Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Malta. This is regularly updated, and should be checked before planning travel.

Country overview

Country facts

Capital city:	Valletta
Surface area:	316 sq km
Population:	0.4 million
Official language(s):	Maltese, English
Government:	Republic
Head of State:	H.E. President Dr Edward Fenech Adami KUOM BA LLD
Head of Government:	Prime Minister The Hon Dr Lawrence Gonzi KUOM LLD
Australian exports to Malta:	$A5 million
Australian imports from Malta:	$A16 million
Malta's principal export destinations:	France, Germany, Singapore
Malta's principal import sources:	Italy, United Kingdom, France

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Key economic indicators and statistics for 2006:

GDP - US$6.4 billion
GDP per capita - US$15,998
Real GDP growth - 3.3 per cent
Inflation rate - 2.6 per cent

Political climate

In the last 20 years there has been no civil unrest and the political climate remains stable. The role of the military is mainly to safeguard the island’s territorial waters and rescue operations.

The legal system is based on English common law. Judges are appointed by the President, on the advice of the Prime Minister.

Malta has active diplomatic relations around the world, including in Australia, and is an active participant in a number of multilateral forums.

Malta is a parliamentary democracy, with universal suffrage and a separation of powers between the executive, the legislature and the judiciary. The unicameral parliament consists of 65 members plus the Speaker, with members elected for five-year terms by proportional representation.

The President is the Head of State, and is appointed for a five-year term by the parliament. The President formally appoints the Prime Minister. On the Prime Minister's recommendation (based on election results and the control of parliament), the President also appoints the Cabinet. The Prime Minister and Cabinet form the Executive. The two main parties are the Malta Labour Party and the Nationalist Party. Elections results are always decided by the 6-10 per cent floating voters.

In the last few years town councils have been administering their districts independently however major decisions are still taken by the main government.

Malta gained independence from the UK in 1964, and became a republic in 1974. Malta is a member of the Commonwealth.

Trade relations and statistics

Malta has a strong relationship with other countries in its region, including the European Union, the Middle East, and other Mediterranean states. Malta is in the accession process for European Union membership. Malta is currently in the Commonwealth.

Malta retains a strong links with the UK and Italy for historical and geographical reasons. Both countries have bilateral agreements with Malta. It also has strong links to other countries, including the USA.

The relationship with Australia is based on migrant links, membership of the Commonwealth, a small but import-commercial relationship, and shared perspectives on major international issues. There are several bilateral agreements covering health, double taxation, immigration, social security, and air services.

Malta has no serious international disputes at present. Malta is negotiating with Tunisia over oil exploitation on the undersea shelf between the two countries.

Major Australian exports to Malta (2006-07):

• Cheese and curd – A$1 million
• Margarine and shortening – A$1 million
• Medicaments (including veterinary) – A$1 million

Major Australian imports from Malta (2006-07):

• Electrical machines and apparatus – A$4 million
• Medicaments (including veterinary) – A$3 million
• Medical instruments - A$2 million
• Articles of plastic – A$2 million

In addition to the merchandise trade between Australia and Malta, the two countries have a small investment relationship.

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Doing business

Business opportunities

The Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
 

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
 

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and regulations

Import restrictions

There are no import restrictions in force, but certain products may be subject to an import licence. The Maltese Department of Trade is responsible for import licensing. Imports into Malta are classified into two categories:

• Those that require specific licences; usually for those items requiring clearance for health, safety, security and environmental reasons, as well as for sensitive items, such as wheat, flour, cakes and pastries, gold and silver, furniture and lace.
• Other items not subject to specific licensing, may be entered under an Open General Licence.

Certain goods similar to those manufactured in Malta are either restricted or have import levies placed on them.

Weighing apparatus calibrated in imperial units only are prohibited.

Tariff

Exporting to Malta is fairly straightforward. Malta has a single-column harmonised tariff, usually ad valorem on CIF value. Excise duties are levied on alcoholic beverages, tobacco and petroleum products.

