The Surprising Discovery A comprehensive survey conducted by the National Audit Office (NAO) has unveiled a staggering number of over 4,000 government-owned properties lying unused. Meanwhile, the Maltese government is spending over €22 million annually on leasing state-of-the-art offices from the private sector due to a mismatch in the availability of suitable office space within its own portfolio. The Cost of LeasingThe government’s reliance on the private sector for office space has led to the leasing of around 260 properties, totaling 213,112 square meters, at an annual cost of €22 million and an overall value exceeding €204 million for the full lease periods. Additionally, a significant €41 million has been invested in capital improvements for these leased spaces. The Issue of Space Utilization A majority of the leased properties, about two-thirds, serve as office spaces. Alarmingly, in 43% of leasing cases, there was no formal assessment of needs before acquiring a lease, raising questions about the efficiency and necessity of these expenditures. Recent Reforms and Ongoing ChallengesEfforts to regulate government leasing through new procurement rules introduced in 2020 aimed to enhance transparency and efficiency. Despite these changes, operational hurdles persist, such as outdated information systems and a lack of standard procedures for managing property inquiries. The Search for Quality Office Space Government entities often seek modern, well-located office spaces that are not readily available within the government’s property holdings, many of which are dilapidated or poorly located. This has led to a preference for leasing despite the high costs involved. Financial Implications and TrendsThe average cost of leasing in 2022 stood at €118 per square meter, with additional capital costs for refurbishments raising concerns about value for money. A significant increase in private property leases was noted from 2018 to 2022, highlighting a growing trend. Operational Needs vs. Unused Properties Government entities express a need for more office space and favorable locations for their operations. However, the condition and refurbishment costs of government-owned properties act as deterrents to their use. Recommendations for ImprovementThe NAO has suggested several measures to address these issues:
These recommendations aim to optimize the use of government properties and ensure taxpayer money is spent wisely, reflecting a need for a more strategic approach to property management and leasing. The post €22 Million Lease Fiasco Amidst 4,000 Vacancies first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/e22-million-lease-fiasco-amidst-4000-vacancies/
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Buying a property in Malta raises many questions, particularly regarding taxes. This article clarifies whether “real estate taxes” and “property taxes” are the same in Malta, offering valuable insights for potential buyers, homeowners, and investors. Understanding the Basics“Real estate taxes” and “property taxes” are often used interchangeably, causing confusion. In Malta, however, the distinction is clear:
The Maltese Property Taxation StructureMalta doesn’t have an annual property tax in the way many other countries do. Instead, property-related taxes primarily occur during the purchase or sale, including:
It’s important to note that specific exemptions and conditions may apply, particularly for first-time buyers or in designated special designated areas where different rules might be in effect. Legal FrameworkThe Maltese legal system outlines property and real estate taxation primarily through the Income Tax Act and various legal notices issued under the Act. These documents detail the obligations, rates, and exemptions applicable to property transactions in Malta. Practical Examples
The Future of Property Taxation in MaltaLooking ahead, the Maltese government continues to evaluate the property taxation framework to encourage homeownership, attract foreign investment, and maintain a stable real estate market. Potential buyers and investors should stay informed about any legislative changes that might affect property tax obligations. In Malta, while the annual property tax as known in other countries doesn’t apply, understanding the taxes associated with buying and selling real estate is crucial for anyone involved in the property market. Real estate taxes, encompassing various duties and potential capital gains taxes, play a significant role in the financial aspects of property transactions. Navigating these obligations requires a clear understanding of the current laws and regulations, which are designed to be straightforward but can vary based on specific circumstances. Considering purchasing or selling property in Malta? Consult a tax advisor or lawyer specializing in Maltese property law to navigate the tax implications effectively. Their expertise can provide peace of mind and financial clarity in your property transactions. References and Sources
