Malteasers
What do celeb crooner Enrique Iglesias and more than one million people have in common? They have all fallen in love with the island of Malta, turning this picture postcard holiday destination into an investment property hotspot...
When the Knights of St John were exiled from Rhodes in 1530, the King of Spain leased them the Maltese Islands, for the yearly rent of one Maltese falcon.
Fast forward five centuries and property on the tiny Mediterranean island is now commanding serious money.
Prices have shot up by 400 per cent over the past fifteen years, with its warm climate, proximity to the UK, tax advantages and 6000 years of history attracting a more discerning crowd of second home owner and investor.
The island is fast becoming the cosmopolitan capital of the Mediterranean, with the regeneration and development programmes under way being credited with a new found international integration.
Most of the islanders speak perfect English, a legacy from Malta's period as a British colony, and now that budget airline Ryanair is running daily flights, demand for holiday property, already on the increase since Malta joined the EU in 2004, is on the rise.
Singer Enrique Iglesias has ‘fallen in love with the island.' "The water is absolutely stunning; I've been all over the world and seen beautiful beaches but the water here has no reason to envy other places, plus the friendliness of the Maltese is second to none," he says.
Although Malta now attracts 1.2 million visitors a year, until recently the island fell under many tourist's radars and is unblemished by the ravages that the Spanish Costas have had to endure.
James Vassallo, Senior Manager, Sales and Marketing for Tigne Point, one of the new development on the island, says, "Malta is coming of age and perhaps its late arrival on the international stage as a destination favoured by discerning investors is its greatest attribute."
Property in Malta is not cheap, but is usually a solid investment, especially when taking into account the tax advantages - the permanent residency scheme entitles property owners to pay income tax in Malta at only 15 per cent and both temporary and permanent residents benefit from double taxation agreements, which means that tax is not charged on the same income twice.
Buyers can choose from modern seafront apartments, to traditional farmhouses with their own internal courtyards.
The Valletta and Sliema areas are the most popular among holiday home buyers, while the quieter Mellieha and St. Paul's Bay areas are favoured by retired Expats.
Those looking to buy should ensure they buy within one of the islands' Specially Designated Areas, (SDAs) such as Madliena village in Madliena, overlooking the countryside with sea views; Portomaso St. Julian's, in a Marina with sea views, close to the Hilton Hotel and in the trendiest part of town; Sellum village, Mellieha, situated in the north of the island a few minutes from Malta's largest sandy beach; Fort Chambray, Gozo, perched high on a historic fort overlooking Mgarr Harbour with views over to Comino and Malta; St. Angelo Mansions, Vittoriosa, situated in the south also overlooking a yacht Marina with sea views to Valletta and St. Angelo Bastions; and Tigne Point, in the heart of Sliema overlooking Valletta Creek and the Bastions.
In the case of properties lying outside these areas, non-Maltese buyers require a Government permit and they are limited to buying one property in their personal name, and cannot let the property out.
For investment purchases, the best spots are the harbour areas. Sliema's seafront apartments along the promenade are popular, and the northern part of the island - namely Bugibba, St. Paul's Bay, Qawra, and Mellieha - is much in demand with tourists.
Picture by imageafter
