Property in Malta
Traditionally seen as a safe Mediterranean destination with a friendly connection with Britain, Malta's property market is no longer limited to the retirment market. Its appealing tax breaks and carefully monitored developments are pulling in younger investors looking to benefit from rentals.
Prices for Maltese Properties from £70,000
Key facts
- Population: 400,000
- Capital: Valletta
- Approx. exchange rate: £1 = 0.63MTL (Malta lira)
- Visas: After three months
- Time difference: +1 GMT
- Flight time from UK: 3 hours
- Major airports: Malta International
- Dialling code: 00 356
Property in Malta
The Market: Island retirement or rental
Appealing tax breaks, a pleasant climate, virtually no crime and a “British” way of life in a Mediterranean setting: it’s easy to see why Malta appeals to retirees looking for an overseas home. The fact that you don’t have to struggle with a foreign language – the main language is English – you drive on the left and the island has reciprocal health agreements with the UK helps to explain why 90 per cent of incomers are British.
“Many of our clients are approaching retirement age and are seeking a change of lifestyle,” says John Cutugno of Homes in Malta. “The majority of British buyers come to Malta with a budget of just over £100,000 and are normally searching for a new build or modern resale apartment close to the sea with two bedrooms and a floor area of 70-100 square metres.” Since joining the EU in 2004, the Maltese property market has shifted up a gear and welcomed a new type of buyer. “We are getting a substantial amount of enquiries from property investors seeking to purchase property to rent, and more discerning UK buyers looking for luxury property and the excellent tax rates available to the higher tax payer,” explains Cutagno. Occupancy levels in rental accommodation are typically up to 60 per cent annually.
While British buyers have previously targeted traditional village houses, especially on the tranquil island of Gozo, new beachfront developments are starting to spring up. Suited for year-round residence or the letting market, the affordable options can be found on the north-east coast, between St Paul’s Bay and Mellieha. In Mellieha a new development is in the making, offering units with pools from under £100,000.
Also popular, but priced a little higher, are the central coastal towns of St Julians and Sliema, where older-style hotels are being replaced with high-quality apartments. Thanks to land limitations on the island, large holiday villages of the type that have swamped parts of Spain are not destined for Malta, at least for the time being.
