WHY BUYING PROPERTY IN MALTA IS A GOOD INVESTMENT
“Investing in real estate has always been a dependable store of wealth – a tangible, physical asset rather than something notional like stocks” – Forbes.
Maltese real estate has continually maintained its status as a lucrative investment opportunity for both locals and expatriates with property prices steadily increasing in value, particularly over the last 20 years. One of the major reasons why property and land is a highly valuable commodity is due to the island’s small size and growing population. In fact, buying Maltese real estate may be one of the best property transactions that you could do in Europe. According to a report by Eurostat* property prices in Malta rose by 41.6% between 2010 and 2020, much higher compared with other EU nations. Even the pandemic hardly affected the local property market. In fact, at the end of 2020, results showed that the property development industry registered better results than the preceding year.
At the Southern-most point of Europe, Malta is an attractive place to live, fuelling the demand for property. The charming island offers an abundance of history and culture, sunny Mediterranean climate, stable economy, low crime rates, English as an official language and an established healthcare system. For anyone looking to invest in buy-to-let property in Malta, there are few investments that appreciate in value so quickly. Owning rental properties are excellent way to generate a steady and guaranteed income – the high numbers of expatriates and foreign students looking to live, work and study in Malta means that there is year-round demand for rental properties all over the island.
Reasons to Invest in Maltese Real Estate:
- Strong and Resilient Property Market
- Eligibility for European Residence and Citizenship
- Advantageous Tax Incentives
- Warm Mediterranean Climate
- Politically Stable and Safe Country
- Excellent Standard of Living
- Close Proximity to European Countries
Where to Invest in Malta?
As the smallest member of the EU, the island itself is tiny at just 316km². Due to Malta’s size, every area is easily accessible and consequently all ‘good’ places to invest in. However, it is important to choose a location that matches your lifestyle, to get the very best out of your investment property. Some of the best real estate investment opportunities can be found in the urban centres, particularly modern apartments in St. Julian’s and Sliema, these areas are renowned for restaurants, shopping, nightlife and the celebrated seafront promenade. Property in the capital city Valletta is also highly sought-after, offering a glimpse into the past, with grand baroque architecture and an eclectic mix of retail, coffee shops and restaurants. Madliena, Mellieha and Gozo offer luxurious villas in prestigious residential areas. Whilst Special Designated Areas (SDAs) Developments are ideal investment locations, offering the luxury of convenient living with surrounding facilities and amenities.
SDA Developments (Special Designated Area)
‘Special Designated Area’ (SDA) is a status granted to luxury lifestyle developments of apartments and penthouses that allow both EU and non-EU nationals to purchase a property in Malta with the same buying rights as Maltese nationals, without the need to obtain an AIP permit (Acquisition of Immovable Property). In addition, the property can be purchased and rented immediately, perfect for investments. Due to their central locations, convenient facilities and advantageous buying rights, SDA Developments continue to be one of the most valuable and sought-after investment opportunities in Malta.
European Citizenship and Residency
Whilst the low taxation rates for non-residents are a valuable incentive when considering which foreign country to invest in, Malta has also positioned itself as offering attractive European Citizenship and Residency schemes for high net-worth investors within a safe and stable Eurozone location. These programmes include:
- The Global Residence Programme (GRP)
- Malta Permanent Residence Programme (MPRP)
- The Residence Programme (TRP)
- Maltese Citizenship by Direct Investment
If you are considering investing in property in Malta or would like more information, get in touch with us to discuss your investment objectives and we can help you identify fantastic opportunities to grow your property portfolio. We can guide you through the process of relocating to the island and the legalities of your investment through our trusted legal advisors.