RE/MAX & Friends for Charity was launched yesterday 19th of March with the organisation of its first charity event in aid of the St. Joseph’s Home in Hamrun. The event consisted of a full day’s activity which started with Mass at St. Rita’s Chapel in St. Julian’s, followed by bowling at Eden SuperBowl, lunch at the Intercontinental Malta and the latest 20th Century Fox Film Marley and Me at the Eden Cinema’s.
Why?
St. Julian’s is ideal for any expatriate wanting to have everything in their reach. It is the town for entertainment in Malta where you will find first class restaurants, 5 star hotels, takeaways, lounge bars, Pubs, clubs, cinema, bowling as well as supermarkets and shopping Malls. For those who have expenses paid and they are not one for the kitchen than they will never have to worry as the abundance of choice is out of this world.
Restaurants
There are a number of types of restaurants from Mediterranean food to Asian fusion, including Indian, Thai (Blue Elephant), Korean and Japanese as well as a number of steak houses and theme restaurants such as Henry J Beans and TJI Friday’s. The choice is ample and you are bound to find your favourite place.
Our favourites are the following:
Five Star Hotels
There are no less than six five star hotels in the area of St. Julian’s including the Hilton Malta, Le Meridian, The Westin Dragonara, Intercontinental and The Marina San Gorg and the Corinthia, at St. Georges Bay. All hotels are ideal for hosting guests, clients and business partners, the most central being the Hilton Malta, Intercontinental and the Westin Dragonara. Rates start at € 75 per night on BB plus an added supplement for breakfast at approximately € 20 if you are taking a partner sharing the room. Although the rates are relatively cheap the five star experiences are at a good level especially Hilton Westin and the Intercontinental. Should you need a hotel contact send an email to [email protected], just quote that you found this article on www.propertyinmalta.com and that you would like to benefit from the special hotel rates.
Rental apartments
Owing to this popularity many corporate clients seek out rental apartments in St. Julians. It is said that apartments don’t last long on the market in St. Julian’s as they get snapped up immediately just as long as they are furnished modern. Transport is easily available either by local transport or by taxi service which is reasonable especially if you make a deal with the company.
Portomaso Malta, a high end marina complex in St. Julian’s, is very popular where it is hard to come by availability. The complex is part of the Hilton Malta development where there is over 450 apartments facing the sea, a high rise office building and a selection of restaurants. You find businessmen and retiree’s living in this area as it is convenient and close to everything. The complex even has a supermarket and a shopping mall including a newspaper stand.
Standards of finish of apartments have improved dramatically over the last five years and are on par if not better than standards abroad. The average cost of a modern finished and furnished one or two bedroom apartments is approximately € 500 – € 600 monthly. Not saying you cannot find for less however the standard does drop quite dramatically. Prices go up depending on the quality and where it is located in St. Julians. For a guideline of pricing and samples click here: property in St. Julians
You may also seek to live on the boarders of St. Julian’s like in areas such as Swieqi or Ta’L-Ibrag. These areas are also popular as the rates are slightly cheaper and in walking distance of St. Julian’s.
Anything you may require it is recommended to contact a professional Real Estate agent in Malta that specialises in renting property in Malta.
When you look at the pros and cons of investing in stocks and shares versus property you are also, in essence, discussing the pros and cons of investing in traditional pensions versus property in Malta as most traditional pensions are invested in global stock markets.
Most analysts would agree that property was a better investment during a particular year than stocks and shares, however a distorted picture is often provided (unintentionally) to the detriment of property investment as they do not take into account or explain some of the major advantages that property investment has over stocks and shares in the long term.
An analyst would say: Well last year (Year X) average property prices increased 5% and the stock market was up 13% so stocks and shares performed better – this year (Year Y) property prices increased 10% and the stock market was up 5% so property clearly performed better however on an average stocks and shares are performing better.
The reality of this is true and if you look at a short term investment plan in stocks and shares one can come out a huge winner however basing performance on a comparison of just two years with the intention to invest long term may get you in trouble. Stocks and shares can work better for you in the long run should you have the capital to risk for a period of time. The benefits can be exponential however there is a risk and one should always look to a qualified stock broker to guide you if this would be your choice of investment. Just remember the writing in small font at the bottom of the page.
Property in Malta on the other hand, though there are no guarantee’s that it is risk free, has a stronger reputation to provide appreciation and more opportunities over a longer period of time. As long as you can make the mortgage payment, one can rent their property, refinance their property over time and sell at a profit.
