Reduced Tax Incentive Scheme set to further increase foreign interest in Malta

The Government of Malta has introduced a new Tax Scheme intended to attract more wealthy individuals to relocate to Malta. A new reduced tax rate of 15% has been introduced for those individuals who earn a minimum annual income of just under £70,000 for activities carried out in Malta. For those whose income exceeds £4.4 million the excess will be exempt from tax.

The reduced rate of tax applies for five consecutive years for EU nationals.

The new Income Tax Scheme was introduced at the beginning of 2011 and will complement the existing company tax incentive schemes already in place.

An increasing number of both foreign companies and individuals have relocated to Malta in recent years in order to take advantage of the low tax incentives available. The country has also in place double taxation treaties with over 40 countries with more set to be signed in the near future.

Such tax schemes are expected to further increase foreign interest in the Maltese property market which has seen a renewed increase in demand in recent months. Advertised property prices for sale in Malta have increased in the last 3 financial quarters, with apartments for sale recording the highest increase in the property market.

SmartCity Malta to commence Phase II of multi-million development project

Phase II of the SmartCity Malta project will consist of the development of two office blocks and two exclusive retail blocks overlooking the lagoon.

Fareed Abdulrahman, SmartCity and SmartCity Malta CEO, in a statement said that Phase II was another major milestone at SmartCity Malta following the completion and inauguration of Phase I, the first office block.

"We are well geared for the expected recovery of the world’s economy and confident that Malta will be the hub for ICT/media cluster developments in the Mediterranean region”

Phase II and the subsequent phases of the development will be connected with the existing infrastructure services of Phase I. Phase II is located adjacent to SCM 01, where the landscape is terraced, creating pedestrianised open areas linking retail and office blocks.

"The architectural massing of the development is carefully coordinated to provide knowledge workers with panoramic views of the lagoon and coastline with a maximum exposure to natural lighting," SmartCity said.

Malta International Airport plans ‘further investment’ after €16 million Sky Parks

Malta International Airport plc plans further investment in the environs of Sky Parks, the business centre currently under development adjacent to the MIA terminal.

The €16 million block, which is on target for completion at the end of the summer, is the first “of many possibilities”, Sky Parks general manager Alan Borg said.

“We consider Sky Parks to be Phase One in our plans,” Mr Borg explained. “When the local master plan is finalised, we aim to have the wider Sky Parks site designated as a business area – and an asset to the infrastructure of the south of Malta.”

MIA which owes the business centre operated by its subsidiary Sky Parks Development Ltd was examining a number of options that would house a range of commercial activities.

Meanwhile, civil works at Sky Parks, which boasts seven floors of dedicated office space and food and business outlets, and two underground levels of parking for 160 cars, will be completed by the end of next month.

All will be in place for the planned inauguration in the last quarter of the year, which will coincide with anchor tenant Vodafone Malta’s relocation into the sixth floor penthouse suites and half of Level 5.

“Sky Parks seeks to improve on the business space offering currently widely available on the local market,” Mr Borg added. “All services seek to add value to the working experience of all the teams who will be based here. The services and commercial activity have been allocated and designed to complement the growing retail area on the terminal’s landside which is open to general public.”

The project aimed to stand out on the corporate leasing market with a host of differentiators besides its 100-metre proximity to the air terminal.

Mr Borg said the hi-tech building had been designed to provide convenience and comfort to team members working 12-hour-plus days and travellers on hectic business trips. With panoramic views of the surroundings, tenants would be able to work in offices bathed in natural light, enjoying the benefits of Sky Parks’ location. Sky Parks has been entirely designed and developed to qualify for the UK’s BRE Environment Assessment Method (BREEM) Grade A certification.

New association for property developers in Malta

The Malta Developers Association has been officially constituted, with over 60 Maltese and Gozitan real estate developers signing up as founder members.

Architect Michael Falzon has been elected to head a nine-member council, including one member from Gozo.

MDA aims at bringing the majority of organised private real estate developers under a single umbrella and act as a prominent force in the development of the Maltese real estate sector.

The association is also seeking to promote responsible development and ownership of real estate in Malta through legislative advocacy, educational programs and professional networking opportunities.

At the launch of the association, the MDA released the following statement “The MDA is in favour of stability and the elimination of uncertainty, especially with the issue of building permits. The association is not against increased regulation but against the way such regulations are introduced, catching people unawares”.

The Association has also established a list of Code of Ethics which its members must abide to.

Plans for 'iconic' Corporate Village unveiled

The government, through Malta Enterprise, is launching a call for expressions of interest for the construction, development and management of Corporate Village Malta, a unique urban regeneration project at Mriehel industrial area which will become Malta's premier business district.

Finance Minister Tonio Fenech said that an architectural icon that will also be a leading landmark energy-efficient building, capable of capturing the aspirations of a nation, will be at the heart of the Village.

