According to a fresh report by PwC Malta, Malta is bucking global trends with strong economic growth. The report forecasts a GDP growth of 4.4% for fiscal year 2024, slightly down from the previous year’s 5.6%. This growth stands out against major economies like the US, Japan, Italy, and France, which are expected to see declines.
Although Malta’s growth is projected to align more closely with the euro area average soon, domestic consumption remains the primary driver of its GDP, echoing the Central Bank of Malta’s findings. Despite this, when adjusted for inflation and population growth, real consumption per capita hasn’t changed much since 2019.
Inflation continues to be a global concern, and Malta is no exception. Despite a decline, the island’s inflation rate is anticipated to surpass the EU average due to rising prices in food and services. To address this issue, the Maltese Government has implemented the “Stabbiltà fil-Prezzijiet” scheme, aiming to reduce prices on essential goods. If sustained throughout the year, this initiative could potentially alleviate inflation by 0.31 percentage points.
Preliminary data for 2024 suggests a slowdown in economic sentiment and while inflation is moderating, it remains higher than the euro area average, indicating a need for further stabilization.
Find out how you can invest in this resilient economy and contact Merle Whale merle@maltalifestyle.co.za
Embarking on a journey whether semigrating or especially emigrating to a new country is like a rollercoaster ride – exciting (and can be scary too!), filled with twists and turns, whether in personal, family, or business contexts.
Let’s break down the relocation adventure into its basic parts: facts, feelings, smart thinking, positivity, creativity, and planning. Following the lead of Dr Edward de Bono, renowned for “Lateral Thinking” and the “Six Thinking Hats” technique, we can simplify this transition. It’s like a worldwide brain workout used by big companies and even taught in schools around the globe. Get ready to make your move with these cool thinking tools; they certainly helped me!
This is the fun part: Picture yourself putting on six different coloured “thinking hats,” each shining a light on a special aspect of the move: facts, feelings, critical thoughts, positivity, creativity, and planning. It’s like having a magic wand for making decisions! These metaphorical hats help you create a well-rounded plan, making your adventure to a new place super smooth and full of enriching experiences.
These colourful hats helped me explore my situation from different angles until I got a clearer picture of what I needed to know and do! Each hat is a different colour and represents a cool way to think: White for facts, Red for feelings, Black for caution, Yellow for positivity, Green for creativity, and Blue for planning. Imagine wearing these hats one by one—like a wizard changing hats. It’s a fun, easy, and effective way to make decisions or solve problems—try it and step into your future with confidence!
Here is an example of how we applied the Six Thinking Hats to our process of relocating to Malta, from South Africa and comparing it to Mauritius. White Hat (Facts and Information):
– Research the economic scene, job opportunities, and market conditions in the new country.
– Explore employment rates, industry sectors, and economic stability for informed career decisions.
Red Hat (Emotions and Intuition):
– Reflect on your feelings about the move.
– Trust your gut reactions and assess emotional alignment with personal goals.
Black Hat (Critical Thinking):
– Analyze potential challenges, like cultural differences and legal requirements.
– Identify potential pitfalls for a realistic assessment of potential hurdles.
Yellow Hat (Positive Thinking):
– Focus on the positives of personal and career development.
– Consider how the move aligns with goals for positive life changes.
Green Hat (Creativity):
– Engage in creative thinking for innovative adaptation.
– Explore novel applications of skills and brainstorm creative solutions.
Blue Hat (Planning and Organization):
– Put on your planning hat for a structured relocation plan.
– Set clear goals, establish a timeline, and outline steps for a smooth transition.
Having crossed paths with Dr De Bono during business training and events in South Africa, I’ve applied his thinking technique for over thirty years, influencing both my professional and personal life. Little did I know that I would eventually find myself living in Malta, his birthplace.
Nestled in the Mediterranean, Malta’s vibrant nation has a rich history and diverse culture with a legacy tied to the Knights of Malta. The country was collectively awarded the George Cross in World War II, earning titles like the Nurse of the Mediterranean.
