Foreign Affiliates Statistics: 2023
Inward Foreign Affiliates Statistics (IFATS) provide insight into the ownership and ultimate control of enterprises operating within the Maltese economy. They complement Structural Business Statistics (SBS) by identifying the share of enterprises under foreign control and their contribution to the domestic economy.
Conversely, Outward Foreign Affiliates Statistics (OFATS) describe the activities of affiliates abroad, that are controlled by Maltese resident companies. An enterprise is classified as Maltese-owned if more than 50 per cent of its controlling interest is ultimately owned by a company controlled by Maltese residents.
In 2023, both foreign-controlled and resident-controlled enterprises in Malta recorded a growth across most key variables. The total number of Business units rose by 10.5 per cent, however, the proportion accounted for by foreign-controlled enterprises decreased to 2.4 per cent of the total in 2023, compared to 2.6 per cent in 2022.
Overall employment in the Maltese non-financial business economy increased by 9.7 per cent, driven primarily by resident-controlled enterprises. Foreign-controlled enterprises also contributed to this increase, with employment increasing by 5.4 per cent to 45,020 persons. Corresponding Employee benefits expense paid by foreign-controlled enterprises increased by €149.8 million (9.2 per cent), totalling €1,770.3 million.
Value added increased by €1,821.9 million, reaching €13,484.9 million in 2023, reflecting increases of 17.3 per cent in foreign-controlled enterprises and 14.3 per cent in resident-controlled enterprises. By contrast, Gross investment in tangible non-current assets decreased by 39.4 per cent, mainly due to a 60.0 per cent drop among foreign-controlled enterprises (Table 1).
Chart 1. Main variables of resident-controlled and foreign-controlled enterprises within the Maltese non-financial business economy
Performance by size classification
In 2023, foreign-controlled enterprises showed varied performances across different size classifications. Large-sized enterprises were the main contributors to the growth among foreign-controlled enterprises, with Value added increasing from €3,688.5 million in 2022 to €4,671.4 million. Micro-enterprises registered a modest increase, from €93.9 million to €103.2 million. On the other hand, medium and small-sized enterprises recorded decreases of 3.4 and 24.0 per cent respectively.
Large-sized enterprises continued to dominate within foreign-controlled enterprises, accounting for 79.1 per cent of the Value added, 60.6 per cent of Persons employed, and 61.0 per cent of Employee benefits expense. Micro-sized enterprises, despite making up 53.1 per cent of foreign-controlled Business units, contributed only 1.7 per cent of Value added and 0.9 per cent of Net turnover. Meanwhile, resident-controlled enterprises displayed a more even spread of Value added and growth across all enterprise size classes (Table 2).
Performance of Small Mid-Cap enterprises (SMCs)
In 2023, the number of foreign-controlled Small Mid-Cap enterprises (SMCs) was unchanged from 2022, remaining at just 5 Business units. Despite their small number, they contributed €252.2 million in Value added, representing 4.3 per cent of the total under foreign control.
Compared with 2022, SMCs recorded a 4.0 per cent decrease in Persons employed under foreign control but increases of 14.3 per cent in Value added and 22.2 per cent in Employee benefits expense (Table 2).
Chart 2. Distribution of resident-controlled and foreign-controlled enterprises within the Maltese non-financial business economy by Value added, size classification and Small Mid-Cap enterprises
Key indicators across activity domains
In 2023, Gambling and betting activities (NACE Division R92) recorded the highest share of foreign control, while the largest contribution to Value added by foreign-controlled enterprises was concentrated in the Technological solutions, professional and business support activities (NACE Sections J, M and N). This latter domain also accounted for the largest nominal increase in Value added, rising by €778.8 million to €2,965.2 million, and represented the largest foreign-controlled employer segment, engaging 36.9 per cent of all Persons employed. Employee benefits expense in this domain reached €667.6 million, the highest across all activity domains.
Gambling and betting activities domain employed 7,829 persons, or 17.4 per cent of the total under foreign control. This domain also recorded a 5.2 per cent rise in Employee benefits expense, to €425.6 million, alongside increases in Value added (up by 6.1 per cent to €1,440.1 million) and Gross operating surplus (up by 6.5 per cent to €1,014.5 million).