Malta is an associate member of the European Union (EU) and is applying to become a full member. This would mean that preferences are granted to EU states. When Malta joins (possibly in 2004), it will adopt the EU common customs tariff and harmonised trade system.

Customs authority contact details:

Comptroller of Customs
Customs Department Customs House
Lascaris Wharf Valleta
Tel: +356 233 571
Fax: +356 246 150

Packing, marking and labelling

Special approval is required for plastic packaging on foods, otherwise, packing and marking rules are fairly straightforward. Specific advice should be sought from Austrade, importers or agents.

Outer containers should bear the consignee's mark and port mark and be numbered (to accord with packing list) unless the contents can be otherwise readily identified.

The use of polythene, plastic or similar containers for foods prepacked locally requires prior permission from the Director of Trade. Such packages must be marked with the type of contents, the minimum net weight retail price and the name and address of the packer.

Canned milk must bear a label which clearly indicates the brand name.

Imported souvenirs of Malta are to be clearly and indelibly marked with the source of origin.

False or misleading indications of origin, trademarks or trade descriptions are prohibited.

Insurance

No restrictions.

Methods of quoting and payment

Quotes should be in any currency agreed between the parties concerned, and should use the metric system. The quote basis is open, as there are no insurance requirements.

Public health requirements

Plant products are subject to special quarantine regulations and to examination on arrival.

Livestock and other live animals require an import permit from Maltese veterinary authorities and are subject to quarantine control (see also 'Special certificates').

The import of raw oysters, clams, sea urchins, mussels, crustaceans, and other marine invertebrates must have a special permit from the Superintendent of Public Health.

Permitted preservatives are subject to specific requirements regulating alternative forms used and proportions allowed.

Special regulations govern the import of cosmetics, pesticides, paints, steel bars and televisions

Foodstuffs are subject to quality control and should bear production and expiry dates on the outside label.

Documentation

Fax signatures are acceptable under specific conditions.

Pro-forma invoice

May be requested.

Commercial invoice

Two copies are required and must be signed by the exporter or shipper. The invoices must indicate the following:

• The number and description of packages, marks and the numbers of individual packages
• A detailed description of the goods
• The gross net weight or quantity
• FOB and CIF values
• The country of origin, place of shipment and destination of the goods

Certificate of origin

Not compulsory, but may be required by importers and banks. If requested, it must contain a description of the goods, their total invoice value and be signed by the proprietor, a partner or principal official of the manufacturing or supplying firm. The name of the person signing the certificate and position held in the firm must be stated. The certificate must be certified by a Chamber of Commerce.

Bill of lading

No special requirements. To Order bills are acceptable.

Packing list

Required in order to facilitate clearance.

Special certificates

The following certificates from the appropriate Australian authorities are required:

• Plants and plant products require a phytosanitary certificate.
• Meats require a sanitary certificate endorsed with 'Australia has been free from foot and mouth disease for two months. This meat is declared free from infectious and contagious diseases and is fit for human consumption'.
• Lard, fresh tomatoes, seed potatoes, hay, straw, cottonseed, rags, flour and livestock also require a sanitary certificate.
• Live animals require a veterinary certificate and an additional certificate showing there were no cases of contagious diseases in any area of the country of origin at the time of shipment.
• Seafood require a special permit from the Superintendent of Public Health (see 'Public health requirements') for import clearance.
• Frozen fruits and vegetables require a certificate to confirm that the goods have been deep frozen.

Taxation

All tax matters for Malta are handled by the Department of Inland Revenue, which comes under the direction of the Minister for Finance. The Government has committed itself to introduce benchmarks for every category of business. This is intended to curb wide abuse of tax collection.