Cultural Richness: Malta boasts a diverse and rich cultural heritage, offering expats a unique
blend of history, traditions, and vibrant local festivities.
Language Advantage: English is one of the official languages, making it easy for expats to
communicate and navigate daily life without language barriers.
Stable Economy: With a robust, stable economy, Malta provides expats with opportunities for career growth and financial stability.
Mediterranean Lifestyle: Enjoy an island lifestyle combined with EU & UK infrastructure, with great weather, stunning landscapes, and a secure, comfortable pace of life.
Healthcare and Education: Malta offers high-quality healthcare services and a reputable
education system, making it an attractive destination for families as well as postgraduate studies.
Strategic Location: Positioned at the crossroads of Europe, Africa, and the Middle East,
Malta’s strategic location facilitates easy travel and exploration of neighbouring regions. Well-connected with regular commercial providers.
With 12 years of residency, I’ve leveraged my relocation experiences in Gibraltar and Mauritius and, with a partner from the UK and Isle of Man, assisting individuals and families with their relocation journeys. Likewise keeping a sustainable South African (SAFFAS) community is important.
For information on how I can assist you please contact merle@maltalifestyle.co.za whether you are looking at prime property investments, relocation options, or setting up a business and perhaps hosting an event in Malta.
Are you looking for game changing opportunities for your life, be it finance, personal growth, education, quality of life, or safety – Whether you’re mapping out personal goals, family plans, or business strategies, this technique can guide to seizing new opportunities in various aspects of life.
Dive into the “Six Thinking Hats” technique by Dr. Edward de Bono, where each colored hat represents a distinct perspective. Picture yourself metaphorically wearing these hats—diving into facts, emotions, critical thinking, optimism, creativity, and managing the thinking process. This approach allows you to explore situations from different depths, promoting a comprehensive and effective decision-making process in personal, family, or business scenarios.
Imagine you have six different-colored hats, each representing a unique perspective: White for facts and information, Red for emotions and intuition, Black for caution and critical thinking, Yellow for optimism and positive ideas, Green for creativity and new possibilities, and Blue for managing the thinking process. By metaphorically wearing these hats, individuals can explore a situation from various angles, fostering well-rounded and effective decision-making in personal, family, or business contexts.
Believe it or not, I’ve had the pleasure of crossing paths with Dr. De Bono during some business interactions in training and events in South Africa. Little did I know back then that I would eventually find myself living in the beautiful Malta, his birthplace. Life has a way of surprising us, doesn’t it?
Nestled in the heart of the Mediterranean, Malta beckons expats with its rich history, welcoming community, and a diverse cultural tapestry. The island nation offers investment opportunities in a thriving economy, complemented by picturesque landscapes, a Mediterranean climate, and excellent healthcare and education facilities, creating an ideal haven for expatriates.
I have been living in Malta for 12 years and assisting people and family with relocating, having done it myself a couple of times including living in Gibraltar, Mauritius and partner from the UK and Isle of Man. Utilising the Thinking Caps here are some questions you could ask about relocating.
For information on how Merle can assist you contact merle@maltalifestyle.co.za whether you are looking at prime property investments, relocation options or setting up business and perhaps hosting an event in Malta.
As you plan your getaway to this enchanting island, here’s a curated guide on the absolute must-see attractions and experiences.
Valletta – A Stroll Through Time
Your journey begins in Valletta, the capital and a UNESCO World Heritage site. Steeped in history, Valletta invites you to explore its cobblestone streets, visit the Upper Barrakka Gardens for a panoramic view, and revel in the architectural marvel of Saint John’s Co-Cathedral. Don’t forget to witness the noon day gun salute at Fort St Elmo!
Three Cities – Fortresses Across the Harbor
Cross the Grand Harbour from Valletta to discover the Three Cities – Vittoriosa, Senglea, and Cospicua. Immerse yourself in the maritime history at the Malta Maritime Museum, explore Fort St. Angelo, and enjoy a ferry ride or bus journey.
