new economic pillars. Furthermore, the economy managed to maintain the competitiveness of its traditional sectors like manufacturing and tourism. Simultaneously new economic sectors developed and grew, including pharmaceuticals, aircraft maintenance repairs and overhaul, information and communication technologies, financial services, iGaming and digital gaming. A Life Sciences Park worth circa 38 million has been developed, and is set to facilitate further diversification and promote the development of new off sho The Park will officially commence operations towards the end of 2015 with a number of tenants already setting-up.

For a small island-nation with a very open economy, economic diversification is of crucial importance. M to withstand the economic headwinds encountered during the last few years.

Figure 1 represents the composition of the Maltese economy for 2014.

6 National Statistics Office (NSO), Gross Domestic Product 2014 7 European Commission, European Economic Forecast. Winter 2015 8 Eurostat

10

Figure 1-Contribution of Various Economic Sectors to GVA (2014)

R+S+T+U A C 9.8% 1.3% 10.6% B+D+E 1.7% F O+P+Q 4.1% 19.4%

G+H+I 22.3%

M+N 11.0%

L J 5.6% K 6.9% 7.2%

A Agriculture

B+D+E Mining & Quarrying; Electricity, Gas & Water Supply; Sewerage; Waste Management etc.

C Manufacturing

F Construction

G+H+I Wholesale & Retail; Transportation & Storage; Accommodation & Food Service

J Information & Communication

K Finance & Insurance Activities

L Real Estate Activities

M+N Professional, Scientific & Technical Activities; Administrative & Support Service Activities Public Administration; Compulsory Social Security; Education; Human Health & Social Work O+P+Q Activities R+S+T+U Arts, Entertainment, Recreation, Repair of household goods and other services Source: National Statistics Office (NSO), Gross Domestic Product 2014

11 Investors Outlook

Ernst & Young (EY) on a yearly basis carry out an attractiveness survey on Malta as a location from where to conduct business. The 2014 Malta Attractiveness Survey presents the perception of top executives of 111 foreign owned companies that are operating within Malta. The following figures represent some of the most salient points deduced from the survey.

Figure 2-Interviewed Companies considering an Expansion of their Maltese Operation

18%

56% 26%

Yes No Can't Say

Base: All 111 Respondents Source: EY-Malta Attractiveness Survey 2014

From Figure 2 it is evident that more than half of the companies interviewed (56%) are considering expanding their operation in Malta further; 26% of the respondents commented that at present they are not considering an expansion of their operation in Malta. The remaining 18% of the respondents, due to various reasons, stated that they were not in a position to reply either way to the question.

Respondents were also presented with a number of different investment criteria and were asked to rank their attractiveness with regards to carrying out business from Malta. The ratings given to the stability of social climate was the highest. This was closely followed by corporate taxation. The ratings for transport and logistics infrastructure were amongst the lowest. Figure 3 presents the attractiveness attained by each of the identified investment criteria presented.

12 Figure 3- -à-vis investment criteria

Stability of social climate 85% 12% 2%2%

Corporate taxation 84% 12% 5%

Stability & transparency of polictical, 77% 17% 5%

Local labour skills level 68% 21% 10%1%

Labour costs 65% 23% 12% 1%

Potential productivity increase 64% 29% 3%5%

Telecommunications infrastructure 64% 26% 8% 2%

Flexibility of labour legislation 48% 30% 18% 5%

Domestic or regional markets 32% 28% 16% 24%

Level of protection for intellectual property rights 30% 39% 6% 25%

Transport & logistics infrastructure 25% 24% 34% 16%

R&D and innovation environment 23% 40% 8% 30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Very attractive & attractive Neither attractive nor not attractive Not attractive & not attractive at all Not Relevant

Base: All Relevant Respondents Source: EY-Malta Attractiveness Survey 2014

13 Company Formation

Fees

The Registry of Companies within the Malta Financial Services Authority is responsible for the registration of companies in Malta. The Table hereunder represents the fees charged for registering a company and submitting annual returns.

Table 4-Fees required to setup a Company

Registration of any commercial partnership whose authorised In paper format In electronic format capital or total contributions, as the case maybe

Do not exceed 1,500 245 210

245 with the addition of 15 210 with the addition of 12 for Exceed 1,500 but do not exceed for each 500 or part thereof in each 500 or part thereof in 5,000 excess of 1,500 excess of 1,500 350 with the addition of 20 294 with the addition of 17 for Exceed 5,000 but do not exceed for each 1,000 or part thereof each 1,000 or part thereof in 10,000 in excess of 5,000 excess of 5,000 450 with the addition of 20 379 with the addition of 17 for Exceed 10,000 but do not exceed for each 2,500 or part thereof each 2,500 or part thereof in 50,000 in excess of 10,000 excess of 10,000 770 with the addition of 20 651 with the addition of 17 for Exceed 50,000 but do not exceed for each 10,000 or part thereof each 10,000 or part thereof in 100,000 in excess of 50,000 excess of 50,000 870 with the addition of 10 736 with the addition of for Exceed 100,000 but do not exceed for each 15,000 or part thereof each 15,000 or part thereof in 250,000 in excess of 100,000 excess of 100,000 970 with the addition of 10 816 with the addition of 8 for Exceed 250,000 but do not exceed for each 10,000 or part thereof each 10,000 or part thereof in 500,000 in excess of 250,000 excess of 250,000 1,220 with the addition of 20 1,016 with the addition of Exceed 500,000 but do not exceed for each 20,000 or part thereof for each 20,000 or part thereof 1,000,000 in excess of 500,000 in excess of 500,000 1,720 with the addition of 10 1,441 with the addition of 8 Exceed 1,000,000 but do not for each 50,000 or part thereof for each 50,000 or part thereof exceed 2,500,000 in excess of 1,000,000 in excess of 1,000,000

Exceed 2,500,000

Source: Companies Act (Fees) Regulations 2008

14 Registration of an annual return of a company other than an investment company with In paper format In electronic format variable share capital, in the case where the authorised share capital of the company

Does not exceed 1,500 100 85

Exceeds 1,500 but does not exceed 5,000 140 120

Exceeds 5,000 but does not exceed 10,000 160 135

Exceeds 10,000 but does not exceed 50,000 350 300

Exceeds 50,000 but does not exceed 100,000 400 340

Exceeds 100,000 but does not exceed 250,000 600 510

Exceeds 250,000 but does not exceed 500,000 800 680

Exceeds 500,000 but does not exceed 1,000,000 900 765

Exceeds 1,000,000 but does not exceed 1,200 1,020 2,500,000

Exceeds 2,500,000

Source: Companies Act (Fees) Regulations 2008

For more detailed information refer to Companies Act (Fees) Regulations 2008. Additional information can also be accessed through the Malta Financial Services Authority (www.mfsa.com.mt)

15 Taxation

Double Taxation Agreements

At present Malta has 67 double taxation agreements which are in force. Furthermore, 4 double taxation agreements have been signed but are currently not in force. Malta also has 5 tax information exchange agreements with Bahamas, , , and United States. Table 5 illustrates the countries with which Malta has an active double taxation agreement.

Table 5-Double Taxation Agreements in Force

Double Taxation Agreement in Force Albania Iceland Portugal Australia Qatar Austria Ireland Russia Bahrain Romania Israel San Marino Belgium Italy Saudi Arabia Bulgaria Serbia Jordan China Korea (Republic of) Croatia Kuwait Slovenia Cyprus Republic of Latvia Czech Republic Lebanon Spain Denmark Libya Sweden Egypt Lithuania Switzerland Estonia Luxembourg Syria Arab Republic Finland Malaysia Tunisia France Mexico Turkey Georgia Montenegro United Arab Emirates Germany Morocco United Kingdom Greece Netherlands United States of America9 Guernsey Norway Uruguay Hungary Poland Source: Malta Financial Services Authority (MFSA)

9 Besides a comprehensive tax treaty, a separate agreement limited to profits derived from the operation of ships or aircraft in international traffic is in force with the USA

16 Table 6 illustrates the countries with which Malta has signed a double taxation agreement which is still awaiting ratification by one of the parties.

Table 6-Double Taxation Agreements Signed but not yet into Force

Double Taxation Agreements Signed but not yet into Force

Mauritius Moldova

Belgium Ukraine Source: Finance Malta

Personal Taxation

Table 7-Single Personal Taxation Computation (2015)

From To Rate

0%

15%

60,000 25%

and over 35% Source: http://www.ird.gov.mt/services/taxrates.aspx

Table 8-Married Rates (2015)

From To Rate

0%

11,901 15%

21,201 60,000 25%

and over 35% Source: http://www.ird.gov.mt/services/taxrates.aspx

17 Table 9-Parent Rates (2015)

From To Rate

0%

9,801 15%

15,801 60,000 25%

and over 35% Source: http://www.ird.gov.mt/services/taxrates.aspx

Table 10-Class 1 Social security Contributions

Category Description

Category Description

A Persons under 18 years of age earning not more than the amount indicated.

B Persons aged 18 and over, earning not more than the amount indicated below.

C All persons whose basic weekly wage is between the amounts indicated below. All persons whose basic weekly wage is equal to or exceeds the amount indicated D below. E Students10 under 18 years of age.

F Students10 18 years old and over.

Basic Weekly Wage11 Weekly Rate Payable12

From To By Employee By Employer Total

A 0.10 166.26 6.62 6.62 13.24

B 0.10 166.26 16.6313 16.63 33.26

10 Students who are following a full-time course of studies or instruction under the Student-Worker Scheme, or other similar schemes (including the Extended Skills Training Schemes, but excluding the Worker-Student Schemes) involving distinct work and study periods for which they are receiving remuneration. 11 Basic Weekly Wage or the weekly equivalent of the basic monthly salary. 12 For percentage rates, the weekly rate payable is calculated to the nearest cent. 13 Or if the employee chooses, 10% of the basic weekly wage. This rate of contribution entitles the contributor to pro-rata contributory benefits.

18 Persons Born up to 31st December 1961

Basic Weekly Wage11 Weekly Rate Payable12

From To By Employee By Employer Total

C 166.27 343.11 10% 10% N/A

D 343.12 N/A 34.31 34.31 68.62

Persons Born from 1st January 1962 onwards

Basic Weekly Wage11 Weekly Rate Payable12

From To By Employee By Employer Total

C 166.27 418.25 10% 10% N/A

D 418.26 N/A 41.83 41.83 83.66 10% Max 10% Max E N/A N/A N/A 4.38 4.38 10% Max 10% Max F N/A N/A N/A 7.94 7.94 Source: https://ird.gov.mt/services/sscrates.aspx

Implicit Tax Rates on Labour

The European Commission Taxation Trends in the (2014 Edition) 14 provides information about implicit tax rates, which measure the effective average tax burden on different types of economic income or activities, such as on labour, consumption and capital, as the ratio between revenue from the tax type under consideration and its (maximum possible) base.

