International Property Buyers
Why buy property in Malta?
Malta is considered a Mediterranean island paradise with its warm climate, over 300 days of sunshine per year and stunning beaches, bays and historical sites. Traditional village feasts, are celebrated in each town, along with a number of events that make for a busy social calendar all year round, such as the Jazz Festival, the Fireworks Festival and the Valletta Film Festival. Due to the island’s relatively low cost of living, together with a politically stable environment and an extremely low crime rate, many expats are choosing to buy property in Malta.
Malta is an excellent choice of residence for many reasons. It allows ease of access to Europe, Africa, and the Middle East. Malta also enjoys a warm climate, low crime rate, and stable political environment.
Types of property in Malta
The property market in Malta is diverse with many kinds of property available, such as:
- Houses of Character
- Terraced Houses
- Villas and bungalows
Consider a renovated palazzo or townhouse - today these are being snapped up and decorated in a chic retro style to be used as boutique hotels. The appeal of such properties lies in their blend of traditional Maltese architecture, exposed wooden or stone beams, rough limestone walls and hand-made patterned tiles. Increasingly rare features include central courtyards and private wells, dating back to the time of the Knights when most households used public water spouts and only the high class could afford their own private water reservoir.
Property values and prices have continued to rise over the past years in all markets. Property remains the preferred method of investment within the Maltese Islands, with a home ownership rate of 80%. The past decade has seen a high demand for apartments, both for residential purposes as well as a rental investment, as the rental market is absolutely booming with the growing demand of expats working in Malta. The Maltese islands are particularly attractive for their strong citizenship programmes and economic stability.
Local flavours of Malta
The Country Life: Zebbug, Rabat, Gozo
Great for: open country views, laid-back lifestyle, traditional village atmosphere, escape for city noise
Grand Old World Charm: Valletta, Mdina
Great for: a mix of old and new, completely unique to the Maltese Islands. Both walled cities, with amazing architecture and stunning baroque cathedrals.
The Maltese government supports foreign citizenship through several citizenship programmes such as the Global Residence Programme. The tax system is particularly advantageous to foreigners with residential status, as such individuals are not taxed on foreign-sourced capital gains and foreign-sourced income not remitted to Malta. Benefits of the current citizenship programmes include indefinite residence in Malta and free travel within the Schengen area.
The Golden Visa Programme awards citizenship by investment for applicants and their dependents who are not EU/EEA nationals. Approved applicants must make a one-time contribution of €30,000 to the country and invest at least €250,000 within the island for at least 5 years. Applicants must also buy or rent a qualifying property, subject to specified minimum values.
The Individual Investor Programme is open to overseas buyers who have held resident status in Malta for at least a year. A contribution must be made to the National Development & Social Fund of €650,000 with additional contributions per family member. The applicant must commit to reside in Malta for at least 5 years by purchasing property valued at not less than €350,000 or leasing property of at least €16,000 per annum. Additionally, applicants must invest €150,000 in government-approved instruments for at least 5 years.
Buying property in a foreign country can be a headache when you consider the different laws and regulations involved. Dhalia Real Estate Services can put your mind at rest by appointing tried and tested notaries and lawyers, professionals we have worked with for decades, selected for their impeccable reputation.
Property for Expats - Special designated areas
The robust nature of the Maltese property market was demonstrated in its swift recovery from the global recession. A number of luxury developments have recently been built in prime locations over the island. EU citizens and other foreign buyers may buy property in Malta within these special designated areas without restrictions or permits.
The current special designated areas are:
• Portomaso Development, St. Julians, Malta
• Tigné Point, Tigné, Malta
• Tas-Sellum Residence, Mellieha, Malta
• Madliena Village Complex, Malta
• SmartCity, Malta
• Fort Cambridge Zone, Tignè, Malta
• Ta’ Monita Residence, Marsascala, Malta
• Pendergardens, St. Julians, Malta
• St Angelo Mansions, Vittoriosa
• Vista Point, Marsalforn, Gozo
• Fort Chambray, Ghajnsielem, Gozo
• Kempinski Residences, San Lawrenz, Gozo
Tax Exemptions for expats
Residents of Malta are exempt from tax on foreign-sourced income not remitted to Malta. They are also exempt from tax on any foreign-sourced capital gains whether remitted to Malta or not. Permanent residents are taxed at a rate of 15% on remitted income.