Gozo Day Trip – Sister Island Serenity
Escape to Gozo for a day, reachable by ferry from Valletta or Ċirkewwa. Explore Victoria’s medieval Citadel, marvel at the megalithic temples, and relax on the sandy shores of Ramla. The azure waters and natural wonders await.
Blue Grotto and Megalithic Marvels
Discover the mysteries of Malta’s past at the UNESCO-recognized megalithic temples of Ħaġar Qim and Mnajdra. Experience the enchanting Blue Grotto with its magical play of light on the cave walls.
Mdina – The Silent City
Step back in time as you stroll through the narrow streets of Mdina, Malta’s former capital. Admire medieval and baroque architecture, visit St. Paul’s Cathedral, and explore the nearby Domus Romana. Don’t miss the Game of Thrones vibes at the main gate!
Golden Bay, Comino’s Blue Lagoon, and More
Indulge in the sun-soaked beaches of Golden Bay, Ghajn Tuffieha Bay, and Mellieha. For a truly mesmerizing aquatic experience, venture to Comino’s Blue Lagoon with its crystal-clear waters.
Popeye Village – Movie Magic
For a touch of cinematic charm, head to Anchor Bay and explore Popeye Village, the original film set for the 1980 blockbuster. Enjoy family-friendly activities, bask in the sun, and take in the Mediterranean vibes.
Malta, a European archipelago nestled in the heart of the Mediterranean Sea, is renowned for its rich history, vibrant culture, and breathtaking landscapes. Comprising three main islands—Malta, Gozo, and Comino—it boasts a blend of diverse influences, from Roman to British, reflecting its strategic location and historical significance.
Benefits of Living in Malta
EU Membership: As a member state of the European Union since 2004, residents of Malta enjoy the benefits of free movement, trade, and the security of being part of a larger political and economic entity.
English-Speaking Nation: For South Africans looking to move abroad, Malta’s official bilingual status, with English as a primary language, eases the transition. This not only facilitates day-to-day interactions but also makes business, education, and administrative processes straightforward.
Climate: Malta enjoys over 300 days of sunshine each year, with mild winters and warm summers— perfect for outdoor enthusiasts.
Rich Culture: From ancient Megalithic Temples to the Baroque architecture of Valletta (Malta’s capital), the country is a treasure trove of history
Lifestyle: With a thriving nightlife, excellent dining options, and regular festivals, there’s always something happening.
Safety: Malta consistently ranks among the safest countries in Europe, with a low crime rate and friendly locals.
Healthcare: Benefit from Malta’s world-class healthcare system, replete with state-of-the-art hospitals and clinics, ensuring quality care for all residents.
Why is Malta Attractive for Property Investment
Malta’s property market has consistently proven to be a lucrative venture for investors, both local and international. Here are some compelling reasons why Malta stands out as an attractive destination for property investment:
Proven Return on Investment: Over the years, Malta’s real estate market has demonstrated substantial and consistent growth. With the island’s strategic EU location and increasing demand for property there, investors can be assured of a strong return on their investments.
High Rental Yields: With an influx of tourists and expats, rental properties, especially in prime areas, have seen substantial returns.
Favourable Tax Regime: Malta boasts a tax system that’s advantageous for property investors. Notably:
No Ownership or Wealth Tax: Investors can hold property without incurring annual wealth taxes.
No Inheritance Tax: Property passed down through generations remains untaxed, allowing families to preserve their assets without additional financial burdens.
Simple Tax on Sale: Property sales are subject to a final withholding tax ranging between 5%-8%. There’s no additional Capital Gains Tax to worry about.
Reasonable Stamp Duty: A moderate stamp duty rate of 5% applies, making property transfers more cost-effective.
Beneficial Rental Income Tax: Rental predictability for property owners.
