Euros to Pounds : Malta
OK, let's take a look at Malta as an opportunity to invest in a
property overseas
using our euros to pounds, where the currency has just been introduced.
The Maltese archipelago lies virtually at the centre of the
Mediterranean, with Malta 93km south of Sicily and 288km north of
Africa.
The archipelago consists of three islands namely, Malta, Gozo and Comino of which Malta is by far the the largest island and the cultural, commercial and administrative centre.
Euros to Pounds : Buying on Malta
With
the recent adoption of the Euro, now may be a good time to invest in
Malta if past experience is any guide. When Slovenia introduced the
Euro, property enquiries tripled from Europeans looking to buy. Whilst
the Maltese Lira has been pegged to the Euro for some time, it is the
ease of use of a single currency that attracts foreign investors. In
addition, with a tax free status, Malta has been attracting significant
overseas companies from the betting and gaming industries, who
increasingly have been setting up their operations in Malta to avoid tax in
their home countries. This influx of business has lead to a boom in
construction and consequent infrastructure. According to local agents
prices rose on average by 20% last year, and look set to continue this
trend in the next year.
Malta is not only a tax efficient location with beautiful properties for sale or rental, but its warm climate, crystal sea and days full of sun, provide the ideal location. You can enjoy your gin and tonic on board your boat berthed at one of the yacht marinas, or play golf at one of the many courses, all year round.
Euros to Pounds : The Buying Process
As with Cyprus, non residents are only able to buy one residential property- below are some of the main points you will need to consider :
- As a non-Maltese you are only entitled to own one residential property on Malta.
- You can own the asset freehold
- If you are an EU citizen, but not residing on Malta ( i.e. you are buying a holiday home) there are is minimum amount you can spend buying a property. This has been introduced in order to protect local Maltese residents. The minimum value is currently around 70,000 euros for an apartment, and 116,500 euros for a house. These minimums are increased each year.
- If you are an EU citizen who will be living on Malta then the above restrictions do not apply, provided you do not own another property in the EU or if you have resided on the island for more than five years.
- The first step in buying a property on Malta is to hire a public notary. He or she will be responsible for managing the sales process and all contractual negotiations.
- Once you have found a property and agreed a price with the vendor, a convenium ( or purchase agreement ) is drawn up and signed. This is a contract of sale and you are legally bound to complete the purchase within the stipulated time. The vendor is legally bound to sell at the agreed price within the convenium.
- A 10% deposit will be required once the convenium has been signed
- 1% stamp duty will also be required at this stage for payment to the Commissioner for Inland Revenue
- The notary will prepare the AIP ( Application for Immovable Property) A copy of the convenium is attached to the AIP application form which is obtained from the Capitol Transfer Duty Department of the Inland Revenue.
- The notary will then conduct due diligence and searches on ownership, legal boundaries and any covenants etc. The convenium is normally valid for three months to allow this to take place
- Once the notary has completed all the necessary searches he or she will draw up the Final Deed for signing by both parties. The balance plus any stamp duty will then become due.
Euros to Pounds : Fees & Costs
- Stamp duty is charged at a flat rate of 5%
- Registration fees and searches normally cost between 200 and 350 euros, but these can vary depending on the size of the property and any issues that may arise during the search
- The AIP permit from the Ministry of Finance costs 233 euros
- Each party pay for their own legal fees which are normally around 1% of the purchase price
- The buyer, on the other hand, pays 1% of the purchase price if the property was found using the services of a private agent (broker) and pays no agent's fee if the property was found using the services of a Registered Real Estate Agency.
Euros to Pounds : Tax Advantages of Malta
- There is no inheritance tax gift or wealth tax in Malta
- CGT is only 12%
- Non residents are liable to tax on income earned in Malta at 25%
- Malta has a double taxation treaty with most European countries
Euros to Pounds : General Information
- Malta has a sophisticated banking system including banks such as HSBC and Lombard
- Local mortgages can be arranged up to 90% loan to value
- Relatively low interest rates
- The official language is Maltese, but English is widely spoken
- Driving is on the left as for Cyprus
- The crime rate is very low
- Malta has recently introduced a leasing scheme for yacht owners, providing the opportunity to reduce VAT on your yacht using a Maltese lease. This company specialises in leasing and finance for boats.
OK, that's about it on Malta. If you would like further details please just visit the Malta Tourist Board official site. As I've covered two 'hot' destinations, I thought for my third new Euro entry I would look at Slovenia. Many people have no idea where it is, but it is a beautiful country and offers some of the best skiing in Europe. Your euros to pounds will also go a lot further here!!