Noticias de Construccion
Noticias de Construccion del sector de la Construccion .
 
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Some experts say that Maltese property can be referred to as a solid investment, and its types give the best ROI. It’s economy is one of the Europe’s fastest growing. It faced rather quick economic growth in 2014 and 2015. It showed as almost about 8% of annual growth till 2016. However, this growth slowed a little bit (to 5%) in 2016.
This is true according the figures from the Central Bank of Malta (CBM) which is now promoting price stability in euro area while actively participating in the preparation and decision-making process of the Eurosystem’s monetary policy.
Malta’s economic state
Malta’s recent economic growth surpassed experts’ projection of 4% as its economy had expanded by 3.2% (GDP growth rate) on an annual basis from 2005-2008, then contracted in 2009 by 2.4% and bounced back in 2010, when the GDP growth rate was 3.5%, then in 2011 – it was 1.8%, in 2012 – it was 2.8%, in 2013 – it was 4.5%, and in 2014 – it was 2% as the country’s fiscal deficit narrowed to around 1.4% of GDP in 2015.
The data which can be found about Maltese property market shows that real estate prices surged almost by 14% during the last quarter of 2016. Property prices rose by 7.24% during the fourth quarter of the last year (2016).
Malta labor market
Country’s labor market also reflects its economic state as well as its government’s efforts to boost national economy by raising labor market participation. Country’s employment rate in 2016 rose to 66.1% from 63.9% as it was last year. Unemployment rate was very low, about 4.1%. Annual inflation rate in February 2017 was merely low 1.2%.
Real estate market prices by property types
In such a way house price rises were experienced by all property types. For example, apartments had a double increase in price during the last quarter of 2016. They were up by 14.99%. Terrace houses experienced price surge of 13.33% the same year. Townhouses, villas and houses of character had not so large price growth of around 1.96% in 2016.
However, the highest price growth was experienced by marionettes which pieces rose by almost 21% over the same year. This was stated by the Individual Investor Program introduced by the government in the frames of its November 2013 budget.
Observations of Malta’s real estate market
According to words of RE/MAX Malta’s managing director Kevin Buttigieg, country’s real estate market is quite buoyant, despite the high prices there are all sorts of purchases being made on a daily basis: commercial investments, direct foreign investments, property investments during allocation of residency permits in the framework of IIP Citizenship Scheme etc.
However, there are still many restrictions on real estate ownership in Malta as EU citizens and foreign nationals can usually buy only one property in the country (several in specially designated areas like Chambray, Cottoenra, Manoel Island, Portomaso and Tigne Point).
Maltese real estate market’s past experiences
There was a strong growth in 2000-2007 witnessed by the experts as well as by non-professionals in the Maltese property market. The overall house price index rose by 78.9% while there was also a price increase observed of terraced houses – 105.3%, maisonettes – 81.4%, apartments – 83.3%, townhouses and villas – 71.9%.
House prices continued to rise from 2005 till 2007. In 2008 the country was under the influence of global financial crisis of 2008 as it is dependent on tourism and foreign trade. A 2.13% contraction was experienced in 2009 by the country. After the recovery of 2011, real estate prices fell by 2.2% in 2012. This period was followed by Maltese government launching new property-related measures. The prices continued to grow also in the 2014-2016.
Factors influencing property price growth
This program targets high net worth individuals. There were several reasons for housing demand such as growth in disposable income, increased number of foreign workers in Malta and low interest rate, leading to higher lending for house purchases.
Malta’s 2017 property bubble
However, country’s 2017 budget has rather favorable opportunities to potential property buyers by providing a subsidy of 100,000 euros on expenses related to of immovable property restoration which is located within an Urban Conservation Area. A tax rate of 7% was also imposed on the value of all inherited property transfers by means of a judicial sale by auction.
The lending rate on new mortgages was at 2.77% in January 2017 (before joining the Euro in January 2008, country’s mortgage borrowing rates were from 4-5% and above), housing lending rates surged to 3%. March 2016 Global Property Guide research showed that country’s rental yields are moderate. They range from 4.35% to 4.49%. In accordance with Malta’s National Statistics Office (NSO) the prices were rising from 2012 till 2015 as there were an increasing number of foreign workers in the country, choosing to live in rented places of accommodation.