The return on investment (ROI) in property, if guided correctly by a professional real estate agent in Malta, can work better for you. There are various opportunities that arise from time to time, that if you speak to the right professionals, and make them understand what you are looking for, will find you a property that will get you a reasonable rental income and in an area that fetches a desirable appreciation.
Banks will not lend you money for stocks or shares because they are volatile, not only can they go down, they can go up but they can also lose virtually all their value in a matter of a day or overnight. If a company is badly managed and there is a lack of confidence in their stocks, it is likely that the value of your stocks will diminish. Obviously, there is a flip side of that coin which means that if you invest in the right stock then the value of your stocks will increase. However, banks do not take a risk on your luck. Property in Malta is practically an institution- the banks lend money on a daily basis for property acquisitions so they understand the property market in Malta and know what a solid investment it is.
The point of this article is not to deter anyone from investing money into stocks and shares but it is only to shed light on the subject to those who may not understand or have an idea. It is always recommended to discuss any matters with your accountant or a professional stock broker.
When I was just eighteen years old I was given the opportunity to buy my first home. My immediate instincts was to buy the property, which was a brand new developed two bedroom apartment in St. Julian’s, it was fully furnished at the time and was going for the menial price of Lm 42, 000 or € 97, 833. The developer at the time was a friend of mine and he had practically organised the mortgage for me through a contact he had at the bank and was just waiting for me to give the go ahead to arrange a meeting to sign the Konvenue.
I had wanted a final approval from someone that had my best interest at heart and therefore I asked my father to come with me. He did not have to assist me with the purchase at all, I only needed his blessing. It turned out that my father could not see the importance of me buying the property and he felt that investing at the time would not be a great idea especially since I had just bought a car and was starting my new life in the real estate industry. I did not buy the property.
I still look back at that day and feel that if I had purchased the property in Malta it would have changed me into a more responsible person sooner and my entrepreneurial self would have matured quicker. It took me eleven years to finally get on the property ladder during which I through away my money on going out to Paceville, Malta’s Entertainment land, eating out, travelling (A good investment) and other entertainment.
Though I would never hold a grudge against my father for being protective, I do wish I could turn back the clock and take the decision I wanted to make. Besides saving money by default your property in Malta appreciates according to market conditions. Over a period of time you are automatically making money. If I would have bought that property in St. Julian’s, I would have been able to sell that property six months later for Lm 52, 000 / € 121, 127 making a twenty something percentage profit. Imagine I kept it till today.
You should buy a property in Malta. Even if it is an investment that you may consider selling later for what ever reason. If you can afford a mortgage payment contact a real estate agent in Malta for some sound advice. Feel the market and than when the opportunity arises grab it.
The right lighting can turn a dull room into something more exciting and vibrant however with so many fixtures and fittings this can be a difficult task for anyone that does not have the experience or know-how. We have prepared a simple guide to assist you on your challenge to make your property in Malta a brighter home.
Bulbs
Follow our simple guide to which bulbs should be used for which purpose, and you won’t go wrong.
Remember: never to put a higher wattage bulb than the fitting instructions suggest; and buy the highest wattage allowed then control it with a dimmer.
Tungsten (incandescent)
The everyday household bulb.
Light: warm, yellowish.
Available in: clear, pearl, silver reflector or coloured versions with bayonet cap (BC), small bayonet cap (SBC), Edison screw (ES or E27) and small Edison screw (SES or E14). The clear type is best when the bulb is visible, in a chandelier for example, whereas the silver reflector is perfect for spotlights.
Ideal for: creating warmth, cosiness, intimacy.
Advantages: cheap and easy to find. They use mains electricity and don’t need transformers or additional equipment.
Disadvantages: if you use a wattage that’s too high your paper shade might get scorched, which could be dangerous. Constantly switching them on and off will shorten the lifespan. They tend to blow suddenly.
Tungsten halogen
Known simply as halogen bulbs, they burn at a much higher heat than tungsten and the case has to be made from quartz rather than glass to withstand the temperature.
Light: whiter and purer than tungsten.
Available: in low voltage (low-voltage tungsten halogen or LVTH) and mains voltage. For the former, you’ll need a transformer, fitted or inbuilt, to keep the wattage down to 12 volts.
Ideal for: uplighters.
Advantages: energy-efficient. With low-voltage bulbs, the design can be slim and compact. The mains-voltage type can be used in conventional fittings without a transformer, but ask your electrician or manufacturer to be sure.
