How Malta Became the Tech Hub of the Mediterranean


The Republic of Malta is a small island in the Mediterranean Sea. Situated between Italy and Libya, the island is beautiful. In recent years Malta has found itself at the forefront of the tech world, which seems strange on the surface to those who are not familiar with the reasons why.

For a start, it is the most densely populated country in Europe, taking over the mantle from the Netherlands. Within the relatively large population, considering the size of the island, it is home to a huge number of business-minded, tech-savvy workers.

The country also has extremely favourable tax laws, making it an attractive proposition for any company looking to set up shop. There are major corporations operating in the country, like Actavis Pharma, Odean and VGW (Virtual Gaming World). VGW being based in Malta should come as no surprise.

Tax Rates and Online Gambling

One thing the island has long been known for is gambling. There are a huge number of online casinos, social casinos and sportsbooks operating out of Malta. VGW are responsible for making and promoting a lot of the new sweepstake and social casinos, many can be found on

Back in 2007, online gambling was still a new industry. However, Malta had passed a law that allowed companies registered on the island to offer their online casinos and slot games to bettors all over the world. All of this while in the UK, they were about to announce a new tax on profits made from internet gambling.

The Great Migration

Those in the industry in Malta braced themselves and hoped they would get the news they wanted – they did as Britain set the tax at %15, triple the rate in Malta. All of those in the know knew this would mean a huge influx of new business.

The authorities on the island also provide a smooth process for acquiring a gaming license. That, coupled with their excellent corporate tax rates for gaming operators has made the destination a sought-after place to set up by those in the industry. To this day, rates are as low as 5%. To compare, in the UK, taxation is nearer to 21%.

Is Tax the Only Reason Companies are Setting up There?

There are more reasons Malta has become so popular for tech and gaming companies other than tax ones. It is one of the only countries in Europe that uses English as its first language – with the UK leaving Europe as part of Brexit, this could become an even bigger factor in the years to come. There’s a great nightlife, pace of life and restaurant scene in the country. There’s also easy access to the rest of Europe and the Middle East.

The tech industry in the country has experienced a boom, there was even the recent launch of ‘Silicon Valletta.’ The name paying clear homage to the Valley that they wish to replicate in the coming years. Silicon Valletta was founded to connect the start-up scene in the country with investment and government sectors, as well as connecting CEOs of the island’s digital companies to increase productivity.

Moving Forward

Despite the island’s small size, its tech industry shows no signs of slowing down. A huge part of attracting technology firms to a country is the efficiency and reliability of the internet. Some European countries like Portugal have successfully demonstrated how you can attract top tech giants and start-ups.

Google and Amazon have set up shop in two major Portuguese cities in recent times. Malta has an excellent fibre optic network and nationwide access to 5G, positioning it nicely for more investment. There is every reason Malta will continue to thrive in the years to come.


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