Purchasing or renting property in a foreign country can be a tedious and time-consuming process. With the help of a local real estate agent however, there is no reason for this to happen. Malta offers a good number of agents from large, well-established Real Estate Agents to one-man entities. No matter of your choice, these can guide you on the smoothest and fastest route to take, whilst also acting as your intermediaries with related third parties. Obviously the longer established and larger companies are in a better position to offer a wider choice of properties and possibly more professional advice. In the meantime here are some useful facts and information to give you a better idea of the property market in Malta and how to go about it.
Rentals
Over the last few years Malta has seen a big increase in the demand for property rentals. Seeing such investment potential, many have invested in such buy-to-let properties and Malta now boasts of a very good selection of property available to let on long and short term.
Rental rates vary depending on location, type of property, standard of furnishings and length of tenancy. In most cases properties are rented furnished, however, a good selection of unfurnished properties is also available. In the case of long lets, water, electricity and TV rentals are the liability of the tenant and are charged separately.
Rent is normally paid monthly in advance. A refundable deposit also equivalent to one months rent is normally lodged with the landlord to cover breakages and outstanding bills at the end of the lease.
Commercial premises
Whether one is after a retail outlet in a high-traffic area, a waterfront restaurant, a multi-storey warehouse, or 1,000sqm open space offices, Malta caters for all, both for sale or to let. The latest major developments have taken such type of customer very seriously and have introduced specially formulated commercial units within the project including a good number of high rise developments in the Northern Inner Harbour areas. Foreign nationals interested in setting up business in Malta can also possibly apply for special EU funds should they decide to purchase and operate a commercial entity in areas of historical and cultural interest, such as Valletta. Special conditions apply.
Taxation
Foreign nationals tempted to take up residency here can rest assured to benefit from a very attractive tax structure , starting off by not get taxed on their worldwide income but only on Maltese source income and on foreign income remitted to Malta. Furthermore, given that they become residents under the Residents Scheme Regulations, they will only be taxed at a flat rate of 15%. Other residents are subject to the normal local rates of income tax (which range from 0 to 35%) and even in such instance, Malta fairs very well when compared to other EU and non EU countries. There are no net worth or real estate taxes and while a tax on capital gains arising from the sale of real estate in Malta does exist, this does not apply to the sale of ones main residence if the property is held for a minimum of three years. Double taxation agreements also exist with most European countries.
There are no property or wealth taxes in Malta and this is also reflected in the case of ownership of property. Income tax comes into effect if there is income arising from this property (i.e. rental return) or on the sale of the property if there is a capital gain. If the property has been used as residents main residence for more than three years and has not been vacated for more than one year, then this is exempt from tax on capital gains.
Minimum value of property purchased
It is good to know that Maltese law states that foreign nationals cannot buy property valued at less than EUR 99,000 for an apartment and EUR 165,024 for a house. Furthermore they can only own one property. The exception to this is in the case of property located in areas that are specially designated, in which case one can have as many properties as they want or they can afford. Presently the waterfront developments of Portomaso (St Julians), Tigne Point (Sliema) and Cottonera Development, as well as other luxury developments like Pender Gardens (St Julians), Madliena Village (Madliena), Tas Sellum Village (Mellieha) and Fort Chambray in Gozo are all listed as special designated areas.
No such restriction applies in the case of EU citizens that have lived in Malta for a continuous period of over 5 years, then or should a person want to settle in Malta permanently and wants to buy immovable property to live in as his/her primary residence or to conduct business activities on the Islands.
Why purchase or rent property in Malta?
-Easy integration within local communities;
-Relatively crime free and very safe environment to live in;
-EU membership, offering political stability;
-Fluency in English and other international languages;
-Excellent national and private hospital and medical services;
-Rich historical and cultural heritage;
-Excellent social life for all age groups;
-Crystal clear seas and a good choice of sandy beaches;
-Very good sporting facilities;
-Excellent schooling to above UK standards in English speaking schools and University;
-Low cost of living and a wide variety of properties available in all price ranges;
-Very stable property market offering steady capital growth;
-Daily flights to all major European and North African airports with Low Cost airlines also offering a regular service;
-Excellent residency conditions with very low taxation.
