Welcome to Belair Real Estate Malta
Welcome to Belair Real Estate Malta
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The Maltese islands lie 58 miles south of the Italian island of Sicily, virtually in the centre of the Mediterranean Sea. The Maltese Archipelago is made up of Malta (being the largest island), Gozo and Comino. They are considered a Mediterranean island paradise and Malta is only a few hours flying time from the majority of Europe’s main cities, with numerous flights a day to London, being only three hours away. Although a small island, Malta has a very rich history, including three World Heritage Sites and numerous other historic sites and attractions.
The climate is typically Mediterranean, with hot dry summers, and short, mild winters with adequate rainfall. Temperatures are generally very stable, the annual average being 18ºC/(64ºF), with monthly averages ranging from 12º C / (54ºF) to 31ºC / (88ºF). Cold spells are rare occurrences, and usually brought by North and Northeast winds from mainland Europe. Daytime winter temperatures rarely ever fall below 10ºC / (50ºF).
Malta is on Central European Time (CET) and is very well and frequently connected to most large and smaller European cities. Alitalia, British Airways, Lufthansa, SAS, Swiss, Emirates, RyanAir, Easy Jet, Click Air, Vueling and Malta’s national airline, Air Malta are amongst the main airlines that fly directly to Malta, also offering excellent international connections. Frequent daily ferries to Sicily and Italy, including a daily high speed catamaran connection to Sicily are also available.
Malta has a diverse population and predominantly strong Roman Catholic values, giving Malta a continental, European flair with intrinsic strong Mediterranean roots.
In 2004, Malta became a member of the European Union and on 1st January 2008, adopted the Euro currency.
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Malta enjoys a favourable commercial and industrial climate that has come about thanks to its solid background, stable political and economical framework and highly regarded regulatory framework.
There are currently over 250 foreign owned businesses on the island, ranging from pharmaceuticals, software development, automotive components, medical equipment, electronics, service and maintenance to the aviation industry, precision tool production, furniture manufacturers to financial institutions and financial service providers. Malta’s highly skilled and competitive labour costs have also been key to sustaining this success.
Over the years, we have many a time been a company’s first point of call when looking to relocate to Malta and have therefore built strong relationships with reputable legal firms and International Audit firms and tax advisors represented in Malta.
It is strongly recommended that companies seek the proper legal and tax advice when considering setting up in Malta, and if required we would be happy to recommend the appropriate firm depending on your specific requirements. Through our contacts we can immediately put you in touch with the right people.
Reasons why to set up your business in Malta
The continuous increase in Foreign Direct Investment (FDI) in Malta over the years is due to various factors, however these can be shortlisted to the following key attractions:-
Advantages in product research and development
High standard of education with English as an official language and most Maltese speaking English fluently, with a number of them also fluent in Italian, French and German
Highly attractive tax incentives and structures benefiting international organizations operating out of Malta
Excellent Freeport currently ranking 12th among the top European ports and the 3rd largest transshipment and logistics centre in the Mediterranean region
A number of bilateral and multilateral tax treaties and agreements ensuring favourable export conditions to most parts of the world
The University of Malta is ranked as one of Europe’s finest, providing free education to over 8,000 students, ranging from medicine, to law, architecture, engineering, IT, business studies, management and accountancy and communications amongst others.
The Malta College of Arts and Technology (MCAST) also provides vocational and professional training in in several sectors which include information and communications technology, art and design, mechanical engineering, electronics and engineering, building and construction, community services, business and commerce and maritime affairs. All this training is of an international standard and has been key to the upgrading of Malta’s labour force.
Workforce – The Maltese have always been known to be a hardworking and enterprising race, mainly due to this being one of their only raw material. The various international business operating in Malta will all confirm that the qualities they find in Maltese workers play a big part in their economic success.
Do not hesitate to contact us should you have any queries or require additional assistance.
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We are fully aware that when relocating, one of the main concerns for a family is their children’s schooling.