This publication highlights that Malta is the EU Member State having the lowest overall implicit tax rate on labour. Implicit taxation on labour was d

Malta ranked as having the second lowest taxation rate, just a bar below Denmark.

The following Figure represents the implicit tax rates on labour for EU member states as presented in the publication Taxation Trends in the European Union (2014 Edition).

14 http://ec.europa.eu/taxation_customs/resources/documents/taxation/gen_info/economic_analysis/tax_structure s/2014/report.pdf

19 Figure 4-Implicit Tax Rates on Labour (2012)

45%

42.8% 42.8%

41.5%

40.1%

39.8%

39.5%

38.8%

38.6% 38.5%

40% 38.5%

38.0%

37.8%

36.4%

36.1%

35.6%

35.0%

34.4%

33.9%

35% 33.5%

33.0%

32.9%

32.3%

31.9%

30.4%

29.2%

28.8%

30% 28.7%

25.4%

25.2% 24.5%

25% 23.3%

20%

15%

10%

5%

0%

Source: Eurostat Statistical Books, Taxation trends in the European Union (2014 Edition)

20 Tax for Highly Qualified Persons

The Maltese Government has always acknowledged the need to facilitate attracting highly qualified human resources to Malta, especially in sectors where local talent is limited. The attraction of highly skilled personnel is considered as a tool which is crucial to the development of local talent. In order to facilitate this, a specific personal tax incentive was developed.

licensed and/or recognised by the Malta Financial Services Authority (MFSA) is subject to tax at a flat rate of 15% provided that the income amounts to at least 81,457.

More information about the eligibility criteria for the tax for highly qualified persons can be obtained through the following link: https://ird.gov.mt/taxguides/qualifiedpersons.aspx

Foreign Workers

The robust growth in employment and the career opportunities in Malta has not gone unnoticed within the EU and its citizens. Over the years, the Maltese economy attracted an increasing number of foreigners to work and reside in Malta. These individuals often relocate to Malta with their families and their children. A number of industries such as i-gaming, digital games, call centre activities, tourism and other economic sectors have attracted substantial numbers of foreign talent to Malta.

The inclusion of foreign talent in the local labour supply is welcomed and is considered to contribute to additional economic wealth generation. Malta Enterprise - under its Business Development scheme - aids companies when it comes to the recruitment of foreign workers who are seeking employment for the first time in the Maltese islands. This scheme enables the partial recovery of costs related to the recruitment and relocation of foreign workers to Malta. cost in Malta is also covered under this incentive. More detailed information about the above mentioned scheme can be accessed through the following link: http://www.maltaenterprise.com/en/support/business-development-scheme.

21 Qualifying Employment in Innovation and Creativity (Personal Tax)

The development and expansion of knowledge based industries requires the availability of human resources. These resources may be developed gradually through education and training. However, these professions would need to be substantiated through knowledge and experience. This measure facilitates employment of non-residents in roles which are currently not addressed by the local labour market by temporarily easing the tax expenses incurred by such persons through a fiscal incentive.

Source: http://www.maltaenterprise.com/en/support/qualifying-employment-innovation-and- creativity-personal-tax

Corporate Tax

All companies domiciled in Malta are subject to corporate tax at a flat rate of 35%. There is no separate system of corporation tax, and a company is subject to tax in as much the same way as an individual.

A full imputation system is applicable to the repatriation of dividends. Through this system the amount of the tax refund is set at 6/7ths of the tax paid by the company. The effective corporate tax rate being paid will be circa 5%.

The attractiveness of Corpo Attractiveness Survey (2014). 84% of the respondents considered Corporate Tax as being very attractive or attractive .

More information about the taxation system in Malta can be accessed through the Malta Financial Services Authority: http://mfsa.com.mt/pages/viewcontent.aspx?id=232.

22 Operating Surpluses as a percentage of GDP (2013)

Figure 5-Operating Surpluses as a percentage of GDP

60% 57% 55% 54% 51% 49% 50% 50% 49% 47% 48% 44% 45% 45% 43% 44% 41% 41% 39% 39% 40% 40% 38% 39% 39% 37% 38% 35% 35% 35% 33% 33% 31% 29% 30%

20%

10%

0%

-10%

Source: Eurostat

23 Electricity

Electricity in Malta is at present supplied by the state utility provider Enemalta Corporation. . Furthermore, this Corporation is the sole entity in Malta responsible for the distribution of electricity. In April 2015, the Maltese government inaugurated the Malta- Interconnector. The interconnector, which was laid in a joint operation between Enemalta and contributes towards a diversified mix of energy sources by providing access to electricity generated through sources located in Sicily and other regions in mainland .

At present, the tariffs charged are divided between residential and non-residential tariffs.

Residential Tariffs

Residential Installation Charges

Table 11 illustrates the residential installation charges as applicable to date.

Table 11-Residential Installation Charges

Installation Type Installation Charges

Single Phase

Triple Phase15 Source: Enemalta Corporation

15 All requests for a service where the route lengths, passing through public roads, is greater than 150m from a suitable source of supply will be subject to a specific quote. All requests for a three phase supply greater than 60A will be subject to a specific quote.

24 Residential Service Charges

Table 12 illustrates the residential service charges. The charges being presented are inclusive of 5% Value Added Tax (VAT).

Table 12-Residential Service Charges (inclusive of 5% VAT)

Installation Type Service Charges

Single Phase 65

Triple Phase 195 Source: Enemalta Corporation

Residential Rates

Table 13 illustrates the residential rates for electricity consumption. The rates being presented are inclusive of 5% VAT.

Table 13-Residential Rates (inclusive of 5% VAT)

Band Cumulative Consumption Rates (per unit)

1 0 2,000 0.1047

2 2,001 6,000 0.1298

3 6,001 10,000 0.1607

4 10,001 20,000 0.3420

5 20,001 and Over 0.6076 Source: Enemalta Corporation

Domestic Rates

Table 14 illustrates the domestic rates for electricity consumption. The rates being presented are inclusive of 5% VAT. Domestic rates apply to individual units of residence, used solely and regularly as private dwellings, as may be confirmed by documented evidence.

25 Table 14-Domestic Rates (inclusive of 5% VAT)

Band Cumulative Consumption Rates (per unit)

1 0 2,000 0.1365

2 2,001 6,000 0.1673

3 6,001 10,000 0.2023

4 10,001 20,000 0.4180

5 20,001 and Over 0.6860 Source: Enemalta Corporation

Non-Residential Tariffs

Non-Residential Service Charges

Table 15 illustrates the non-residential service charges. The charges quoted are exclusive of VAT.

Table 15-Non-Residential Service Charges (exclusive of VAT)

Installation Type Service Charges

Single Phase 120 (exclusive of VAT)

Triple Phase 360 (exclusive of VAT) Source: Enemalta Corporation

Non-Residential kWh

Table 16 illustrates the non-residential rates charged for electricity per kilo watt hour (kWh). The rates quoted are exclusive of VAT.

26 Table 16-Non-Residential Rates per kWh (exclusive of VAT)

Band Cumulative Consumption Rates

1 0 2,000 0.1215

2 2,001 6,000 0.1275

3 6,001 10,000 0.1373

4 10,001 20,000 0.1485

5 20,001 60,000 0.1613

6 60,001 100,000 0.1500

7 100,001 1,000,000 0.1403

8 1,000,001 5,000,000 0.1275

9 5,000,001 and Over 0.1080 Source: Enemalta Corporation

Non-Residential kVah

Table 17 illustrates the non-residential rates charged for electricity per kilovolt ampere hour (kVah). The rates quoted are exclusive of VAT.

Table 17-Non-Residential Rates per kVah (exclusive of VAT)

Band Cumulative Consumption Tariff

1 0 2,000 0.1118

2 2,001 6,000 0.1170

3 6,001 10,000 0.1260

4 10,001 20,000 0.1365

5 20,001 60,000 0.1485

6 60,001 100,000 0.1380

7 100,001 1,000,000 0.1290

8 1,000,001 5,000,000 0.1170

9 5,000,001 and Over 0.0990 Source: Enemalta Corporation

27 Water

The Water Services Corporation (WSC), which is fully owned by the Government of Malta, produces and distributes potable water across the country.16 Due to the geographic size of the Maltese Islands, the Water Service Corporation may be considered as a natural monopoly. On an annual basis the Corporation produces over 31 million cubic meters17 of good quality water that caters for the 425,38418 Maltese inhabitants as well as the over 1.3 million and over tourists that visit the islands every year.

Domestic Water

Domestic Installation and service charges

Table 18 illustrates the installation and service charges applicable to domestic water. The charges quoted are exclusive of VAT.

Table 18-Domestic Water Installation and Service Charges

Category Installation Charges (VAT exempt) Service Charges (VAT exempt)

Domestic 345 59

Source: Water Services Corporation

Domestic Water Tariffs

Automated Revenue Management System (ARMS Ltd).16 - A subsidiary of the Water Services Corporation - charges two tariffs for domestic water. The main variant between the two tariffs is the number of people registered on the premises.

16 During 2010, the Government set up Automated Revenue Management System (ARMS) Ltd as a private limited company jointly owned by the Enemalta Corporation and Water Services Corporation. The company took over the management of the customer care and billing functions on behalf of both corporations. 17 www.wsc.com.mt 18 National Statistics Office (NSO), Malta in Figures 2014

28 Table 19-Domestic Water Tariffs

Description Bands in m3 Tariff per m3

Domestic-No persons registered on the premises 3 2.1850

Domestic-No Persons registered on the premises >33m3 5.1395

Domestic-One or more persons registered on the premises 3 1.3965

Domestic-One or more persons registered on the premises >33m3 5.1395 Source: Water Services Corporation

Non-Domestic Water

Non-Domestic Water Installation and Service Charges

Table 20 illustrates the installation and service charges applicable to non-domestic water. The charges quoted are exclusive of VAT.

Table 20-Non-Residential Water installation and Service Charges

Category Installation Charges (VAT exempt) Service Charges (VAT exempt)

Non-Residential 760 130

Source: Water Services Corporation

Non-Residential Water Tariffs

Table 21 illustrates the non-residential water tariff rates.

Table 21-Non-Residential Water tariffs

Description Bands in m3 Tariff per m3

Non-Residential 3 1.9950

Non-Residential 3 2.3750

Non-Residential > 40,000m3 1.6625 Source: Water Services

29 Gas

Two operators are active in the Maltese gas market, namely Liquigas and Easygas. The prices charged by the two players are relatively similar. The recent introduction of Easygas ensured that the local gas market is subject to competition.

In Malta, particularly in the case of households, gas is purchased in cylinders given that there is no piping network providing gas flow distribution from source to user.

