MALTA REIM DEC JAN
2
58 www.reimag.co.za February 2014 SA Real Estate Investor MALTA BY ALEX BURGER M alta has been the subject of many books and films and, due to its natural advantages, Mediterranean climate, idyllic scenery and location, it has become both a tourist destination and a true international business location. Once a central point for shipping and a strategic military/ navy base in the Mediterranean, it is also now serviced by many of the major airlines. Malta has graduated to the “big league” as a result of the efforts of its government to rapidly grow its financial services, ICT and other technology related industries. e government has actively encouraged foreign nationals to settle in Malta for business purposes, fiscal advantages and lifestyle benefits. e Republic of Malta (“Malta”) was founded in 1964 following independence from Great Britain. It comprises three islands Malta, Gozo and Comino. Malta joined the EU in 2004 and the Eurozone in 2008. Valletta was originally built by the order of the Knights of St John’s and today it houses the business heart of Malta. Valletta and the Neolythic temples are now UNESCO World Heritage sites. e temples are the oldest standing in the world and predate Stonehenge and the Egyptian Pyramids. The Cathedral of St John’s in Valetta and the Ports of St Elmo and St Angelo were built in the time of the Knights of Malta. St Julien’s and Silems on the west coast have attracted contemporary residential properties while medieval cities such as Mdina and Rabat, rural villages and fishing ports retain the Island’s unique charm. Properties range from contemporary high-rise apartments to villas and even palaces. Foreigners may purchase property and they are normally restricted to owning one property. However recently there have been a number of 5-star developments with luxury apartments, which are exceptions to this rule. e purchase prices are apparently usually half those of similar properties in the UK. The rental market is varied and ranges from affordable to high-end homes and even rural estates. For residents and visitors, modern Malta has a vibrant social life characterised by many nightclubs, bars and jazz clubs. The world- renowned tennor Joseph Calleja is Maltese as is Edward de Bono, physician, consultant and author of the book “Lateral inking”. Malta is very famous for its gold and silver filigree jewelry and hand blown glass. e Maltese are very hospitable people and it’s a wonderfully safe place to live and visit. Living In Malta e gateway to Europe, North Africa & Middle East
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Transcript of MALTA REIM DEC JAN
www.reimag.co.za58 www.reimag.co.zaFebruary 2014 SA Real Estate Investor
MALTA BY ALEX BURGER
Malta has been the subject of many books and f ilms and, due to its natural advantages, Mediterranean
climate, idyllic scenery and location, it has become both a tourist destination and a true international business location. Once a central point for shipping and a strategic military/ navy base in the Mediterranean, it is also now serviced by many of the major airlines. Malta has graduated to the “big league” as a result of the efforts of its government to rapidly grow its financial services, ICT and other technology related industries. The government has actively encouraged foreign nationals to settle in Malta for business purposes, f iscal advantages and lifestyle benefits.
The Republic of Malta (“Malta”) was founded in 1964 following independence from Great Britain. It comprises three islands Malta,
Gozo and Comino. Malta joined the EU in 2004 and the Eurozone in 2008. Valletta was originally built by the order of the Knights of St John’s and today it houses the business heart of Malta. Valletta and the Neolythic temples are now UNESCO World Heritage sites. The temples are the oldest standing in the world and predate Stonehenge and the Egyptian Pyramids. The Cathedral of St John’s in Valetta and the Ports of St Elmo and St Angelo were built in the time of the Knights of Malta.
St Julien’s and Silems on the west coast have attracted contemporary residential properties while medieval cities such as Mdina and Rabat, rural villages and fishing ports retain the Island’s unique charm. Properties range from contemporary high-rise apartments to villas and even palaces. Foreigners may
purchase property and they are normally restricted to owning one property. However recently there have been a number of 5-star developments with luxury apartments, which are exceptions to this rule. The purchase prices are apparently usually half those of similar properties in the UK. The rental market is varied and ranges from affordable to high-end homes and even rural estates.
For residents and visitors, modern Malta has a vibrant social life characterised by many nightclubs, bars and jazz clubs. The world-renowned tennor Joseph Calleja is Maltese as is Edward de Bono, physician, consultant and author of the book “Lateral Thinking”. Malta is very famous for its gold and silver filigree jewelry and hand blown glass. The Maltese are very hospitable people and it’s a wonderfully safe place to live and visit.
Living In MaltaThe gateway to Europe, North Africa & Middle East
CAPE TOWNGround floor, Liesbeek House, River Lane, Mowbray
PO Box 23644, Claremont, 7735Tel: +27 21 680 5272 | Fax: +27 86 670 6490
Contact: Jenny Ellinas | +27 83 448 8734 | [email protected] | www.cypriotrealty.com
Official South African marketing agent for
LEPTOS ESTATES | www.LeptosEstates.com
www.reimag.co.za 59February 2014 SA Real Estate Investor www.reimag.co.za
OFFSHORE
RESOURCES
Amicorp
The turquoise crystal Mediterranean waters attract many sailing vessels of various sizes and nationalities including Super Yachts. Ship and yacht registration in Malta is particularly useful for vessels sailing in the Mediterranean due to the country’s compliance with EU VAT regulations. The islands offer array of outdoor activities including yacht charters, f ishing, rock climbing and is a highly rated diving destination.
Malta’s economic growth story has been in financial services, banking and insurance. They have invested in sophisticated infrastructure and focus on healthcare and education. A number of Fortune 500 companies have set up captives in Malta such as Vodafone, Peugeot and Citroen. Recently the pension sector has been developed to provide international pension products and Malta has an excellent name in international fund administration. Recent legislation providing a robust policy for e-payments is set to drive this industry. The World Economic Forum Global Information (Global Information Technology Report 2010-2011), made favourable mention of Malta
for mobile network coverage, government prioritisation of ICT, high-tech exports and secure network servers and other technological infrastructure.
The Malta 2013 global residence programmeEarlier this year the Maltese government has enhanced the terms of the incentive scheme offered to high net worth individuals seeking to obtain a residence permit.
Under the terms of the revised scheme, the taxpayer must purchase immovable property worth at least EUR275 000 (USD365 000) in Malta or EUR220 000 in Gozo or the south of Malta, where property prices are generally lower. (This is a marked reduction on the previous requirement of EUR400 000.) Alternatively, the individual may rent property for no less than EUR9 600 in Malta, or EUR8 750 in south Malta or Gozo ( reduced from EUR20 000). The taxpayer must make an annual tax contribution of no less than EUR15 000 which is less than previously required with further income arising outside of Malta but
brought into Malta to be taxed at a flat rate of 15%. As expected a vetting system applies including fluency in either English or Maltese. (There are further benef its in establishing Maltese operating and holding companies.) There are several advantages of Permanent Residency in Malta: there is no tax on capital remitted to Malta or tax on gains arising outside of Malta. There are no inheritance, capital or wealth taxes and, as discussed, there is 15% income tax on income derived in or remitted to Malta. Most importantly there is no requirement to purchase property where one can meet the minimum rental requirement and there is no minimum period of residence required.
It is important to note that South Africans should take appropriate advice on acquiring residence in Malta as well as their tax status in respect of South Africa. A taxpayer can be seen to be resident in both countries and thus liable to tax in both if they don’t meet the necessary requirements.
CAPE TOWNGround floor, Liesbeek House, River Lane, Mowbray
PO Box 23644, Claremont, 7735Tel: +27 21 680 5272 | Fax: +27 86 670 6490
Contact: Jenny Ellinas | +27 83 448 8734 | [email protected] | www.cypriotrealty.com
Official South African marketing agent for
LEPTOS ESTATES | www.LeptosEstates.com
