Engel & Völkers Sara Grech Malta
Strategically located in the heart of the Mediterranean, the islands of Malta, Gozo & Comino have been popular for a long time as a holiday destination enjoying a subtropical climate with hot summers and mild winters, with rain a rarity and around 3000 hours of sunshine per year.
Malta, officially the Republic of Malta is an archipelago, 50 miles south of Sicily. Malta, the larger island of the 3 islands covering 316km (122 square miles) in land area making it the smallest state. The country has two official languages, Maltese being the National language and English. Malta gained independence from the United Kingdom in 1964 and became a Republic in 1974 whilst retaining membership in the Commonwealth of Nations. Malta was admitted to the United Nations in 1964 and to the European Union in 2004. Malta is also party to the Schengen Agreement and in 2008 became part of the Eurozone.
Malta is well-known and is a popular tourist destination with plenty of recreational areas and historical monuments including nine UNESCO world heritage sites, having the oldest freestanding structures in the world, The 10,000BC Megalithic Temples. With the improvement of the tourism infrastructure and a large number of high quality hotels, Malta has increased the number of tourists that visit each year and is now classified as an advanced economy together with 32 other countries according to the International Monetary Fund (IMF).
In the past decade and since joining the EU, Malta has established itself as a global player in the cross border fund administration business. The work force is multi lingual and has a strong Anglo Saxon legal system. The MFSA, Malta’s regulator, has been successful in attracting fund administration, aircraft and ship registration, gaming businesses, and credit card issuing bank licences due to reduced red tape and favourable tax regimes which has transformed Malta into an innovation-driven and competitive economy. Malta has adopted a favourable regime for those individuals seeking to relocate their personal affairs and businesses to Malta, giving opportunities to both EU and non-EU nationals to purchase property in Malta.
A new Residency scheme was launched June 2013 which allows people to buy high value property and pay taxes in Malta to benefit from the residence permit. Under the new Global Residence Programme, the value of immovable property bought in Malta by foreigners has a minimum threshold of €275,000. However, when the property is in the South of Malta or in Gozo, the minimum value is reduced to €220,000. This new scheme also allows persons eligible if they wished to rent property and this has been lowered to €9,600 in Malta and €8750 in Gozo or the South of Malta. The minimum tax to be paid under this scheme is a minimum of €15,000 on income derived in Malta, further income arising in Malta shall be taxed at a flat rate of 35%.