Malta – A safe offshore property investment for South Africans

The practise of establishing assets offshore is swiftly gaining ground among South Africans reluctant to “keep all their eggs in one basket”, preferring instead, to take advantage of the Reserve Bank’s increased foreign investment allowance, by diversifying into harder currencies as the South African Rand is under pressure with the greylisting.

Whether you are preparing for retirement, planning a once-in-a -lifetime holiday or international education, BRICS weakening currencies are a driving factor to move wealth offshore.  Alongside other NON-EU (third country) nationals, South Africans too, are looking for environments that offer economic and political stability, a low level of crime, and friendly English speaking locals in European jurisdictions for EURO investments. This does not have to include cumbersome residency options but purely solid property investments.

In this era of “Work from Anywhere” Digital Nomads, it is important for mobile societies to have a secure property investment that is easy to manage, without excessive overheads or taxes, and to ensure reliable, healthy returns with favourable taxation that provides an asset base—especially for first-time buyers and retirees who want to be travelling.

Trends are now shifting from a multi-functional lifestyle, to countryside living.

Having lived in secure fenced estates in South Africa, such as Silverhurst Estate Constantia, Dainfern Estate Bryanston, Heritage Val Riche in Mauritius, we now are extremely comfortable living in an apartment in Malta. The island is now our playground, the sea our swimming pool, the environment our garden, and the village our neighbours.

It’s remarkable to observe how people from top lifestyle estates in South Africa such as Mount Edgecomb; Zimbali; Val de Vie; Steyn City; Fancourt; Steenburg; Peacon Wood and Waterfall Estate in towns like George; Camps Bay; Stellenbosh; Johannesburg; Pretoria; Hartebeesport;  Plettenberg Bay; Hermanus and Cape Town alike, find something special about Malta and Gozo. Whether it’s a modern lifestyle development such as Pender Gardens; Tigne Point; Portomasso; Fort Cambridge, or a house of character, a penthouse or farmhouse, there is so much to choose from in Malta.

Still a hidden secret to many who do not know where Malta is on the map, those in the know are recognising the beneficial value of investing in the lucrative property market in Malta, a beautiful small island EU nation, conveniently located in the middle of the Mediterranean Sea, with easy access to mainland Europe.  The diverse economy—driven by i-gaming, financial services, tourism, aviation and boating—provides for a vast need for rental properties. It is also home to Bet365, Lufthansa Technik Malta, servicing Airbus & Boeing to mention a few.

‘Buy to Rent’ property investments are easily identified and managed by our team who can offer an array of rental properties in various locations on the islands—from renovated city apartments, to luxurious country homes—at competitive prices.

What better way to secure your future, your child’s education, or your retirement, than with a bricks and mortar that isn’t a liability due to non service delivery and high local council taxes. Never mind no inheritances taxes in Malta (only 5% on immovable property), and double taxation treaties with multiple countries.

We’ll see you in May!

Merle Whale will be visiting South Africa in May 2023 and may be in your area presenting seminars or hosting private meetings.  As a South African expat, now living in Malta, I can put you in touch with all the right people here, and show you the ropes.

So, with all the odds stacked in its favour, Malta is proving to be an attractive, trusted option for secure, offshore property investments.  If you would like more free information and advice on investing in the Maltese property market, I’d like to invite you to meet with me for a discussion, any time in Malta, or when I visit South Africa in May this year. Please contact me here to arrange a meeting. I look forward to hearing from you.

 

Regards from sunny Malta!

Are you prepared for the worst-case scenario?

In case of injury or death when traveling or living abroad, are you prepared?

In this highly informative webinar hosted by Merle Whale, experts discuss the crucial legal aspects of preparing for safe foreign travel and provide solutions to dealing with the risks of medical emergencies, or untimely death when traveling abroad. All too often when assisting South Africans with moving to Malta or making decisions about other countries such as Portugal, Cyprus, Mauritius that it is vital to not assume anything. Hence ‘I keep my client informed via regular seminars and periodical newsletters’.