Mobility, logistics and hospitality service activities (NACE Sections H, I and L) under foreign control registered a growth in Net turnover, while both Value added and Gross investment in tangible non-current assets declined, with the latter falling by €998.2 million, equivalent to a 69.4 per cent decrease. By comparison, resident-controlled enterprises in the same domain recorded a more consistent growth, with Net turnover and Value added increasing by similar rates of 20.0 per cent and 20.4 per cent respectively, and Gross investment in tangible non-current assets rising by 63.8 per cent.
Wholesale and retail trade (NACE Section G) showed a diverging trend, with foreign-controlled enterprises reporting declines in Value added and Persons employed despite Net turnover growth. Resident-controlled enterprises, in contrast, showed steady growth across key variables with Net turnover, Value added, and Persons employed each increasing by 3.5, 8.4 and 5.6 per cent respectively.
Construction (NACE Section F) remained relatively small and largely oriented towards resident-control, but the foreign-controlled segment, though minor, more than doubled its Value added while still recording a negative Gross operating surplus (Table 3).
Chart 3. Distribution of resident-controlled and foreign-controlled enterprises within the Maltese non-financial business economy by activity domain and key variables
Key indicators by geographical region
In 2023, residents of European countries, including EU Member States, continued to dominate control of foreign-controlled enterprises, accounting for 73.6 per cent of the total enterprises within the non-financial business economy. Residents of non-EU Member States exercised control over 757 Business units, representing 56.4 per cent of all foreign-controlled affiliates within the Maltese non-financial business economy.
Amongst the continents in non-EU Member States, enterprises controlled from Europe recorded the highest values for Persons employed, Value added and Gross operating surplus at 8,096 persons, €1,404.8 million and €1,031.7 million and respectively.
Non-EU Member States employed 24,756 persons, whilst also accounting for 47.3 per cent of the total Value added and 44.1 per cent of the total Gross operating surplus. Almost all foreign-controlled enterprises from non-EU Member States registered a decline in Gross investment in tangible non-current assets with affiliates under European control registering the largest drop, at 95.3 per cent compared to 2022.
Although affiliates controlled from EU Member States had fewer Business units than non-EU Member States, they remained major contributors to Value added and Gross operating surplus, at €3,114.8 million and €2,311.1 million respectively. They employed 20,264 persons, equivalent to 45.0 per cent of the total, and paid out €803.6 million in Employee benefits expense, up 8.1 per cent from 2022 (Table 4).
Chart 4. Value Added generated by foreign-controlled enterprises within the Maltese non-financial business economy, by geographical region
Key indicators by country
In both 2023 and 2022, enterprises under Swedish ownership accounted for one of the largest portions of Value added among foreign-controlled enterprises, rising from €1,379.0 million in 2022 to €1,630.1 million in 2023. While Swedish controlled companies maintained a strong contribution, the largest increase in Value added was observed in companies controlled from the United Kingdom, which rose from €303.0 million in 2022 to €605.5 million in 2023, an increase of 99.8 per cent.
Ranked by the highest number of Persons employed, enterprises controlled from the United States employed the most persons at 6,808, followed closely by the United Kingdom with 5,580 and Sweden with 5,527.
Companies controlled from Italy recorded Gross investment in tangible non-current assets nearly five times higher than their 2022 investment of €6.1 million, while companies controlled from Sweden and Turkey rose by 28.5 and 65.5 per cent respectively. By contrast, companies controlled from Germany saw a notable decrease, with Gross investment in tangible non-current assets falling from €36.2 million in 2022 to €20.7 million in 2023, a decrease of 42.7 per cent (Table 5).
Chart 5. Foreign-controlled enterprises within the Maltese non-financial business economy: Net turnover, Persons employed, and Value added (Size of sphere) by selected country
Note: Value added and Net turnover are represented in € million.
Foreign affiliates controlled by Maltese residents
Foreign affiliates controlled by Maltese residents across 59 countries worldwide generated €1,904.9 million in Net turnover and employed 16,582 persons, an increase of 35.7 per cent and 11.8 per cent respectively over the previous year. Foreign affiliates controlled by Maltese resident companies primarily generated their Net turnover in EU Member State countries, with €1,298.3 million or 68.2 per cent of the total. Persons employed in Maltese-owned foreign affiliates was predominant in EU Member States, with 13,293 or 80.2 per cent of the total (Table 6).
In 2023, Net turnover generated by Maltese-owned foreign affiliates in the United Kingdom increased by €55.2 million over the previous year. Affiliates in Romania accounted for the largest number of Persons employed with 6,178, while those in Poland recorded the strongest percentage growth, with employment increasing by 47.7 per cent, from 411 to 607 (Table 7).
