All you need to know about buying property in Malta!
The property investment sector in Malta is on the rise especially among expatriates. This is largely due to the fact that there’s less red tape for investors to deal with, coupled with improved accessibility and favorable tax regulations. However, what has really drawn the attention of investors is the creation of Special Designated Areas.
The Benefits of Special Designated Areas
Malta’s Special Designated Areas do not come with the same residency permit rules that are imposed on other types of property investment. As such, these areas level the playing field between local and international buyers because they grant foreign investors the same rights as Maltese residents.
Another aspect that distinguishes these areas is the fact that they feature world-class facilities for residents to enjoy, like swimming pools, spas, restaurants, grocery stores, 24/7 security surveillance, marinas and shopping malls. This sets them apart from other areas on the island and makes them very attractive to investors and tenants alike.
Property in special designated areas is very popular with expat tenants and buyers, as it offers access to all the amenities that they’re accustomed to in their home countries. Furthermore, properties that are located in Special Designated Areas do not come with any leasing restrictions. This means that the property owner can lease the property out to whomever they wish, including foreign tenants.
Special Designated Areas in Malta
The following is a list of all the Special Designated Areas in Malta:
- Cottonera Development, Cottonera, Malta
- Fort Chambray, Ghajnsielem, Gozo;
- Fort Cambridge Zone, Tignè, Malta
- Kempinski Residences, San Lawrenz, Gozo
- Metropolis Plaza, Gzira, Malta;
- Madliena Village Complex, Malta
- Portomaso Marina Development, St. Julians, Malta;
- Tigne Point, Tigne, Malta
- Ta’ Monita Residence, Marsascala, Malta
- Pender Place, St. Julians, Malta
- Tas-Sellum Residence, Mellieha, Malta
As you may have noticed, Special Designated Areas are strategically located along the Mediterranean ocean so that residents can enjoy the alluring scenery and beach lifestyle. All the properties are kitted out with high-quality designer furniture and are surrounded by all the amenities that make for a good quality of life.
Property in Special Designated Areas offers Diverse Options
Property in Special Designate Areas can be purchased as a rental investment, permanent residence or a short term investment. SDAs feature a wide range of different properties for investors to choose from. There are sprawling villas, single, double and triple-bed apartments, family units as well as penthouses.
Staying at one of these areas puts you close to all the best restaurants and hotels in the entire island. You’re also most likely to meet other HNWI who frequent Malta when staying at a Special Designated Area, making these locations the perfect place for networking.
Requirements to Buying a Special Designated Property area property in Malta
Special Designated Areas typically comprise of high-end property, which is why they tend to attract high-net worth individuals in particular. In response to this trend, the Maltese government has created the High Net Worth Individuals Residency Scheme. Launched in the year 2011, this initiative offers special tax status to investors who are non-Maltese nationals.
Still, investors have to meet certain criteria such as passing annual income thresholds, having health insurance and investing in a property that’s worth €400,000 or more, which should also serve as their habitual residence.
Once these conditions have been met, the non-Maltese HNWI is granted special tax status which entitles him/her to pay tax at a relatively low rate of 15% on all foreign source income. This is in addition to qualifying for double taxation relief.
The even better news is that Special designated area property can be purchased in the name of a company on condition that 75 % of the company is owned by a Maltese citizen who’s been living in Malta for five uninterrupted years. The company in question must also operate in an EU state and actively contribute to the Maltese economy.
Furthermore, purchasing a special designated area property does not necessitate an AIP permit (acquisition of immovable property) application. Applying for this permit can be very time-consuming and costly, which is why SDAs are seen as a great alternative investment.
Header Image Credit: Transfer Go
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