Buying property and investing in Malta: Everything you need to know Why buy your future property in Malta?
The reasons for coming to emigrate or invest in Malta can be very diverse: English, the living environment, the climate, the cost of living, the paradisiacal beaches, professional opportunities in less developed sectors elsewhere such as -gaming. To all these reasons (non-exhaustive list of course!) we can add the good economic situation of the country, the absence of wealth tax, property tax, housing tax, the high yield in case of rental investment and also, quite simply, the simplicity of the property acquisition procedures. For all these reasons, more and more foreigners decide to invest in real estate in Malta, whether it is a primary or secondary residence, or even as a rental investment. To be able to guide you a little and Global Property Guide explain the reasons for this phenomenon and analyzes the different possible causes.
Warning: In this article on how to invest in Malta we are particularly focusing on buying property. If you are also interested in renting, do not hesitate to consult our article on this subject.
A little flashback: the impact of the 2008 crisis on the archipelago.
Like other European countries, Malta has been affected by the crisis.
In 2011 we can see an improvement, which is becoming more and more strong and in 2013 the situation was completely resolved thanks to various measures adopted by the government, and thanks to these measures, prices have been increasing steadily since 2014. The country was also able to recover thanks to the significant number of foreign investments. Foreign investors continue to flock to Malta as several government measures encourage investors to settle in Malta the latest, innovative treatment about cryptocurrency, blocks chains, and probably also the legalization of the cultivation of marijuana for therapeutic purposes.
A rising economy that leads to an increase in the value of the property system
According to figures provided by the Central Bank of Malta, the value of the Maltese property market has increased by 13.8% (12.95% if inflation is taken into account) in just one year. (Data for 2016) Although current economic growth is lower than that experienced in 2014 and 2015, the Maltese economy remains one of the most dynamic, positive, and competitive in Europe. Add to that an unemployment rate of only 4.1%. In addition to being in continuous decline, this rate is currently the most reliable in the whole of the European Union, which attracts many workers. A link between the Western world and the Arab world, Malta takes on an important commercial role and attracts a record number of tourists.
In a context as favorable, property in Malta experienced real decision value and thus have seen their costs increase. You can visit Malta and buy property there. For visiting on the sea, rent a catamaran in Malta. We are recommending the property system in Malta. If you ever want to visit there and want to rent an apartment then you can contact us. We are providing the best services here. By clicking on the highlighted link you can visit our official website… Indeed you will want to contact me after watching the best property plans.
What properties are affected?
– Apartments saw an increase of 14.99%.
– Houses with balconies or terraces have seen an increase of 12.48%
– Marionette has seen the most significant increase: 19.51%!
All the values quoted above relate to the year 2016 and have been recalculated and adjusted for inflation. This trend was confirmed in 2017. According to some experts, prices will continue to increase structurally thanks to the advantages that Malta offers economically and in terms of climate and living environment.
Invest in Malta as a foreign national
The expatriates like to invest in Malta in towns, have a preference for more peace and greenery, and look for a farmhouse on the island instead. These are the famous “specially designated areas’ ‘ which are about fifteen including Tigne Point, Portomaso, Cottonera, and Chambray. For complete information on expatriation about Malta’s property market, do not hesitate to consult the complete expatriation guide
What returns can we expect?
The average price per square meter in tourist or densely populated areas is around lacs, and this price continues to increase. The average rate of return for the rental investment is 4.4%, bearing in mind that this is a national average. This rate is much higher in the areas popular with expatriates mentioned above.
Also note: Maltese laws are mostly “pro-landlord” which means that in the event of litigation, the laws will be in favor of the owner and not of the tenant. Lastly, rents and rent increases can be freely negotiated by both parties to the contract.
The costs of purchase in Malta
The cost of purchasing in Malta is considered, concerning all countries in the world, to be in the “moderate” category.
– The taxes for any transaction utilize in Malta are as follows:
– Stamp duties (transfer costs) which vary between 0% and 5% with certain possibilities of partial or total exemption depending on the profile of the buyer.
– The commission of the agency Property system is the responsibility of the seller. This varies between 1% and 5%.
-Do not forget the notary fees of around 1% to 2% of the purchase amount.
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