Malta Real Estate Investments
If earlier Malta more often appeared as the best place for a holiday, as well as for international education, today this relatively small island state has become a serious center of attraction for investors from all over the world.
Today, the Malta economy is showing the fastest growth in Europe and most experts agree that this process will continue. GDP growth in 2018 here amounted to about 6% – the highest rate in Europe. At the same time, the unemployment rate fell to 3.7%, due to which Malta has one of the most favorable indicators in the corresponding rating. It is believed that Malta is haunted by the laurels of Singapore, so the local government has set a course to attract wealthy foreigners who can invest in its economy, for which the country offers tax incentives, quality housing and the ability to stay in the country without restrictions.
Buy real estate in Malta
There is free medical care, which is considered one of the best in the world, there is a free childcare service (one of the few countries where it exists) and free education for all citizens with scholarships paid to students. At the same time, Malta has been reducing taxes for its citizens over the past five years. And taking into account the advantages in the social sphere, the field of employment, from the point of view of doing business (including those related to cryptocurrency), the country is not only attractive for life, but also for work.
The success of the passport program
Malta’s famous citizenship program in exchange for investment had a very positive effect on the local economy: between July 2017 and July 2018, contributions collected by the Malta Individual Investor Program Agency (MIIPA) amounted to 162.4 million euros. And for the current 2019, the program has already brought in more than 500 million euros and has become a key factor in the growth of budget spending in the country. At the same time, the government does not seek to too actively advertise information about the new citizens of Malta who have become such thanks to their investments, but it is believed that most often these are citizens of Russia and Saudi Arabia, as well as representatives of Ukraine, China and other countries. In total, since 2013, the state budget has received more than 1 billion euros.
According to preliminary estimates, the number of applications for the purchase of real estate from only Russians in 2018 increased by 40%. Malta’s passport program now provides for about 1800 applications, and about 1600 of them have already been filed. Buying a home has become the most popular investment option – more than 60% of applicants use this opportunity. Investments in Malta are in second place in popularity among Russians after Cyprus. To obtain citizenship, you must contribute 650,000 euros to the Malta National Fund and invest 150,000 euros in government bonds, and then either purchase real estate in the amount of 350,000 euros or rent it in the amount of 16,000 euros for at least 5 years. In addition to citizenship in Malta, you can also obtain a residence permit: for him, the investment threshold is even lower – from 300,000 to 500,000 euros.
Buy real estate in Malta
An interesting information from the history of Malta for many residents of Russia may be the fact that after the capture of Malta by Napoleon Bonaparte in 1798, the Russian Emperor Paul I was elected Grand Master of the Order of Malta, after which he issued a decree on the acceptance of Malta under the protection of Russia. In the calendar of the Academy of Sciences, at the direction of the emperor, Malta was designated the “Province of the Russian Empire” after its accession. Here the emperor planned to create a naval base to safeguard the interests of the country in the Mediterranean Sea and southern Europe, but in 1800 the British occupied Valletta, the capital of Malta, and after the murder of Paul I, his son refused to claim the island. As a result, under the terms of the Paris Peace of 1814, Malta moved to Great Britain, becoming its colony and naval base until 1964.
Although Malta never became de jure Russian, obviously the flow of Russian tourists and buyers of local square meters does not dry out. In addition, by investing in Malta real estate, the buyer makes a highly profitable investment: over the past year, prices have increased by more than 17%. And a similar growth trend is confidently maintained, as the Maltese economy continues to show some of the highest rates in Europe
All types of real estate in Malta are steadily increasing in price, which is facilitated by the constant demand from both local residents and foreigners, especially developers, investors and iGaming executives, companies who have a green light in Malta. The absence of annual payments inspires many people to buy, which is rather rare in the European real estate market: property tax in Malta is paid only once upon signing the purchase agreement and makes up only 5% of the cost of housing.