Disadvantage: expensive to replace.
Fluorescent
They’re associated with the harsh, buzzing strips of factories and offices, but they’re now available in lots of new varieties.
Light: flat (curved and circular tubes are better).
Available in: compact fluorescent tubes and compact fluorescent bulbs (known as compact fluorescent lamps or CFLs) that look like ordinary ones.
Ideal for: mini strip lights in kitchens.
Advantages: energy efficient and economic. Can be used with mains-voltage fittings.
Disadvantages: can’t be fitted with dimmers.
Downlighters
They cast distinct pools of light onto the surface below. They’re usually recessed into the ceiling or mounted on the surface and can be fixed or directional. They suit modern and period homes, but you might not have enough recess in the ceiling or prefer not to cut into it and disrupt plasterwork or period detail.
Install downlighters in areas where fixtures are unlikely to move, such as above kitchen and bathroom surfaces, rather than at the ends of furniture. Without wall lights the effect can be gloomy, and rows of them can make you feel as though you’re in a shop.
The eyeball type of downlighter that can be swivelled is perfect for accent lighting to highlight a particular feature.
Energy saving
Lighting empty rooms and using bulbs of the wrong wattage for the fittings are two of the most common ways to waste energy.
Try these simple ways to cut down your electricity bills and help save the planet.
Turn lights off when you leave the room.
Replace ordinary bulbs with low-energy ones, especially those you leave burning for four hours or more. You might have to pay more up front – £5 as opposed to £1 – but you’ll save in the long run. They’re available in many shapes and sizes, although some can’t be used with dimmers.
Look for CFLs – they use 25 per cent less energy than ordinary bulbs and last up to 13 times longer.
Fit timers and dimmer switches. Motion sensors that turn on and off when you enter and leave are already being installed in some houses although they’re expensive at the moment.
Eyeball fitting
The bulb is encased in a housing and can be ceiling mounted or recessed.
Fittings
Consider how the fittings will distribute the light. This will depend in part on where you put them and whether you conceal or make a feature of them. Visit the lighting shop armed with your lighting plan.
Think about the look you want. Do you prefer minimalist, for example, or period. Chances are, it’s a mixture. Track spotlights can sit comfortably alongside Victorian shades, although they have to be mixed carefully. It is a shame to cut into elaborate plasterwork ceilings to fit recessed downlights, and a chrome-and-steel light fitting might look inappropriate hanging from a Victorian ceiling rose.
Look at the light when it’s off as well as on – it can appear quite different. More light will get through transparent shades than opaque ones, which give more localised pools of light.
Glare
There are two types of glare – direct and indirect.
Direct glare occurs when you look at a bare bulb – you’ll get spots before your eyes and maybe see a lasting image, especially if you’re in a darkened room.
Indirect glare is caused by a reflection of light, perhaps in a television or computer screen or even a polished surface. Avoid it by positioning lights so you can’t see the bulbs directly. Pendants hanging at eye level are especially uncomfortable for dinner guests.
Pendant lights
These usually hang from the centre of the room. Used alone, they’re the main cause of the ‘interrogation cell’ look. Although they’re a good starter for general lighting, they need a boost from other sources.
They tend to flatten shadows and cast a dim light. It helps to fit a dimmer or hang them on an adjustable flex so you can change the height or clip them out of the way. They come in a myriad of styles, from the ubiquitous paper lantern to chandeliers.
Professional fitters
Lighting is often seen as a technical minefield, but many lights are easy to put in and require no more than an understanding of basic electrical concepts. You should be able to change a fuse, wire a 13 amp plug and know how to select the correct size of fuse so that you don’t overload a circuit.
Always read the instructions for any fitting and keep them for future reference. If in doubt, consult a qualified electrician. Once you get into changing the permanent wiring of your house, complicated track lighting and computer-activated lighting systems, it’s time to call in the pros.
Standard lamp
A tall, freestanding light with a heavy base, which moves up, downand sideways.
Track
Several spotlights or floodlights can be attached to a track to take rows of LVTH or mains-voltage lights with no need for a transfomer. You can use more than one circuit, so you can have all the lights on at once or just some.
Uplighter
They throw light onto the ceiling, which then bounces off, creating a soft look. They work best in rooms with light-coloured ceilings, particularly in studies as the fact that the light is directed upwards prevents glare.
Use them behind sofas or large pieces of living room furniture. The light they create matters more than the lamp, so they’re usually tall and slender with minimal decoration. Put them in corners or in pairs and fix them at eye level or higher. A clip-on spotlight angled upwards creates the same effect.