Map 1. Global presence of enterprises controlled by Maltese residents: Net turnover generated in foreign economies
Methodological Notes
1. Inward Foreign Affiliates Statistics (IFATS) examine the overall activities of foreign-owned enterprises operating in a country. These enterprises are defined as resident companies under the control of, non-resident enterprises and persons . This data is essential for evaluating the influence and contribution of foreign affiliates on the Maltese economy. Foreign affiliates statistics are a key instrument for understanding globalisation and its effect on national economies.
2. Outward Foreign Affiliates Statistics (OFATS) cover Maltese-owned enterprises that have at least 50 per cent shareholding in subsidiaries abroad. These statistics analyse the sectoral and geographical position of the affiliates controlled by resident enterprises.
3. The methodology adopted to produce OFATS data is based on a census survey. Statistical units are identified using information from the previous year’s data, the Business Register, Research and Innovation unit, and indicators from the Euro Groups Register (EGR). Each year, questionnaires are sent to all identified units; in 2023 this amounted to 123.
4. Variables requested in the OFATS questionnaire are:
● Name of the subsidiaries abroad;
● Country of the subsidiary;
● Percentage shareholding;
● NACE description;
● Total number of Persons employed;
● Total Net turnover.
Two additional variables are requested only from subsidiaries with activity in NACE 85:
● Employee benefits expense;
● Gross investment in tangible non-current assets
5. FATS statistics can be broken down by industry domain, employment size class levels, and by country of ultimate controlling institution (UCI).
6. From reference year 2021, the legal basis for the production of FATS is defined according to the European Business Statistics and refers to Regulation (EU) 2019/2152 of the European Parliament and of the Council and Implementing Regulation (EU) 2020/1197 of the European Commission.
7. IFATS data is based on the existing results from the Structural Business Statistics (SBS). IFATS does not involve a separate survey but uses all the units included in SBS to compile its statistics. There are no distinct unique sampling methods specific to IFATS. IFATS data is supplemented with information from past UCIs assigned at micro-level, the EGR and other relevant sources. Each year, individual profiles are carried out covering at least up to the 60th percentile for the total Value added, Net turnover, and Persons employed, and at least up to the 80th percentile for the total Gross investments in tangible non-current assets.
8. The NACE classification system used in IFATS is the same as in SBS and can be accessed here. The 2-digit country code is allocated according to ISO 3166-1. The United Kingdom of Great Britain and Northern Ireland are referred to as United Kingdom and the United States of America are referred to as United States in this release.
9. Enterprises may change their classification from one year to the other if significant changes occur in their respective NACE or employment.
10. The activity domain names used in this news release are not internationally recognised but were established internally taking into account the respective domestic industry categories, national exigencies and the users’ needs.
11. The geographical classification of the data follows Commission Implementing Regulation (EU) 2020/1470, which outlines the country and territory nomenclature for European statistics on international trade in goods and the geographical categorisation for other business statistics. The geographical breakdown is based on GEO level 1, referring to foreign-controlled enterprises, and GEO level 3, which covers enterprises abroad that are ultimately controlled by institutional units of the reporting country.
12. In line with the Structural Business Statistics (SBS) news release, the data in this release has been classified according to the SME classification in the Commission Recommendation 2003/361/EC “definition of micro, small and medium-sized enterprises” adopted by the Commission. The ceilings of this classification were applied to Net turnover and employment only (both criteria must be met by individual statistical units). The balance sheet total ceiling was not applied as such information is not available for statistical units involving self-employed. Users of this news release must appreciate that there is not a single definition of what a SME is. Other SME definitions may be used by other institutions, authors and publications. For instance, Eurostat defines SMEs solely based on the employment within an enterprise.
| Company category | Staff headcount | Net turnover |
|---|---|---|
| Medium | <250 | ≤ €50m |
| Small | <50 | ≤ €10m |
| Micro | <10 | ≤ €2m |
Companies that do not fall within these categories, i.e. either more than 249 employees or with Net turnover greater than €50 million, are considered as Large.
Similarly, there are also different definitions of Small Mid-Cap (SMC) enterprises. The definition used in this release, as enterprises with 250–499 employees and Net turnover between €50 and €100 million, is consistent with the Structural Business Statistics release of 8 July 2025.
