Today, Malta's economy demonstrates the fastest growing rates in Europe and most experts agree that this process will continue in the future. GDP growth in 2018 here was about 6% - the highest in Europe. At the same time, the unemployment rate fell to 3.7%, thanks to which Malta has one of the most favorable indicators in the corresponding rating. It is believed that Singapore is haunted by the laurels of Singapore, so the local government of the country has taken a course to attract wealthy foreigners who can invest in its economy, for which the country offers tax incentives, quality housing and the opportunity to stay in the country without restrictions.
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It has 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 payment of scholarships to students. At the same time, Malta has been reducing taxes for its citizens over the past five years. And given 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.
Success of the passport program
Malta's renowned Citizenship by Investment Program has had a very positive impact on the local economy, with contributions collected by the Malta Individual Investor Program Agency (MIIPA) ˆ 162.4 million between July 2017 and July 2018. And for the current 2019, the program has already brought in over 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 too actively to advertise information about the new citizens of Malta who have become such thanks to their investments, however, 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 during the program.
According to preliminary estimates, the number of applications for the purchase of real estate only from Russians in 2018 increased by 40%. Now the Malta passport program provides for about 1,800 applications, and about 1,600 of them have already been submitted. Buying a home has become the most popular option for investment - this opportunity is used by more than 60% of applicants. Investments in Malta are the second most popular among Russians after Cyprus. To obtain citizenship, you need to deposit 650,000 euros in the National Fund of Malta and invest 150,000 euros in government bonds, and then either buy real estate in the amount of 350,000 euros or rent it for an amount of 16,000 euros or more for at least 5 years. In addition to citizenship in Malta, you can also obtain a residence permit: for it, the investment threshold is even lower - from 300,000 to 500,000 euros.
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Russian Malta
Interesting information from the history of Malta for many residents of Russia can 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 annexation. Here the emperor planned to create a naval base to ensure the country's interests in the Mediterranean and southern Europe, but in 1800 the British occupied the capital of Malta, Valletta, and after the assassination of Paul I, his son abandoned his claims to the island. As a result, under the terms of the Paris Peace of 1814, Malta ceded to Great Britain, becoming its colony and naval base until 1964.
Key Trends
Even though Malta did not become de jure Russian, it is obvious that the flow of Russian tourists and buyers of local square meters does not dry up. In addition, by investing in real estate in Malta, the buyer makes a highly profitable investment: over the past year, prices have increased by more than 17%. And this upward trend is firmly maintained as the Maltese economy continues to perform at some of the highest rates in Europe.
All types of real estate in Malta are growing steadily in value, which is facilitated by the constant demand from both local residents and foreigners - especially developers, investors and managers of iGaming - companies that have received the green light in Malta. Many are inspired to buy by the absence of annual payments, which is quite rare on the European real estate market: property tax in Malta is paid only once upon signing the purchase agreement and is only 5% of the cost of housing.
In addition, in Malta, you can buy real estate on credit at 3-4% per annum, which in itself is lower than the rental yield: from 5% to 4% per year. In Advanced Comfort Complexes (SDA), it is allowed to own several properties in Malta and rent the property, the return on which is 5-8% per year. The cost of rent in the most popular places in Malta over the past year has grown by an average of 12-14%, while there is a constant lack of real estate for rent. Many owners of a large amount of funds (the notorious "ultrahighinets") are actively investing in commercial projects: first of all, they are interested in apartments for rent.
Such investors often receive all the documents necessary for this on their own, therefore, efficiency and profitability mainly depend on the choice of a management company and a tax consultant - it is they that greatly affect the financial success of the project. In addition, now on the real estate market in Malta there are projects for renovation and development projects of local developers, the yield of which can reach 20%. The most popular purchase of historical palaces in the center of Valletta and their further restoration into boutique hotels. Due to the developed tourism sector, hotel apartments are also interesting in terms of investment.
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When opening your own business or acquiring a finished one, the most profitable investments are objects of the tourism sector, hotel and restaurant complexes, as well as logistics business, IT - industry and medicine. shipping companies. The location of the islands (there are several of them in Malta) opens up wide opportunities for establishing intercontinental cargo delivery.
Important points when buying
Buyers should also keep in mind that the price of the property being purchased must meet a certain minimum, which changes periodically and is currently ˆ 121,792 for apartments and maisonettes, and ˆ 202,929 for villas, mansions and other types of real estate. It is also important to remember that without obtaining additional permits, non-residents of Malta can purchase housing only in special designated areas - the districts of Sliema and St. Julian's. However, investors are not afraid of the need to obtain permits - often they even plan to do this on their own.
Thank you for your help in preparing the material:
Alisa Tanaeva, General Director of MaltaVIP Ltd
Ksenia Sorokina, Development Director, Moscow Sotheby's International Realty
Marina Shalaeva, Director of Foreign Real Estate and Private Investments Department, Knight Frank
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