Buying property in Malta: homebuyers can get EU citizenship in this tech, finance and online gaming centre

Malta's a tax and online gaming haven. What would the Knights of St John have made of it?
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Cathy Hawker25 March 2019

Smaller than the Isle of Wight and with a population of 450,000, lovely Malta has a problem.

Queues of cars and motorbikes snake around the narrow streets of the main resort towns of St Julian’s and Sliema, in a daily battle for drivers.

It all comes down to the popularity of this Mediterranean island nation between Sicily and North Africa. Tourist numbers are booming, up 17 per cent at the last count.

Malta is also now a tech hotspot and a centre for financial services and online gaming. It leads the pack in blockchain technology, the backbone of bitcoin.

Then there are a number of residency schemes on offer, to encourage inward investment and open to both EU and non-EU nationals.

These offer the lowest effective tax rate in the EU including an appealing 15 per cent on overseas income and, controversially, Maltese citizenship.

With a contribution to a national development fund and a property purchase totalling about £860,000 comes a passport offering visa-free travel to 182 countries including most of Europe.

The Maltese skyline is filled with cranes and property prices have risen dramatically. At one point last year Knight Frank confirmed the island had the world’s fastest-growing housing market.

From £172,000: new penthouses, maisonettes and flats at Clover Point in Malta’s quieter southeast

Where to buy cheaper city homes in Malta

“Valetta, St Julian’s and Sliema have experienced double-digit property growth but you can still find property elsewhere for £130,000 to £175,000 that would rent for £600 a month,” says Chris Grech, chair of Cluttons associates Dhalia.

“Younger renters, in financial and tech, want to be in Paceville or Portomaso Marina by St Julian’s.

"A resale one-bedroom flat in the mixed-use Pendergardens scheme costs £345,000 without a view or £520,000 with one. One overlooking the yachts is £605,000.”

A palazzo in Valetta

The EU’s smallest and sunniest capital is a beauty. Built from caramel-coloured stone by the Knights of St John in the 16th century, Valetta is dominated by baroque palaces facing Grand Harbour.

These elegant homes have seen a flurry of investment, with many transformed into boutique hotels or lavish homes.

Chris Bonett of Dhalia says Valetta has had “a serious facelift and was European City of Culture last year. Architect Renzo Piano has designed the new parliament and remodelled the city gates.”

British-Scandinavian couple Sallie and Andrew Redman moved to the city six years ago, buying and renovating a stone palazzo with views of Grand Harbour.

Traditional elements include a wide entrance courtyard, an enclosed balcony and stone arches. It’s now a comfortable five-bedroom home and a great party house with three large, linked roof terraces. It’s easy to lock and leave when they return to the UK each year.

“There has been a real gentrification in Valetta with people renovating palazzos and opening coffee shops and restaurants,” says Sallie.

“There’s always something cool going on. For us the pluses include a good and varied social life with easy access across Europe. And English is an official language.”

£1.5 million: a five-bedroom stone palazzo in central Valetta with sea views, three roof terraces and original features, renovated by Andrew and Sallie Redman

The Redmans are now downsizing within Valetta and their palazzo is for sale fully furnished for £1.5 million with Cluttons.

Homes near the beach

More affordable new homes include Clover Point in the quieter southeast, with 14 penthouses, maisonettes and flats from £172,000. In the centre of the island at Attard, 20 minutes from Sliema, Pecan Place has 13 flats and penthouses priced from £215,000.

A 700-year old three-bedroom stone townhouse in Żejtun village in the centre of Malta is £300,000, half an hour from St Julian’s and 10 minutes’ drive from the nearest beach.

Cluttons: cluttons.com

Visit Malta: visitmalta.com