"Corporate Village Malta sets out to be the embodiment of the Government's Vision 2015+," Malta Enterprise said. "Carrying an investment that is estimated to reach almost €200 million, Corporate Village Malta intends to achieve the vision of excellence by becoming the focal point within the booming central business district in Malta.

"The project seeks to respond not only to government's strategic vision, but also to the window of opportunity that arises from the demand for high quality office and commercial space in Malta - which is expected to grow as the country develops further and expands its services sector."
ME said that Corporate Village Malta will be the main hub of activity for the events taking place during the six months of Malta's EU presidency in 2017. It will also serve as the government's single point of contact for business, with the location of the main regulatory and business support agencies and departments.

While the government is guaranteeing a minimum occupancy of 30 per cent of the office facilities, including storage and archiving, the project development, operation and marketing will be entrusted to the private sector.

The Village will cover 130,000 square metres but have a footprint of only 35,000 square metres on the site of the former Dowty factory and adjoining properties.

Tenants are expected to include organisations dealing with commerce and trade activities, such as those offering fiduciary services, legal services, brokerage and international trade. A proportion of the site will accommodate retail premises to serve the day to day needs of the employees, as well as dining facilities for conferences and exhibitions; leisure and sports; child care and relaxation.

The call for expressions of interest closes on September 3 after which Malta Enterprise will issue a Request for Proposals to the short-listed parties. The preferred bidder will be granted an emphyteusis for 50 years.

Works are projected to start in 2012 and be finalised by 2015.

Fort Cambridge gets gold in international awards

Fort Cambridge has been recognised as one of the best developments and one of the most eco friendly projects in the world.

During the first Russian Home Overseas Property Awards, Fort Cambridge won gold in the Best Eco Project category and bronze in the Best Apartment Complex Categories.

Built on the Tigne peninsula of Sliema, the Fort Cambridge residential project comprises purpose built seafront apartments.

“We are very proud of these awards, confirming our feeling that this project is a real jewel crown for the local property market,” GAP chairman George Muscat said. The development of Fort Cambridge is now into its final stages and is on target for completion by mid 2011.

The Russian Home Overseas Awards, established by the publishing house Independent Media Sanoma Magazines, is designed to give new impetus to the development of foreign real estate industry, to create an effective platform for networking professionals to provide ample marketing opportunities to all participants.

The award evaluates the relevance of foreign real estate projects, with the best of them receiving gold, silver and bronze awards.

The prize was first launched in November and by February more than 250 applications from 65 companies worldwide were submitted, with 380 projects participating in the awards.

€20 million Hal Saghtrija luxury development commences construction in Gozo

Construction work on the first 12 apartments at the €20 million luxury rural community Hal Saghtrija in Zebbug, Gozo, will be completed by the end of this month.

By seeking to blend modern living with traditional Gozitan life, Hal Saghtrija is one of a kind. Set on 13 tumoli of land of which two peripheral tumoli will be occupied by 75 apartments and duplex penthouses.

Hal Saghtrija's terraced grounds, complete with its own curious rock formations and numerous carob trees, will feature planted allotments, a stone oven for traditional Gozitan baking, a wartime shelter converted to a wine cellar, orchards, a lawned picnic and barbecue area, a horse paddock (complete with horse), traditional giren where residents will be able to keep pets, and a water feature.

All areas on the hillside will be separated by traditional, hand-built stone walls, and walkways will be illuminated by 70 candle-lit lamps which will be tended to by grounds staff. Tree houses are to be assembled on a 500-year-old olive tree sitting amid a children's play area.

Hal Saghtrija's extensive grounds will be manicured by a team of local farmers - the land has been barren for 33 years but 18 months of planting has already resulted in a transformation.

Residents will be asked to pay a nominal annual fee for the upkeep of the grounds, in return for which they will be able to enjoy the fruits of the allotments and press olives seasonally on site on the central pjazza where the community will be able to hold their own get-togethers. If they are up early enough, residents may walk down to the chicken coop and collect freshly laid eggs. In the evenings, they can challenge each other to a game of bowls on the purposely built pitch.

The elevated residences, served by underground garages, all face the panoramic views of the Gozitan countryside framed by extensive seaviews. Residents will be able to take in the magnificence of the area as they relax within the grounds, which will be dotted in some spots with all-weather benches and stone tables for casual suppers hewn from Qala rock. Ample shade will be provided by over 380 trees and vines.

Starting at 130 square metres, boast open play layouts and are to be flooded with natural light. The groundfloor apartments sit poolside: lined on one side with decking, the lagoon-style pool will boast three 'beaches', a water feature and jacuzzi. The water will be naturally filtered by a system designed by British and Belgian engineers. On the upper floors, apartments will have large terraces, while the duplex penthouses come with a private pool or jacuzzi.

Common areas will be served with lighting generated by photovoltaic panels.

Hal Saghtrija was recently launched in Malta, after being well received at the 'Place in the Sun' property event in London whilst some residences have been sold. Hal Saghtrija will be completed by the end of next year.