General tax information:

• Company tax is paid on previous calendar year profits.
• The standard tax rate is 35 per cent.
• Excise duties are levied on beer, wine, spirits, crown corks, cigarettes and petroleum products.
• Provisional tax payments are made three times a year.
• Non-resident shareholders do not have to declare dividends on their tax return.
• VAT is 15 per cent on most goods and services.
• Capital gains tax is 35 per cent.
• Transactions on Malta Stock Exchange are tax exempt.
• Fringe benefits are taxable.
• Income tax is payable on a sliding scale to 35 per cent.
• The first LM4000 (A$17,931) of personal income is tax free.

Business travel

The airport is about 10km from Valletta. Taxis are readily available and will take around 15 minutes into town. The cost is around A$30, and tipping is expected at 10 per cent.

A network of buses connect the towns, and are very cheap, although they can be crowded and delayed at times.

Ferries run between Malta and Gozo (the two main islands).

Cars can be rented at the airport and in most major centres. They are quite reasonably priced when compared to the high cost of taxis for longer journeys.

Visiting this country

Security and health

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Malta. This is regularly updated, and should be checked before planning travel.

Health

The water is safe to drink, although it is processed sea water and is heavily chlorinated.

Australia has a reciprocal health agreement with Malta. This means that basic healthcare is free of charge to Australians. However, this should not be a substitute for travel insurance as the reciprocal agreement only covers basic and emergency services. As a guide, whatever is covered by Medicare in Australia should be available in Malta.

Travel insurance will cover other services such as lost baggage, theft, cancellation penalties and emergency repatriation.

Water sports are common, and care should be taken in the sea. Currents are sometimes strong and, because sandy beaches are rare, many swimmers have to enter and leave the water from rocks or a boat.

Visas

Australians do not require a visa for holiday visits of up to three months.

Travel tips and facts

Malta is a developed and pleasant place to visit. Summer (June to August), is the height of the tourist season and advanced bookings are essential. Certain areas can get very crowded. In contrast, winter can be very quiet.

Tipping is expected at around 10 per cent with taxis and restaurants.

Malta is a traditional society, and visitors should bear this in mind. Visitors should not criticise religion, politics, or the local culture. Visitors should dress somewhat modestly, especially if visiting churches.

For further travel information please visit Lonely Planet.

Time

Malta is nine hours behind Australian Eastern Standard Time.

To find out the current time in Valletta, view the World Clock.

Dialling codes

The international code for Malta is 356.
For calls to Malta from Australia dial: 0011 + 356 + telephone number
For calls from Malta to Australia dial: 00 + 61 + area code + telephone number

For further information (eg. area codes) please visit the White Pages - international dialling codes.

Electricity

The power supply throughout Malta is 220V, 50Hz; 1,3 phases, 2,4 wires. Plugs have three square pins, the same system as the UK.

Weather

Malta has a typical Mediterranean climate. Summer is very hot, often 35ºC or higher. Usually, the weather heats up in May, peaks in July and August, and cools down again in October. Winters can be quite mild and wet, with January and February the coolest months. Spring and autumn are both long and very pleasant.

For weather details in Malta, please visit the World Meteorological Organization.

Currency

Oanda currency converter

The local currency is the Maltese Lira.

Useful websites and resources

Government, business and trade

Malta Chamber of Commerce - www.chamber.org.mt
Malta EU Information Centre - www.mic.org.mt
Malta Development Corporation - www.investinmalta.com
Maltese Government - www.gov.mt/index.asp?l=2

News and media

Times of Malta - www.timesofmalta.com 

Travel and tourism

Visit Malta - www.visitmalta.com

Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.

Contact details

Austrade offices

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Australian Embassy

Australian High Commission
Ta'Xbiex Terrace
Ta'Xbiex, XBX 1034
Malta
Tel: +356 2133 8201
Fax: +356 2134 4059
Email: aushicom@onvol.net

Website: www.malta.embassy.gov.au

Business hours:
8.00am-4.00pm, Monday to Friday

(Last updated: 03 Apr 2008)