ECONOMY
Currency
The Maltese Lira is the legal tender. Average exchange rate (2005): $1 = Lm 0.345 (rate fluctuates)
Economic Data
| Year | Average Unemployment Rate | Annual Inflation Rate |
|---|---|---|
| 2001 | 6.4% | 2.93% |
| 2002 | 6.9% | 2.19% |
| 2003 | 7.6% | 1.30% |
| 2004 | 7.2% | 2.79% |
| 2005 | 7.4% | 3.01% |
Source: Malta's National Statistics Office
U.S. Trade with Malta
2001 - 2005
Note: All figures are in thousands of U.S. Dollars
| Year | Exports to Malta | Imports from Malta | Balance |
|---|---|---|---|
| 2001 | 258,864 | 368,935 | -110,071 |
| 2002 | 210,066 | 309,868 | -99,802 |
| 2003 | 202,253 | 372,811 | -170,558 |
| 2004 | 181,301 | 382,965 | -201,664 |
| 2005 | 193,587 | 282,765 | -89,178 |
Main Exports to Malta By commodity - 2005
| Commodities | Exports |
|---|---|
| Wheat | 4,265 |
| Fuel Oil | 34,463 |
| Logs and Lumber | 2,194 |
| Measuring, testing and control instruments | 12,973 |
| Semiconductors | 76,625 |
| Telecommunications equipment | 11,043 |
| Medincinal Equipment | 4,008 |
| Aircraft (civilian) engines | 11,826 |
Main Imports from Malta by Commodity - 2005
| Commodities | Imports |
|---|---|
| Synthetic cloth and fabrics, thread and cordage | 8,563 |
| Finished Textile Industrial supplies | 8,968 |
| Electrical apparatus and supplies | 14,695 |
| Industrial Machinery and trade tools | 9,366 |
| Semiconductors and related devices | 192,641 |
| Engine parts | 7,418 |
| Television receivers, VCRs and other video equipment | 15,337 |
Source: U.S. Census Bureau
MALTESE BUSINESS PRACTICES
Business Hours
Government offices open from 7.45am to 5.15pm., Monday through Friday, from October to mid-June. Between mid-June and September, government working hours are reduced to 7.30am to 1.30pm, Monday through Friday. Private sector companies generally follow the governent’s work schedule, but do not operate on half days in summer. Banks are open Monday through Thursday, 8.30am through 2.00pm, and 8.30am through 3.30pm on Friday. On Saturday, the bank’s opening hours are: 8.30am-12.00 noon, but some branches are closed in summer. Commerce and industry business hours are 8.30am through 5.30pm, Mondays through Firdays, and Saturdays 8.00am through 1.00pm. Retail establishments are closed on Sundays. However several establishments located in tourist areas or those that sell primarily tourist related items do open on Sundays and public holidays.
Local Time
The time in Malta is one hour ahead of Greenwich Mean Time and 6 hours ahead of the East Coast of the United States (Eastern Standard Time).
Labor
Foreign companies that have invested in Malta have a high regard for the ability, productivity and learning potential of Maltese workers, nearly all of whom speak English. In some industries, labor productivity is comparable to Western European countries and Maltese managers now run most of the foreign firms in Malta. On the labor front, Malta enjoys one of the lowest strike rates in Western Europe, and labor unrest is unlikely in the foreseeable future. The GOM strictly adheres to the ILO convention protecting workers’ rights.
Taxation
- The company income tax rate is 35%.
- On the payment of a dividend, the shareholders are not subject to further taxation. In certain, cases, non-resident shareholders qualify for tax refunds.
- A 15% rate apply to income derived by resident permit holders.
- Exemptions and incentives are available under the Business Promotions Act.
- Malta's VAT legilsation complies with EU VAT laws. The standard VAT rate is 18%.