via https://www.propertymarket.com.mt/are-real-estate-taxes-the-same-as-property-taxes-in-malta/ Ah, selling your home in Malta – it’s like preparing for the village festa, but instead of fireworks and marching bands, you’ve got house viewings and negotiations! We understand it’s a bit of a whirlwind, so to save you from some common ‘oops’ moments, we’ve gathered pearls of wisdom from world class real estate gurus. They’re here to ensure your home-selling journey is as smooth as a traditional ħobża biż-żejt. Here’s a playful peek at some often-overlooked details in the home-selling saga (and how to fix them quicker than you can say “Mela!”) 1. The Power of First ImpressionsJust like the warm welcome at a local festa, the first view of your home sets the tone for potential buyers. Consider what greets them as they approach – is there a touch of Maltese charm you can add? Ensuring the driveway and garden are spruced up, and the front door looks inviting is crucial. You want to capture their interest right from the get-go. Vaughan Schofield, the brains behind Belvoir Wrexham, believes: “A viewer’s decision about a property often happens in the blink of an eye – within the first 20 to 30 seconds of their visit. That’s why the appearance of your front area, from the driveway to the door, is more significant than you might think. It’s possible to win or lose a buyer’s heart before they even step inside.” Echoing this sentiment, Hannah Towers from Armitstead Barnett in Lancashire notes: “Never underestimate the impact of first impressions. A little bit of landscaping, perhaps reminiscent of a Maltese spring, along with a neat driveway and a welcoming entrance can really help in painting your property as someone’s ideal home.” 2. Keep Clutter Out of the LimelightThink of your home like a Maltese town square during festa season – lively but organized. It’s essential to strike a balance; you don’t want rooms that feel as bare as the walls of Mdina, yet a tidy, more minimalist approach helps buyers imagine their own belongings in the space. “It’s the structure and potential of the property that buyers are interested in,” Hannah points out. As Hannah suggests, “Before the photographers arrive, tuck away personal items. This not only presents your home as a versatile space but also visually expands it.” And if you’re grappling with an excess of knick-knacks or furniture? “Consider short-term storage solutions,” advises Lee Koffman, Director & Head of Residential Sales at Robert Irving Burns. This way, potential buyers aren’t overwhelmed and can better appreciate the space and possibilities of your home. 3. Selling a Home, Not Just a PropertySelling your home is akin to sharing a piece of Malta’s heart and soul, not just transferring bricks and mortar. As buyers step into your home, they’re picturing their future life there, much like envisioning themselves at a cozy family gathering in a traditional Maltese farmhouse. Lee Koffman emphasizes, “It’s more than a simple transaction. Buyers are seeking a connection, a place that resonates with them on a personal level. It’s crucial for sellers to engage with the emotional aspects that make a house a home.” Is it a particularly chilly day? Why not show off your efficient heating system? Let your home exude the warmth of a sunny day in Valletta. Lee adds, “Warmth greeting buyers from the entrance sets a welcoming tone. It allows them to envision a home where they can relax and find comfort. After all, nobody wants to be greeted by the chill of a winter’s day in a prospective home.” 4. Embrace the Season in Your Home PresentationJust as you would adapt to Malta’s seasonal festivities, ensure your home reflects the time of year it’s being shown. Tailoring your space to the season is key in creating an inviting atmosphere. For example, if it’s the season when the island basks in the warmth of the Mediterranean sun and outdoor living is at its finest, arrange your outdoor seating area. This gesture allows potential buyers to envision the delightful summer evenings they could spend there, much like enjoying a leisurely evening on a Valletta terrace. 5. Avoid Over-the-Top Renovations Before SellingJust like you wouldn’t overhaul an entire festa float right before the parade, it’s not wise to embark on costly renovations just before putting your home on the market. Chances are, these big changes won’t boost your sale price significantly, and they might even be altered by the new owners, much like how a festa decoration might be repurposed for another celebration. Donald Young, a seasoned consultant at James Agent, advises, “Certainly fix what needs fixing – a broken tile or a leaky tap. However, shelling out a fortune for a brand new kitchen or bathroom just before selling isn’t the best move. You want your home to be like a perfectly prepared pastizzi – appealing, but not overdone.” Remember, it’s the minor repairs and touch-ups that often make the most difference in presenting your home for viewings and photography. 6. Keep Pets Out of the SpotlightJust like at a Maltese village festa where the focus should be on the band and not the roaming cats, during house viewings, pets should take a backstage role. While some visitors might not be keen on pets, others could become so enamored with your furry friend that they forget to admire your home. After all, you’re not looking to include your pet in the sale! Donald Young advises, “It’s best to keep pets out of sight during viewings. As much as they might be loved, they can distract potential buyers from appreciating your home. We’ve even had instances where the presence of a pet became more memorable than the house itself!” 