Malta is renowned to enjoy a very high standard of education, and nowadays offers a very good choice of excellent English private and international schools.
Belair has always maintained strong links with all these major schools and can assist clients with setting up initial meetings wherever necessary. Information on any of these schools is also available on request.
Do not hesitate to contact us should you need to discuss further.
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Besides Malta`s attractive climate, safe and relatively crime free environment and English speaking population, Malta is also an ideal place to take up residence. One may do this in terms of the Residents Scheme Regulations 2004.
Residents Scheme Regulations, 2004
One may take up residence in Malta by obtaining a certificate from the Inland Revenue Department, which certificate is issued for an indefinite period as long as certain conditions are satisfied on an annual basis. Holders may therefore reside indefinitely in Malta and may enter and leave Malta as and when required without the need of any other formalities.
The following is a list of incentives and advantages applicable to holders of a certificate in terms of the Residents Scheme Regulations:
• A low flat rate of income tax of 15% with a minimum tax liability of €4,192 per annum after double taxation relief.
• Malta’s tax legislation provides for relief from double taxation, whether through negotiated double tax agreements with a substantial number of countries worldwide, or through unilateral provisions.
• There is no real estate tax in Malta. Tax on capital gains arising from the sale of real estate in Malta does exist but residents are exempt if they have used the property as their main residence for three consecutive years and the property is disposed of not later than one year of vacating it.
• Duty, at 5%, is however chargeable on the purchase of real estate in Malta.
Conditions for Application
One must own worldwide capital of at least €349,000 (or equivalent) or have an annual income of not less than €23,000 (or equivalent) arising outside Malta. The permit holder is also required to remit to Malta a mnimum of €13,950 per annum plus €2,300 for each dependant, including the spouse. The minimum remittances must not be repatriated out of Malta. Furthermore, a holder of a Residents Scheme certificate is required to purchase or lease property in Malta, having the following minimum values:
• Purchase of apartment: €69,000;
• Purchase of house: €116,000;
• Lease of residence: €4,150 per annum.
Application Process
The application form has to be accompanied by the following documents:
• A copy of the applicant’s birth certificate or marriage certificate, as applicable
• Three passport-size photographs in respect of the applicant and his or her spouse and dependants (where applicable);
• A police conduct certificate in respect of the applicant and his or her spouse (where applicable) from the police authorities nearest to the place of residence. (UK applicants must submit a “Subject Access Enquiry Certificate”);
• A copy of the personal details page in the applicant’s passport as well as that of his or her spouse;
• A financial certificate from the applicant’s bankers, accountants or a financial institution, stating that the applicant has an annual income in excess of €23,000 (or equivalent) or a minimum capital of €349,000, and is able to transfer €13,950 (or equivalent) per annum.
The €13,950 must be increased by €2,300 for each dependant whose name appears on the application (e.g. for an applicant and spouse the amount required is €16,250);
• A self-declaration stating that the applicant shall remit to Malta the minimum amounts required.
• A copy of either the deed of purchase or the lease/rent agreement if the applicant already owns or rents/leases property in Malta. If the applicant does not already own/lease property in Malta a copy of such deed/agreement is required to be produced at the point in time when one actually takes up residence in Malta this being not later than 12 months after the date of issue of the residence permit.
All the above documents must be certified by a Notary and apostilled by the Ministry of Foreign Affairs in the country of nationality. A processing fee of Euro 115 must also be paid on submission of application.
Timing
The issue of a certificate typically takes around three months from the date of the application. The minimum amount of tax shall be payable within thirty days of approval of the application and shall be credited against the tax due for the first year of residence. The holder of a permit must take up residence within 12 months from the issue of the said permit.
Household Effects
EU Citizens may import their household effects (excluding a car) into Malta free of VAT and import duties. For non-EU citizens, Customs may initially require either a deposit or a bank guarantee for the amount of VAT/duty in question. Upon the expiry of 200 cumulative days stay in Malta within a year any such deposits or bank guarantees are refunded or cancelled, provided that the duration of stay can be proved.