According to the Malta Environment and Planning Authority (MEPA) the rise in dwelling permits was also seen as they rose up to 67.7%, apartment permits accounted for 35.9%, maisonettes rose by 13.8% and other property types – 17.4%.
This is true according the figures from the Central Bank of Malta (CBM) which is now promoting price stability in euro area while actively participating in the preparation and decision-making process of the Eurosystem’s monetary policy.
Malta’s economic state
Malta’s recent economic growth surpassed experts’ projection of 4% as its economy had expanded by 3.2% (GDP growth rate) on an annual basis from 2005-2008, then contracted in 2009 by 2.4% and bounced back in 2010, when the GDP growth rate was 3.5%, then in 2011 – it was 1.8%, in 2012 – it was 2.8%, in 2013 – it was 4.5%, and in 2014 – it was 2% as the country’s fiscal deficit narrowed to around 1.4% of GDP in 2015.
The data which can be found about Maltese property market shows that real estate prices surged almost by 14% during the last quarter of 2016. Property prices rose by 7.24% during the fourth quarter of the last year (2016).
Malta labor market
Country’s labor market also reflects its economic state as well as its government’s efforts to boost national economy by raising labor market participation. Country’s employment rate in 2016 rose to 66.1% from 63.9% as it was last year. Unemployment rate was very low, about 4.1%. Annual inflation rate in February 2017 was merely low 1.2%.
Real estate market prices by property types
In such a way house price rises were experienced by all property types. For example, apartments had a double increase in price during the last quarter of 2016. They were up by 14.99%. Terrace houses experienced price surge of 13.33% the same year. Townhouses, villas and houses of character had not so large price growth of around 1.96% in 2016.
However, the highest price growth was experienced by marionettes which pieces rose by almost 21% over the same year. This was stated by the Individual Investor Program introduced by the government in the frames of its November 2013 budget.
Observations of Malta’s real estate market
According to words of RE/MAX Malta’s managing director Kevin Buttigieg, country’s real estate market is quite buoyant, despite the high prices there are all sorts of purchases being made on a daily basis: commercial investments, direct foreign investments, property investments during allocation of residency permits in the framework of IIP Citizenship Scheme etc.
However, there are still many restrictions on real estate ownership in Malta as EU citizens and foreign nationals can usually buy only one property in the country (several in specially designated areas like Chambray, Cottoenra, Manoel Island, Portomaso and Tigne Point).
Maltese real estate market’s past experiences
There was a strong growth in 2000-2007 witnessed by the experts as well as by non-professionals in the Maltese property market. The overall house price index rose by 78.9% while there was also a price increase observed of terraced houses – 105.3%, maisonettes – 81.4%, apartments – 83.3%, townhouses and villas – 71.9%.
House prices continued to rise from 2005 till 2007. In 2008 the country was under the influence of global financial crisis of 2008 as it is dependent on tourism and foreign trade. A 2.13% contraction was experienced in 2009 by the country. After the recovery of 2011, real estate prices fell by 2.2% in 2012. This period was followed by Maltese government launching new property-related measures. The prices continued to grow also in the 2014-2016.
Factors influencing property price growth
This program targets high net worth individuals. There were several reasons for housing demand such as growth in disposable income, increased number of foreign workers in Malta and low interest rate, leading to higher lending for house purchases.
Malta’s 2017 property bubble
However, country’s 2017 budget has rather favorable opportunities to potential property buyers by providing a subsidy of 100,000 euros on expenses related to of immovable property restoration which is located within an Urban Conservation Area. A tax rate of 7% was also imposed on the value of all inherited property transfers by means of a judicial sale by auction.
The lending rate on new mortgages was at 2.77% in January 2017 (before joining the Euro in January 2008, country’s mortgage borrowing rates were from 4-5% and above), housing lending rates surged to 3%. March 2016 Global Property Guide research showed that country’s rental yields are moderate. They range from 4.35% to 4.49%. In accordance with Malta’s National Statistics Office (NSO) the prices were rising from 2012 till 2015 as there were an increasing number of foreign workers in the country, choosing to live in rented places of accommodation.
According to the Malta Environment and Planning Authority (MEPA) the rise in dwelling permits was also seen as they rose up to 67.7%, apartment permits accounted for 35.9%, maisonettes rose by 13.8% and other property types – 17.4%.
A trust is a company that acts as an asset manager (fiduciary) for another business. The activity of a trust is characterised by two features:
A trust is an independent decision maker.