7. Showcase Your Home’s HighlightsDo you have a kitchen bathed in Mediterranean sunlight, or an office with a view that rivals the Grand Harbour? Vaughan Schofield of Belvoir Wrexham suggests, “Ensure your home’s star features are well-presented. It’s like the fireworks at a festa – they should capture attention and leave a lasting impression.” Not every corner of your home may be picture-perfect, but emphasizing its unique aspects is key. Vaughan adds, “Every home, like every festa, has its own character. Play to your home’s strengths to make a lasting impact on potential buyers.” The post 7 Tips (and Oopsies to Avoid) When Selling Your Maltese Home first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/7-tips-and-oopsies-to-avoid-when-selling-your-maltese-home/ Remote Work vs Office Space: The Future of Workspaces in Malta The Malta Business Network (MBN) is gearing up for an insightful event focusing on the evolution of workspaces. Titled ‘The Future of Work and what’s next for the office in Malta’, this upcoming panel discussion, set for later this month, will delve into several key topics:
Organized by the MBN and led by property evaluator and MBN board member Justin Mizzi from Archi+, the event promises to offer a deep dive into these pressing issues. The discussion, moderated by Belair Property’s managing director Ian Casolani, will feature an hour of dynamic conversation with experts such as:
Set to take place at The Grist at The Brewhouse, the event is scheduled for Monday, January 22, at 6pm. Key points of discussion will include:
In addition, the event marks the conclusion of MBN’s calendar of events for 2023, which wrapped up in December with a keynote address by Malta’s Finance Minister Clyde Caruana. In his speech, Caruana touched on crucial decisions regarding Malta’s tax regime set to impact the EU in 2024, emphasizing the need for economic growth without compromising the wellbeing and quality of life of Malta’s citizens. He also reiterated his vision for Malta’s economy to pivot towards prioritizing higher-value industries. The post Commercial Real Estate in Malta: Are The Offices Disappearing first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/%d1%86ommercial-%d1%80eal-%d0%b5state-in-malta-%d0%b0re-%d1%82he-%d0%beffices-disappearing/ Insights from the National Risk Assessment A comprehensive 200-page report on Malta’s national risk assessment has revealed concerns about substantial money laundering activities within the property market. This assessment, conducted by a committee including the police and the Financial Intelligence Analysis Unit (FIAU), acknowledges that while the exact scale of money laundering in real estate remains unclear, the indications are troubling. In 2021, real estate assets frozen in Malta, related to financial crime investigations, amounted to approximately €44.6 million. This significant figure highlights the property market’s vulnerability to money laundering. The attractiveness of the real estate sector for criminals lies in its ability to facilitate the laundering of large sums in a single transaction. Additionally, investing in property for renovation and resale provides a facade for justifying illicit income. Despite a €10,000 cap on cash transactions in property sales and other high-value items introduced by the government in 2021, loopholes remain. Notably, the regulations don’t cover cash used in construction, renovation, or property finishing, raising concerns about laundering through these channels. The rental market too is not immune, as it can offer a guise of legitimate income for criminals. Tax Evasion in Property Transactions The report also sheds light on tax-related malpractices in property dealings:
Analysis of suspicious property transaction reports by the FIAU primarily points to tax crimes, often involving at least one Maltese resident. Trends and Licensing in the Property Market Regarding property purchases:
The report also touches on the issue of estate agent licensing. A notable concern is the lack of enforcement against unlicensed agents, and the existing “vulnerabilities” within the licensing laws, especially with individuals occasionally acting as intermediaries in property sales. In conclusion, while the full extent of money laundering through Malta’s property sector remains undetermined, the evidence points to significant risks, necessitating more stringent oversight and regulation to curb these illegal activities. The post Money Laundering in Malta’s Property Market first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/money-laundering-in-maltas-property-market/ Ah, the eternal Maltese conundrum: St. Julian’s or Sliema? Both sparkling like gems in the Mediterranean sun, each with its own allure. Let’s embark on a playful journey through these locales, sprinkling our tale with local charm and a dash of humor, and maybe find a property for sale along the way! St. Julian’s: The Vibrant HeartbeatPros:
