Property & Other Investments
Property investments are proven to considerably increase capital growth and open new renting ventures, a business which is significantly increasing in Malta’s estate sector thanks to low interest rates and government incentives. Real estate is one of the key pillars in Malta’s economy growth since the new millennium.
Between the 2017 and 2020 the overall property price index rose by 16.3% according to the NSO. In the last decade, the Maltese property rapidly developed a firm inclination through the years, even during pandemic year. In March 2021 the country hit a new all-time record of property sales which consolidates the market’s reliability for investment that offers a multitude of opportunities in an ever-growing country. When compared to March 2020 the market saw a monthly constant increase of 87% on new promises of property sale and €255 million increase.
In 2019, Malta followed on other countries’ regimes and introduced the Real Estate Investment Trusts, a structure that favours tax efficiency allowing investors to benefit growing success through dividends. The islands offer a variety of property sectors, mainly be; residential, industrial and commercial properties. The residential sector is considered to be the most prevalent one, consisting of a good number of newly developed penthouses, apartments and maisonettes, exclusive houses of character, villas and palazzos.
Property prices varies and depend on two main factors: the type of property and the region. The northern region remains the highest in property price for both renting and purchasing. This region includes Sliema which hit the 100% price index on long-term rental. The Maltese government extended the reduced tax and duty rates on immovable property till December 2021. This scheme re-considers the tax paid by the buyer and reduce it from 5% to 1.5% on the first €400,000 if the immovable property is purchased till December 2021. Well-handling of properties in Malta has proven to be a lucrative business with upsurging developments and government financial-aid aiming to renovate historical homes to its pristine aesthetics.
DZ focus on solution-based methodologies highlighting the choices and the challenges in property acquisition. Our experienced specialists can propose investment opportunities and offer guidance on the suitability of property, ideal region and location, together with tax and finance plans to enhance your equity professionally and possibly create a regular income cash flow.