No VAT on Property Transfer: Adding to the list of financial incentives is the absence of VAT on the transfer of immovable property. This further reduces the costs associated with buying and selling real estate in Malta.
Strong Legal System: Malta’s legal system, rooted in British law, ensures the protection of property rights, giving investors peace of mind.
Given these attractive financial incentives, combined with Malta’s stable economy, thriving tourism sector, and the inherent charm of the island, it’s no wonder that property investment in Malta is seen as a promising and profitable endeavour.
Types of Properties in Malta
Malta offers a diverse range of properties to suit every investor’s needs:
Historical Townhouses: Located in the heart of Malta’s ancient cities, these properties are often adorned with traditional Maltese balconies and courtyards.
Luxury Apartments: Especially prevalent in areas like Sliema and St. Julian’s, these modern apartments offer sea views and top-notch amenities.
Farmhouses: Mainly found in Gozo, these rustic properties are perfect for those looking for a tranquil retreat.
Villas: Scattered around the island, villas in Malta often come with a pool and spacious gardens, perfect for families.
Maisonettes: These are single-story residences, often with their own entrance, similar to a small house.
Residency & Citizenship Schemes
For non-EU nationals, Malta presents an abundance of residency and citizenship options, providing a gateway to the European Union, the Schengen Zone, and a high standard of living.
Residency Options in Malta for Non-EU Nationals:
Global Residence Programme (GRP): Tailored for affluent individuals from outside the EU, Switzerland, or the European Economic Area, the GRP offers a special tax status. Beneficiaries are not taxed on income arising outside Malta unless it’s received in Malta, and a flat rate of 15% tax applies to income received in Malta.
Nomad Visa: This visa is perfect for remote workers and digital nomads. It allows individuals to live and work in Malta while being employed by companies located outside the country.
Retirement Programme: Malta’s Retirement Programme is designed for EU, EEA, and Swiss nationals who are not in an employment relationship and are in receipt of a pension as their regular source of income. Beneficiaries under this program are subject to a flat rate of 15% tax on foreign income received in Malta. The Retirement Programme (RP) has recently also been made available to individuals who want to relocate to Malta and are not citizens of an EU Member State, European Economic Area (EEA) or Switzerland (e.g., South Africans).
Citizenship by Investment in Malta:
The Citizenship by Investment for Exceptional Services by Direct Investment program allows individuals and their dependents to acquire Maltese citizenship through a direct investment. Key requirements include a significant government contribution, a property investment or lease in Malta, and a donation to a registered NGO.
Benefits of obtaining Maltese Citizenship are manifold. They include visa-free travel to over 170 countries, the freedom to live and work in the EU, and access to the Schengen area, among others.
About MaltaLifestyle
MaltaLifestyle serves as your bridge to the enchanting Mediterranean oasis of Malta. Established by Merle Whale, a South African expatriate with over ten years of experience in Malta, our team is dedicated to offering in-depth guidance on every aspect of Maltese life. From relocating and property investment to enhancing your lifestyle, or growing your business. Trust in MaltaLifestyle for a hassle-free experience. Merle, with her rich corporate and hospitality background, has facilitated numerous families in their move to Malta. Her vast expertise and connections ensure unparalleled support during your transition. Additionally, as the founder of SAFFAS in Malta’s expat community, Merle guarantees a warm welcome and a robust support system upon your arrival in Malta. Dive into a new chapter filled with Malta’s allure and myriad of opportunities, with MaltaLifestyle by your side.
Join Our Webinar
On Wednesday, 22 November, at 12:00 OR 18:00 (GMT+2), join our webinar titled, “MALTA PROPERTY: A SMART INVESTMENT” Delve deep into the rewarding realm of property investment in Malta. Explore the multitude of financial benefits, such as impressive ROI, no inheritance tax, and more. Understand Malta’s enticing residency and citizenship schemes, which offer many advantages for potential investors. Whether you envision retirement or an investment in Malta, this session is tailored to equip you with the knowledge to turn those dreams into reality. Don’t miss out; register now!