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St. Julian’s is a kaleidoscope of experiences, bustling with energy and brimming with life. Whether you’re a party animal, a gourmet, or a beach lover, it’s a place that promises a vibrant Mediterranean adventure. Sliema: The Chic Coastal QueenPros:
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Sliema is a symphony of stylish living, serene seascapes, and social havens. Whether you’re hunting for the latest fashion, seeking a tranquil seaside escape, or looking to indulge in the bustling café scene, Sliema stands ready to enchant. Quality of Life: Sun, Sea, and So Much More!Both St. Julian’s and Sliema offer that quintessential Maltese blend of sun, sea, and a laid-back lifestyle. Whether you’re looking for properties for sale in St Julian’s or Sliema, both provide a high quality of life with their unique flavors. St. Julian’s is your go-to for vibrant energy and never-ending entertainment, while Sliema offers a more balanced blend of urban chic and relaxing seafront vibes. Choosing between St. Julian’s and Sliema is like deciding between pastizzi and hobz biz-zejt – both are irresistibly Maltese and delicious in their own right. It all boils down to what flavor of Maltese life tantalizes your taste buds more. So, whether you’re browsing properties for sale in St Julian’s or Sliema, remember, in Malta, you’re always just a stone’s throw away from the next adventure or a scrumptious plate of rabbit stew. Saħħa! The post Living in St. Julian’s or Sliema: A Whimsical Guide to Malta’s Sun-Kissed Shores first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/living-in-st-julians-or-sliema-a-whimsical-guide/ Are you feeling a bit cramped in your Maltese apartment? You’re not alone. With space at a premium, especially in urban areas, making the most of your compact living quarters is both a challenge and an art. But fear not! By applying a few clever design strategies, you can transform your snug space into a comfortable, stylish haven. Embrace the Magic of Mirrors“Mirrors have a way of making a room look bigger and brighter,” said Coco Chanel, and she wasn’t wrong. In a small Maltese apartment, mirrors can be your best friend. They reflect light and create an illusion of space. Try placing a large mirror on a wall opposite a window. It’s not just functional; it’s chic! Go Vertical with StorageWhen floor space is scarce, think up! Utilize your walls with vertical storage solutions. Floating shelves, wall-mounted racks, and tall, slim bookcases not only save space but also draw the eye upwards, making your room feel taller. Incorporate hanging planters or wall-mounted modular systems for a touch of greenery that doesn’t eat up floor space. Also, consider using the area above doorways for additional shelving – it’s often an overlooked space that’s perfect for storing books or decorative items. Declutter RuthlesslyHere’s a question: When was the last time you used that old guitar in the corner? Clutter is the enemy of small spaces. Adopt a minimalist approach. Marie Kondo says, “Discard everything that does not spark joy.” Follow her advice, and you’ll be surprised at how spacious your place can feel. Choose Multi-functional FurnitureIn a compact apartment, every inch counts. Opt for furniture that serves multiple purposes. A sofa bed, a coffee table with storage, or a drop-leaf dining table can be game-changers. As they say, “Less is more.” Light It UpGood lighting can transform a space. If natural light is limited, supplement it with varied light sources. Floor lamps, pendant lights, and wall sconces can create a warm, inviting ambiance. Remember, a well-lit room always feels more spacious. Experiment with dimmer switches to easily adjust the mood of the room, or use smart bulbs that can change color to suit your mood and time of day. Strategically place mirrors to reflect light from these sources, further enhancing the brightness and airy feel of your space. Color WiselyColor can dramatically impact the perception of space. Light, neutral colors make a room feel bigger and airier. Soft whites, beiges, and light greys are perfect for the walls. If you crave color, add vibrant pops through accessories like cushions, rugs, or artwork. Emphasize FunctionalityEvery square inch should have a purpose. Do you really need a formal dining area, or would a bar counter serve you better? Consider innovative solutions like fold-down desks or collapsible tables for workspace that disappear when not in use. Similarly, opt for built-in storage or under-bed drawers to maximize utility without compromising on style. Think about how you use your space and make it work for you. Inject Your PersonalityJust because it’s small, doesn’t mean it can’t show off your style. Whether it’s bold art pieces, colorful throws, or quirky collectibles, your décor should reflect who you are. After all, as Oscar Wilde said, “Be yourself; everyone else is already taken.” A Joke to Keep Things LightWhy don’t we play hide and seek with our furniture? Because good furniture always stands out! Utilize Outdoor SpacesIf