Price of Gas

Table 22 illustrates the price of gas cylinders by weight as charged by Liquigas and Easygas. All prices are as at the end of May 2015 and are inclusive of VAT.

Table 22-Price of Gas (inclusive of VAT)

Liquid Petroleum Gas (LPG) Propane Gas

Cylinder Weight Easygas Liquigas Easygas Liquigas

10 kg cylinders 13.75 13.75 - 13.85

12 kg cylinders 16.40 16.50 - -

15 kg cylinders 20.65 20.65 - 20.75

25 kg cylinders 34.40 34.40 - 34.60

Loose per Kg 1.60 1.60 - 1.70 Source: Liquigas and Easygas

Deposits on New Gas Cylinders

The initial purchase of a gas cylinder requires the payment of a reimbursable deposit for the physical cylinder. Table 23 represents the deposits that one has to make depending on the weight of the cylinder being purchased.

30 Table 23-Deposits on new gas cylinders

Cylinder Weight Deposit

10 kg cylinders 25.00

12 kg cylinders 25.00

15 kg cylinders 25.00

25 kg cylinders 40.00 Source: Malta Resources Authority

Tariffs for cylinders to be carried in flats/apartments

Table 24 illustrates the tariffs that apply when gas cylinders in Malta and Gozo are delivered to multi- storey flats and or apartments.

Table 24-Tariffs for cylinders to be carried in flats/apartments

Floor Level Euro ( )

Delivered to 1st floor 0.00

Delivered to 2nd floor 0.23

Delivered to 3rd floor 0.47

Delivered to 4th floor 0.59

Delivered to 5th floor 0.77

Delivered to 6th floor 0.83

Delivered to nth floor 0.47[(floor level 3)*0.12] Source: Malta Resources Authority

31 Petroleum

The prices for petroleum products in Malta are regulated by Enemalta Corporation, and are revised upward or downward periodically, reflecting the international fluctuations in the price of fuels.

Table 25 illustrates the prices charged for petroleum products as at the end of May 2015. All prices are inclusive of VAT.

Table 25-Petroleum Prices (May 2015)

Petroleum Product Price (

Unleaded 1.35 per litre

Diesel 1.26 per litre

Kerosene 1.26 per litre

Gas oil for heating 1.00 per litre Source: Malta Resource Authority

32 Communication Costs

Three major companies provide mobile and fixed line telephony services in Malta, namely GO Mobile Plc, Vodafone (Malta) and Melita Plc.

Malta ranks highly in terms of Communications infrastructure. The Global Competitiveness Report 2014-2015 ranks mobile telephony subscriptions per 100 of the population and fixed telephone line per 100 of the population as being the 43rd and 7th best of the 144 countries surveyed.19

The Digital Agenda Scoreboard 2014 Broadband markets, ranked Malta in the first place with respect to next generation broadband network coverage. Malta scored 100% compared to 62% attained at a EU average.20

64 Survey 2014 considered the telecommunications infrastructure as very attractive or attractive. 26% of the foreign owned companies surveyed considered it as being neither attractive nor unattractive.21

GO Group Fixed Line Telephony

Residential connection and rental charges

Table 26 illustrates the connection and rental charges applying when purchasing residential fixed line telephony from GO Group.

Table 26- Residential Fixed Line Telephony Connection and Rental Charges

Charges Cost

Connection Charges 54.97

Monthly Rental Charges 5.99 ( 71.88 annually) Source: Go Group

19 World Economic Forum, The Global Competitiveness Report 2014-2015 20 European Commission, Broadband Markets, Digital Agenda Scoreboard 2014 21 EY, The Economy: Today and Tomorrow, Malta Attractiveness Survey 2014

33 Residential Fixed Line Telephony Tariffs

The tariffs levied by GO Group on residential fixed telephony vary according to the day and time when the call is made.

Table 27 illustrates the residential tariffs for fixed line telephony. All tariffs being quoted are inclusive of VAT.

Table 27-Residential Tariffs for Fixed Telephony

Day of the Week Time Tariff Off peak time

(6 a.m.-8 a.m.) Monday to Friday Peak Time (Including Public every 5mins or part thereof (8 a.m.-6 p.m.) Holidays) Night time

(6 p.m.-6 a.m.) Off peak time

(6 a.m.-6 p.m.) Saturdays and Sundays Night time

(6 p.m.-6 a.m.) Source: GO Group

When purchasing residential fixed telephony from GO Group, one is also entitled to 20 free pulses on a monthly basis. Free pulses may be consumed only on local calls terminated on GO fixed lines made during the night band (6.00pm-6.00am) and not on internet/VoIP access.

Business Connection and rental charges

Table 28 illustrates the connection and rental charges applying when purchasing fixed line telephony for a business purpose from GO Group.

Table 28- Business Fixed Line Telephony Connection and Rental Charges

Charges Cost

Connection Charges 109.95

Monthly Rental Charges 15.58 ( 186.96 annually) Source: GO Group

34 Business Fixed Line Telephony Tariffs

The tariffs levied by GO Group on business fixed telephony vary in accordance to the day of the week and time when the call is affected.

Table 29 illustrates the business tariffs for fixed line telephony. All tariffs being quoted are inclusive of VAT.

Table 29- Business Tariffs for Fixed Line Telephony

Day of the Week Time Tariff Off peak time

(6 a.m.-8 a.m.) Monday to Friday (Including Peak Time

Public Holidays) (8 a.m.-6 p.m.) Night time

(6 p.m.-6 a.m.) Off peak time

(6 a.m.-6 p.m.) Saturdays and Sundays Night time

(6 p.m.-6 a.m.) Source: GO Group

Calls originating from a fixed line towards the public mobile system are charged at the rate 0.072 for every 15 seconds.

Melita Fixed Line Telephony

Connection and Rental Charges

Table 30 illustrates the connection and rental charges applicable when purchasing fixed line telephony from Melita Plc. The company also offers various packages. M was selected for this report. All charges quoted are inclusive of VAT.

35 Table 30-Connection and Rental Charges

Charges Cost

Installation Charges 19.99

Monthly Rental Charges 5.99 ( 71.88 annually) Source: Melita

Tariffs for Fixed Telephony

Table 31 illustrates the tariffs levied by Melita on fixed line telephony. All tariffs being quoted refer to are inclusive of VAT.

Table 31-Tariffs for Fixed Line Telephony

Description of call Cost (inclusive of VAT)

Calls to Melita mobile

Calls to other local mobiles

Calls to other local fixed

FREE minutes to any local fixed line 100 minutes Source: Melita

Mobile Telephony

In Malta, as at August 2015, there are 3 major operators offering mobile telephony. These companies offer different packages to suit the particular needs of individuals and/or organisations.

For more information with respect to the packages offered, as well as the prices charged please visit the following links:

GO Plc - www.go.com.mt Vodafone (Malta) - www.vodafone.com.mt Melita Plc - www.melita.com

36 Provision of Internet Services

In Malta there are three main providers of internet services: GO Group, Melita and Vodafone (Malta). One can also find a limited number of additional small internet providers.

GO Group Residential Internet Costs

Table 32 illustrates the different residential internet packages and their respective costs. Each price quoted is exclusive of VAT.

Table 32-Residential Internet Costs

5 Mbps 15 Mbps 35 Mbps 75 Mbps 200 Mbps Download speed (up 5 Mbps 15 Mbps 35 Mbps 75 Mbps 200 Mbps to) Upload Speed (up to) 0.5 Mbps 1.0 Mbps 2 Mbps 5 Mbps 5 Mbps

Email accounts 4 4 4 4 4

Downloads 50 GB/month Unlimited Unlimited Unlimited Unlimited Free Virus and Spam Yes Yes Yes Yes Yes protection Monthly Price 12.00 17.00 27.00 55.00 90.00

Minimum Duration 2 years 2 years 2 years 2 years 2 years Source: GO Group

GO Group Business Internet Costs

Table 33 illustrates the different business broadband packages and their respective cost. Go Group offer different packages for self employed, small and medium businesses, large businesses as well as the public sector. The internet costs being provided below are related to small and medium businesses. Each price is quoted exclusive of VAT.

37 Table 33-Business Internet Costs

4 Mbps 12 Mbps 20 Mbps 35 Mbps 75 Mbps 200 Mbps

Download Speed 4Mbps 12Mbps 20Mbps 35Mbps 75Mbps 200MbpS

Upload Speed 0.5 Mbps 1Mbps 1Mbps 2Mbps 5Mbps 5Mbps

Download/Usage 25GB 150GB Unlimited Unlimited Unlimited Unlimited

Free static IP Yes Yes Yes Yes Yes Yes

Free use of modem Yes Yes Yes Yes Yes Yes

Free Installation Yes Yes Yes Yes Yes Yes

Email boxes 4 20 20 20 20 20 Antivirus & Spam Yes Yes Yes Yes Yes Yes Protection Free Upgrades on signing of a 24 12Mbps 20 Mbps 35 Mbps N/A N/A N/A month contract Monthly Price 13.86 34.94 50.00 60.00 80.00 100.00 (excluding VAT) Source: GO Group

Melita Residential and Business Internet Costs

Table 34 illustrates the different business and home packages offered by Melita. Installation charges may apply.

Table 34-Residential and Business Internet Costs

Fibre Power 30 Mbps Fibre Power 60 Mbps Fibre Power 100

Download speed (up to) 30 Mbps 60 Mbps 100 Mbps

Upload Speed (up to) 1.5 Mbps 2.0 Mbps 4 Mbps

Email accounts 5 7 8

MB per mailbox 100 MB 150 MB 250MB

Downloads Unlimited Unlimited Unlimited Free Virus and Spam Yes Yes Yes protection Monthly Price 16.5022 18.00 80.00 Source: Melita http://www.melita.com/personal/internet/packages/

22

38 Vodafone (Malta) Residential and Business Internet Costs

Vodafone Malta offers two different plans, being; the Liberty pay monthly plans and the Liberty prepaid plans.

Liberty pay monthly plan  Liberty Plus Pack: 10 per month for a data bundle of 5GB  Liberty Max Pack: 15 per month for a data bundle of 12GB  Liberty 4G Pack: 25 per month for a data bundle of 15GB

Prepaid Internet Plans  Week: 1.50 for a data bundle of 100MB to be used within 7days  Week: 3.00 for a data bundle of 300MB to be used within 7 days  Week: 5.00 for a data bundle of 1GB to be used within 7 days 

39 Human Resources Language Proficiency, Training, Salaries and Graduate Statistics

is its people. The role that human success is of pivotal importance. The Maltese Government has invested considerably in the education

The World Economic Forum, in its Global Competitiveness Report 2014-2015, ranks the quality of as being the 16th best out of 144 countries surveyed. Furthermore, the same report quality of math and science education 13th out of 144 countries surveyed.