For more details or queries, visit our website, drop us an email at relax@maltalifestyle.co.za, or connect via WhatsApp on +27 82 574 4661.
Many expats, including workers, retirees, and business people, relocate to Malta each year. The country’s popularity is due to its idyllic destination with excellent weather, a dynamic business hub, and an easy-going lifestyle. Whether you’re considering Malta after falling in love with it on holiday or exploring options, Frank Salt Real Estate can be your gateway to settling in the country. They can provide answers to your questions, offer homes and commercial premises for sale or rent, and assist with understanding the government’s residency programs.
How far is Malta from the rest of Europe, and what is the climate like?
Malta is a premier travel hub to Europe, North Africa, and the Middle East. It has a warm, sunny climate with some of the best average temperatures in the EU. All major EU destinations are just a two-hour flight away, and direct flights are available to cities like Paris, London, Frankfurt, Madrid, and Lisbon, taking around two and a half hours on average.
Is there a language barrier in Malta?
No, more than 80% of the population speaks English in addition to Maltese. English is widely used in business, making it easy for English speakers to feel at home in Malta.
What is the quality of healthcare in Malta?
Malta’s healthcare system is highly regarded, ranking 5th globally according to the World Health Organization. State healthcare is free for those who work and contribute to social security. Many people also opt for private health insurance, which is affordable in Malta.
How is the education system in Malta?
Malta’s primary education is of high quality and follows the UK model. Public schools are free for resident children, but there are also church and private schools available. Additionally, Malta hosts over 40 English language teaching schools, attracting youngsters from around the world to master the language.
What job opportunities are available in Malta?
Malta offers various job opportunities, and its workforce is highly educated and English-speaking. It is known for sectors such as IT, i-Gaming, banking, financial services, pharmaceuticals, shipping, automotive, aviation, and more. Additionally, Malta recently introduced the Digital Nomad Visa, attracting remote workers from across the globe.
How is doing business in Malta?
Malta provides numerous opportunities for international companies to set up businesses on its shores. It offers borderless access to the rest of the EU, open trade, and a unified currency (Euro). Companies established in Malta enjoy easy trade with other EU countries due to the stringent measures they undergo to comply with EU regulations.
What is the tax system like in Malta?
Malta’s tax system is designed to attract global investment and innovators. Corporate tax is generally 35%, but numerous refund schemes can significantly reduce the effective tax rate to as low as 5%. Malta also has over 70 double taxation treaties with other countries, preventing double taxation on the same income.
How is the banking system in Malta?
Malta has one of the world’s best-rated banking systems with strict anti-money laundering measures. This makes Maltese banks highly reputable and trustworthy for international trade and business.
What are the steps involved in buying a property in Malta?
Buying real estate in Malta is a straightforward and safe process. It involves signing a Promise of Sale, conducting due diligence checks, applying for permits (if necessary), and signing the Contract of Sale or Deed of Sale. Costs include stamp duty, notarial fees, search and registration fees, and an AIP Permit (if required).
Is it advisable to rent a home first?
Yes, many people prefer to rent first to explore the area and lifestyle before committing to a purchase. Renting allows for flexibility and finding the perfect fit. Frank Salt Real Estate’s Rentals Division can assist in finding the right rental property.
Tell me about the i-Gaming Industry in Malta.
Malta is a top destination for i-Gaming companies in Europe, with over 250 companies operating on the islands. The sector’s value is projected to rise significantly in the coming years.
What are the benefits for international companies operating from Malta?
Operating from Malta offers numerous advantages, including a comprehensive regulatory framework, watertight jurisdiction for the EU, incentives like beneficial tax rates and low license fees, access to the EU market, a highly skilled workforce, and a reputation as a market leader in hosting i-Gaming companies.
Living in Malta offers expats a blend of warm weather, a vibrant business environment, excellent healthcare, and a thriving expat community. The country’s English-speaking population and business-friendly atmosphere make it an attractive destination for people from various backgrounds and professions. Whether you are considering moving to Malta for work, retirement, or investment purposes, the country has much to offer and can be an excellent place to call home.
