As more South Africans seek stability and new opportunities abroad, Malta has become an increasingly attractive destination for both high net worth families as well as businesses. According to recent data from Credence, a corporate services and advisory firm, an increasing percentage of South Africans are exploring residency, citizenship, and business expansion options in Malta.
Regarding individuals and their families, this trend is driven by several factors, including South Africa’s volatile economic and political climate, the desire for a secure future, and the fact that Malta is one of the safest countries in the world where anyone can walk home at any time and people still leave homes and cars unlocked. European Union (EU) membership means that South African families acquiring Maltese citizenship through investment can live, work and study in any of the 27 EU member States without any restriction..
Malta also offers the 6th most powerful passport globally with visa free access to over 170 countries, including the United States and Canada. Malta’s residence programmes allow the applicant and his/her family to live in Malta permanently and provides visa free travel across the EU for 90 days in each 180 day period. Additionally, Malta also offers a popular tax based non-dom residence programme.
For companies, positioned in the heart of the Mediterranean, as a full EU member state, Malta provides access to the EU’s expansive market while maintaining a tax-efficient environment that appeals to both entrepreneurs and large corporations alike.
Dr. James Muscat Azzopardi, Director at Credence, has advised a significant number of South African businesses on either relocating to Malta or establishing an additional presence there. Muscat Azzopardi notes: “Malta presents a unique opportunity for South African businesses to access the European market without necessarily uprooting their operations completely from home. Many clients retain their South African company for income deriving from South Africa, but set up a Malta presence for expansion, especially into the European market. In recent years, a significant number of South Africans have moved their companies from Mauritius to Malta due to a Mauritius presence raising red flags with European and American banks and counter-parties.”
As more South African businesses seek to establish a foothold in the EU, sectors such as finance, technology, and real estate are experiencing notable growth. Credence reports a rise in inquiries from companies interested in leveraging Malta’s business-friendly regulations and extensive network of trade agreements.
While Portugal and Spain also offer favourable immigration and investment options for South Africans, Malta stands out due to its transparent programmes, English-speaking population, efficient bureaucracy, and proximity to major European financial hubs. Additionally, Malta provides businesses with favourable tax rates within a transparent regulatory framework which is not always offered by its EU counterparts.
“Malta’s strategic location and ease of doing business have proven critical for many of our South African clients,” explains Muscat Azzopardi. “The ability to integrate easily into Malta’s English-speaking community, along with the cultural similarities, make it a natural choice for those looking to relocate or invest.”
Despite Malta’s appeal, many South Africans remain unfamiliar with the intricacies of setting up a business or acquiring residency there. Credence notes that common misconceptions include the belief that relocating or expanding to Malta means necessarily cutting ties with South Africa entirely.
In reality, Credence emphasises that many of its clients maintain strong ties with South Africa, expanding their global presence while securing their financial futures in Malta. The firm has helped numerous South African companies navigate Malta’s legal and regulatory landscape, enabling them to operate across both markets seamlessly.
As South Africa’s economic challenges persist, the trend of seeking security and stability abroad is expected to grow. Malta’s flexible residency and citizenship programmes continue to make it a top destination for those looking to access the EU’s vast economic opportunities.
With 20 years of experience, Credence offers tailored solutions for South Africans, helping them to navigate the transition to Malta smoothly and successfully.
For more information on Credence, visit the website , or head here to find out more about meeting with the team from Credence when they are in South Africa at the end of November 2024.