Language Proficiency

Malta is a bilingual country and both Maltese and English are recognised by the Constitution as official languages. This brings about a number of important advantages. English and Maltese are taught to all students attending primary and secondary level of education. Bilingualism ensures that potentially all students completing their secondary education are fluent in both languages. For Maltese citizens, both Maltese and English can be considered to be native languages. Given that English is recognised worldwide as one of the main business languages, this gives Malta a leading edge over a number of other countries. English is spoken in 112 countries by circa 328 million individuals. This makes English the 3rd most spoken language around the world. The most spoken language is Mandarin (1,213 million individuals) followed by Spanish (329 million individuals).23 It is and financial business are transacted in English.24

Students attending secondary education have to study at least one other language (in addition to Maltese & English). The foreign languages that students are given the opportunity to study usually include Italian, French, German and Spanish. Russian, Arabic and Portuguese are also studied albeit in smaller numbers. The Confucius Institute of the also offers Mandarin courses to students of all ages. At the end of their secondary education students sit for Secondary Education Certificate (SEC) examinations (Equivalent to ISCED level 2-3, EQF level 3) for Maltese, English and a foreign language of their choice.

23 www.ethnologue.com 24 www.englishlanguageguide.com

40 The most accurate representation of the language skills that a population has can be derived from the censuses carried out by the respective countries. The last census carried out in Malta was in 2011. Table 35 shows the number of inhabitants (aged 10 years and over) who were able to speak a particular language.

Table 35-Languages Spoken

2005 2011 Number of Number of Language Percent Percent Inhabitants Inhabitants Maltese 354,664 97.9% 365,866 87.6%

English 318,354 87.9% 345,954 82.9%

Italian 205,375 56.7% 223,852 53.6%

French 75,914 20.9% 81,426 19.5%

German 20,110 5.5% 21,931 5.3%

Arabic 14,046 3.9% 17,627 4.2%

Total Inhabitants 362,376 - 417,432 - Source: NSO, Census of population and Housing 2011, Final Report, Table 33

Table 35 clearly shows that the Maltese population can be considered to be very proficient in languages. of movement of labour to and from EU countries. Given the influx of foreign workers coming over to work in Malta it is likely that the foreign language capabilities of the Maltese population will increase further. It is worth noting that at the end of December 2014, there were 17,979 foreigners (67.8% being EU nationals) employed on a full time basis in Malta. This represents an increase of 28.5% (5,685 full timers) over December 2013 levels.25

25 Employment and Training Corporation

41 Education

All children between the age of 5 and 16 years are entitled to free education in government schools irrespective of their gender, social background, financial means or religious beliefs. Besides State schools which provide free education, there are also a considerable number of privately owned schools, which may be categorised into two: Catholic and Independent Schools; both of which provide education from pre-primary to upper secondary levels.

Since the late 1940 s, Government has continuously invested in improving the quality of education. The aim was and remains to provide free quality education for all. New teaching methods, adoption of technological teaching aids and best practices in school management have been introduced throughout the years to boost the solidity of an educational structure inherited from during the last century. At present, Government operates ten regional colleges which operate as clusters of primary and secondary state-owned schools. Each school also employs a number of Learning Support Assistants (LSAs) to facilitate education for students with special needs.

The Education Division within the Ministry of Education is responsible to take the necessary decisions on issues such as curricula, syllabi, selection and deployment of teachers and the administration, resources and building of colleges. In 2010, the Education Division introduced more student-friendly assessments, , to mark the transition from primary to secondary schooling.

Pre-Primary Education (Age 3 to 5)

Attendance to pre-primary level is voluntary. Pre-primary education is co-educational and is provided free in state schools. At this level no formal teaching takes place. The National Minimum Curriculum states that the main educational objectives should include activities aimed towards the development anguage and communication skills in preparation for primary education. Most pre-primary centres or kindergartens form part of primary school buildings. A number of private schools and centres also offer pre-primary educational services.

42 Compulsory Education (Age 5 to 16)

Education is compulsory for all children between the ages of 5 and 16. Compulsory education is sub- divided into a six-year primary cycle (5 to 10 years) and five years of secondary education (11 to 16 years). Government is committed to a policy of inclusive education throughout the whole educational cycle. This ensures that children with special needs are integrated into the mainstream. a. Primary Education Primary education builds on early childhood education and facilitates the development of skills, attitudes and knowledge in preparation for the secondary level. In state-owned schools it is free of charge and includes school transport and textbooks. b. Secondary Education During their five-year secondary education, students are prepared to sit for their Secondary Education Certificate (SEC)26 at the end of their fifth year.

Secondary education is based on a mix of compulsory and chosen subjects from the sciences and liberal arts. Extra-curricular teaching of art, drama, music and sport is often done through private institutions.

Upper Secondary Education

The Institutions providing upper secondary education, offer a two-year course specifically designed for students preparing for the MATSEC Certificate (Matriculation and Secondary Education Certificate)

The University of Malta offers Upper Secondary Education through G.F. Abela Junior College. A number of Colleges namely, De La Salle College, St. Aloysius College and St. Edwards College also offer Upper Secondary Education in accordance with the

Students may choose from a wide range of subjects and must take two subjects at Advanced Level, three at Intermediate Level, together with Systems of Knowledge . Subjects chosen should also include any special course requirements needed for their prospective degree. While providing formal instruction, the institutions encourage students to

26 Equivalent to ISCED level 2-3, EQF Level 3

43 develop their own initiative through guided self-teaching in preparation for their future academic path.

Vocational Upper Secondary Education

The provision of vocational upper secondary education in Malta is based on a structure of nine institutes which provide courses in nine main areas. The institutes are the following: Institute of Agribusiness; Institute of Building & Construction Engineering; Institute of Community Services; Institute of Information & Communication Technology; Institute of Mechanical Engineering; Institute of Art & Design; Institute of Business & Commerce; Institute of Electrical & Electronics Engineering; the Maritime Institute and the Xaghra and Gozo Centres.

These institutes form part of the Malta College of Arts, Science and Technology (MCAST). The duration of courses at these institutes range from one to two years. Each institute offers a variety of courses related to its area of study. The majority of programmes are either attended by students on a full-time or part-time basis or by apprentices, who combine College-based instruction with work experience with an appropriate employer (sponsor).

Programmes are offered at all levels from pre-foundation (entry level 0) to degree (Level 5) level. The Foundation courses, which are at Level 1, provide a progression route into the higher level certificate and diploma courses. Courses lead to appropriate certification either College-based or through an external examination body. The full array of assessment methods is used including written examinations, course work and portfolios.

Further information can be obtained from http://www.mcast.edu.mt

Tertiary Education

The University of Malta, though largely funded by Government, is autonomous and self-governing. It offers higher education from undergraduate to post doctoral levels. Conscious of its public role, the University strives to create courses which are relevant and timely in response to the needs of the country. It caters for over 10,000 students. More than 3,000 students graduate annually from the University of Malta in various disciplines. The degree courses at the University are designed to produce highly qualified professionals, with experience in research, who will play key roles in industry, commerce and public affairs in general.

The University has thirteen faculties: Arts; Built Environment; Dental Surgery; Economics; Management & Accountancy; Education; Engineering; Health Sciences; Information &

44 Communication Technology; Laws; Media & Knowledge Sciences; Medicine & Surgery; Science and Theology; and Social Wellbeing. Further information can be obtained from http://www.um.edu.mt

Recently, the Maltese Government has intensified its efforts to attract to Malta international Universities. In March 2015, the Maltese Government and Queen Mary University of London signed a memorandum of understanding (MoU) to open a medical school in Gozo.

Private Institutions

Over the past few years, a number of private institutions have started providing courses including on behalf of foreign universities, creating a choice of how qualifications may be obtained. A number of courses at various levels are now available, from diploma to doctorate level, including many courses that are not offered by the University of Malta. The subjects offered range from specialisations in management to psychology among others.

Private institutions also offer distance-learning courses. Such courses offer flexibility and an opportunity to those who would like to continue working but also develop their career by furthering their studies. Distance-learning courses have exploited technological developments creating a virtual campus with effective direct communication between students and agents around the globe.

International Schools

There is one International school in Malta, the Verdala International School. It was founded to meet the needs of families from different countries who domicile in Malta, and also of Maltese nationals who seek a different style of education. Its campus is located inside Fort Pembroke on the northern coast of Malta. The school is fully accredited by the Middle States Association in the USA; is an International Baccalaureate Diploma School; is a member of the European Council for International Schools; offers courses leading to the International General Certificate of Secondary Education; and offers the International Primary Curriculum.

Foreigners living in Malta may also seek to send their children to other independent colleges where lessons are carried out entirely in the . A full list of these facilities can be accessed through: http://education.gov.mt/en/resources/Pages/List_of_Schools/Independent-Schools.aspx

45 Graduates

In December 2014, 3,585 students graduated from the University of Malta. Of these, 2,111 were female and 1,474 male. Over the years the University of Malta has also succeeded in attracting a number of foreign students for their tertiary education in Malta. At the end of December 2014, there were circa 750 international students coming from 82 different countries.27

Over the years, the number of students graduating from the University of Malta increased considerably. In 2013/2014 the number of students graduating from the University of Malta was approximately 34% higher than in 2006/2007. This increase in graduates was due to the investment carried out by Government in the education sector and as a result of social mobility, given the improvements in the national standard of living. The University of Malta contributed to this success by offering a wider spectrum of courses that are more relevant and better suited to industry and the economy.

The achievements that Maltese graduates attain once they embark on their careers, is also acknowledged by the local industry. In a 2010 Eurobarometer survey Graduate Employability, the respondents (who were business owners who had recruited higher education graduates in the past 5 years) were asked if they agreed with the statement that the graduates employed had the skills required to work in their company. Respondents in Malta were the most likely to strongly agree with this statement (69%).28

The following Table illustrates the number of students graduating from University in the last 3 academic years by Faculty.