Wall lights
Any fitting mounted on the wall, from shades to frosted fittings. They diffuse light gently into the room and are perfect for adding general lighting. Ceramic bowls diffuse light towards the ceiling; translucent ones give a softer light. They’re perfect for hallways and living rooms.
Wall washers
They give off an even stream of light. Often mounted on or recessed into the ceiling. Sometimes only the silver reflector shows, which gives out a brilliant light.
David Darmanin, Malta Today reporting:
They’re single, live in flash apartments, and earn thousands of euros every month: iGaming employees live it up, DAVID DARMANIN from Malta Today finds out:
The online gaming industry’s direct contribution to the Maltese economy this year has amounted to €15.6 million, according to government statistics.
But a gaming executive based in Malta has said the figure is likely to be as much as €30 million, when taking into account the spending of the industry’s highly-paid staff.
Speaking to MaltaToday, Aj Thompson, the Chief Operating Officer of Malta-based gaming company Tain Operations, said the figure published by the finance minister was only “taxable revenue, not counting the value left here by people working in this industry”.
“According to studies we conducted, the added value left by employees in this sector is generally the same as the amount gained by the exchequer in taxes from the same industry,” he explained.
“So if €15.6 million were gained in taxes, what the country has earned is effectively double that.”
Tain employs 46 people with an average age of 26. “A lot of them are single, rent out apartments in Malta on their own at higher budgets than usual, spend money on entertainment, clothes and other goods,” he said.
Although 70% of the team employed by Thompson is Maltese, the normal scale in this industry is 30% to 40% Maltese.
A lot of companies here were already established abroad and relocated along with their core staff, but these will be eventually replaced by Maltese – who tend to be more loyal and less willing to move around,” he explained. “Maltese people are happier to stay in Malta.”
Without doubting the benefits recovered by the local economy from this industry, Thompson warned of a “huge risk” as this industry could very well be creating a false economy.
“When we got here, the average wage in other sectors was of €800 to €950, and we were paying €1,400 to €1,650,” he said. “This meant that people had money to spend, which implies a risk because this industry moves from one place to another, and it can. If its benefits are taken off, a company will consider other destinations where the conditions are better. In Malta the VAT benefit for these companies was already taken away and this has hurt a number of players, because it’s 18% we’re talking about.”
Just to give an idea of how fast this industry can move, Thompson explains how he relocated Tain Operations from Curacao, in the Caribbean, to Costa Rica overnight. This industry is fragile, and there are only a few places from where it can operate, namely Albany, Gibraltar, Isle of Man, Costa Rica, Curacao, Antigua and Australia.”
Nowadays, the average salaries at Tain stand at €1,900-€2,000 monthly for the junior staff, although Thompson said they also “have people making €10,000 a month.”
Over the past months, the number of iGaming companies registered in Malta reached 330 – employing around 2,500 – of which those specialised “command a more attractive package” according to the Lotteries and Gaming Authority.
Meanwhile, market leaders in retailing and property letting estimate the added value left by this new population of employees to be very high.
Federation of Estate Agents President Ian Casolani said that “scarily enough, the rental market very much depends on iGaming employees nowadays,” with budgets that range from a minimum of €350 to €6,000 per month. The norm, says Casolani, ranges between €600 and €1,000 monthly.
Philip Fenech, president of the GRTU’s tourism sector, says what iGaming employees leave into the fiscal system “is very, very substantial”.
“Much of the money earned by staff in this sector goes through our system – bars, hotels, supermarkets and other retail establishments. Although the crisis hit many sectors, gaming was minimally hit. My reports are that these temporary foreigners are considered to be tourists on a long holiday, when one considers the way they spend in leisure. My reports come from gyms, restaurants, fashion outlets, supermarkets, clubs and other forms of leisure. They live it up here. They produce wealth and they enjoy wealth.”
The Malta property market registered a steady flow of sales in the first six months of the year, despite a general slowdown marked by a 4.4% drop in the Central Bank’s property price index for the first three months.
Data provided by the Ministry of Finance shows that registered deeds of sale in between January and June of this year were roughly half those registered in the whole of 2008.
During the six-month period, a total of 5,620 property deeds were registered, 46% of the 12,190 deeds registered in 2009.
Promise-of-sale agreements during the same period this year totalled 3,956, 48% of the 8,188 agreements registered in 2008.