For more information contact MaltaLifestyle.com on WhatsApp (+27) 82 574 4661 or email malta@maltaifestyle.com.
Malta is a great investment destination for buying real estate, offering unique advantages to both residents and foreigners. Situated in the heart of the Mediterranean, this small island nation boasts a robust economy, rich cultural heritage, and an incredibly favorable tax system. But that’s not all – there are other long-term incentives that have proven to be rewarding for those who have already invested in property here.
Let’s explore some reasons why you should consider buying a property in Malta.
1. Strong economy and stability
Malta’s economy remains resilient, thanks to its stable political climate and innovative leadership. This enduring strength has led to consistent economic growth, making it an appealing choice for long-term investors, especially in the real estate sector. The country’s low unemployment rate and well-regulated financial system further contribute to its position as a strong contender in the EU market, promising above-average returns for serious investors.
2. Location
Malta’s strategic geographic location at the crossroads of Africa, Europe, and the Middle East has transformed it into a bustling hub for both business and tourism. Its convenient accessibility from all over Europe, with an average flight time of just over two hours, has boosted the thriving tourism industry. With its pleasant and temperate climate, Malta has become a highly sought-after holiday destination, driving demand for various rental properties.
3. A full member of the EU
As a full-fledged member of the EU, Malta enjoys all the advantages that come with it. This membership opens doors to a vast market brimming with business opportunities, facilitating trade with the EU, North Africa, and the Middle East. Moreover, EU affiliation ensures a transparent legal system, strict property rights, and legal protection, offering investors the peace of mind they seek.
4.Language:
In addition to Maltese, English serves as the other official language in Malta. This linguistic advantage greatly facilitates communication for foreign residents and investors, as all contracts are conducted in English. With nearly 90% of Maltese being fluent in English and a highly skilled workforce in the country, investors find it easy to employ workers or establish businesses in Malta.
5.Tax Benefits:
Malta’s tax regime presents a highly attractive proposition for both local and foreign residents and investors. Notably, Malta imposes no inheritance tax and no Capital Gains Tax on property, making it an appealing destination for financial growth. Moreover, foreign investors have the potential to acquire residency and even citizenship through property investment, provided all criteria are met. For more details on the various residency options available, visit https://residencymalta.gov.mt/
An aerial shot of Spinola Bay in St Julians
6. High Rental Demand:
Malta experiences a soaring demand for rental properties, driven by its expanding international presence and flourishing economy. While tourism remains the primary rental sector, the country also attracts a significant number of remote workers and i-Gaming companies, all seeking rental opportunities for both residential and commercial properties. To explore available rental properties and options, click here – https://malta-gozo-property.com/?partner=maltalifestyle
7. Rich Culture and History:
Malta offers a superior quality of life, enriched by its abundant cultural heritage spanning thousands of years. The archipelago boasts a diverse array of historical sites and scenic marvels, renowned for its crystal-clear seas that allure divers and water sports enthusiasts from around the world. Embracing village feasts (known as festas locally), cultural events, international fairs, and an array of year-round happenings, Malta pulsates with a wide range of experiences to see and do.
8. Diverse Real Estate Investment Opportunities:
Malta’s charm lies in its idyllic settings and picturesque locations, featuring a captivating blend of historic villages and cosmopolitan towns. The real estate market here offers a diverse range of property types to suit various preferences and needs. From apartments, penthouses, villas, and bungalows to maisonettes, townhouses, terraced houses, farmhouses, houses of character, and even palazzos, there’s something for every investor.
The local government plays an active role in fostering investment in the property sector, implementing groundbreaking initiatives to promote home ownership, spur property developments, and revitalize urban areas. As a result, the market offers countless opportunities for capital appreciation, making it an enticing prospect for discerning investors.