First, Michael Judin, of Judin Combrink Attorneys based in Johannesburg with extensive experience in International Trade Laws & Treaties, Labour and Property law to mention a few, shared the unexpected pitfalls and dangers of traveling abroad without the essential and often lifesaving, preparations. Michael shares some specific example on how clients can get caught unawares and gave some practical advice;

  • Will all your travel and insurance documents be understood by the people of the country of your destination? (i.e. Discovery Travel Insurance policy may not be understood in Japan)
  • Will you have instant credit card coverage if admitted to a foreign hospital for a medical emergency? Pre-advise your banks of travel activities.
  • Does your medical aid cover the cost of an unexpected eventuality? Don’t assume you will be in a position to talk to them after the event has occurred!
  • If you’re emigrating, or in a state of flux, do you have a document of permission from the South African government to hold dual citizenship?
  • When you emigrate, do you have your affairs in order in the event you want to return to live in South Africa? Don’t leave your affairs unsettled.

Next up is Joseph Abela, Abela & Abela Notary familiar with the drawing up of Wills for foreign clients—for those visiting Malta and for those residing there. Joseph advises us to consider the legal implications when foreigners from non-EU countries, who are invested in Malta, pass away. How to be prepared.

The following considerations are discussed:

  • The different customs and laws that regulate your Last Will – in South Africa and Malta (EU).
  • The different types of Wills available in Malta.
  • The importance of validating your Last Will, if drawn up in South Africa.
  • Death and taxes in Malta.
  • How dual citizenship affects your Maltese residency status.

Finally, Maltese funeral director Johann Camilleri, of Active Assistance Services and Camilleri Funeral Directors advises what to do in the event of a South African passing away in Malta and insight into the responsibilities of the undertakers. This includes:

  • Who to notify.
  • The importance of travel insurance.
  • Arranging a burial or cremation.
  • Repatriation.
  • Documents required by the undertakers.
  • Cost of the various options.
  • Check your policies before engaging with any services.
  • A regular family doctor is important.

Topic such as these are important aspects for South Africans considering relocating, obtaining residency or working abroad and nomad workers.

Email merle@maltalifestyle.co.za for further information or access to the recording for upcoming events see www.maltalifestyle.co.za

What are the “pull factors” that attract South Africans to settle in Malta?

While the global community desperately deals with crises from earthquakes, floods and fires, it is rather unfortunate that South Africa is now in a State of Disaster. This, alongside other push factors, is causing many South Africans to look further afield for stability in their careers and a secure future for their families and funds. In the Radio 702 MoneyShow, Bruce Whitfield, in discussion with Andrew Woodburn, MD of Amprop, describes what South Africa is experiencing as “Brain Drain version 2.0.” Additional push factors such as a soft currency, systemic challenges, daily living and safety concerns, leadership in government, high personal taxation and social security, all fuel the growing need of astute people to seek better alternatives.

Malta continues to be a desired destination for South Africans going offshore and getting onto the world stage. Pull factors, such as European business and currency; Schengen freedom of movement; English as an official language; 300 days of sunshine annually; a safe living environment; its proximity to Europe with well-connected commercial airlines, have contributed to the increase of South Africans settling in Malta and taking up residency and property investment opportunities. Additional financial factors, such as favourable taxation, no inheritance tax (5% on property) NO local rates and council taxes. Quality, free education and medical services, are also provided to those working in Malta.

Merle Whale, who, for over 10 years, has assisted South Africans relocate to Malta says, ‘there continues to be a steady flow of fellow SAFFAS wanting to increase their global footprint, explore options of living abroad, retire in a central friendly location, as well as adventurers including Malta in their ‘trek’ in life. There has been an increase of activity on SAFFAS Malta Facebook group—over 20% increase in just 60 days. Whilst integrating into Malta is relatively easy at times, there is a yearning for “braaivleis, rugby, sunny skies and Chevrolet”. We regularly meet up and this year will certainly be more exciting with the Rugby World Cup 2023 being held in France, just a quick flight from Malta.

South Africans are renowned top thinkers and skilled entrepreneurs, able to deliver despite high levels of ambiguity. They are masters of operating in emerging markets and crisis environments, and are quickly successful in Europe. Whilst some may have the benefit of European ancestral roots, many are smart enough to invest in the different visa options available.

The Malta Permanent Residency Programme is an investment visa that benefits fast-moving families with membership of the European Union, and ease of movement within the Schengen regulated areas. This programme is extremely sought after due to its flexibility and clearly defined regulations. As per the Malta website, residency applicants must show they have capital assets of not less than €500,000, out of which a minimum of €150,000 must be financial assets. Once vetted, the applicant pays the government a contribution fee and a donation are made to a registered NGO. Private health and travel insurance must be acquired and a registered agent engaged. There are other programmes too, such as the Nomad Digital Visa, Global Residency Programme, StartUp Residency Programme and now also open to non-EU members, a reasonable Retirement Programme.

