Malta has a big ex-pat community making up 22% of its population of 518,000.  Americans are part of this demographic, who favour investing in real estate across Malta and Gozo and are attracted to the Mediterranean lifestyle.  

Over the last five years, HNW US buyers have been drawn to Malta’s highly attractive residence and citizenship options; it offers the best citizenship through a direct investment programme in the EU. A Maltese passport allows them and their children to live, travel and work freely within the European Union.

Grahame Salt, director at Maltese estate agency Homes of Quality, comments: “We deal with many enquiries and have offered advice to several High Net Worth individuals from North America.  The initial driver is Malta’s citizenship programme – it is possible to gain Maltese citizenship in only 12 to 18 months, depending on individual circumstances.  The Maltese EU passport is ranked the fifth strongest worldwide with 190 countries offering visa-free travel.

“However, interest from the US market goes beyond just the EU passport. The programme also requires real estate investment and Malta has a very interesting market which historically has performed well with average year-on-year growth of approximately 6%.  

“In addition, there are no property taxes, no inheritance tax and no worldwide wealth taxes. Many  clients participate, not only for the citizenship programme, but also because it offers a wealth management alternative in an extremely secure market.”

Salt says that initially, US purchasers need to invest a minimum of €700,000 to satisfy the real estate requirements of the citizenship programme and use the property as their residence in Malta; on average, Salt’s clients invest around €2m or more. He adds that the rental market is “incredibly buoyant” and rental tax is a flat 15% with “impressive yields.”

Advantages include political stability, no natural disasters, great climate, and English speaking. It’s also ppart of the Euro zone and the Schengen zone. There is excellent private and public healthcare and an extremely low crime rate.  

Salt continues: “There is an attractive choice of housing stock and US buyers can choose from either modern highly finished villas, grand 16th and 17th century palazzos, newly built luxury ocean penthouses and apartments, or rural restored farmhouses further inland.  

“Many US buyers opt to invest in a luxury ‘lock-up and leave’ apartment in the cosmopolitan seaside towns of Sliema and St Julians. These apartments overlook the Mediterranean Sea or the Grand Harbour of the world heritage city, Valletta. Those in search of something more historic will look to buy either side of the grand harbour in either Valletta or the 3 Cities, both of which were developed in the 16th century by the Knights of St John.  

“Properties in these prime locations appeal to US investors who want security, convenience and access to amenities and private clubs located downtown, a short drive away, including the Royal Malta Golf Club, Royal Malta Yacht Club, the Royal Malta Polo Club and the Marsa Sports Club.”  www.homesofquality.com.mt