Malta is situated in the heart of the Mediterranean, 93 km (58 miles) south of Sicily, 288 km (179 miles) east of Tunisia, with the Strait of Gibraltar 1,826 km (1,135 miles) to the west and Alexandria 1,510 km (940 miles) to the east. Malta covers just over 316 km2 (121 sq miles) in land area, making it one of the world's smallest countries; but it has a very rich history. The main island is made up of many small towns with a population of about 417,600 as at 2010. The capital city is Valletta.The country has two official languages - Maltese and English, with Maltese being the national language.

Malta has a subtropical-Mediterranean climate with mild winters and warm to hot summers, with temperatures varying from 12 to 20 °C (54 to 68 °F) during the day of the coldest months and go down to 7 to 12 °C (45 to 54 °F) at night. In the warmest months the temperatures vary from 28 to 34 °C (82 to 93 °F) during the day and 19 to 24 °C (66 to 75 °F) at night.

The culture of Malta reflects the various civilisations that have come into contact with the Maltese Islands throughout the centuries, including its neighbouring Mediterranean countries and the nations that ruled Malta for long periods of time prior to its independence in 1964.
 

Throughout history, Malta's location has given it great strategic importance. A sequence of powers including the Phoenicians, Greeks, Romans, Arabs, Normans, Sicilians, Knights of St John, French and the British ruled the islands. Malta became independent from the United Kingdom in 1964 and became a Republic in 1974. It applied to become a member of the European Union in 1990; negotiations came to an end in December 2002 and the accession treaty was signed in April 2003. On the 1st May 2004 Malta became a member of the European Union. Malta is also party to the Schengen Agreement and it joined the eurozone on the 1st January 2008.
 

Malta is just a few hours’ flying time from most mainland European cities and is also accessible by ferry from several Mediterranean ports. The national airline, Air Malta, operates flights to and from all the major airports in Europe, North Africa and the Middle East. The Islands are included in several cruise itineraries and also provide an excellent base or stop-over for sailing. In line with EU legislation on controls of cash entering or leaving the Community, any person entering or leaving Malta carrying cash or other monetary value of which is equal to or in excess of €10,000 or equivalent is obliged to fill in the appropriate declaration form available from Customs.

Maltese time is the Central European Time (CET), which is one hour ahead of Greenwich Mean Time (GMT) and six hours ahead of U.S. Eastern Standard Time (EST). In line with CET, Malta goes on Summer Time, which is one hour ahead of normal time, from the last week of March to the last week of October.

Malta is an attractive location for industrial investment. Its geographical location, adequate and skilled educated work force, modern infrastructure and political stability are some of its key advantages. Malta is also tax- and cost-efficient, which encourages both individuals and corporate entities to set up their operations in Malta and take advantage of fiscal benefits and attractive EU-approved tax refund and participation exemption regime. English is the official business language. Malta offers an extensive double taxation treaty network (including all EU Member States). 

Malta is the ideal destination for those who intend to establish their residence, as well as those who choose to spend their retirement here. Malta’s main benefits include its climate, geographical location (which makes it easier for foreigners to travel to and from Malta) and its health services, as well as high standards in all levels of education. Besides the above-mentioned advantages, it is pertinent to mention fiscal advantages through the various Double Taxation Treaties with various countries.

There are also other schemes that attract people to Malta, such as the Highly Qualified Persons, the High Net Worth Individual Scheme (HNWI), which replaces the previous Permanent Residence Scheme that was in place up to 24th December 2010. All these schemes offer an advantageous income tax rate of 15%.

Retirees who are residents but not domiciled in Malta may claim an exemption from tax in their country where their pension arises and have it taxed in Malta, provided there is a Double Taxation Treaty in place between Malta and the country from where the income arises. Those retirees applying for Special Tax Status under the HNWI Rules or the Malta Retirement Programme Rules will be taxed at a flat rate of 15% but subject to a minimum tax liability, whereas others are taxed on foreign source income remitted to Malta at the progressive rates of tax which vary from 15% to 35%, with a tax free allowance of €11,900 for married couples and €8,500 for single persons.
 

Parent Tax Rates

In order to qualify for this computation, a parent must satisfy these conditions:

• s/he maintained under his/her custody a child or paid maintenance (established or authorised by courts) in respect of his or her child;
• the child was not over 18 years of age, or not over 21 years if receiving full-time instruction at a tertiary education establishment;
• the child did not earn income in excess of €2,400 from gainful occupation.

This rate is applicable from 1^st January 2012 and those who opt for the Parent computation have to file and FS4 which must be dated 1^stJanuary 2012 irrespective to when the employment started because the Parents’ Rate are effective 1^st January 2012.

The basis of taxation in Malta varies depending on the tax status of the individual, where the residence is established and the domicile. Taxation can be charged on world-wide income, remittance basis and source basis.

Malta is an international financial centre with several international banks. Banks offer a wide range of services and products which vary from accounts, loans, investment portfolio and so on, all specifically designed to provide specialised financial services both on a personal and corporate level.

Medical care in Malta is available through both public and private hospitals, and the quality of medical care in Malta is excellent. Malta also has a strong general practitioner primary care base and the public hospitals provide secondary and tertiary care. It is advisable that foreign residents take out private medical insurance. There is a bilateral health agreement in force between Malta and the UK, and all UK nationals and their spouses are entitled to free hospitalisation in Malta. In 2000 Malta was ranked number five in the World Health Organization's ranking of the world's health systems. Malta's health sector has excelled even further since 2007 with the opening of state of the art public hospital – Mater Dei.

Exchange controls were operated by the Central Bank of Malta in terms of the Exchange Control Act, 1972. Since the 1st May 2004, when Malta joined the EU, all transactions were freed from control and restrictions.