Malta property market attractive for home buyers

Maltese economy grew by 6.7% in real terms in 2017 and positive results have been achieved in various sectors, including local and foreign investment, tourism and exports. The public debt target of 60% of GDP has been surpassed and stands at around 47% and is projected to continue to reduce to 43.8% in 2019.  Malta enjoyed a budget surplus for the third consecutive year and maintained its economic momentum, remaining one of the best performing economies in Europe.

The real estate is one of the best performing sectors in Malta.  Foreigners have an option buy a home in Malta through IIP and MRVA residency program. According to Eurostat, The highest price increases were recorded in Malta (+3.2%) compared to the previous year of october.

Property prices per square meter

St Julians, Sliema, Valletta, Mellieha are the most popular areas for foreigners buying a property for investment or as a home.

Source: https://www.propertymarket.com.mt/index/

Individual Investor Program

Malta IIP was launched in 2014 offering citizenship to highly qualified applicants who invest in Malta.  Those who invest in this scheme have the opportunity to buy a home for atleast EUR 350,000. It is also possible to rent a home.

As with the property investment, as of 30 Jun 2017,

• 80 Applicants purchased property for Maltese citizenship under IIP since the launch. These properties were purchased in Sliema, St Julians, Valletta, Marsascala, Vittoriosa, Swieqi, Mellieha
• 483 Applicants rented/leased a property under IIP since the launch

Between July 2016 and June 2017 the value of the 46 purchased properties amounted to €35m , averaging €767,000 per property. Since the launch of IIP scheme the total value of all purchased property (82) totals €71m, which is an average of €868,000 per property. This clearly shows HNW families are investing in  luxury property market of Malta.

Europe

Malta property prices average 4,500 euros per square meter compared to EU-28 countries. The property prices in Malta are more expensive than Portugal, Spain and Cyprus, where golden visa schemes are currently running.

Malta Budget 2019 – Incentives to Property Buyers

During the Malta Budget 2019 – the Finance Minister, the Hon. Prof. Edward Scicluna announced key economic indicators as well as a number of key tax and other measures to encourage property investment in Malta.

• Buyers of property in Gozo will continue benefiting from a reduction in stamp duty from 5% to 2%
• Buyers of vacant property in urban conservation areas will continue benefiting from a reduction in stamp duty from 5% to 2.5%
• First time property buyers will keep being exempted from stamp duty on first €150,000 up to €5,000. Second time buyers will keep benefiting from a reduction in stamp duty up to €3,000
• Small NGOs with revenues of less than €10,000 will be tax exempt
• Rental agreements will need to be registered. Rent Subsidy will be reformed and increased from €1,600 to €3,600 annually for single persons, and from €2,000 to €5,000 annually for families with 2 or more children. Means testing on assets will be substituted by new benchmarks
• Reduction on stamp duty on family business transfers from 5% to 1.5% to be extended by a year

Airbnb

Currently there are are over 300+ rental homes listed in Malta.  Airbnb and explosion of aparthotels is also responsible for increase in property rental prices in city centres in a number of major european cities including Malta.