International Living: The Swings & Roundabouts Of Overseas Ownership
Malta, a small Mediterranean archipelago, is not only a popular tourist destination but also a thriving hub for property investments. With its unique appeal and numerous advantages, Malta offers enticing opportunities for individuals looking to invest in the real estate market. Let’s explore what makes Malta such an attractive location for property investments.
- Strategic Location: Situated at the crossroads of Europe, Africa, and the Middle East, Malta enjoys a strategic location that provides excellent connectivity and accessibility. This makes it an ideal base for international businesses and individuals seeking a gateway to multiple markets.
- Stable Economy: Malta boasts a stable and growing economy, supported by diverse sectors such as tourism, financial services, technology, and gaming. The strong economy creates a favorable investment climate and contributes to the appreciation of property values.
- EU Membership: As a member of the European Union, Malta offers numerous benefits for investors. It provides access to a large market, business-friendly regulations, and opportunities for cross-border trade and investments.
- Attractive Tax Regime: Malta’s tax system is highly favorable, with attractive incentives for property owners and investors. This includes a non-domiciled resident scheme, which offers significant tax advantages for individuals relocating to Malta.
- Mediterranean Lifestyle: Malta offers a high quality of life, thanks to its pleasant Mediterranean climate, stunning natural landscapes, and rich cultural heritage. The island’s historical sites, picturesque coastal towns, and vibrant social scene make it an attractive destination for residents and tourists alike.
- Strong Rental Market: With a growing tourism industry and a steady influx of expatriates, Malta has a strong rental market. Investors can benefit from attractive rental yields and high demand for both short-term and long-term rentals.
- Property Options: Malta offers a wide range of property options to suit different budgets and preferences. From luxury apartments and penthouses to charming townhouses and traditional farmhouses, there is something for everyone.
- Government Support: The Maltese government actively encourages foreign investments and offers various incentives for property developers and investors. This includes schemes for property renovation, urban regeneration, and special designated areas for development.
- English Proficiency: English is widely spoken in Malta, making it an attractive destination for international investors and expatriates. The ease of communication and business interactions further enhance the appeal of the island.
- Growing Tourism: Malta’s popularity as a tourist destination continues to grow, attracting millions of visitors each year. This creates opportunities for property investors to capitalize on the thriving hospitality and vacation rental market.
In conclusion, Malta’s unique appeal, strategic location, stable economy, attractive tax regime, and growing property market make it a compelling choice for property investments. Whether you are looking for a lucrative investment or a place to call home, Malta offers a wealth of opportunities and a Mediterranean lifestyle that is hard to resist.
Of all the island destinations in the Mediterranean Sea, Malta is surely the one that is the easiest to overlook. Dwarfed by the likes of Sicily and Corsica and smaller even than any of the Balearics, you would surely miss it if you blinked. At its longest point Malta barely stretches to 30km, yet it ’s still the largest island of what is in fact an archipelago. Of the other four main islands, Gozo and Comino are inhabited, Fifla is not.
For all its apparent remoteness, the Maltese Archipelago is situated more or less in the middle of the Mediterranean, quite literally at what was once the shipping crossroads between the Middle East, Africa and the rest of Europe. As a kind of melting pot for those neighbouring cultures, the islands have a very distinct flavour. Although Malta has been an independent state since 1964, it had, until that time, experienced 150 years of British rule. A very British presence also lingers in the form of tearooms, pubs, fish and chip shops and the ubiquitous red phone box. Alongside Maltese, English remains the official language amongst the islands’ sparse population of 400,000.
Small it may be, yet Malta’s tourist trade is booming. Traces of a long history, dating back as far as prehistoric times, can still be found here. Its clutch of World Heritage site, amongst them arcane temples and medieval citadels, are also major crowd pullers. So, too, is the vibrant nightlife and a folio of sporting activities which encompasses anything and everything water born.
For the less physically inclined, Malta’s beaches are a dream. All-year-round sun also means that you needn’t be off them for long. The summer season, which stretches right into mid-October, is hot but tempered by cool sea breezes. Even as winter sets in, you can still expect five hours of sunshine and temperatures nudging past the mid-teens.
Part of Malta’s unique appeal is its size. Even on the briefest visit, the close proximity of the islands means that you’re likely to achieve everything on your to-do list. A frequent ferry service operates between the three main islands and on land there is an efficient bus network. In comparison with other European countries, local rates for car hire are substantially lower.
Visit Malta once and you might want to join the thriving community of ex-pats already living there. The permanent residents scheme allows foreign nationals to settle on the islands with no minimum or maximum lengths of stay. Applicants must be able to demonstrate only a modest annual income or capital assets again of only modest means. Either way, the value of any property that is purchased on the islands forms a part of the evaluation.
The home which an applicant buys isn’t asked to be excessive. But you can also choose to rent. As a resident, applicants are obliged to import a minimum sum of goods into the islands annually, but it ’s not beyond what anyone would ordinarily do. Tax rates are very reasonable. As a general rule, overseas nationals who are granted permanent residency are not permitted to work on the islands, unless they are making a unique contribution to the tourism or catering industries.
All this ease-of-access undoubtedly account for the abundance of retired overseas wealth in Malta. As well as the broad appeal of the low rates of tax, permanent residents enjoy, amongst other things, high LTV local mortgage facilities, a legal system which is English fluent and the prospect of no local or council taxes. Additionally, permanent overseas residents are exempt from capital gains tax arising outside the islands, even if the gain is remitted within. Thus, residing permanently in Malta is realistic. However, owning a buy-to-let property might be the most sensible and cost-effective way of funding you own off-season visits to the islands. After all, perpetual sunshine means that you can enjoy a string of holidays throughout the winter months.
Malta Property Websites
Visit legal-malta.com, which is an excellent site that covers every conceivable legal and financial aspect to the purchase of property in Malta, including a guide to obtaining an AIP permit; a permit to acquire immoveable property. Air Malta is the island’s primary airline (airmalta.com). A good selection of online Maltese property pages