AIP – Update for NON-EU Nationals

 

NON-EU NATIONALS CAN NOW APPLY FOR LONG-TERM RESIDENT STATUS IN MALTA AND WILL NO LONGER REQUIRE AN AIP.

Third-Country Nationals (NON-EU citizens) who have been legally and continuously residing in Malta for five years may apply for the long-term residence status. The status of long-term residents is permanent and the residence permit would be issued for a period of five years.

WHAT DOES THIS MEAN IN RELATION TO PROPERTY PURCHASE?

Once an applicant is given Long-term residence status, the successful applicant will no longer require an AIP (Acquisition of Immovable property) in order to purchase a property. Moreover, there will no longer be restrictions as to owning only one property as was previously the case.

Successful applicants can now benefit from all the Government concessions which an EU member can benefit from in relation to reductions in stamp duty as well as property tax.

The applicant must submit the following documentary evidence in support of his request: Please click here to see required documentation.

Click here to learn more about AIP.

For more information, feel free to contact Steven Borg on +356 7909 5828 or email steve@belair.com.mt

 

New Immovable Property fiscal measures( Covid-19 Economic Recovery Package )

 

New Immovable Property fiscal measures – June 2020

 

The government announced temporary fiscal incentives for both property buyers and sellers, as part of a COVID-19 economic recovery package. This is effective as of 9th June 2020 until 1st April 2021:

 

Vendors:

All final deeds signed during this period, whereby 8% or 10% final withholding tax was previously applicable, are now being reduced to 5% on the first €400,000 in value. (Legal notice 241/2020)

 

Purchasers:

All finals deeds signed during this period, whereby a 5% stamp duty rate was previously applicable, are now being reduced to 1.5% on the first €400,000 in value. Schemes that are currently in existence, such as First Time Buyers and Urban Conservation Areas (UCA), can be used in conjunction with this rate of stamp duty. (Legal notice 240/2020)

 

These new measures apply to transfers of immovable property made on or after the 9th June 2020, but before 1st April 2021. These transfers will qualify for the reduced rates if the notice of the final deed of transfer is given to the Commissioner of Inland revenue by the 30th April 2021.

 

For more information, feel free to contact us.

The Boardroom: Two months on since COVID hit Malta, how has the real estate sector been impacted?

What’s Property like in Malta at the moment?

How are Malta’s leading realtors expecting the immediate future to pan out? 🤔

BELAIR Property’s Ian Casolani and RE/MAX Malta’s Kevin Buttigeg explore the changes felt by the real estate sector since the start of the pandemic

 

Stay tuned here: https://www.facebook.com/pg/WhosWho.mt/posts/

 

 

RENTALS – Maltese families are looking for villas & penthouses for the summer

Rentals find a new market: locals looking for luxury

A new trend in the rentals market is seeing locals looking to move into luxury villas with pools for the summer with space being more sought after in this period of self-isolation.

Estate agents have confirmed the rise in rental requests for houses with gardens, or penthouses with large terraces and views, from Maltese families who are not their typical clients.

The pandemic has had an impact on the “appreciation” of the outdoors in homes and the importance of quality family time, they say.

Resigned to the idea that they will not be taking their usual family holidays overseas, and hotels will not be opening any time soon, some locals are happy to spend a monthly €4,000 to €6,000 on a house with a pool over the summer, says Belair Property managing director Ian Casolani. He has noted this trend from the start of the outbreak.

Owners of short-let properties, who have been renting at good daily rates, have found themselves in dire straits since their business was wiped out with the closure of the airport.

But their woes can be slightly mitigated by the new shift to Maltese and expat tenants as they turn their properties into long-let rentals, Casolani says.

A property in Gozo that is on the market.
A property in Gozo that is on the market.

 

Meanwhile, owners of long-let properties are also considering renting to Maltese for a few months instead of a year if they are struggling to find a tenant.

Perry Estate Agents is also facing the “phenomenon” that arose from partial lockdown. Its managing director, Robert Spiteri Paris, has seen a healthy demand for more “space”, based also on the assumption of more competitive prices due to the flood of properties from the short-let category, which is also made up of quality homes.

Landlords have been more flexible with prices because of this increase in supply, Spiteri Paris points out, resulting in more choice and better rates on the long-let market. The uncertainty of going back into lockdown has meant villas are being rented to Maltese for four months up to a year, and the agency has also convinced a few owners to instead rent properties for sale to the post-lockdown market.

“We have experienced a huge influx onto our database of new properties we did not even know about. Owners do not want to leave them idle even though it would mean earning half what they would from short lets,” he says.

Even long-let properties have gone to Maltese families, who generally hate spending money on rent but want to treat themselves, Spiteri Paris notes. They are now opting for the top villas that foreign CEOs would normally rent.

Meanwhile, expats living in, for example, a Tower Road seafront apartment have also asked for a pool, and couples have joined up to rent a villa together for a change of scene and to take a breather.

Gozo is also on the radar and could make up for the shortfall from tourists through the local market. With the ban on visiting the island recently lifted, it is the only destination to travel to and “cut off”, particularly for working parents who can commute while their children enjoy the outdoors.

Frank Salt Real Estate director Grahame Salt is also witnessing a staycation trend and a rise in Gozo holidays in converted farmhouses with pools, from short breaks to three-month stays for the summer.

A large pool and deck at this Lija villa.
A large pool and deck at this Lija villa.

“Mostly families with kids, stuck inside an apartment, are likely to go mad in the summer heat, and if they can afford it, they are looking at this option,” says Salt.

“People are simply appreciating home because they are spending so much more time there. Until recently, they would just eat, sleep and leave. Now they have understood the importance of having a nice house.”

The new sales pitch when showing a property is whether you can see yourself doing quarantine in it, he jokes.

You can find the article here: https://timesofmalta.com/articles/view/rentals-find-a-new-market-locals-looking-for-luxury.792146