27 http://www.um.edu.mt/about/uom/facts 28

46 Table 36-University Graduates by Faculty

Faculty/Institute Level 2011 - 2012 2012-2013 2013 - 2014

Faculty of Arts Bachelor of Arts 104 90 72

Bachelor of Arts Hons 151 188 177

Doctorate 2 5 3

Masters 91 82 86

Post-Graduate Dip. 23 11 26

Diploma 5 11 10

Certificate 0 49 70 Total Graduates from the All Faculty Courses 376 436 444 Faculty of Arts Faculty for the Built Bachelor (Honours) 56 61 115 Environment Masters 3 3 10

Post Graduate Dip. 0 0 1

Doctorate 0 1 1

Diploma 84 86 59

Certificate 5 0 4 Total Graduates from the All Faculty Courses 148 151 190 Faculty of Built Environment

Faculty of Dental Surgery Bachelor 6 8 4 Bachelor of Science 0 0 3 Honours Master 0 5 3 Total Graduates from the All Faculty Courses 6 13 10 Faculty of Dental Surgery Faculty of Economics, Bachelor 140 176 123 Management & Accountancy Bachelor (Honours) 212 169 119

Masters 52 48 131

Diploma 117 86 12

Higher Diploma 0 0 86

Post Graduate Dip. 0 2 1

Certificate 0 1 10 Total Graduates from the Faculty of Economics, All Faculty Courses 469 482 482 Management & Accountancy

47

Faculty/Institute Level 2011 - 2012 2012-2013 2013-2014

Faculty of Education Bachelor (Honours) 158 168 171

Masters 43 34 28

Doctorate 1 0 2

Post-Graduate Dip. 0 42 4

Diploma 0 178 14

Certificate 0 7 50 Post-Graduate 107 101 98 Certificate Total Graduates from the All Faculty Courses 309 530 367 Faculty of Education

Faculty of Engineering Bachelor 0 0 1

Bachelor (Honours) 91 95 72

Masters 10 21 22

Doctorate 1 3 4

Certificate 0 4 1

Diploma 0 2 0 Total Graduates from the All Faculty Courses 102 125 100 Faculty of Engineering

Faculty of Health Sciences Bachelor 0 0 1

Bachelor (Honours) 242 141 192

Masters 2 33 20

Doctorate 1 0 1

Post-Graduate Dip. 9 8 23

Diploma 105 108 104

Certificate 0 18 28 Postgraduate 0 0 1 Certificate Total Graduates from the All Faculty Courses 359 308 452 Faculty of Health Sciences

48

Faculty/Institute Level 2011 - 2012 2012-2013 2013-2014 Faculty of Information and Honours 72 77 64 Communications Technology Masters 17 31 36

Doctorate 2 3 4

Higher Diploma 3 2 2 Post-Graduate 7 0 1 Diploma Diploma 3 2 8 Total Graduates from the Faculty of Information and All Faculty Courses 104 115 115 Communications Technology

Faculty of Laws Bachelor of Laws 128 153 132

Masters 32 28 42

Magister Juris 0 1 0

Doctorate 98 109 95

Diploma 107 160 176

Certificate 0 0 2 Post Graduate 0 0 5 Diploma Total Graduates from the All Faculty Courses 365 451 452 Faculty of Laws Institute for Climate Change and Sustainable Master 0 0 5 Development Total Graduates from the Institute for Climate Change All Faculty Courses 0 0 5 and Sustainable Development

Institute of Digital Games Masters 0 0 5

49 Faculty/Institute Level 2011 - 2012 2012 - 2013 2013 2014 Faculty of Media & Bachelor 23 12 11 Knowledge Sciences Bachelor (Honours) 25 32 33

Masters 12 23 20

Diploma 1 8 6

Total Graduates from the Faculty of Media & All Faculty Courses 61 75 70 Knowledge Sciences Faculty of Medicine and Bachelor 0 0 5 Surgery Bachelor (Honours) 30 33 44

Masters 61 71 59

Doctorate 78 91 113

Certificates 0 13 1

Total Graduates from the Faculty of Medicine and All Faculty Courses 169 208 222 Surgery

Faculty of Science Bachelor 3 2 3

Bachelor (Honours) 70 78 60

Masters 14 19 17

Doctorate 1 2 3

Certificate 0 0 1

Total Graduates from the All Faculty Courses 88 101 84 Faculty of Science

Faculty of Social Wellbeing Bachelor 0 0 2

Bachelor (Honours) 125 140 141

Masters 74 28 60 Post-Graduate 5 1 7 Diploma Higher Diploma 7 18 14

Diploma 5 30 7

Certificate 0 4 0

Total Graduates from the All Faculty Courses 216 221 231 Faculty of Social Wellbeing

50 Faculty/Institute Level 2011 - 2012 2012 - 2013 2013-2014

Faculty of Theology Bachelor 11 3 8

Bachelor (Honours) 31 25 11

Masters 34 10 29

Doctorate 1 1 0

Post-Graduate Dip 3 3 4 Post-Graduate 1 1 0 Certificate Licentiate in sacred 2 8 7 theology Certificate 0 1 0

Diploma 0 1 1

Total Graduates from the All Faculty Courses 83 53 60 Faculty of Theology

Institute of Earth Systems Bachelor (Honours) 9 1 44

Masters 11 21 14

Diploma 7 4

PG Diploma 0 3 1

Total Graduates from the All Faculty Courses 27 25 63 Institute of Earth Systems Edward Debono Institute for the Design and Masters 15 14 13 Development of Thinking Post Graduate Dip 5 7 2

Total Graduates from the Edward Debono Institute for All Faculty Courses 20 21 15 the Design and Development of Thinking International Institute for Master 1 4 3 Baroque Studies Total Graduates from the International Institute for All Faculty Courses 1 4 3 Baroque Studies Centre for Entrepreneurship and Master 0 0 24 Business Incubation PG Certificate 0 0 1

Total Graduates from the Centre for All Faculty Courses 0 0 25 Entrepreneurship and Business Incubation

51

Faculty/Institute Level 2011-2012 2012-2013 2013-2014

Institute for Islands and Masters 9 4 0 Small States Post-Graduate 0 1 0 Diploma Total Graduates from the Institute for Islands and All Faculty Courses 16 5 0 Small States

Institute for Maltese Studies Postgraduate Diploma 0 1 1

Masters 1 4 2 Total Graduates from the All Faculty Courses 2 5 3 Institute for Maltese Studies

Mediterranean Institute Masters 3 2 1

Doctorate 2 1 0 Total Graduates from the All Faculty Courses 5 3 1 Mediterranean Institute Institute for Physical Pre-Tertiary 0 14 18 Education and Sport Certificate Diploma 0 0 2

Total 0 14 20

Institute of Public Administration and Higher Diploma 0 36 17 Administration Institute for Tourism, Travel Bachelor (Honours) 37 27 37 and Culture Masters 5 9 4 Post Graduate 0 1 0 Certificate Doctor 0 0 1

Diploma 0 0 1

Total Graduates from the Institute for Tourism, Travel All Faculty Courses 54 37 43 and Culture Euro-Mediterranean Centre Masters 1 3 5 for Educational Research

Postgraduate Diploma 0 0 1

Total Graduates from the Euro-Mediterranean Centre All Faculty Courses 1 3 6 for Educational Research

52

Faculty/Institute Level 2011-2012 2012-2013 2013-2014

European Centre for Masters 2 7 - Gerontology Total Graduates from the European Centre for All Faculty Courses 2 7 - Gerontology

Centre for Labour Studies Diploma 33 20 31

Post-Graduate Dip. 0 9 0 Post-Graduate 0 2 0 Certificate Certificate 0 4 0

Total Graduates from the All Faculty Courses 33 35 31 Centre for Labour Studies Mediterranean Academy of Masters 52 61 43 Diplomatic Studies Diploma 0 0 5

Total Graduates from the Mediterranean Academy of All Faculty Courses 69 61 48 Diplomatic Studies Institute for Sustainable Masters 0 0 15 Energy Postgraduate Diploma 0 0 1

All Faculty Courses 0 0 16

Institute of European Bachelor (Honours) 46 22 13 Studies Masters 11 9 23

Diploma 0 12 0

Total Graduates from the Institute of European All Faculty Courses 57 43 36 Studies

Institute of Linguistics Bachelor (Honours) 0 0 5

Master 0 0 1

Doctor 0 0 2

Total Graduates from the All Faculty Courses 0 0 8 Institute of Linguistics Foundation Studies Certificate 0 0 15 Programme Source: University of Malta, Office of the Registrar

53 The information provided under Table 36 is in aggregated format. More disaggregated and detailed information about University Graduates can be provided upon request.

Table 37 provides the number of students graduating from the Malta College of Arts, Science and Technology (MCAST) during the academic years 2011/2012, 2012/2013 and 2013/2014. The information is disaggregated by Institute. More disaggregated and detailed information about MCAST graduates can be provided upon request.

Table 37-MCAST Graduates by Faculty

Faculty/Institute Level 2011-2012 2012-2013 2013-2014

Institute of Agribusiness Certificate 20 24 17

Diploma 33 43 51

Bachelor (Honours) 6 0 12

Total Graduates from the All Faculty Courses 59 67 80 Institute of Agribusiness

Institute of Applied Science Certificate 0 19 15

Diploma 40 67 115

Bachelor (Honours) 0 2 3

Total Graduates from the All Faculty Courses 40 88 133 Institute of Applied Science

Institute of Art and Design Certificate 46 47 32

Diploma 252 249 267

Bachelor (Honours) 48 81 86

Total Graduates from the All Faculty Courses 346 377 385 Institute of Art and Design Institute of Building and Certificate 45 27 27 Construction Engineering Diploma 72 96 83

Bachelor (Honours) 15 10 21

Total Graduates from the Institute of Building and All Faculty Courses 132 133 131 Construction Engineering

54 Faculty/Institute Level 2011-2012 2012-2013 2013-2014

Gozo Centre Certificate 51 56 50

Diploma 58 67 89

Total Graduate from the Gozo All Faculty Courses 109 123 139 Centre

Institute of ICT Certificate 149 152 111

Diploma 405 361 313

Bachelor (Honours) 77 84 74

Total Graduates from the All Faculty Courses 631 597 498 Institute of ICT Institute of Business and Certificate 123 118 88 Commerce Diploma 210 305 201

Bachelor (Honours) 15 29 30

Total Graduates from the Institute of Business and All Faculty Courses 348 452 319 Commerce Institute of Community Certificate 108 88 122 Services Diploma 322 340 335

Bachelor (Honours) 5 9 17

Total Graduates from the Institute of Community All Faculty Courses 435 437 474 Services Institute of Electrical and Certificate 63 62 37 Electronics Engineering Diploma 107 118 105

Bachelor (Honours) 20 13 22

Total Graduates from the Institute of Electrical and All Faculty Courses 190 193 164 Electronics Engineering

55 Faculty/Institute Level 2011-2012 2012-2013 2013-2014 Institute of Mechanical Certificate 98 111 134 Engineering Diploma 75 117 100

Bachelor (Honours) 2 30 18

Aircraft Maintenance 71 64 0

Total Graduates from the Institute of Mechanical All Faculty Courses 246 322 252 Engineering Probationary Officer Maritime Institute 10 6 15 Cadet Chief Mate 0 0 2

OIC Navigational Watch 8 9 7

Total Graduate from the All Faculty Courses 20 15 24 Maritime Institute Independent Living Pathway 16 5 2 (Malta) Independent Living 1 11 21 (Malta) Total Graduates from All Faculty Courses 17 16 23 Pathway Source: MCAST

Training29

Malta is one of the forefront providers of vocational training in the EU, both in terms of time employed as well as in financial investment. Vocational training in Malta is structured on the German model.

