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INVESTING IN DESIGNATED SPECIAL AREAS IN MALTA

Malta gained a reputation of opportunity to invest in immovable property from a stable market and an excellent return on investment. Favourable factors including regulatory development systems, lenient tax structures, ease of accessibility to European States nationals, and an appealing solution to investors from other nationalities who wish to invest in real estate.

Immovable property in Malta still benefits from no tax on ownership or wealth making such conditions an attraction to many foreigners taking up residence in Malta.

International investors may acquire real estate in Malta, within parameters of deluxe standards through Designated Special Areas (SDAs). Multiple properties may be obtained in Malta, with opportunities of reselling and renting such properties.

Designated Special Areas (SDAs) are defined zones where no restrictions to acquire a property apply. This means that a foreign citizen wishing to buy property in these areas can do so with equal rights as that of a Maltese citizen.         

Typically, property located in these zones provides luxurious amenities including gyms and spas, marinas, swimming pools, shopping malls and supermarkets as well as restaurants for its residents.


 

Advantages of Investing in Designated Special Areas

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  • No Permits required in SDAs Acquisition

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An investor does not need any residency permit, irrespective of nationality. Furthermore, after the property has been obtained, it can also be leased without any limitations. Properties located outside SDAs required an AIP permit to be issued by the Ministry of Finance, Economy and Investment as stipulated by the laws of Malta. If the property is purchased under an AIP permit, then it cannot be leased or rented.

More details may be obtained through document (Chapter 246 of the Laws of Malta) (LINK).


 

  • Renting of Property in SDAs

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When buying real estate in a Designated Special Area, the benefits of renting out the property without any limitations or unnecessary difficulty, may be exercised. This is especially advantageous to enjoy rental income and capital growth.

Property in Malta which is rented out is taxed at a beneficial rate of Fifteen (15) %.

As outlined above, purchasing real estate through an AIP permit comes with some limitations on its possibility for renting out.


 

  • Quick access to Facilities

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SDAs’ provide luxurious amenities incorporating most needs of tenants residing in the development and within close proximity. These include:

  • Restaurants and coffee shops,

  • Gyms and spas,

  • Swimming pools,

  • Shopping malls,

  • Supermarkets,

  • Marinas


 

  • Access to Special Residency Programmes

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The Maltese Immigration programmes are sought after when opting to acquire second citizenship or residence. Two of those programmes are the Malta Residence and Visa Programme (MRVP) and the Malta Global Residence Programme (GRP). Specific criteria are outlined to be eligible for these programmes, one of which is to buy or lease a property in Malta of a minimum value.

Investing in SDAs' allows for further facilities and easy acquisition at the higher end of the market, allowing wealthy buyers to apply and qualifying for investing in these programmes.

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