Malta at a Glance

Malta, a European archipelago nestled in the heart of the Mediterranean Sea, is renowned for its rich history, vibrant culture, and breathtaking landscapes. Comprising three main islands—Malta, Gozo, and Comino—it boasts a blend of diverse influences, from Roman to British, reflecting its strategic location and historical significance.

 

Benefits of Living in Malta

  • EU Membership: As a member state of the European Union since 2004, residents of Malta enjoy the benefits of free movement, trade, and the security of being part of a larger political and economic entity.
  • English-Speaking Nation: For South Africans looking to move abroad, Malta’s official bilingual status, with English as a primary language, eases the transition. This not only facilitates day-to-day interactions but also makes business, education, and administrative processes straightforward.
  • Climate: Malta enjoys over 300 days of sunshine each year, with mild winters and warm summers— perfect for outdoor enthusiasts.
  • Rich Culture: From ancient Megalithic Temples to the Baroque architecture of Valletta (Malta’s capital), the country is a treasure trove of history
  • Lifestyle: With a thriving nightlife, excellent dining options, and regular festivals, there’s always something happening.
  • Safety: Malta consistently ranks among the safest countries in Europe, with a low crime rate and friendly locals.
  • Healthcare: Benefit from Malta’s world-class healthcare system, replete with state-of-the-art hospitals and clinics, ensuring quality care for all residents.

 

Why is Malta Attractive for Property Investment

Malta’s property market has consistently proven to be a lucrative venture for investors, both local and international. Here are some compelling reasons why Malta stands out as an attractive destination for property investment:

  • Proven Return on Investment: Over the years, Malta’s real estate market has demonstrated substantial and consistent growth. With the island’s strategic EU location and increasing demand for property there, investors can be assured of a strong return on their investments.
  • High Rental Yields: With an influx of tourists and expats, rental properties, especially in prime areas, have seen substantial returns.
  • Favourable Tax Regime: Malta boasts a tax system that’s advantageous for property investors. Notably:
  • No Ownership or Wealth Tax: Investors can hold property without incurring annual wealth taxes.
  • No Inheritance Tax: Property passed down through generations remains untaxed, allowing families to preserve their assets without additional financial burdens.
  • Simple Tax on Sale: Property sales are subject to a final withholding tax ranging between 5%-8%. There’s no additional Capital Gains Tax to worry about.
  • Reasonable Stamp Duty: A moderate stamp duty rate of 5% applies, making property transfers more cost-effective.
  • Beneficial Rental Income Tax: Rental predictability for property owners.
  • No VAT on Property Transfer: Adding to the list of financial incentives is the absence of VAT on the transfer of immovable property. This further reduces the costs associated with buying and selling real estate in Malta.
  • Strong Legal System: Malta’s legal system, rooted in British law, ensures the protection of property rights, giving investors peace of mind.

Given these attractive financial incentives, combined with Malta’s stable economy, thriving tourism sector, and the inherent charm of the island, it’s no wonder that property investment in Malta is seen as a promising and profitable endeavour.

 

Types of Properties in Malta

Malta offers a diverse range of properties to suit every investor’s needs:

  • Historical Townhouses: Located in the heart of Malta’s ancient cities, these properties are often adorned with traditional Maltese balconies and courtyards.
  • Luxury Apartments: Especially prevalent in areas like Sliema and St. Julian’s, these modern apartments offer sea views and top-notch amenities.
  • Farmhouses: Mainly found in Gozo, these rustic properties are perfect for those looking for a tranquil retreat.
  • Villas: Scattered around the island, villas in Malta often come with a pool and spacious gardens, perfect for families.
  • Maisonettes: These are single-story residences, often with their own entrance, similar to a small house.

Residency & Citizenship Schemes

For non-EU nationals, Malta presents an abundance of residency and citizenship options, providing a gateway to the European Union, the Schengen Zone, and a high standard of living.

 

Residency Options in Malta for Non-EU Nationals:

  • Global Residence Programme (GRP): Tailored for affluent individuals from outside the EU, Switzerland, or the European Economic Area, the GRP offers a special tax status. Beneficiaries are not taxed on income arising outside Malta unless it’s received in Malta, and a flat rate of 15% tax applies to income received in Malta.
  • Nomad Visa: This visa is perfect for remote workers and digital nomads. It allows individuals to live and work in Malta while being employed by companies located outside the country.
  • Retirement Programme: Malta’s Retirement Programme is designed for EU, EEA, and Swiss nationals who are not in an employment relationship and are in receipt of a pension as their regular source of income. Beneficiaries under this program are subject to a flat rate of 15% tax on foreign income received in Malta. The Retirement Programme (RP) has recently also been made available to individuals who want to relocate to Malta and are not citizens of an EU Member State, European Economic Area (EEA) or Switzerland (e.g., South Africans).

 

Citizenship by Investment in Malta:

The Citizenship by Investment for Exceptional Services by Direct Investment program allows individuals and their dependents to acquire Maltese citizenship through a direct investment. Key requirements include a significant government contribution, a property investment or lease in Malta, and a donation to a registered NGO.

Benefits of obtaining Maltese Citizenship are manifold. They include visa-free travel to over 170 countries, the freedom to live and work in the EU, and access to the Schengen area, among others.

 

About MaltaLifestyle

MaltaLifestyle serves as your bridge to the enchanting Mediterranean oasis of Malta. Established by Merle Whale, a South African expatriate with over ten years of experience in Malta, our team is dedicated to offering in-depth guidance on every aspect of Maltese life. From relocating and property investment to enhancing your lifestyle, or growing your business. Trust in MaltaLifestyle for a hassle-free experience. Merle, with her rich corporate and hospitality background, has facilitated numerous families in their move to Malta. Her vast expertise and connections ensure unparalleled support during your transition. Additionally, as the founder of SAFFAS in Malta’s expat community, Merle guarantees a warm welcome and a robust support system upon your arrival in Malta. Dive into a new chapter filled with Malta’s allure and myriad of opportunities, with MaltaLifestyle by your side.