you’re lucky enough to have a balcony, make the most of it. A small outdoor table, some plants, and fairy lights can turn it into a delightful extension of your living space. Consider adding a small herb garden or potted flowers to bring a touch of nature and freshness. For those cozy evenings, a compact, weather-resistant rug and some comfy cushions can transform your balcony into a perfect little nook for relaxation. Remember, a small space can still have immense potential. With these design tips, your compact Maltese apartment can be transformed into a cozy, functional, and stylish abode. It’s all about being creative and making the space uniquely yours. So, roll up your sleeves and start maximizing your home today! The post Maximizing Small Spaces: Design Tips for Compact Maltese Apartments first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/maximizing-small-spaces-design-tips-for-compact-maltese-apartments/
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With its picturesque landscapes, rich history, and a favorable climate, Malta has long been a magnet for tourists and retirees. However, in recent years, a new wave of visitors has been gracing its shores: young digital nomads. These tech-savvy, location-independent professionals are increasingly choosing Malta as their preferred destination, and here’s why: 1. Attractive Tax RegimeWhile many countries grapple with defining and taxing the digital nomad lifestyle, Malta has been ahead of the curve. Its favorable tax schemes, especially for European citizens, make it an appealing base for those who earn online. Non-residents who derive income outside of Malta aren’t taxed on this income, a perk that many digital nomads find irresistible. 2. High-Quality Internet InfrastructureA robust internet connection is the lifeblood of a digital nomad. Thankfully, Malta boasts some of the fastest internet speeds in the Mediterranean region, making it perfect for everything from Zoom calls to uploading large project files or streaming downtime entertainment. 3. Affordable LivingWhile Malta isn’t the cheapest European destination, its cost of living is reasonable compared to many Western European countries. With a plethora of co-working spaces, shared living accommodations, and an abundance of cafes, digital nomads can find both work and living spaces that fit their budgets. Check out the latest rental properties in Malta >> 4. Cultural and Historical RichnessBetween work sessions, digital nomads love immersing themselves in local cultures. Malta offers a tapestry of history with its prehistoric temples, medieval cities, and vibrant festivals. The blend of Maltese, Arabic, and European influences creates a unique cultural milieu that’s both enriching and intriguing. 5. A Warm and Welcoming English-Speaking CommunityEnglish is one of Malta’s official languages, making it easier for digital nomads from English-speaking countries to adapt. Moreover, Maltese people are renowned for their hospitality, ensuring that newcomers quickly feel at home. 6. Stunning Natural BeautyFrom the azure waters of the Blue Lagoon to the dramatic cliffs of Dingli, Malta offers a range of natural spectacles that make it an idyllic setting for those seeking both adventure and relaxation. 7. Safety and StabilityMalta ranks high on global safety indexes. Its low crime rates, coupled with a stable political environment and membership in the European Union, make it an oasis of calm in an unpredictable world – a quality especially appreciated by solo travelers and young professionals. 8. Proximity to Major European DestinationsMalta’s strategic location in the heart of the Mediterranean means it’s just a short flight away from major European cities. This connectivity makes it an excellent base for nomads wanting to explore the wider European region. A Quick Joke to Lighten Things Up: Why did the digital nomad like working from Malta? Because every time he had a byte of data, he followed it with a bite of pastizzi! It’s clear that Malta offers a compelling blend of professional amenities and personal pleasures for the modern digital nomad. As remote work continues to reshape the future of employment, it’s no wonder that young professionals are flocking to this Mediterranean gem. If you’re considering joining the digital nomad lifestyle, Malta might just be your next perfect destination. The post Why Young Digital Nomads Are Setting Their Sights on Malta first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/why-young-digital-nomads-are-setting-their-sights-on-malta/ Here’s a list of the most prominent Special Designated Areas (SDAs) in Malta:
These SDAs are popular among foreign buyers due to the ease of acquiring property and the luxury residences available in these developments. They often feature top-notch amenities such as communal pools, gyms, spas, and 24-hour security, making them an attractive option for those seeking a comfortable and secure lifestyle on the sunny island of Malta. The post Special Designated Areas in Malta first appeared on propertymarket.com.mt.via https://www.propertymarket.com.mt/special-designated-areas-in-malta/ |
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