Car
EU citizens may register a car in Malta without the payment of any tax provided that they can prove that they have transferred their residence to Malta and have owned the car for 24months prior to it being brought into Malta. The car must be brought into Malta within 12 months of taking up residence.
Inheritance and capital transfer tax
There is no general inheritance tax system in Malta. However, upon the transfer or transmission (upon death) of:
• Real estate or shares in a company owning mainly real estate a duty of 5% is payable;
• Marketable securities (mainly shares in Maltese companies) a duty of 2% is payable
Other Residents
An individual may also take up residence in Malta by declaring his intention within three months of arrival in Malta. A person taking up residence in Malta must complete and submit a form (EU or non-EU) at the Immigration Division at Police Headquarters.
The local authorities would require such foreign individuals to prove that they have sufficient means to live in Malta without being a burden on the country.
An individual may also become a resident of Malta as a consequence of taking up employment in Malta. A foreigner taking up such employment would require employment permission, which would be applied for by his employer.
Schengen Zone (Uniform Residence Permit)
In 2007, Malta became part of the Schengen Zone. Non-EU citizens may obtain the Uniform Residence Permit, which is issued on the basis of one being a permanent resident. In this case, it grants its holder the possibility to travel throughout the Schengen Zone without the requirement of a visa for at least three months.
In order to apply for the Uniform Residency Permit, the applicant must have a place of residence in Malta.
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The following is a list of incentives and advantages applicable to holders of a certificate in terms of the Residents Scheme Regulations:
• A low flat rate of income tax of 15% with a minimum tax liability of €4,192 per annum after double taxation relief.
• Malta’s tax legislation provides for relief from double taxation, whether through negotiated double tax agreements with a substantial number of countries worldwide, or through unilateral provisions.
• There is no real estate tax in Malta. Tax on capital gains arising from the sale of real estate in Malta does exist but residents are exempt if they have used the property as their main residence for three consecutive years and the property is disposed of not later than one year of vacating it.
• Duty, at 5%, is however chargeable on the purchase of real estate in Malta.
Inheritance and Capital Transfer Tax
There is no general inheritance tax system in Malta. However, upon the transfer or transmission (upon death) of:
• Real estate or shares in a company owning mainly real estate a duty of 5% is payable;
• Marketable securities (mainly shares in Maltese companies) a duty of 2% is payable
If the property is jointly owned and one of the spouses passes away, the 5% is levied on half the value of the property.
This tax is not payable upon the transfer of the residential home to the surviving spouse, provided that the surviving spouse does not sell the home during his/her lifetime.
FAQ's
Relocating your family or your business to a new country is always a big step. This is most often a strategic decision based on advantages one has to gain either from the geographical position, tax incentives, education, security, the system and regulatory framework governing the particular industry, availability of skilled workforce and the attractive cost of this workforce.
We have been assisting individuals and companies relocate to Malta for years, and our team has over these years developed the know-how and acquired the contacts to help our clients make this move so much easier.
Besides the housing aspect, when relocating to Malta, a family or individual can require advice on tax and residency matters, education and schooling, car leasing, and moving of personal effects. As leaders in this field, we can answer all your questions and put you in touch with the right reliable people for any of these requirements.
When relocating a business, these tasks may be even more detailed and specific, where the right guidance and advice could save the business substantial time and money. Besides identifying the suitable office or commercial premises to suit the particular business activity, we have over the years assisted various companies in acquiring the right advice on legal and taxation matters, setting up of the business activity including IT/communications infrastructure, finishing and design, office furniture and décor, and even good tips on how to get the right workforce. The location for any business is obviously a crucial decision and can differ depending on the nature and requirements of the particular activity.
Our expert team has over the years acquired the necessary experience to guide any type of business on the right location for their needs.
The tabs on the left of the screen will give you valuable information on the various aspects relating to moving your family or business to Malta.
Meanwhile, please do not hesitate to contact us at anytime should you require any additional information.