As a South African who has explored and lived in other places including Mauritius and Gibraltar, and investigated Portugal and Cyprus, I assist SAFFAS in determining which programmes are best for them, the process and procedures, as well as the pitfalls to avoid. Also, after consultation together, we can ensure that all matters are handled legitimately, alongside Foreign Exchange activities, taxation and meeting diligence requirements. I can help you identify your needs and set goals to successfully accomplish your European future’.v

South African face-to-face appointments will be opening for May, and face-to-face seminar dates will soon be announced. Online consultation and events are also available. Be sure to make contact via our website www.maltalifestyle.co.za to obtain information on all the above, or email Merle directly merle@maltalifestyle.co.za.

Tips to avoid dynamic pricing by airlines

Tips to avoid dynamic airline ticket pricing

With today’s technological advancements, many airlines have evolved their revenue management strategies to consider various real-time measures to deliver ‘personalised’ pricing. This is referred to as dynamic pricing.

This dynamic pricing technique means that airline fares which you see online can change in real-time based on data such as customer booking patterns, competitor pricing, demand and even upcoming weather conditions.

While airlines argue that this kind of pricing allows them to be more competitive, many customers report feeling uncomfortable knowing that different customers are seeing different pricing for the same ticket. They claim that it makes them suspicious when they see fluctuations in pricing when planning/researching for a trip.

If this also makes you uncomfortable, there are a few tricks that can help you avoid dynamic pricing:

  1. Clear your cookies before booking or browsing airline fares.
  2. Use a different computer/device when placing your booking.
  3. Use a different browser (SAFARI may suggest you are a more affluent Apple user).
  4. Use Incognito mode or a VPN and vary the countries each time.
  5. Do not enter your airline membership details until after the ticket is purchased.
Malta removed from FATF grey list

Malta removed from FATF grey list

Malta has been voted off the Financial Action Task Force (FATF) grey list.

This decision comes one year after the FATF first added Malta to its grey list back in June 2021, deciding that the country was not doing enough to combat financial crime.

Being placed on this grey list has meant that Malta was under intensified scrutiny by international financial assessors. However, back in October 2021, the FATF had publicly announced that initial indications showed that Malta showed promise in completing the necessary reforms and addressing the shortcomings identified.

Read more here

malta set to become second highest country for growth in Europe in 2023

Great news for Malta in the EU Spring Economic forecast

European Commission gave Malta a promising Spring economic forecast predicting that Malta’s economy is set to continue to expand by 4.2% in 2022 and by 4.0% in 2023, making Malta the second highest country for growth in Europe 2023.

Together with positive development in the labour market, Malta’s unemployment rate, at 3.5% in 2021, is set to remain broadly stable in 2022 and 2023, which is promising for anyone in job market.

Though Malta has a relatively low inflation rate compared with many other European Countries, due to pressure from increasing international energy and commodity prices and of course the Russian invasion of Ukraine, Malta inflation is set to rise to 4.5% in 2022, still the 2nd lowest in Europe which will be a relief to many as we watch the escalating inflation rate in many other European countries. Furthermore, the prime minister, Robert Abela is set on safeguarding the Maltese households.

Other positive news to add are that last week the rating agency Fitch affirmed Malta’s rating status of A+ predicting a stable outlook. Fitch also noted that Malta has a high WBGI (World Bank Governance Indicators) ranking at 79.8, reflecting its long track record of stable and peaceful political transitions, well established rights for participation in the political process, strong institutional capacity, effective rule of law and a low level of corruption.

Sources: Times of Malta

Malta – One of the Best Places in the World to Retire

The sunny archipelago of Malta lies off the southern coast of Italy, like a gem in the Mediterranean Sea. Due to its accessible location and rich history, Malta is a nation infused with the various cultural and architectural influences of Italy, North Africa, and England.

Getting acquainted

You will quickly get acquainted with the essence of Malta by visiting its host of museums, tapas restaurants, beautiful beaches, renowned snorkeling spots, hiking trails, and ancient ruins—some of the oldest in the world. The local Maltese are friendly and welcoming, and most speak English. You’ll soon feel at home.

