Diversify your Portfolio with Property in Malta or Invest Offshore with Global Investment Brokers

Buy for investment, buy-to-let or buy-to-holiday

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Investment Brokerage

While owning an investment property in Malta makes sense, what do you do with the rental income to make that work for you.

Maybe your decision is to rather invest offshore using a global investment firm.

I have collaborated with a global investment firm, serving businesses, families and individuals.  They are situated in Malta, as well as in South Africa. Their main focus is in assisting expatriated South Africans in managing their offshore portfolios, as well as their investment portfolios still domiciled within South Africa.

Through their investment offering and their European and Swiss partners, they offer the following:

  • Investments in the European Union through their Maltese platform. Elephant They provide discretionary portfolio management services, helping clients achieve their investment goals, whether this may be generating income, expanding their wealth, or structuring more tax friendly ways to invest.  Their investment offerings are tailored to meet different investor needs and includes the following:
    • High Equity portfolio
    • Medium Equity portfolio
    • Low Equity portfolio
    • ESG funds

All these portfolios are regulated according to European legislation and are scrutinised by an international investment committee with members in Malta, the UK, Switzerland and South Africa. As they are a boutique European Investment firm with strong South African ties, they can also tailor a unique investment offering to cater for your individual needs.

  • Through their South African sister company, they can manage their clients’ portfolios in South Africa. They realise that there are definite advantages in having your global portfolio managed as one portfolio with your specific goals and risk profile taken into account.
  • They have the ability to, through their Swiss partner Swissquote Bank, assist their clients to open bank accounts in Switzerland. These accounts are managed as investment accounts, but also allows for transactions as the clients needs dictate. These types of accounts are opened directly in Zurich, Switzerland and can be linked to your current investment account in Malta.

Malta

Location

  • Strategically located in the heart of the Mediterranean with close ties to mainland Europe, North Africa and the Middle East
  • Malta’s excellent port infrastructure makes it an ideal logistical hub in the Mediterranean
  • Malta’s high-end manufacturing and knowledge based sectors make the islands a best choice for investment

Economy

  • Joining the EU in 2004 Malta has a full functioning open market economy
  • Malta has been able to respond to international trends and react quickly, due mainly to their progress and flexibility.
  • Their government is pro-business and wants to strengthen Malta as an open market economy
  • Malta was one of the last EU countries to enter the recession and the first to recover
  • Malta Stock Exchange Index increased 202 points or 4.48% since the beginning of 2019, one of the world’s best performing indices
  • Malta’s credit rating 2021 by Fitch is “A+”

Language

  • National language is Maltese but both English and Maltese are considered official languages
  • Most Maltese are bilingual with many able to also speak Italian

Work Force

  • Malta has a fantastic supply of top graduates who are technologically experienced
  • There is a huge availability of technical and management staff
  • The Maltese labor force is extremely productive and hard working. Highly educated with an excellent work ethic
  • The unemployment rate as of December 2021 of 4.9% the lowest across the EU’s 28 member states,

International Finance Centre

  • Due to Malta’s traditional and conservative approach to it’s financial services, it never experienced a real financial crisis thus making it recognised as an international financial services hub
  • Malta’s reputation was solidified due to the resilience and stability showed during the financial crisis.
  • Globally this did not go unnoticed and this is expected to fuel further growth

ICT Infrastructure

  • A huge amount of consolidation and investment has been made to ensure a reliable Information Communication Technology (ITC) infrastructure
  • Malta has always considered it to be vitally and strategically important to be economically well connected to the world
  • The ITC infrastructure here is well developed and liberal, this contributing to Malta becoming a regional centre of excellence in the financial and ITC fields

Low Corporation Tax

  • A full imputation tax system has existed in Malta since 1948
  • Corporate tax stands at a rate of 35%
  • However upon distribution of dividends, shareholders may qualify for a refund equivalent of 6/7th of tax paid. Resulting in paid tax of 5%

Safe and Pleasant Lifestyle

  • Malta scores very high on safety, health and true quality of life
  • Best in Europe in Health care. 1st class in public and private hospitals
  • Crime rate is very low
  • Hospitality and friendliness of the locals
  • Wealth of history, culture and food

Top Reasons To Invest In Malta Property

Global growth is projected at 3.1 percent in 2024 and 3.2 percent in 2025, with the 2024 forecast 0.2 percentage point higher than that in the October 2023 World Economic Outlook (WEO). Whilst this is not the end of the world, it is safe to presume that the coming years are not offering too many bright options for investors, or at least not for the immediate future. The effects are also rubbing onto Malta and local investors and whilst the local economy is still registering growth, our exports are suffering and the span of secure financial investments available to the private investor is limited and risky. This is exactly where the merits of investing in property come in.

Mortar and bricks have always been considered a solid investment in Malta, and this have become even more so since 2008 when the global recession dug in, and albeit property prices having gone down, the drop was marginal and the market was already on the mend by the end of 2010 and saw a positive increase in 2011. Price stability is forecasted for 2012. This is a very different scenario from other neighbouring countries like Greece, Spain and Portugal.

The influx of foreign nationals moving to Malta, be it to retire, to relocate or to work here, has also paved the way for a new golden opportunity – rental investment. The growth of niche industries such as gaming, pharmaceuticals, back-end office operations and financial services has led to a strong surge in demand for rental properties. What’s more, interest in Malta as an ideal destination where to retire or relocate to is on the rise, with many opting to rent, and eventually invest in their own property. Local demand also factors in with many breaking tradition and opting to rent out. This is a widespread trend amongst the younger generation who prefer to rent out before purchasing their own property, as well as for single parents and separation scenarios.

It is thus for good reason that many have already seen the investment potential in this, which is two-fold: holding property as a secure investment that will retain its price and appreciate in the long term; and a steady stream of income in the form of rental payments. Factor in the excellent choice of good value property available at the moment and the attractive interest rates on home loans, and surely the recipe for a solid investment cannot be more fool-proof.

But what kind of rental return is one to expect? At present this is estimated at between 3.5% to 6% per annum. It very much depends on the type of property in question, the location and more importantly the level of finishing and furniture. Many prefer to rent out properties that are in the proximity of their workplace with Sliema, Msida, St Julians, Gzira and the surroundings being most sought after. Special Designated Areas, such as Portomaso, Pendergardens, Tigne Point and Fort Cambridge are popular high end options, however smaller units in the region of €120,000 to €180,000 can still yield very attractive returns. Proper finishings and modern furniture is a plus, with all common appliances and daily commodities being expected by the tenant. This does not need to scare off potential landlords as options are now available where one may furnish a complete rental property from just over €15,000. In addition to this, various companies, such as Frank Salt Real Estate, can also help with the management of the property, turning the entire undertaking and day-to-day running into a piece of cake.

One final aspect to keep in mind when considering a rental investment is that whilst the loan repayment is likely to remain constant over time, inflation and the cost of living are likely to keep rising and population growth and demand for property from overseas will keep creating demand. This ultimately drives up rents, especially if supply cannot keep up with the pace – which is what Malta is experiencing right now.