Malta, the small island nation took a vital decision to regulate its medical cannabis laws. In March 2018, Malta officially regulated medical cannabis which authorised the use and possession of medical cannabis with a prescription.
Companies can cultivate, import, process, and produce cannabis intended for medical and research purposes under a controlled and supervised environment.
Below are the Top 10 reasons why you should choose Malta for setting up your Medical cannabis business/company.
#1 Malta Regulated its Medical Cannabis Laws
In March of 2018, Malta took a significant decision and legalised medical cannabis. As per the new Malta Cannabis laws, the Production of Cannabis for Medicinal and Research Purposes Act allowed entities to process, import, cultivate, and produce cannabis intended for medical and research purposes under a controlled and supervised environment – provided all necessary regulations were complied with.
#2 Doing Business in Malta
Base your business in the European Union’s fastest-growing economy with the opportunity to unlimited access to the European Union (EU), the world’s largest economic zone. Make the most from total freedom of capital and income movements within the EU. Additionally, Malta’s commercial features like a stable economic environment, a well-educated workforce, a competitive fiscal regime and an attractive business climate remain impressive, attracting investors from all over the globe.
#3 Economy of Malta
Malta has emerged as one of the best-performing open market economies in Europe with steady economic growth and a low unemployment rate. Through a broad diversification strategy, business-friendly and accessible regulatory framework, Malta’s economy has been growing steadily. Malta’s reputation as a safe investment location has experienced a boost, and over recent years has secured foreign direct investment (FDI).
#4 Malta, the Logistics Hub
Huge investment has turned Malta into a major logistics hub, offering sea and air logistics solutions with a flourishing freeport and excellent air-cargo facilities. Malta also boasts extensive passenger air links offering non-stop flights to some 70 cities with almost 1000 international flights per week.
#5 Location of the Maltese Islands
Located in the centre of the Mediterranean, with closest lands being Sicily, North Africa, and Gibraltar, the Maltese archipelago makes just the perfect location when it comes to setting up your company. Being a Commonwealth member state, a member of the EU since 2004 and part of the Schengen area since 2007 facilitates trade and freedom of movement within the European Union.
#6 Skilled Workforce
Malta offers a comprehensive working ecosystem. Maltese islands have the resources, people and culture to give professionals and entrepreneurs the possibility and chance to connect with like-minded individuals where business gets done. Malta’s workforce is incredibly international and diverse. The island has drawn people from all corners of the world, employed in various sectors. The economic and political stability and a low crime rate have also helped companies to have higher levels of trust in the country.
#7 Language in Malta
Maltese and English are both official national languages and given equal status and use in governmental authorities or agencies. English is typically the language of business. Owing to its time as a British colony, the majority of locals are fluent in English language, so communicating and blending in would not be much of an issue.
#8 Taxation System in Malta
Malta has a highly efficient tax regime. Companies incorporated in Malta are subject to tax at the rate of 35% on their worldwide income and capital gains however with the system of tax refunds which Malta adopts, upon the distribution of profits as dividends, shareholders can claim a tax refund, reducing the overall effective tax rate to 5%. Malta operates the full imputation system whereby the tax paid by the company is imputed towards the shareholders’ tax liability upon receipt of a dividend, meaning that no further tax is due by the shareholder upon receipt of a dividend. Taxation of companies is also underpinned to the double tax relief. To date, Malta has concluded more than 72 double taxation agreements for the avoidance of double taxation. By virtue of domestic legislation, Malta does not impose withholding taxes.
#9 Financial Services in Malta
Malta is now an internationally recognised financial services hub. For an island the size of Malta, the country has built up a remarkably diverse financial services portfolio. The financial services sector in Malta is regulated by the Malta Financial Services Authority (MFSA), a one-stop-shop for all licence requirements in this sector. The MFSA regulates and licenses a broad range of service providers and seeks to provide a stable and efficient regulatory environment to grant a sound and professional experience to all operators, to ensure a positive experience to all clients engaging with any licensee.
#10 Other Strengths of Malta
Malta's strength lies in all directions. Some of them are as follows:
Economic and Political stability;
Dedicated and competitively priced human resources;
A safe, secure and pleasant lifestyle, rich in culture and entertainment; and
Top business support services.
Legalising medical cannabis in Malta not only gave access to government-sanctioned cannabis medication to qualified patients but also created an opportunity to attract foreign investors in its nascent medical cannabis industry and boost its economy.
With proper regulations and monitoring, it could downturn the black market, decrease the number of detainees, increase job creation and tax revenue as well as broaden Malta’s healthcare system.