The Maltese real estate market offers a wide range of property options, from apartments to villas and penthouses. The well-known citizenship by investment program makes investing in Malta even more attractive. In this article, we’ll explore the Maltese real estate market, types of real estate investment opportunities, and the most popular locations for investment, and more.
Key Takeaways
- The main factors that drive investments in the Maltese real estate market are its strategic location, growing tourism industry, growing economy, and citizenship by investment program.
- Some of the benefits of real estate investment in Malta are getting a Maltese passport, family reunification, an investor-friendly tax system, and high investment return potential.
- The most common real estate investment opportunities are apartments, villas, maisonettes, townhouses, and penthouses.
- The most popular locations for real estate investment are Valletta, Sliema, St. Julian’s, and Gozo.
Malta Real Estate Market
In Malta, real estate investment can help you obtain EU citizenship. That’s one of the main reasons why investing in the Maltese real estate market is full of potential for investors.
According to Statista, in 2024 the projected value of the Real Estate market in Malta is expected to reach US$103.80bn. Within the next 4 years, this segment will have an annual growth rate of 3.74%, resulting in a market volume of US$120.20bn by 2028. The Maltese real estate market is on the rise because of foreign investors thanks to factors, such as:
Strategic Location
Malta has proximity to Europe, North Africa, and the Middle East, making it a great hub for business, tourism, and trade. It’s especially beneficial for businesses that want to establish departments in multiple regions.
Growing Tourism Industry
According to the Times of Malta, in 2023 there were more than 3 million tourists in Malta. Investing in Malta’s real estate market is promising as the thriving tourist industry generates demand for short-term rental properties.
Growing Economy
According to the European Commission, Malta reached a 5.6% GDP growth in 2023. The Maltese economy is expected to achieve a growth rate of 4.6% in 2024 and 4.3% in 2025. The indicators show that the country has a stable and developing economy with a strong financial services sector. This stability provides confidence to investors looking for long-term growth.
Citizenship by Investment Program
In 2020, Malta launched its new citizenship-by-investment program which aims to develop its economy with foreign investment. In exchange for an investment, they are given citizenship in return, which allows them to expand their business and get visa-free access to over 190 countries.
Benefits of Real Estate Investment in Malta
Property investment in Malta offers a wide range of benefits. Here are some of the key advantages:
1. Getting a Maltese Passport
Investing at least €700,000 in the Maltese real estate market, you may be eligible to apply for citizenship and receive a Maltese passport, which ranks as the 5th strongest passport in the world. It enables its citizens to have visa-free or visa-on-arrival entry to 190 countries including Germany, China, the United Kingdom, and the United States.
2. Family reunification
By investing in the Maltese real estate market, you can apply for citizenship and include your relatives in the application as well. As an applicant, you are allowed to include the following dependents:
- Parents or grandparents over the age of 55
- Spouse
- Children under the age of 18
- Financially dependent children under the age of 29
3. Investor-friendly tax system
Malta has a progressive tax system, meaning the higher an individual’s income is, the higher the tax must be paid. The rate ranges from 0% to 35%
As for companies, Malta has a full imputation tax system, which is designed to prevent the same income from being taxed multiple times. Here’s how it works: after making a profit and paying 35% corporate tax, the company distributes after-tax profit as dividends to shareholders, including a tax credit for the corporate tax that the company has already paid. After that, shareholders include the dividend and the tax credit in their taxable income and use the tax credit to reduce the amount of personal income tax they need to pay.
4. Business Opportunities
With a citizenship-by-investment program, you can establish and expand your business in Malta and the entire EU. This country encourages entrepreneurship and innovative business solutions by having a favorable business environment, a well-regulated financial sector, a strong legal framework, and supportive governance policies.
5. High investment returns
Another benefit of real estate investment in Malta is the potential for high real estate property returns. Malta’s real estate market is growing with more than three million tourists in Malta in 2023.
Types of Real Estate Investment Opportunities
Malta offers a wide range of real estate opportunities that can lead you to obtain Maltese citizenship. The Maltese real estate market is full of property types such as apartments, townhouses, penthouses, villas, and more. Let’s have a closer look at them.
Apartments
Apartments are the most popular type of property in Malta. Duplexes and triplexes also exist, but usually, apartments are located on one floor. The prices of maintenance of common areas are shared and paid by the apartment owners.
Villas
Another popular type of property in Malta is villas. These homes with swimming pools and extensive grounds are often found in areas such as Santa Maria, High Ridge, and Madliena.
Maisonettes
Maisonettes are a highly demanded property type in Malta. Unlike apartments, maisonettes often have their own private entrances and may include outdoor spaces such as gardens, terraces, or courtyards. One of the key advantages of maisonettes is their increased privacy compared to apartments.
Townhouses
Townhouses are a distinctive and highly sought-after type of residential property in Malta often located in the older parts of cities or villages. Usually, they are spread into two or more floors. What makes townhouses different are their wooden openings, small back garden or courtyard, and no common areas or shared walls.
Penthouses
Penthouses represent luxury living in Malta, offering great views, spacious layouts, and high-end amenities. This type of property is usually located in sought-after areas such as Sliema, St. Julian’s, and Valletta. Almost all the penthouses come with their own swimming pool and advanced smart home systems, which are a collection of devices and technologies that automate and control various household functions
Popular Locations for Real Estate Investment
If you want to invest in Malta’s real estate market, here are the most popular locations.
Valletta
Being the capital of Malta, Valletta offers a unique blend of historical charm and modern conveniences. Its UNESCO World Heritage status and rich cultural heritage make it a must-visit place for tourists. This means that properties in Valletta have strong demand and a potential for high returns.
Sliema
Sliema is one of the best sought-after areas for Maltese real estate investment. Having extensive amenities, a beautiful lifestyle, and a seafront view, it attracts both locals and expats. The area is a mix of real estate properties such as villas, apartments, townhouses and more. Being a center of many business hubs, it always gains new visitors and ensures high rental income.
St. Julian’s
St. Julian’s is yet another great location for real estate investment. The area is a center for high-end developments like Portomaso and Pendergardens, which offer luxury apartments and penthouses with premium amenities. The vibrant nightlife and appealing villas attract both residents and tourists.
Gozo
Unlike the other locations mentioned above, Gozo doesn’t have a busy lifestyle, colorful nightlife, and business hubs. It’s a great alternative especially beneficial for those who prefer a more relaxed lifestyle. Gozo is particularly attractive for holiday rentals, ensuring a high rental income.
FAQ
How much are real estate purchase taxes in Malta?
For non-residents, the real estate purchase taxes in Malta include the 5% stamp duty (which is reduced to 3.5% for Maltese and other EU residents on the first €150,000), notary fees (1%-3% of the sales price), and an AIP permit fee of €233.
Can foreigners buy property in Malta?
Yes, foreigners are eligible to buy property in Malta. Moreover, if the foreigner meets the eligibility criteria, he/she can apply for citizenship through an investment program and obtain a Maltese passport.
How long does it take to get citizenship by investment in Malta?
Getting citizenship by investment in Malta usually takes 12-18 months. For a streamlined process, contact a trusted agent for guidance.
Conclusion
To sum it up, Malta is a great place for real estate investment, because of opportunities like Maltese citizenship, including family members in the application, and an investor-friendly tax system. Having a real estate property there, you can rent it out with the potential for high returns. The most popular types of real estate investment are apartments, villas, maisonettes, townhouses, and penthouses. If you want to buy a property in Malta, try to acquire it in the most popular locations that attract both residents and tourists, which are Valletta, Sliema, St. Julian’s, and Gozo.
