Cityscape Dubai 2018
Speech delivered by Mr. Sandro Chetcuti – Chairman of Property Malta Foundation
Your excellency President of the Republic of Malta, distinguished guests, ladies, and gentleman …
I feel honoured and privileged to be here with you today and to represent my country by promoting one of the very important industries in Malta and world-wide: The Property Market Industry.
Perhaps one of the very important questions would be Why Malta? The reasons to invest in Malta and own a property varies. There is no doubt that Malta offers the ideal background and set up for those who would like to invest in another property at another destination – a destination of choice and of prosperity.
Recently a study on the construction industry and the property market in Malta was commissioned by the Malta Developers Association. From this study it emerged that this very important sector represents 15% of the nation’s gross valued added, accounting for a total output of €2.55 billion. 21% of the total gainfully occupied in Malta and Gozo are directly linked to the industry
Perhaps this explains why the government felt it was right and important for this very important sector to have a foundation dedicated to the industry and acting as a catalyst between different stakeholders including those who would like know and understand better the context within the local scenario.
During my presentation, I shall delve into the following:
Malta is strategically located in the Mediterranean, surrounded by sea, part of Europe but close to North Africa and the Middle East. It is a member of the European Union and the Eurozone, and boasts excellent relations with its neighbours.
At the end of 2016, the population in Malta was at half a million, of which approximately 30,000 are non-Maltese. Malta consists of three beautiful Islands, which are Malta, Gozo and Comino with a total area of 316 sq km. The archipelago of Malta is situated right at the heart of the Mediterranean Sea close to Italy and within reach of many of the European hubs such as London in UK, Brussels in Belgium and Paris in France.
Malta enjoys a mild climate, with political and economic stability having a multilingual and multi-cultural nation. We also offer one of the best qualities of life with excellent health services and education. The advantages of investing in Malta are countless.
The financial services, gaming industry, tourism, ICT, education and other services are all valid reasons why one should consider Malta as a place of investment. We have an excellent air and shipping facilities, a highly-educated and skilled workforce, a proactive business environment, and English as the business language, which have all made Malta a location of choice for foreign direct investment and international trade.
However, the major benefit for one to invest in Malta is the attitude of the government. The Maltese government has a “can do approach,” meaning that whoever comes up with an idea that is valid and in line with the Government’s vision and agenda this will be implemented without further ado.
The ecosystem that Malta is building is also unique. For instance, Malta is part of the EU, English is a second mother tongue and a highly skilled people workforce. Another point to mention is that Malta has a competitive tax regime that attracts companies and a place where to do business especially for those International companies wishing to benefit from one of the various “tax refund” schemes. This shows that Malta future proof’s infrastructure is robust and ideal for investment.
We offer a strategic position to reach new markets. In fact, Malta is dedicated to attracting foreign investment, with a long history of delivering results. Big names have decided to set up shop in Malta now also in the block chain industry In fact, Malta is currently leading the charge in regulating the block chain and crypto-currency technology. There is no doubt that Malta’s economic vision is built on a diversified economy … a unique interrelated blend of industries upon which Malta can focus future business attraction, retention, and entrepreneurial development.
Property is also a very important and lucrative industry in Malta. The list of advantages to invest and to reside in Malta are extensive and the demand for quality properties is set to increase especially with the introduction of the Global Residence Scheme, the Malta Residency and Visa Programme and the Individual Investors Program.
The Malta Residence and Visa Programme Regulations provide for affluent persons of impeccable standing and repute to receive Maltese residence for an indefinite period on the basis of a contribution to and investment while the Individual Investors is intended to take Malta to the world, to expand our horizons and attract individuals not only willing to invest, but also to become part of our nation.
Having a residence in Malta tied with permanent residence means freedom of movement with no minimum requirements and no visa requirement. Government recognises the importance tied to quality properties to attract high net worth individuals and during the past years, we have seen the introduction of a new tier of properties and amenities to cater for this segment. On the other hand, land in Malta is also very scarce, with only 28% of the whole country is a built-up area and the Government has no intention to extend the current boundaries of development. Hence, Malta’s valued proposition for property investment is by far a safe and sound investment with excellent returns, as I will explain.
Recently a report on Bloomberg has placed Malta at an edge over Hong Kong to take the prize for territory or country with the highest residential price gains in the June quarter. As a matter of fact property prices in Malta rose by 17 percent in the three months to June from a year earlier. This supply combined with a robust economy that is continuously growing with a buoyant tech industry is pushing up the demand having a property Malta is a value proposition one should seriously consider.
The reason why investment in property kept momentum is due to various reasons amongst them:
It is for this reason that in March 2017 the Government of Malta with the Malta Developers Association founded Property Malta Foundation, which is a non-profit organisation specifically set up to promote and support the property market.
Property Malta is there to act as a one-stop shop for those wishing to purchase a property in Malta. The scope of the foundation is:
Malta is not only a destination where to do business but also it is a place to entertain.
In fact, entertainment is rife in Malta and nightclubs, bars, restaurants, and cinema are within walking distance. Property in Malta may vary and include villas, apartments, farmhouses, flats and land for sale in both Malta and Gozo and so do prices. However, certain restrictions do apply, especially for third country nationals wishing to acquire a property in Malta. The Immovable Property Act regulates acquisition of property in Malta by Third Country Nationals. This piece of legislation defines the conditions for purchasing property whereby individuals who are not citizens of a European Member state may not acquire any immovable property unless they are granted a permit in terms of the law. However, certain exemptions to obtaining a permit exist and these are called special designated areas and includes some of our best locations and projects in Malta.
The main advantages of Purchasing a Property in Malta are as follows:
Once the property and the price are decided upon between the parties a promise of sale agreement / preliminary agreement (konvenju in Maltese) is signed binding the vendor to sell and the purchaser to buy the property in question subject to the satisfaction of certain conditions. This will then be followed by the contract of sale in the form of a public deed. On the other hand, the rental of immovable property in Malta is subject to far less formality than the purchase process but still requires a written lease agreement.
Finally, I conclude by thanking the team behind Property Malta and all stakeholders involved, for their work in bringing this industry together in a common front to promote Malta. Finally yet importantly, I thank you for allowing me this opportunity to speak about my country. I wish you the best for the future and hope to see you in Malta.