Eurostat data shows that in the EU27, two thirds (66%) of all enterprises with ten or more employees provided vocational training to their staff in 2010, compared with 60% in 2005. The highest number of enterprises providing training was observed in Austria and Sweden (both 87%) the United Kingdom (80%), the Netherlands (79%), Belgium (78%) and France (76%), and the lowest being Poland (23%), Romania (24%), Bulgaria (31%), Latvia (40%) and Hungary (49%). In Malta 54% of enterprises provide such training, two thirds of which are larger SMEs.

29 Source: Eurostat News Release, 89/2013-11 June 2013, Continuing Vocational Training

56 In the EU27, participants in vocational training courses spent on average 25 hours (annually) each on training in 2010, an amount which varied significantly between Member States, ranging from 14 hours per participant in the Czech Republic and 15 hours in Latvia, to 42 hours in Portugal and 40 hours in Malta.

As regards costs, vocational training courses accounted for 0.8% of total labour costs of all enterprises in the EU27 in 2010, varying from 0.4% in Italy, Latvia and Romania to 1.5% in France and 1.4% in Malta.

Among those enterprises providing vocational training in the EU27 in 2010, almost half (48%) of their employees participated in such training. The highest proportions of employees participating were observed in the Czech Republic (72% of all employees in enterprises providing training), Slovenia (62%), Luxembourg (60%) and Slovakia (58%), and the lowest in Hungary (27%), Lithuania (31%), Austria and the United Kingdom (both 37%).

In the EU27, a slightly higher proportion of employees in large enterprises (49% of employees) undertake training than in medium-sized enterprises (45%) and small enterprises (46%).

57 Salaries

The Economic Survey, which is published by the Ministry for Finance alongside the Government budget, provides information related to wage structure in Malta. The following Table presents the average weekly wages for different economic sectors that were reported in the month of September 2014.

Table 38- Average Weekly Wages September 2014

Skilled Clerical/ Weighted Labourer Managerial Tradesman Executive Average

Oil Drilling 223.71 278.87 286.05 441.12 275.57

Food 232.87 299.69 246.16 397.21 273.16

Beverages 255.88 313.01 264.25 336.65 283.44 Textiles, Footwear and 219.97 246.87 216.16 226.35 226.55 Clothing Furniture & Fixtures 251.23 284.64 - 306.20 280.29

Paper & Printing 302.10 365.73 311.29 347.60 338.80

Chemicals 258.40 304.67 307.97 342.70 279.84

Non-metallic products 208.48 253.90 - 262.63 232.68

Metal Productions 264.61 271.46 - 289.86 258.45

Electrical Machinery 212.63 275.31 239.54 316.76 242.52

Machinery 192.28 227.47 210.81 254.13 219.55

Transport & Equipment 236.35 264.69 260.85 291.30 263.69

Miscellaneous 289.87 351.64 295.35 335.05 312.48

Electricity & Gas services 244.38 276.84 272.81 424.22 277.03 Source: Economic Policy Department, Ministry of Finance, Economic Survey November 2014

58

Skilled Clerical/ Weighted Labourer Managerial Tradesman Executive Average

Wholesale & retail trade 229.46 256.55 288.06 315.18 259.79

Banking & OFI 268.86 293.78 281.24 483.46 301.90

Transport 236.42 286.80 282.58 657.83 302.81 Storage and 229.60 266.61 256.56 305.64 260.40 Warehousing Communications 274.49 299.39 265.33 490.59 317.27

Community & Business 252.47 310.14 253.27 417.72 330.68

Recreation Services 218.38 246.14 228.27 291.17 233.78

Hotels & Catering Ests 234.10 255.84 247.74 262.54 245.20

All Firms 241.49 296.11 269.80 413.59 294.78 Source: Economic Policy Department, Ministry of Finance, Economic Survey November 2014

Eurostat, the statistical office of the European Union, carries out a survey to determine the labour costs within the different countries forming the European Union. The labour costs published are based on the Labour Cost Survey and the Labour Cost Index. The survey carried out covers a sample of enterprises with 10 or more employees. The labour costs published by Eurostat for 2014, are based on the 2012 labour cost survey and Labour Cost Index.

Figure 6 represents the hourly labour costs for the whole economy in 2014. The information is presented for all the EU28 countries.

competitive when compared to

EU28 and EA18.

Furthermore, it is important to highlight the relatively small share that non-wage and salary costs have in relation to total labour costs. In 2014, for Malta the share of non-wage costs as from total labour costs stood at circa 7% compared to a EU28 and EA18 average of 24% and 26% respectively. The countries which compete closely with Malta in this respect were Denmark (13.1%) and Luxembourg (13.6%).

59 For Malta, having non-wage costs representing such a small share in total labour costs brings about a number of advantages both to employers and employees. An employer/employee that is paying/receiving a salary of -wage related costs. However, for Malta the

60 Figure 6-Hourly Labour Costs for the Whole Economy (2014)

40

35

30

25

20

15

10

5

0

Wages & Salaries Other Costs

Source: Eurostat, News Release, 56/2015, 30 March 2015, Labour Costs in the EU

61 Figure 7 represents the disaggregation of labour costs in accordance to economic activity. For the purpose of this report the information of labour costs for Malta and the EU28 average are being presented.

Figure 7-Labour Costs per hour by economic activity (2014)

30 25.5 24.5 24.3 24.7 25 22.0

20 14.0 15 11.8 11.8 12.1 9.6 10

5

0 Business Industry Construction Services Mainly non- Economy business (excl. public admin)

EU28 Malta

Source: Eurostat, News Release, 56/2015, 30 March 2015, Labour Costs in the EU

Sick leave entitlement to employers and self employed

When a person is self employed and he/she pays the social security contributions then he/she would still be entitled to receive sickness benefits. If a self employed person is still sick after 3 working days (Excluding Saturdays, Sundays and Public Holidays) he/she, may claim sickness benefits on presentation of a medical certificate.

In the case that a person is employed with a company/organisation and he/she pays social security contribution, the first 3 working days of sick leave are paid by the employer whilst the remaining working days for which the employee is sick are paid through the social security office.

The amount of sick leave entitlement varies from one economic sector to another. For economic sectors that are not regulated by the relevant wage regulation order, sick leave amounts to two working weeks per year.

62 Sick Leave Statistics

The amount of sick leave availed of by employees can also be used as an indicator to reflect the environment in which employees are working. Employees who are not working in a desirable environment are more likely to avail themselves of sick leave. The level of employee absence in Malta has decreased considerably over the past decade. For 2003 the average level of employee absence recorded was 6.2 days. This figure decreased significantly and in 2009 the average number of days an employee was absent from work was 5.2 days per employee per year. These figures do vary from the private to the public sector. The level of employee absence remains higher in the public sector with an average absence level of 7.9 days per employee per year. The corresponding level in the private sector for 2009 was 3.9 days per employee per year.

When comparing the absence of work in Malta to that in the United Kingdom, the results obtained are very positive. Malta has a considerably lower rate of employee absence from work than that recorded in the United Kingdom. Average employee absence in the United Kingdom per employee per year in 2009 was 7.4 days compared to 5.2 days in Malta.

Property and Residence

Industrial Property

Malta Industrial Parks Ltd. (MIP) provides industrial space to new investment projects and facilitates expansions by existing clients within the industrial estates which are situated in Malta and Gozo. As a result, MIP controls the majority of the land available for industrial activity in Malta. Nonetheless, the private sector still owns a number of properties potentially suitable to carry out industrial activities. Recently a small number of private industrial areas have also been built.

A desk research carried out in September 2014 by the Economic and Market Research Unit at Malta Enterprise determined that the median rental rate for warehouses/garages30 in the Northern part of Malta was 60 per meter squared per annum, whilst those situated in the Central and Southern part, the average rent rate per meter squared was . The following Tables present in more detail the rental rates charged for warehouses/garages in Malta. Tables 39 and 40 present the rental rates cross tabulated by various categories.

30 A space where goods and industrial products can be stored. For the purpose of this exercise for storage space to be deemed fit to serve as a warehouse it had to cover a foot print of at least 100m2. This criteria was introduced since a number of property agents advertised garages/warehouses, yet, a garage is not perfectly suitable for the storage of industrial products.

63 Table 39-Warehouses/Garages Rental Rates by Size (September 2014)

Warehouse/garage Median rent per Number of Lowest rent per Highest rent per by Size m2 per annum observations m2 per annum m2 per annum 100-300m2 48 39 24 134

301-700m2 58 23 20

701-1000m2 63 7 4 84

Greater than 1000m2 48 10 12 Source: Malta Enterprise, Economic & Market Research Unit, Rental Rates-Offices, Warehouses & Apartments

Table 40-Warehouses/Garages Rental Rates by Region (September 2014)

Median rent per Number of Lowest rent per Highest rent per Region m2 per annum observations m2 per annum m2 per annum North 60 19 24 134

Central 48 41 24 120

South 48 19 12 05 Source: Malta Enterprise, Economic & Market Research Unit, Rental Rates-Offices, Warehouses & Apartments

64 Figure 8-Graphical Analysis for Warehouses/Garages Rental Rates

65 Office Spaces

For the purpose of this the study, office spaces were divided into two categories being; standard and luxurious offices. Luxurious offices were defined as offices situated at Portomaso, SmartCity, Tigne Point, Sky Parks and other business centres. These luxurious offices were all finished and furnished.

Standard Office Spaces

Tables 41 and 42 present the rental rates for standard offices cross tabulated by various categories.

Table 41-Office Rental Rates by Size (July 2012)

Median rent Number of Lowest rent per Highest rent per Office Size per m2 per observations m2 per annum m2 per annum annum Smaller or equal to 40m2 88 89 63 521

41-70m2 86 60 3

71-110m2 93 110 42 500

Greater than 110m2 0 293 32 00 Source: Malta Enterprise, Economic & Market Research Unit, Rental Rates-Offices, Warehouses & Apartments

Table 42-Office Rental Rates by Region (July 2012)

Median rent per Number of Lowest rent per Highest rent per Region m2 per annum observations m2 per annum m2 per annum North 118 56 48 498

Central 2 464 32 521

South 107 58 1 332 Source: Malta Enterprise, Economic & Market Research Unit, Rental Rates-Offices, Warehouses & Apartments

66 Figure 9-Graphical Analysis for Standard Offices Rental Rates

67 Luxurious Office Spaces

In general the median rental rate per annum for luxurious offices was 340 per m2 per annum. The highest rental rate per m2 per annum was 545, whilst the lowest rental rate was 120 per m2 per annum. Table 43 presents the rental rates for luxurious offices31 by size.

