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