Accessibility

With its pleasant year-round climate, excellent health care, and abundance of activities, Malta is an attractive retirement destination. As families become more global, it’s a good idea for retirees to live in a place that is safe, easily accessible and fun for the family to visit. The capital city of Valletta, is just a two-hour flight from most European capitals making it an ideal retirement spot.

Safety

Malta is rated as one of the safest places to live in the EU (travelsafeabroad.com), but petty crime such as pick pocketing can occur, so it’s best to use common sense with your valuables.

Transport

Getting around the country is easy with its relatively cheap and reliable public transport system of buses, and its first-rate taxi services. If you choose to drive your own car, you’ll find that the roads are in a good condition.

Healthcare

Although expats cannot access the public health system, they can enjoy one of the excellent and relatively inexpensive private health insurance options available to them. Premiums are around €100 per month, depending on your cover, but out of-pocket costs are quite low—around €20 for a basic visit to see a GP and €65 for a specialist appointment.

The Malta Permanent Residence Programme (MPRP)

Highly recommended Programme for Non-EU citizens. In order to qualify for this programme applicants would need the following:

  • Government once-off contribution is dependent on whether the applicants choose to purchase or rent qualifying property and is set accordingly;
    • A government contribution of €68,000 should the applicant purchase property
    • Or, In the case of the applicant renting a property, the contribution is €98,000
  • Property may be leased or purchased and must be retained for a minimum of 5 years according to the following minimum values;
    • A minimum rent of €10,000(1) or for a minimum of €12,000 (2)
    • Or, purchase a property having a minimum value of € 300,000 (1) or for a minimum purchase value of €350,000 (2)
  • A donation of €2,000 is to be made to a local registered NGO.
  • Eligibility criteria include that the applicant possesses a minimum capital of €500,000; of which €150,000 should be financial assets.

Property areas and values stipulated (1) in Gozo, North/South Malta (2) other areas of Malta

The Malta Retirement Programme

The MRP is a programme designed to attract nationals of the EU and (more recently) Non-EU, who are not in an employment relationship and are in receipt of a pension as their regular source of income. Individuals benefitting from this Programme may hold a non-executive post on the board of a company resident in Malta. This implies that the beneficiary would be prohibited from being employed by the company in any capacity.

Cost of living – the basics

When compared with other top-rated retirement destinations, Malta fares well. Expect to spend around €900 per month on rent for an average one-bedroom apartment in a central area and around €100 on utilities. Generally, rents vary depending on where you live, sea view and features.

What’s not to like?

Malta’s great weather, laid-back lifestyle, friendly locals, affordable living costs and accessible location, make this charming country the perfect place to retire.

NOTE: Merle will be available in South Africa in April for appointments and presenting seminars – Click below to find out more

Meet MALTA | EU Opening Opportunities Seminars

About the event:

Join us to explore the secrets of the Maltese Islands and how you can weave the benefits of getting on the journey to build another future for yourself, family and life.

In this valuable session, you can glean information on key components for;

  • Residency Programmes
  • Investment & Real Estate Options
  • Relocation / Retirement Solutions
  • Foreign Exchange Set-up

It’s easier than you think once you speak to the right people and obtain the correct details. Whether you are looking for a small or large investment, and want to relocate or just benefit from programmes offering you visa free mobility in the Schengen as well as ensure that you meet the relevant taxation requirements and keep abreast of the foreign exchange regulations.

This could be the opportunity of a lifetime, what have you got to loose?

The seminar is free and our specialists will be on hand to present you with the latest information and answer your queries. If if you are not sure about what the future holds, rather be prepared for an opportunity than have an opportunity and not be ready.

Malta & Gozo offer safe environments, exciting lifestyles as well as well located to Europe and easily accessible.

Three favourable Malta residence programmes that will also be showcased

  • The Malta Permanent Residence Programme.
  • The Malta Digital Nomad Programme.
  • Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment .

We will also cover Malta property investment opportunities and what makes Malta an ideal international hub for business or just a place for leisure.

 

Foreign Exchange and Taxation for South Africans interested in Malta

It’s time to re-calibrate our thinking on how and where we invest – it’s easier than you think!

Considering the volatility of the BRICS, let’s us show you new styles that go beyond RA’s, endowments and other investment programmes. You can take charge in a couple of easy steps and not be held captive.

For a limited time only, we are offering a highly valued complimentary session. Book your appointment today by getting in touch on merle@maltalifestyle.co.za or through https://calendly.com/merlewhale/20?month=2022-03

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