Real Estate Investor Magazine South Africa October 2013 | Page 62

MALTA

BY ANGIE REDMOND

Magical Malta
It’s investor and tax friendly

T

he Mediterranean archipelago of Malta
looks set to become a major investment
destination following the introduction
of the Malta Global Residence programme.
Consisting of three islands, Malta, Gozo and
Comino, the island’s investor-friendly tax
regime, reasonable cost of living and relatively
affordable property make this island more than
a great holiday spot.

• Option to rent at an annual minimum rent
is €9,600; (€8,750 in the Southern Region of
Malta and in Gozo);
• Tax is at a flat 15% on a remittance basis (no
worldwide taxation);
• Minimum annual tax has been lowered to
a family total of €15,000 (no further tax for
dependents);
• No Government bond required.

Unveiled in June, the Global Residence
Programme offers massive benefits to South
Africans who travel frequently in Europe,
under tightening Schengen visa requirements.
The scheme allows foreigners residence status,
thereby bypassing the need for visas to travel
to EU countries. Once residency is granted,
foreign investors have to spend at least six
months of the year in Malta.

Malta is blessed with natural resources and
the modern infrastructure, political stability
and a f lexible English-speak ing labour
supply. It has always been known as a tourist
destination; it is an international tourist resort
and has nine UNESCO World Heritage Sites.
It became a member state of the European
Union in the year 2004 and liberalised its
economy and markets. It also privatised some
of its government-controlled firms.

“The Global Residence
Programme offers
massive benefits to
South Africans”

Ma lta’s judiciar y is independent both
constitutionally and in practice. Property rights
are protected, and expropriation is unlikely.
Foreigners do not have full rights to buy property
in Malta unless they obtain Maltese nationality.
The country still lacks a comprehensive strategy
for rooting out corruption as well as appropriate
institutions to implement and monitor anticorruption activities. Malta’s trade regime
is the same as that of other members of the
European Union, with the common EU tradeweighted average tariff rate standing at 1.6
percent, but non-tariff barriers raise the cost
of trade. Foreign investment is welcome, and
investment regulations are generally transparent.
The financial sector has undergone gradual
restructuring and expansion, and the banking
sector has become more open to foreign banks.

Global residence programme
The Global Residence Programme (GRP) is
open to economically self-sufficient non-EU
nationals and offers conditions of residence that
position it as a foremost residence alternative
within the European Union.

The salient conditions of the GRP
• Malta is a full member of the Schengen
Area Treaty;
• Minimum purchase value of property
situated in Malta is now €275,000 (€220,000
in the Southern Region of Malta and in Gozo);
60

October 2013 SA Real Estate Investor

Property prices in Malta
Popular investment areas in Malta include
the upmarket areas of Sliema and St Julian’s
Bay on Malta’s main island, where the luxury
apartments with sea views typically sell for
www.reimag.co.za