9. Excellent Healthcare and Retirement Options:
Malta prides itself on providing an excellent standard of free healthcare for all its citizens and full-time employees. For expats contemplating retirement in Malta, the country offers highly affordable health insurance options from reputable insurance companies.
10.Business-Friendly Environment:
With an unwavering commitment to economic growth, Malta welcomes foreign investment with open arms. The government has taken innovative measures to attract businesses, including streamlined procedures for starting companies, favourable taxation policies, and other supportive regulations. Establishing a business in Malta is an expedited process, thanks to reduced fees, attractive incentives, and numerous stimulus packages. For more insights, visit MaltaEnterprise, the country’s economic development agency website, at https://www.maltaenterprise.com/support.
As one of Europe’s premier investment destinations, Malta offers a plethora of benefits to investors of all kinds. Whether you seek to own a holiday home, find a retirement haven, explore business opportunities, or simply rent short- or long-term, Malta caters to your needs. Many visitors who experienced the country’s opportunities and lifestyle during holidays or business trips have decided to make Malta their permanent home. Why not consider doing the same?
For South African investors looking to diversify their portfolios, Malta offers a wealth of advantages. With its strategic location in the Mediterranean, membership of the European Union (EU), Schengen visa benefits and a thriving property market, Malta presents a compelling proposition for investors seeking to maximise their portfolios.
Merle Whale, a South African living in Malta, says this Mediterranean gem has been welcoming South Africans to its shores, for a number of years now, offering investors, businesses and holiday makers a dream location.
Malta offers stability for investors and a Plan B option for South Africans looking to protect their families’ future. Whale offers some key attractions for South Africans:
Schengen visa and access to the EU. A primary advantage of investing in Malta is the access to the Schengen region. A Schengen visa allows investors to travel freely into 26 European countries, facilitate business opportunities, network in a thriving economic environment and to expand horizons.
Economically stable environment. Malta’s economy is stable, making it an attractive destination. Malta has experienced consistent economic growth over the years driven by thriving sectors such as financial services, gaming, technology, tourism and a booming property market. Coupled with a business-friendly market and attractive tax incentives, South Africans have ample opportunities for business, to invest in start-ups and participate in established industries.
Property market. Property has recorded impressive growth in recent years, enticing investors. High demand has seen property values appreciate offering attractive returns on investment. Investors can explore options, including residential properties and commercial spaces to capitalise on this upward trend. The Maltese government encourages foreign investment in property and offers incentives such as the Malta Individual investment Programme (MIIP) and the Global Residence Programme (GRP).
Nothing beats Malta’s quality of life. Malta’s allure extends beyond investment appeal. This island gem offers a high standard of living, a typical regional climate, stunning landscapes and a rich cultural heritage. South Africans seeking a change of scenery can embrace its vibrant lifestyle, beautiful beaches, historic sites, world-class healthcare and a safe family environment. A cosmopolitan atmosphere, diverse culinary scene and thriving arts and entertainment sector add to the overall quality of life.
Ms Whale says Malta offers a gateway to numerous opportunities. The Schengen visa facilitates access to the EU market, fostering business connections. The country’s stable economy, business-friendly environment and thriving industry sectors create a fertile ground for diverse investments. The property market’s attractive ROI is of significant importance to investors.
South Africans should consider the advantages that Malta offers, from capitalising on the property market to exploring business opportunities in the EU market making this a compelling choice for astute investors.
Rugby fans will know that putting money on Japan as the winner of this year’s Rugby World Cup is a long shot, at best, but some will still put their money on Japan. Predicting the Rand’s performance against other currencies is just that…a long shot. Some get it right, many do not.
According to Merle Whale, founder of MaltaLifestyle.com, a South African living in Malta for more than 10 years, one of the reasons Malta is an attractive investment for South Africans is its stable economy. Property and investment opportunities are well-priced and attractive for investors to make the move to Malta.