Table 43-Luxurious Offices Rental Rates by Size (September 2014)

Size of Luxurious Median rent per Number of Lowest rent per Highest rent per Office m2 per annum observations m2 per annum m2 per annum Smaller or equal to 370 13 120 510 100m2 101-300m2 404 14 203 545

301-500m2 207 5 132 300

Greater than 500m2 3801 2 250 510 Source: Malta Enterprise, Economic & Market Research Unit, Rental Rates-Offices, Warehouses & Apartments

31 Offices that are situated in Portomaso, SmartCity, Tigne Point, Sky Parks and other business centres.

68 Figure 10-Graphical Analysis for Luxurious Offices Rental Rates

69 Rental Rates for Residential Apartments

The rental rates being presented for apartments in the Maltese islands were divided into two main categories; standard and luxurious apartments. The apartment considered as being luxurious had to form part of a high-end branded complex such as Tigne Point, Portomaso, and Fort Cambridge. Tables 44 and 45 present information with respect to standard apartments by size and region. Table 46 presents rental rates for luxurious apartments by size.

Standard Apartments

Table 44-Rental Rates for Standard Apartments by Size (September 2014)

Median rent Lowest rent Highest rent Number of Size of Apartment per m2 per per m2 per per m2 per observations annum annum annum Smaller or equal to 80m2 33

81-120m2 104

Greater than 120m2 140 Source: Malta Enterprise, Economic & Market Research Unit, Rental Rates-Offices, Warehouses & Apartments

Table 45-Rental Rates for Standard Apartments by Region (September 2014)

Median rent Lowest rent Highest rent Number of Region per m2 per per m2 per per m2 per observations annum annum annum North 74 29

Central 143

South 60 Source: Malta Enterprise, Economic & Market Research Unit, Rental Rates-Offices, Warehouses & Apartments

70 Figure 11-Graphical Analysis for Standard Apartments

71 Luxurious Apartments

Table 46-Rental Rates for Luxurious Apartments (September 2014)

Median rent Lowest rent Highest rent Number of Size of Apartment per m2 per per m2 per per m2 per observations annum annum annum Smaller or equal to 80m2 234 3 187 338

81-120m2 296 7 210 505

Greater than 120m2 187 34 102 758

72 Figure 12-Graphical Analysis for Luxurious Apartments Rental Rates

73 Acquisition of Property in Malta

The acquisition of property (AIP) section of the Capital Transfer Duty (CTD) Department is responsible for the processing of applications by non-residents to acquire immovable property in Malta. The section issues permits for those applications which satisfy a number of business criteria.

The Government of Malta established that the attraction of foreign residents would be of beneficial to the Maltese economy and that no significant adverse effects were likely to be exerted locally provided that the inflow of foreign residents was maintained within reasonable levels and the housing stock continued to grow steadily.

The CTD Department recently embarked on an ambitious programme in a bid to enhance its customer service. The premises were upgraded to ensure a better office environment which is also more client-friendly. The department has also invested heavily in Information Technology and has installed a robust infrastructure and many custom-built software systems.

More information on the acquisition of property in Malta can be obtained through http://www.ird.gov.mt/aip/aip.aspx

Global Residency Scheme

Global Residence Programme people who buy high value property and who pay taxes, would be able to benefit from a residence permit in Malta.

For one to apply for the Global Residence Programme, one must prove that:

(a) he/she is a third country national and is not a Maltese, EEA or Swiss national;

(b) he is not a person who benefits under the Residents Scheme Regulations, the High Net Worth Individuals - EU / EEA / Swiss Nationals Rules, the Malta Retirement Programme Rules, the Qualifying Employment in Innovation and Creativity (Personal Tax) Rules or the Highly Qualified Persons Rules;

(c) he/she holds a qualifying property holding;

74 (d) he/she is in receipt of stable and regular resources which are sufficient to maintain himself and his dependants without recourse to the social assistance system in Malta;

(e) he/she is in possession of a valid travel document;

(f) he/she is in possession of health insurance in respect to all risks across the whole of the European Union normally covered for Maltese nationals for himself and his dependents;

(g) he/she is fluent in one of the official languages of Malta;

(h) he/she is a fit and proper person.

More information on the Global Residency Scheme can be accessed through the following link: http://meib.gov.mt/mt/globalresidence/Pages/home.aspx

Individual Investment Programme

The programme is designed to facilitate Maltese Citizenship by Investment to non-Maltese nationals and their dependents. There are a number of criteria which need to be fulfilled for applicants to qualify for this programme. The Maltese Government will be utilising the contributions made by successful applicants to build the National Development and Social Fund. This fund will, as its name suggests, be used to improve the quality of life in Malta through social and capital projects.

More information about this programme can be obtained through: http://iip.gov.mt/

Development Planning

The Malta Environment and Planning Authority (MEPA) is the national agency responsible for land use planning and environmental regulation in Malta. Established under the mandate of the Environment Protection Act (2001) and the Development Planning Act (1992) of the Laws of Malta, MEPA is also responsible for the implementation of around 200 directives, decisions and regulations under EU Environmental Directives.

In addition, MEPA acts as the national focal point under a number of international environmental conventions and multilateral agreements, including the Aarhus Convention on access to information, public participation in decision-making and access to justice in environmental matters.

75 Table 47-New Fees Regulations

Fee Rate

Compliance Certificates

Development Notification Orders Alterations

Dangerous Structures Notifications Development Notification Orders Extensions/New

Development Planning control applications per 150m2 of site or part

thereof Soure: Malta Environment and Planning Authority

For more details on the development permit fees, sewer rates, street rates and environment fees applicable for the different development options refer to http://www.mepa.org.mt/file.aspx?f=9832. www.mepa.org.mt.

Transport Infrastructure

trade routes. Over time, the country has naturally developed its infrastructure in order to cater for the requirements of the transportation systems. As new methods of transport were developed, so did the increased demands of a globalised world.

These qualities are regularly recognised through various rankings, with the Global Competitiveness Report 2014-2015 published by the World Economic Forum placing Malta in 20th place in terms of the quality of its port infrastructure and in 30th place in terms of the quality of its air transport infrastructure from a total of 144 countries.

Land

In view of the island s small size, it only takes a couple of hours to cross from one end of the country to the other, including a sea ferry crossing linking Malta and Gozo. This transit has been further facilitated in recent years through the development or upgrading of arterial roads, particularly within the context of the TEN-T network. Productivity and competitiveness have been enhanced as a result of the reduction in journey time, particularly along the North-South corridor, as well as other strategic routes linking the airport, Freeport and the cruise liner terminal with other major tourist zones or industrial areas.

76 Bus Service In 2015, Autobuses de Leon took over from Malta Public Transport to operate the bus services in Malta and Gozo. Running daily, generally between 05:30h and 23:00h, the service comprises a total of 80 different routes that link the different localities in Malta to either major hubs such as Valletta, Mater Dei Hospital and the Malta International Airport or to other destinations. In Gozo, 15 further routes operate, primarily from the central hub of Victoria Bus Station to various localities on the island. All buses in use on the service are low floored enabling full access to the vehicle for passengers with mobility impairments. Each bus also has specifically designated seating for persons with mobility impairments, pregnant women, the elderly and persons carrying young children. Tickets start fr - children), with additional discounts for weekly, monthly or quarterly tickets32.

Taxi Services and Chauffeur-driven Vehicles There are around 250 licensed taxis in Malta and another 50 taxis in Gozo,33 recognisable from their white colours, the taxi sign fixed to the roof and registration marks printed on the front doors. Passengers may hail a taxi in places where it is safe to stop or from designated ranks. Through pre- booking, passengers may obtain the services not only of taxis, but also of chauffeur-driven vehicles. Fares vary depending on the length of the trip.

Car Rental Major international car hire firms and local companies specialising in vehicle rental are present in Malta and Gozo with daily rates averaging - 34 for entry level vehicles. All road signs are in English and driving is on the left. International and national driving licenses are recognised.

Air

While the first recorded flight to Malta took place in the 1920s, it was World War II that first brought heavy air traffic to Malta, which at the time was an important military base and made use of a number of aerodromes around the Maltese islands. During the post-war era, the potential of the civil aviation industry was immediately recognised and the facilities were gradually improved to cater for the increase in passengers the country was experiencing, particularly following the setting up of the national airline Air Malta in the 1970s. The aviation industry has nowadays matured into an important pillar of the economy, comprising a wide range of services including civil aviation, VIP services, cargo

32 www.publictransport.com.mt 33 www.transport.gov.mt 34 www.visitmalta.com

77 handling, maintenance, repair and overhaul services, aircraft registration and related professional services, training and flight academies, air taxis and air ambulances, and many more.

Airport With a majority shareholding owned by Vienna International Airport (VIE) , the Malta International Airport (MIA) is a key gateway to the country and handles practically all aircraft movements. The service provided is considered to be top notch and indeed has consistently been ranked among the best airports in Europe. The ACI Airport Service Quality passenger survey, ranked MIA as the fourth best airport in Europe35 for 2014, while the previous edition ranked MIA as the second best within a list of airports which handle up to 5 million passengers. In 2014, almost 32,24736 scheduled and non- scheduled aircraft movements and circa 4.4 million passenger movements37 were registered through MIA.

Airlines A healthy mix of legacy airlines and low-cost carriers operate regular weekly scheduled or chartered flights to Malta throughout the year. The schedule is even busier during the Summer peak season , when more airlines operate to Malta, while others increase their frequency to cater for the increase in passenger demand. Besides the national flag carrier Air Malta, airlines operating regularly to Malta include Emirates, Lufthansa, Turkish Airlines, British Airways, Alitalia, Air France, Transaero as well as leading low-cost carriers such as Ryanair, Wizz Air Hungary and easyJet.

Website: http://www.airmalta.com/

Cargo A strategic location at the crossroads between Europe, Africa and the Middle East makes Malta a successful player in the air cargo business. Continued investments in recent years have resulted in improved services for the number of reputable companies which have set up their base at MIA to centralise their operations and increase efficiency. These include DHL, Serviceair/GlobeGround, XPH Malta and Medavia. Some airlines such as Air Malta and Lufthansa Cargo also provide a cargo service to their clients, in addition to the courier service provided by a number of companies in Malta. In 2014, a total exceeding 15,546 tonnes of cargo movement was recorded at MIA.38

35 http://www.aci.aero/News/Releases/Most-Recent/2015/02/16/ACI-announces-recipients-of-the-2014-ASQ- Awards-Excellence-in-passenger-service-takes-centre-stage-with-the-announcement-of-the-airports-that- raised-passenger-satisfaction-to-the-next-level-in-2014- 36 Malta International Airport, Annual Statistics Summary 2014 37 MIA, 2014 Annual Report 38 Malta International Airport, Annual Statistics Summary 2013

78 VIP services MIA also hosts a number of companies providing dedicated and professional ground services to VIP jets and executive travellers. Amongst others, services include executive passengers/crew transportation vehicles, crew and VIP lounges, aircraft marshalling, flight support/dispatch services, as well as aircraft fuelling.

