Maltese property enjoyed double-digit growth last year, and far from being a boom and bust the growth is expected to continue.
The difference between Malta and many other European countries is that the property boom is not fuelled by lax lending standards, as banks are very strict in Malta when it comes to mortgages. Hence no banks went out of business during the global financial crisis and there were far less defaults.
The Maltese property market has instead been fuelled by a growing economy in Malta, with particular strength in online gambling, financial services, and of course tourism.
The economy in Malta grew by 35 per cent in the decade following the 2007 global financial crisis according to KPMG.
Of particular interest is the strong involvement in the online gambling industry. Many of Europe’s big online gambling ﬁrms are located in either Gibraltar or Malta due to advantageous tax schemes in both countries.
With Brexit on the way it is possible that the UK could lose access to the single European market, or at least have access changed. That could well mean many of the Gibraltar based gambling operators looking to relocate within the EU, and Malta would be top of the list, meaning the island nation stands to benefit from Brexit.
But it is not just the economy that is the attraction of Malta to British overseas property investors.
In addition to the warm temperate climate and laid-back lifestyle, Malta has no real language barrier for Brits looking to invest in Maltese property. Due to the 150 years spent as a British colony, English is one of the national languages of Malta and is therefore understood by most of the Maltese population.
No council tax or inheritance tax in Malta is another draw to overseas property investors, and for those resident but not domiciled in Malta there is no tax on earnings outside Malta if the funds aren’t remitted to Malta and no capital gains tax on overseas assets even if the proceeds are brought into Malta.
The most popular regions for British overseas property investors to invest in Maltese property are varied according to real estate brokers.
Bugibba is a popular tourist resort with a casino, Gozo, an island with a lot of beaches and resorts and one of the top diving destinations in the Mediterranean, Mellieha, a tourist resort popular for its sandy beaches, Sliema, a coastal town famous for its nightlife and water sports and Qawra, also a popular tourist resort.’
For those more interested in Cities, Vittoriosa, Cospicua and Senglea are attracting a lot of attention at the moment, particularly Vittoriosa, where a new university will be opening within 12 months.
It is currently easy for the British to purchase in Malta before Brexit goes through, so now may well be the time to gamble on Maltese property.