Maltese Magic

One of the smallest countries in the world, Malta still packs a punch when it comes to offering British expats and retirees a superior quality life in the sun. James Matthews reports

Small yet perfectly formed, the island of Malta and twin sister Gozo, have long been popular locations for overseas buyers looking to putdown both second-home and more permanent roots. So much so, the island’s property market growth has been ongoing since the nineties with no signs of retracting, as property consultant Giles Edwards, explains: “Malta’s property market growth is underpinned by a booming economy, with the archipelago thriving in industries such as financial services, tourism and construction. Unlike many rival second home hotspots popular with overseas buyers, Malta has successfully prospered since the global financial crisis.”

Individuals looking to relocate, or companies looking to conduct business on the island are also in for a plethora of tax advantages, with no council or inheritance tax, and stamp duty at a flat 5%. Adds Edwards: “There are also generous tax breaks for residents not domiciled in Malta. These include no tax on earnings outside Malta if the funds aren’t remitted to Malta and no capital gains tax on overseas assets even if the proceeds are brought into Malta. Capital gains from Malta itself are taxed alongside other income, but when selling property, a transfer tax, usually 8% of the value of the property, is charged.”

As for purchase options, the market is equally dynamic, offering a diverse choice from traditional Maltese homes to modern apartments and stunning, high-spec villas. Sliema, St. Julian’s, and Paceville are just a few of the more popular areas with expats, while to the north of the island, with plentiful seaside access and sprawling sandy beaches, St. Paul’s Bay, Qawra and Mellieha are a popular choice for families and holidaymakers alike.

Malta Permanent Residency Programme Fast Facts

• The Malta Permanent Residency Programme offers residency (the permission to live in Malta as long as desired), visa-free travel to all European countries within the Schengen area, with no recurring minimum tax.
• With fast processing of only 12 weeks, the programme is also one ofthe quickest programmes globally. Moreover, one application covers an entire family residency granting lifetime visa-free access throughout the 26European Schengen area countries.

• When purchasing, the minimum property value must be €350,000 in the northern and central parts of Malta, or €300,000 in the south or Gozo.

• The administrative fee charged by the government is €40,000. The main applicant must also make a non-refundable government contribution in the amount of €28,000 (if purchasing a property).