Maintenance Traffic to Malta has also increased during recent years in view of the presence of the number of maintenance repair and overhaul facilities (MRO) on the islands, some of which are gathered within the purposely built Safi Lufthansa Technik and SR Technics, which lists easyJet as its major client, as well as facilities for small aircrafts such as those operated by Medavia, MCM and Aeromaritime.

Sea

As a small island with little natural resources, Malta developed its connections in order to sustain the trade exchanges upon which its very own existence depended. These facilities were also used as an outpost from where various civilizations that colonized Malta throughout its history expanded their trade across the region. Malta has developed into a maritime and logistics hub, not only in terms of trade, but also in terms of the cruise liner industry, yacht and super-yacht marinas, as well as a myriad of marine and related professional services.

Malta Freeport Malta Freeport was the first transhipment hub in the Mediterranean region. The company has experienced remarkable growth since its inception in 1988 and is nowadays owned by CMA-CGM and the Yildrim Group. Malta Freeport currently ranks twelfth among the top European ports and is the third largest transhipment and logistics centre in the Mediterranean. In 2014, Malta Freeport handled 2.9 million TEUs39. The facility represents a strategic platform for the shipping lines that have chosen it as their Mediterranean h busiest shipping routes and in the heart of the Europe/Maghreb/Middle East triangle.

Website: http://www.maltafreeport.com.mt/

39 www.maltafreeport.com.mt

79 Valletta Gateway Terminals The multi-purpose terminals at the Grand Harbour are operated by Valletta Gateway Terminals, a joint venture between Portek Group of Singapore and Tumas Group of Malta. Amongst its main services, the company handles ro-ro operations, trailers, containers, conventional cargo and also vehicles.

Website: http://www.vgt.com.mt/

Valletta Waterfront Operated by Valletta Cruise Port plc, the Valletta Waterfront is the port of call for around 300 cruise liners every year40. Despite its young age, this industry has grown into one of the major contributors to the local tourism industry, attracting around half a million passengers every year40. The majestic setting of the Grand Harbour and its fortifications, which provide a truly exceptional and outstanding backdrop, as well as the various on-site amenities are perhaps among the reasons why the Valletta Waterfront has become an immediate favourite within the cruise liner industry.

Gozo Channel With a fleet of three modern ferries, Gozo Channel provides a vital lifeline between the biggest two islands in the Maltese archipelago, namely Malta and Gozo. Passenger and vehicle service is provided all year round between the recently upgraded terminals in Cirkewwa and Mgarr. Travelling between the two islands normally takes about 20 minutes. Gozo Channel offers a comprehensive ro-ro passenger service for, vehicles and cargo, including hazardous cargo. In 2014, Gozo Channel performed almost 20,000 trips between the two islands, carrying 1.2 million vehicles and 4.4 million passengers41. The s -commercial vehicle and the night.42

Ferry operating timetables can be downloaded from http://www.gozochannel.com/. One can also find a free downloadable application with ferry timetables for Tablet and Smartphone.

40 National Statistics Office, release Cruise Passengers: Q4/2013 41 National Statistics Office, release Sea transport between Malta and Gozo: Q4/2013 42 www.gozochannel.com

80 Virtu Ferries Virtu Ferries operates a high speed ferry service by modern catamaran between Malta and Sicily,. Virtu Ferries boasts fleet of six vessels, albeit only two of these operate on the Malta-Sicily routes, while the rest are used by its subsidiary company Venezia Lines between various ports in the Adriatic Sea. The company carries in excess of 350,000 passengers and 30,000 vehicles annually43. A day during the shoulder months but higher ones during the peak season in summer43.

Malta Motorways of the Sea Owned by the Grimaldi Group, Malta Motorways of the Sea connects Malta to the major ports in the Mediterranean, providing regular ro-ro service links to Civitavecchia, Catania, Salerno, Genoa, Livorno, Tripoli/Al Khoms, and all other ports served by the Group. Amongst others, it carries cargo such as reefer trailers, containers, cars, pallets, out of gauge cargo, hazardous cargo, boats, project cargo, and dry-docking equipment.

Palumbo

The Palumbo Group operates two facilities in Malta, namely a shipyard and a super yacht facility, as well as other facilities in Naples, Messina and Marseille. The acquisition of the Maltese shipyard, which was previously state-owned and can accommodate ships up to 300,000 tons, marked a provide repair services to ships going through the Mediterranean en route from the East to the Atlantic.

43 www.virtuferries.com

81 Lifestyle

Lifestyle in Malta is as unique as it is diverse, offering a range of activities to suit the tastes of practically everybody, all condensed within a small area that means you might be travelling through sea whilst admiring its natural beauty the next.

Its strategic location geographically positioned at the very centre of the Mediterranean Sea, made Malta the land of conquest of practically all the dominant forces in the region. This not only left Malta with a wealth of heritage spanning the entire history of mankind, but also with a distinctive imprint on its culture, arts, language and cuisine.

Malta has something in store for people of all ages and at any phase of their life; whether families with children, youths or adolescents, as well as mature adults.

The climate is typically Mediterranean, with warm summers and mild winters. On average, Malta has more than 300 days of sunshine a year, meaning the country is ideal for those who love to enjoy the seas, or perhaps a try at the many sports which amongst others comprise tennis, golf, sailing, windsurfing, scuba-diving, horse-riding, climbing and paragliding.

Music lovers, theatre, arts and film enthusiasts are spoilt for choice with a cultural calendar brimming with activities throughout the year, including a variety of concerts, exhibitions, festivals, operas, plays, and much more. Two venues that stand out are the Manoel Theatre, which is one of the oldest working theatres in Europe and was ranked among the 15 most spectacular theatres in the world by CNN, and the Pjazza Teatru Rjal open air theatre designed by world-famous architect Renzo Piano.

Nightlife in Malta is also buzzing with activity, from the many restaurants, cafes and wine bars, to the more lively bars, casinos and clubs. Various international artists have performed in malta, including amonst others Lady Gaga, Snoop Dogg, David Guetta, Black Eyed Peas, One Republic, Maroon 5, Enrique Iglesias and Kid Rock all of whom took part in the yearly Isle of MTV, arguably one of the most attended free open-air concerts in Europe.

That Malta offers something for all tastes is also reflected literally in its cuisine. While food in Malta is mostly Mediterranean and is often based on the seasonal or regional food, particulary in

82 terms of fresh fish and fruit, various other outlets and restaurants that cater for every palate have mushroomed across the island. The delicious food may also be complemented with or beer, which has both won several international awards and are difficult to find elsewhere, thereby adding to the uniqueness of the culinary experience.

Business office hours are usually between 08:00h and 17:00h during the weekdays, with some opting for half-days during the summer peak. Shops open from 09:00h to 19:00h in the main commercial areas, namely Valletta, Sliema and St. Julians. Shops generally remain closed on Sundays and public holidays, however it is becoming more common that they open in the main tourist centres.

Residents enjoy an exceptional standard of living with an average living cost substantially lower than that of mainland Europe. At the same time, the island's very low crime rate means that Malta is a safe country to live in and is an ideal place to base families if one is engaged in commercial activities within the region. As a business destination Malta has much to offer, and as a home, there can be few places more idyllic.

Living in Malta is a unique experience, especially for those used to hectic city environments and long commutes between work and home. No other group of islands can offer as much natural beauty, art and architecture, entertainment and activity as Malta can. The islands small size and myriad of options means that in Malta it is possible to have it all: work hard, play hard and relax by the sea!

Healthcare

In Malta one can find some of the finest and best qualified medical consultants and surgeons some of whom enjoy an exceptional international reputation. Private and public hospitals in Malta are equipped with state-of-the- offering in the international health tourism arena. The island offers medical interventions that combine high quality and low risk.

In addition, private hospitals in Malta offer luxury bedrooms of 5-star hotel quality with a high nurse/patient ratio. This level of competitiveness is attracting substantial numbers of overseas dical services rank among the best in Europe.

83 Public and National Holidays

In Malta there are 14 public and national holidays which are listed below.

Public & National Holidays

1st January Public Holiday

10th February Public Holiday

19th March Public Holiday Feast of St. Joseph

31st March National Holiday Freedom Day

Varies Public Holiday Good Friday

1st May Public Holiday

7th June National Holiday Sette Giugno

29th June Public Holiday Feast of Sts. Peter and Paul

15th August Public Holiday Feast of the Assumption

8th September National Holiday Feast of Our Lady of Victories

21st September National Holiday Independence Day

Feast of the Immaculate 8th December Public Holiday Conception

13th December National Holiday Republic Day

25th December Public Holiday Christmas Day

84 Business First

Malta Enterprise, through Business First, offers a one-stopshop service to businesses in Malta. The services offered by Business First are relevant both for local as well as foreign investors and entrepreneurs.

The setting up of the Business First is a confirmation of businesses and reduce bureaucracy. Business First is therefore facilitating setting up procedures by providing relevant information and assisting the submission of certain applications to the Government authorities. The objective is to enable businesses to devote their energy to the running of their businesses. Business First supports the growth and successful operation of businesses, not only by directing businesses to the information they are requesting but also by providing guidance on Malta Enterprise schemes and incentives.

Business First offers an array of some 48 different services, amongst which are those that are normally required for start-up; registration and business development. These services include:

 Legal Entity Establishment  Employment Registration (number of serv 3)  Registration for Tax purposes (number of services...3)  Registration for VAT services  Licenses, including trading and tourism-related (number of services...23)  Utilities services (number of services...12)

The full list of se www.businessfirst.com.mt. This list is by no means exhaustive. Business First is committed to continue expanding its services as the need arises. The addition of new services at Business First also and, where possible, to start offering such services. A typical example is the presence of a Malta Environment and Planning Authority (MEPA) and VAT representative at Business First every Tuesday morning. Moreover, Business First is currently discussing with other entities what additional services can be offered.

85 Useful Websites

Malta Enterprise - www.maltaenterprise.com National Statistics Office - www.nso.gov.mt - www.centralbankmalta.org ces available online - www.mygov.mt Department of Information - www.doi.gov.mt Enemalta Corporation - www.enemalta.com.mt Water Services Corporation - www.wsc.com.mt Malta Environmental Planning Authority - www.mepa.org.mt Malta Financial Services Authority - www.mfsa.com.mt Malta Tourism Authority - www.visitmalta.com Employment and Training Corporation - www.etc.gov.mt Ministry of Finance, Economy and Investment - http://finance.gov.mt Malta Resources Authority - www.mra.org.mt/ Transport Malta - www.transport.gov.mt Malta Communications Authority - www.mca.org.mt Malta Standards Authority - www.msa.org.mt Finance Malta - http://financemalta.org Malta Foreign Affairs - www.foreign.gov.mt

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