Playmobil: A German Success Story Made in Malta

Many German companies have discovered that Malta offers huge potential for savings. You might know names like BMW or Fraport, but there is another major player on that list: Geobra Brandstätter GmbH. If that name doesn't ring a bell immediately, their most famous product definitely will: Playmobil. Millions of these iconic figures are produced right here in Malta every year, and they have been since 1974.

Playmobil in Malta since the market launch in 1974

Geobra Brandstätter GmbH & Co. KG actually dates back to 1876, though it operated under a different name back then. The company's long-time leader, Horst Brandstätter, was the third generation to run the business. Under his leadership, they created the Hula-Hoop and, of course, Playmobil. The company has been manufacturing in Malta since 1971, and they have been producing the Playmobil figures—originally designed by Hans Beck—here since their market launch in 1974. With over 100 million parts produced annually, the Malta facility is one of their most productive plants and makes them one of the largest employers on the island. Over 800 employees ensure that everything runs smoothly, and since production began, more than 2.8 billion figures have left the factory.

EU accession fueled Malta's economic rise

So, what drove an entrepreneur like Horst Brandstätter to set up shop in Malta? Back then, Malta was still considered a low-wage country. Being located on the periphery of Europe, the island's economic output wasn't anywhere near the level of Central European nations. Generally speaking, Malta only really transformed into the service-based economy we know today after joining the EU and opening up trade—but that is a story for another time.

A logistical feat: From Malta to Bavaria in days

Another major factor is the location. Sure, being an island has its downsides. But the advantage of high-quality production at lower costs—while still being within Europe—outweighs that. Furthermore, Geobra Brandstätter pulls off quite a logistical feat: they can react within days if there is a shortage of specific parts at their headquarters in Bavaria. They achieve this via a freight route that ships goods across the Mediterranean to Sicily, and from there by truck all the way to the company headquarters in Zirndorf.

Tax incentives with a Malta Limited

Then, of course, there are the tax incentives. It is well known that with a Malta Limited, you can save significantly on corporate tax. While I cannot tell you exactly how Geobra Brandstätter is structured internally regarding this, I am fairly certain that a company of that size isn't ignoring these benefits.

If you want to benefit from Malta's tax advantages as well, now is the time to act. Get in touch with us at Dr. Werner & Partners, and let's discuss your options.