The same trend could be seen in the various property segments. In the first half of 2009, 1,520 apartments were sold, compared with 3,207 in 2008 (47%); terraced houses sold in 2009 were 938, compared to 1,878 in 2009 (49.9%); penthouses sold this year numbered 147 compared to 326 last year (45%); and maisonettes sold this year were 541 compared to 1,168 (48%).
Still, Malta property prices continued to fall throughout the year. According to the Central Bank, lower asking prices were observed in seven of the eight property categories surveyed by its Malta property price index which is based on advertised residential property prices in newspapers sampled each month.
Apartments in shell form and houses of character saw the steepest decline with prices plummeting by 20.4% and 16.2% respectively. And finished flats, the most popular property for sale in Malta saw prices fall 10.8% while townhouse dropped 11.8%, maisonettes in shell form were down 5% and maisonettes in finished form fell 4.4%.
Even properties advertised were down by 21.1% on a year earlier with the drop being distributed across all the categories of residential property surveyed.
Permits granted by the Malta Environment and Planning Authority were fewer during the survey period, providing further evidence of the slowdown in the property market.
The first quarter figures are broadly in line with the findings of a recent Chamber of Commerce, Enterprise and Industry survey for the same period, conducted among members. It found that Malta property prices were down by 15 to 20% from the first quarter of last year.
Matthew Vella of Malta Today
While property prices have plummeted in practically every country around the globe, the effect on Malta property market has been nowhere as radical, with average Maltese property prices recording an annual fall of just 2.7 per cent last year, according to Malta’s Central Bank.
Property in Malta boomed between 2003 and 2004, recording price increases of 20.3% and 13.3% respectively, after a 2003 referendum voted in favour of Malta joining the European Union on 1 January 2004. The introduction of Europe was not the only key denominator for the increases of property prices but there was also the launch of luxury developments such as Portomaso and Tigne Point that triggered interest from various foreign investors.
Just off the coast of Sicily, Malta, which comprises an archipelago of three islands, with a population of over 400,000 inhabitants, has been popular amongst overseas nationals for a long time. This is not only because of the intense Mediterranean climate, but also owed to the country’s tax-efficient status; Maltese residents enjoy one of the lowest levels of income tax in Europe.
Demand for property in Malta
The demand for property in Malta over the last year has decreased slightly according to some reports however this still has not effected the sales of the more luxury developments in Malta. Some agencies have stated that they are on an increase by 15% to 20% due to such demand. Others have said that they are selling more units but cost per unit is lower. According to Regional Director of RE/MAX Malta, he sees the reduction being a genuine correction in the market and now prices are more realistic which has created a buyers market.
Malta property prices start to stabilise
Although housing values are still falling in some areas, they have already stabilised in other regions, mainly because most Malta property owners are not so highly leveraged through borrowed money, as say those residing in the UK.
Despite the short-term market slowdown, the Malta property sector could find itself flying high in the medium to long-term, buoyed by growing tourism levels and an ever-increasing number of low-budget airlines.
Easy access to Malta,
EasyJet, Ryanair and Scandinavian Airlines, all either introduced or increased its direct routes from the UK and Sweden to Malta. This encourages greater tourism to Malta as well as further interest in Malta property.
Rental investment properties in Malta
The yield on rental property in Malta is not so high, you will probably see a rental income equivalent to between 3.5% up to 6% depending on the property you buy. You will also get a healthy appreciation over the medium to short term investment period. This is where the use of a reputable real estate agent in Malta will come in handy.
The process of buying Malta property
Anyone who actually goes ahead with a Malta property purchase should find the buying process pretty straightforward. The legal purchasing system in the country presents a relatively safe buying environment.
Deeds are presented upon completion of the property purchase, while the legally binding contracts are presented in English.
Buying, selling or owning luxury property in your own country is something that is never done lightly. This major financial investment requires planning and research if the final purchase is to meet your wishes and to be acquired with the minimum number of problems. Knowledge of the buying and selling process in your own country automatically helps to eliminate some problems, particularly if you are used to this kind of investment.
However, buying property in another country like Malta where you are not familiar with the laws, customs and culture requires more background research whether this purchase is your first large investment in another country and particularly if this is your first large investment, full stop. Whether you choose to buy your property through your company, or money manager or as an individual it is useful to be aware of what the process involves. Knowing where and how your money will be invested, the legal and practical issues involved, understanding the small print and the details are obviously part of sound financial planning and execution even if you involve other professionals in the process.