Rentals
Over the last few years Malta has seen a big increase in the demand for property rentals. Seeing such investment potential, many have invested in such buy-to-let properties and Malta now boasts of a very good selection of property available to let on long and short term.
Rental rates vary depending on location, type of property, standard of furnishings and length of tenancy. In most cases properties are rented furnished, however, a good selection of unfurnished properties is also available. In the case of long lets, water, electricity and TV rentals are the liability of the tenant and are charged separately.
Rent is normally paid monthly in advance. A refundable deposit also equivalent to one months rent is normally lodged with the landlord to cover breakages and outstanding bills at the end of the lease.
Commercial premises
Whether one is after a retail outlet in a high-traffic area, a waterfront restaurant, a multi-storey warehouse, or 1,000sqm open space offices, Malta caters for all, both for sale or to let. The latest major developments have taken such type of customer very seriously and have introduced specially formulated commercial units within the project including a good number of high rise developments in the Northern Inner Harbour areas. Foreign nationals interested in setting up business in Malta can also possibly apply for special EU funds should they decide to purchase and operate a commercial entity in areas of historical and cultural interest, such as Valletta. Special conditions apply.
Taxation
Foreign nationals tempted to take up residency here can rest assured to benefit from a very attractive tax structure , starting off by not get taxed on their worldwide income but only on Maltese source income and on foreign income remitted to Malta. Furthermore, given that they become residents under the Residents Scheme Regulations, they will only be taxed at a flat rate of 15%. Other residents are subject to the normal local rates of income tax (which range from 0 to 35%) and even in such instance, Malta fairs very well when compared to other EU and non EU countries. There are no net worth or real estate taxes and while a tax on capital gains arising from the sale of real estate in Malta does exist, this does not apply to the sale of ones main residence if the property is held for a minimum of three years. Double taxation agreements also exist with most European countries.
There are no property or wealth taxes in Malta and this is also reflected in the case of ownership of property. Income tax comes into effect if there is income arising from this property (i.e. rental return) or on the sale of the property if there is a capital gain. If the property has been used as residents main residence for more than three years and has not been vacated for more than one year, then this is exempt from tax on capital gains.
Minimum value of property purchased
It is good to know that Maltese law states that foreign nationals cannot buy property valued at less than EUR 99,000 for an apartment and EUR 165,024 for a house. Furthermore they can only own one property. The exception to this is in the case of property located in areas that are specially designated, in which case one can have as many properties as they want or they can afford. Presently the waterfront developments of Portomaso (St Julians), Tigne Point (Sliema) and Cottonera Development, as well as other luxury developments like Pender Gardens (St Julians), Madliena Village (Madliena), Tas Sellum Village (Mellieha) and Fort Chambray in Gozo are all listed as special designated areas.
No such restriction applies in the case of EU citizens that have lived in Malta for a continuous period of over 5 years, then or should a person want to settle in Malta permanently and wants to buy immovable property to live in as his/her primary residence or to conduct business activities on the Islands.
Why purchase or rent property in Malta?
-Easy integration within local communities;
-Relatively crime free and very safe environment to live in;
-EU membership, offering political stability;
-Fluency in English and other international languages;
-Excellent national and private hospital and medical services;
-Rich historical and cultural heritage;
-Excellent social life for all age groups;
-Crystal clear seas and a good choice of sandy beaches;
-Very good sporting facilities;
-Excellent schooling to above UK standards in English speaking schools and University;
-Low cost of living and a wide variety of properties available in all price ranges;
-Very stable property market offering steady capital growth;
-Daily flights to all major European and North African airports with Low Cost airlines also offering a regular service;
-Excellent residency conditions with very low taxation.