1. 58 www.reimag.co.zaFebruary 2014SARealEstateInvestor
MALTA BY ALEX BURGER
M
alta has been the subject of many
books and films and, due to its
natural advantages, Mediterranean
climate, idyllic scenery and location, it has
become both a tourist destination and a true
international business location. Once a central
point for shipping and a strategic military/
navy base in the Mediterranean, it is also now
serviced by many of the major airlines. Malta
has graduated to the “big league” as a result of
the efforts of its government to rapidly grow its
financial services, ICT and other technology
related industries. The government has actively
encouraged foreign nationals to settle in Malta
for business purposes, fiscal advantages and
lifestyle benefits.
The Republic of Malta (“Malta”) was founded
in 1964 following independence from Great
Britain. It comprises three islands Malta,
Gozo and Comino. Malta joined the EU in
2004 and the Eurozone in 2008. Valletta was
originally built by the order of the Knights
of St John’s and today it houses the business
heart of Malta. Valletta and the Neolythic
temples are now UNESCO World Heritage
sites. The temples are the oldest standing in
the world and predate Stonehenge and the
Egyptian Pyramids. The Cathedral of St
John’s in Valetta and the Ports of St Elmo
and St Angelo were built in the time of the
Knights of Malta.
St Julien’s and Silems on the west coast have
attracted contemporary residential properties
while medieval cities such as Mdina and
Rabat, rural villages and fishing ports retain
the Island’s unique charm. Properties range
from contemporary high-rise apartments
to villas and even palaces. Foreigners may
purchase property and they are normally
restricted to owning one property. However
recently there have been a number of 5-star
developments with luxury apartments, which
are exceptions to this rule. The purchase prices
are apparently usually half those of similar
properties in the UK. The rental market is
varied and ranges from affordable to high-end
homes and even rural estates.
For residents and visitors, modern Malta
has a vibrant social life characterised by many
nightclubs, bars and jazz clubs. The world-
renowned tennor Joseph Calleja is Maltese as
is Edward de Bono, physician, consultant and
author of the book “Lateral Thinking”. Malta
is very famous for its gold and silver filigree
jewelry and hand blown glass. The Maltese are
very hospitable people and it’s a wonderfully
safe place to live and visit.
Living In MaltaThe gateway to Europe, North Africa & Middle East

2. www.reimag.co.za 59February 2014 SARealEstateInvestor
OFFSHORE
RESOURCES
Amicorp
The turquoise crystal Mediterranean waters
attract many sailing vessels of various sizes
and nationalities including Super Yachts. Ship
and yacht registration in Malta is particularly
useful for vessels sailing in the Mediterranean
due to the country’s compliance with EU VAT
regulations. The islands offer array of outdoor
activities including yacht charters, fishing,
rock climbing and is a highly rated diving
destination.
Malta’s economic growth story has been in
financial services, banking and insurance. They
have invested in sophisticated infrastructure
and focus on healthcare and education. A
number of Fortune 500 companies have set up
captives in Malta such as Vodafone, Peugeot
and Citroen. Recently the pension sector
has been developed to provide international
pension products and Malta has an excellent
name in international fund administration.
Recent legislation providing a robust policy
for e-payments is set to drive this industry. The
World Economic Forum Global Information
(Global Information Technology Report 2010-
2011), made favourable mention of Malta
for mobile network coverage, government
prioritisation of ICT, high-tech exports and
secure network servers and other technological
infrastructure.
The Malta 2013 global residence
programme
Earlier this year the Maltese government has
enhanced the terms of the incentive scheme
offered to high net worth individuals seeking to
obtain a residence permit.
Under the terms of the revised scheme, the
taxpayer must purchase immovable property
worth at least EUR275 000 (USD365 000)
in Malta or EUR220 000 in Gozo or the
south of Malta, where property prices are
generally lower. (This is a marked reduction on
the previous requirement of EUR400 000.)
Alternatively, the individual may rent property
for no less than EUR9 600 in Malta, or EUR8
750 in south Malta or Gozo ( reduced from
EUR20 000). The taxpayer must make an
annual tax contribution of no less than EUR15
000 which is less than previously required with
further income arising outside of Malta but
brought into Malta to be taxed at a flat rate of
15%. As expected a vetting system applies
including fluency in either English or Maltese.
(There are further benefits in establishing
Maltese operating and holding companies.)
There are several advantages of Permanent
Residency in Malta: there is no tax on capital
remitted to Malta or tax on gains arising outside of
Malta. There are no inheritance, capital or wealth
taxes and, as discussed, there is 15% income tax
on income derived in or remitted to Malta. Most
importantly there is no requirement to purchase
property where one can meet the minimum rental
requirement and there is no minimum period of
residencerequired.
ItisimportanttonotethatSouthAfricansshould
take appropriate advice on acquiring residence in
Malta as well as their tax status in respect of South
Africa.Ataxpayercanbeseentoberesidentinboth
countries and thus liable to tax in both if they don’t
meetthenecessaryrequirements.
CAPE TOWN
Ground floor, Liesbeek House, River Lane, Mowbray
PO Box 23644, Claremont, 7735
Tel: +27 21 680 5272 | Fax: +27 86 670 6490
Contact: Jenny Ellinas | +27 83 448 8734 | jenny@cypriotrealty.com | www.cypriotrealty.com
Official South African marketing agent for
LEPTOS ESTATES | www.LeptosEstates.com