However, cultural differences are potentially overlooked as you get caught up in the excitement of purchasing your dream marina apartment or your conference centre on a sprawling estate.
In the initial stages you will have addressed questions around whether the luxury property or real estate suits your needs .
For example:
· The purpose of the property, a primary residence, business, second home.
· The type of luxury property, a villa, country house, a castle, a chateau.
· Is it within my budget?
· Physical location, urban or rural area? Sea view or in land.
· Will I be staying there all year round or just part of the year?
· Will I need to employ staff from the locale to maintain my home/ property?
· Will I need local staff to run my business?
· Does the climate suit me?
· What is available for me to build my social life?
· Do I want this country to be my permanent residence?
· Are there tax benefits?
And the list goes on…..But how can you really know the impact of local culture and custom on your new life or business in an unfamiliar country? You can read books, get information by exploring the internet, take a few holidays, speak to a reputable real estate agent. A great insight can be gained by reading about others who have pursued the same dream or investment project as yourself.
Articles and books highlight the joys and pitfalls of moving abroad whether the projects involve small or large financial investments. A lot can be gained by learning from those who have already trodden the path. Taking a few holidays in a particular place may have whetted your appetite and fired your enthusiasm to make a move to a new country. Whether you were led to invest abroad to live there or to diversify your portfolio, the bottom line is you will invariably meet and possibly work with people who experience the world in a different way. On a positive note, the food maybe different, the sights maybe different, the local customs and practices may intrigue and fascinate you if you are merely observers or enjoying the activities and services offered. But can you always assume that people from other cultures work in the same way that you do, share the same values and morals as you, even have the same concept of time as you? Not everyone adheres to the time is money rule.
Do your homework, speak to a local real estate agent and look for a property that in the eventuality you might need to rent out for whatever reason.
Different cultures do business in different ways and may have varying ideas about the value of truth and integrity in the way they go about their lives. People in rural areas may not even share the same view of the world as their own country folk working in big metropolitan cities. The most obvious difference is language and it is at the heart of understanding all that has been mentioned previously. Luckily in Malta 95% of the population speak in English.
Other Benefits of the country are as follow’s:
· A pleasant climate and a hospitable English-speaking people.
· Clear blue, Mediterranean Sea
· A peaceful and safe environment with very little crime & a high standard of living.
· A rich cultural and historical heritage.
· Tax benefits.
· Favourable, tax-friendly procedure for moving your possessions into and out of Malta.
· Favourable double-taxation agreements with key countries.
· A highly respected jurisdiction for incorporating low-tax companies
· Excellent banking centre with the presence of major international banks
· Excellent access by Sea and the Malta International Airport
· Political stablility
· Reasonable cost of living
· Excellent English speaking schooling built on the UK system and standards
· Very good residency conditions
If you are interested in buying a luxury property in Malta it is recommended to talk to a reputable real estate agent in Malta or Gozo.
In Malta, Capital Gains Tax is actually a transaction cost and not a tax on capital gains. Capital Gains Tax is generally levied at a flat rate of 12% on the transfer value or the selling price of the property in Malta or Gozo. Only brokerage fees can be deducted from the selling price. During the sale, a provisional tax equal to 12% of the selling price must be paid to the notary public who will then pass it on to the Inland Revenue as payment of the tax liability. Capital gains earned when the property was held for less than five years can be taxed in two ways. It can be taxed at a flat rate of 12% on the selling price or at progressive rates under the old system.
Under the old system, a provisional tax levied at 7% of the deed must be initially paid through the notary public, who will then pass this on to the Inland Revenue as initial payment. This amount is credited to the total tax payable.
The capital gains realized from the sale of the property in Malta must be declared on the income tax return and will then be taxed at progressive income tax rates. To calculate the capital gain under the old system, the following can be deducted:
However, a non-resident seller may be subject to tax on the gain in his country of residence. Normally he would have the right to claim double taxation relief in his country of residence. However, it is possible that the relief would only be granted if the tax paid in Malta were a tax on the gain.
To avail this, he needs to produce a notarized statement from the tax authorities in his country of residence confirming his residency and certifying that he is subject to tax in that country.
Consequently, residents of tax-haven countries and countries whose basis of taxation is the source of income and not the residency status of the taxpayer cannot avail of this option.
A real estate agent in Malta or a Notary Public will be able to provide you a more elaborate explanation. It is recommended that before you plan on buying a property in Malta you look up a reputable real estate agent’s website or contact a Maltese Notary Public