It has been said that when the USA sneezes, the rest of the world catches a cold. This is especially true for the South African economy, which typically follows the interest rate cycles of the American banks. Economists forecast further interest rate hikes in 2023 largely based on a number of factors in South Africa:
The economy and credit ratings. South Africa’s stagnant economic growth offers a negative outlook, which is a key factor for ratings agencies.
The cost to the economy is beginning to bite, particularly for small businesses and households, who are being stretched to the limit.
Never a good sign for any economy.
Interest rate hikes. Pressure on global interest rates have a significant impact on the trajectory of interest rates in South Africa.
Exchange rate. The weaker the rand the greater the pressure on interest rates and South African investment opportunities abroad. Offshore investments become expensive.
With the Rand exchange rate currently making global travel unaffordable for many, this year’s Rugby World Cup may just be out of reach for local fans. The cost of a ticket to the Rugby World Cup Final can reach up to EURO 900 for top seats. Costs for lower priced seats are around EURO 200, which when converting to ZAR will cost you more than double(+-R4000) the cost of the seat in the 2007 tournament, when the Springboks claimed their second World Cup title.
Ms Whale says that with Malta still offering favourable investment and travel opportunities, being a 4 to 5 hour flight to France is an attractive option for South Africans living in Malta.
With the Rugby World Cup a matter of a few short months away, turning your eyes to Malta as an investment option may just be the right decision to take capital offshore. The Rand exchange rate should not be a deterrent for long-term investment, the Rand exchange rate is far too volatile for that, not to mention the unstable climate facing South Africans currently.
Consider your offshore investments wisely.
Ms Whale will be embarking on a roadshow in South Africa in May to host sessions on the benefits of an investment in Malta as part of property and investment portfolios for South Africans.
Information sessions are set for Gauteng, Free State, KZN and Northern and Western Cape from 3 to 24 May. Presentations are scheduled from 2pm for 1 hour each. The format is a 45-minute presentation followed by Q&A discussion. Private pre-booked one-to-one sessions are to be reserved.
Booking is essential. Sessions are free on verification and are on a first-come first-served basis. Right of admission reserved.
Fitch Ratings has affirmed Malta’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A+’ with a Stable Outlook. The rating is supported by high per-capita income and a pre-pandemic record of strong growth and sizeable debt reduction. However, the small size of Malta’s economy, which is highly vulnerable to external developments, and a recent deterioration in public finances with large fiscal deficits, have led to a sharp increase in the moderate public debt burden.
The Maltese economy expanded rapidly at 6.9% in real terms in 2022, outperforming the rest of the EU. Growth came mainly from investments, which were heavily impacted by the acquisition of imported aircraft equipment. Private consumption remained sound, supported by the accumulation of past savings and favourable labour market conditions. Key sectors driving growth were online gaming, information and technology (ICT), and professional services, while construction contracted quite sharply. Recovery in the tourism sector continued narrowing the gap of tourist arrivals relative to 2019 to around 17% in 2022.
Fitch forecasts growth to slow to 3.5% in 2023, due to the projected economic slowdown in Malta’s main trading partners and as evidenced by a moderation in economic indicators. Growth will be close to potential in 2024, reaching 3.7%. The lifting of international travel restrictions has helped support the return of foreign workers, further uplifting domestic consumption and potential growth while somewhat easing structural labour supply shortages.
Overall, Fitch estimates that Malta’s fiscal deficit narrowed to 5.8% of GDP in 2022 from 7.5% in 2021. While sizeable energy and food subsidies weighed on the budget balance, these were offset by the government’s ad-hoc spending review during the summer and the continued phasing out of Covid-19 expenditure. The 2023 deficit is projected to reach 5.4% of GDP, close to the government’s budget target of 5.5% but exceeding the ‘A’ median of 4.1%. The European Commission has yet to approve the bailout package for state-owned airline Air Malta, and the timing and total cost of any state aid to the airline remains unknown, although some restructuring costs are already priced into the budget at close to 0.4% of GDP for 2022/23.
