EU Membership Boosts Maltese Property Market

Phillip Morton, Investors Offshore.com

02 May 2003

The Maltese property market has enjoyed somewhat of a boom in the recent times and some of the Island's estate agents attribute this to Malta's closer links with the European Union.

Figures published by the Maltese Ministry of Finance seem to substantiate this view. They reveal that in the previous year, some 465 permits were granted to non-residents to purchase property on the island (worth EUR75.8 million) against a figure of 168 permits worth EUR13.2 million in 1997.

Frank Salt who runs the oldest estate agency in the jurisdiction told the Financial Times recently that the EU was a definite factor influencing the property market as Europeans look to snap up holiday properties and firms look at transfering operations to the island.

“Although joining the EU may make no real change to the property market per se, rental values may go up once we do join. Companies may be keener to relocate here. It’s good for business.”

Another factor has been a substantial reduction in stamp duty from 17 per cent to 5 per cent in recent times which has stimulated the domestic market. As a result of EU membership, Maltese citizens will now be permitted to purchase second homes once they have satisfied a five year residency requirement.

Accordingly, Mr Salt claims he has seen his sales increase by 6 to 7 percent with roughly half of these transactions conducted by British nationals. Though Salt conceded that the market is dominated by UK buyers, he acknowledges a steady increase in interest from other parts of Europe, especially Russia.

“Malta is back on the map as far as overseas buyers are concerned,” concluded Salt.

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