13. The business activities covered are defined under the European Business Statistics (EBS) regulation (EU) 2019/2152. Coverage includes NACE Sections B to N and P to S, excluding S94. Activities classified under Section K (financial and insurance activities, NACE 64–66) are not included in this news release. Sections A (Agriculture and Fisheries) and O (Public administration) are also excluded.
14. The definitions of statistical concepts surrounding FATS are as follows:
● Foreign affiliate in the framework of FATS is an enterprise resident in one country which is under the control of an institutional unit resident in another country.
● Domestic affiliate refers to an enterprise resident in the compiling country over which a UCI resident in the same compiling country has control.
● Ultimate Controlling Institutional unit of a foreign affiliate (UCI) refers to the institutional unit, proceeding up a foreign affiliate’s chain of control, which is not controlled by another institutional unit.
● Control is the ability to determine the general policy of the affiliate by choosing appropriate directors, if necessary. In this context, enterprise A is deemed to be controlled by an institutional unit B when B controls, whether directly or indirectly, more than half of the shareholders’ voting power or more than half of the shares.
● Indirect control means that an institutional unit may have control through another affiliate which has control over enterprise A.
15. Definitions of the key indicators for FATS (based on the Commission Implementing Regulation (EU) 2020/1197):
● Net turnover includes total sales and other operating income and is expressed net of VAT.
● Value of output measures the amount actually produced, based on sales, including changes in stocks and neutralising the impact of goods resold in the same condition as purchased.
● Value added represents the value a business adds through its production process. It reflects the net contribution of a business to the economy and is equivalent to the combined Gross operating surplus and Employee benefits expense;
● Gross operating surplus is the surplus generated by operating activities after the labour factor input has been recompensed. It can be calculated from the Gross value added less the Employee benefits expenses. Simply put, Gross operating surplus is a measure of profitability before accounting for interest, income taxes, depreciation, amortisation, revaluations, provisions and other non-operating expenses.
● Employee benefits expense is defined as the total remuneration, in cash or in kind, payable by an employer to an employee (regular and temporary employees as well as home workers) in return for work done by the latter during the reference period. Employee benefits expenses also include taxes and employees’ social security contributions retained by the unit as well as the employer’s compulsory and voluntary social contributions.
● Gross investment in tangible non-current assets is defined as investment during the reference period in all tangible goods. Included are new and existing tangible capital goods, whether bought from third parties or produced for own use (i.e. capitalised production of tangible capital goods), having a useful life of more than one year including non-produced tangible goods such as land. Investments in intangible and financial assets are excluded.
● Persons employed are people engaged in productive activities in an economy. The concept includes both employees and self-employed (i.e. inclusive of working proprietors, partners and unpaid family workers). The latter category may include persons who do not receive compensation in the form of wages, salaries, fees, gratuities, piecework pay or remuneration in kind. The name used, for this variable by Eurostat in the Eurobase is Number of employees and self-employed persons.
● Number of employees is defined as those persons who work for an employer through a contract of employment and receive compensation in the form of wages, salaries, fees, gratuities, piecework pay or remuneration in kind.
16. In some cases, totals may not match because of rounding.
17. More information relating to this news release may be accessed at:
18. Values available on Eurostat’s database (Eurobase) differ from those in this news release due to the differences in size classification and the inclusion of the financial sector.
19. The data for 2023 in this news release should be considered as provisional and subject to revision. The data for 2022 is final.
20. Data in this news release is in line with data found in the SBS news release available here.
21. A detailed news release calendar is available online.
22. References to this news release are to be cited appropriately. For guidance on access and re-use of data please visit our dedicated webpage.
23. For further assistance send your request through our online request form.
Foreign Affiliates Statistics: 2023
- Foreign-controlled enterprises accounted for 2.4 per cent of Business units in the Maltese non-financial business economy and contributed 43.8 per cent of the total Value added.
- Foreign-controlled Small Mid-Cap enterprises (SMCs), despite having only 5 business units, generated €252.2 million in Value added.
- Foreign control was most intensive in the Gambling and betting activities domain, accounting for 43.5 per cent of the Business units and 94.3 per cent of the Value added generated.
- Residents of European countries, including EU Member States, controlled 73.6 per cent of foreign-controlled enterprises in Malta and registered a growth in Value added of 18.9 per cent.
- Foreign affiliates controlled by Maltese resident companies generated the equivalent of €1.9 billion in Net turnover and employed 16,582 persons across 59 countries worldwide.