A trust does not own the assets it manages.
In other words, one person gives the property to a second for the benefit of a third. A trust is a legal arrangement whereby the settlor transfers his or her assets (real estate property, dividends, savings or other assets) to another person — the trustee — so that they may be used to benefit the beneficiaries (who can be either a single individual or a group). Trusts are widely used to protect and pass down wealth through the generations.
Although generally guided by the beneficiary, a trust is ultimately an independent decision maker. A trust acts in accordance with the rules and provisions set out in the relevant agreements, and aims to obtain the best results for the beneficiaries. The strategy for achieving those results, however, is determined by the trust itself. The scope of these activities is practically unlimited, ranging from investing to donating to selling an estate.
As for ownership, a trust is limited to management, and trustees do not own any of the assets. The actual ownership of these assets will vary by jurisdiction. In some jurisdictions, e.g. Russia, the assets belong to the company or individual using the trust's services. In others, the assets acquire a special status and do not belong to the user of the services, the trust or the beneficiaries.
If you would like more specific details about these and other peculiarities of the jurisdiction of your choice, please contact Confidus Solutions.
Functions of a trust
The main function of a trust is to manage assets on behalf of their owner for the benefit of the beneficiaries. For this purpose, a trust may choose any activities it deems effective and advantageous, unless the relevant contract specifies otherwise. Some of the functions of a trust include:
Managing finances
Managing investments
Paying bills
Accounting
Preparing financial reports
Distributing profits
In addition, a trust can perform almost any other management function specified by the contract. Depending on the particular case, they may also offer financial planning, tax optimisation schemes and similar services.
Trusts can be useful to anyone who possesses considerable assets. Trusts are usually set up to secure assets and property and to optimise taxation. They also have inheritance applications: assets held in trust do not require probate as they are no longer part of the settlor’s estate, and so are unaffected by the contents of his/her will.
Benefits and features of trusts
Other than the specific purposes for which trusts can be used, there are some common benefits that apply to all types of trust:
Anonymity. In most countries, the content of wills as well as the names of the owners of real estate or other assets are publicly available. The names of the beneficiaries of the trust usually remain unknown, and therefore using a trust to hold real estate or distribute assets allows you to maintain your privacy.
Suppression of income. The ability to transfer all property and assets to the trust allows you to declare an insufficient availability of personal assets and to apply, for example, for a lower tax rate.
Tax avoidance. In many offshore jurisdictions, trustees are not obliged to report the income of the trust to the tax authorities of the country in which the beneficiaries reside.
Charity. In some countries, all property handed over to a charity is required to be managed under a trust.
Capital preservation. Trusts can be used to protect the beneficiaries (for example, the settlor's children) from their own inability to manage the funds. The conditions of the trust can prescribe limits on the use of the money or the age when the beneficiaries acquire the authority to dispose of the funds and utilise the assets.
A trust is an independent decision maker.
A trust does not own the assets it manages.
In other words, one person gives the property to a second for the benefit of a third. A trust is a legal arrangement whereby the settlor transfers his or her assets (real estate property, dividends, savings or other assets) to another person — the trustee — so that they may be used to benefit the beneficiaries (who can be either a single individual or a group). Trusts are widely used to protect and pass down wealth through the generations.
Although generally guided by the beneficiary, a trust is ultimately an independent decision maker. A trust acts in accordance with the rules and provisions set out in the relevant agreements, and aims to obtain the best results for the beneficiaries. The strategy for achieving those results, however, is determined by the trust itself. The scope of these activities is practically unlimited, ranging from investing to donating to selling an estate.
As for ownership, a trust is limited to management, and trustees do not own any of the assets. The actual ownership of these assets will vary by jurisdiction. In some jurisdictions, e.g. Russia, the assets belong to the company or individual using the trust's services. In others, the assets acquire a special status and do not belong to the user of the services, the trust or the beneficiaries.
If you would like more specific details about these and other peculiarities of the jurisdiction of your choice, please contact Confidus Solutions.
Functions of a trust
The main function of a trust is to manage assets on behalf of their owner for the benefit of the beneficiaries. For this purpose, a trust may choose any activities it deems effective and advantageous, unless the relevant contract specifies otherwise. Some of the functions of a trust include:
Managing finances
Managing investments
Paying bills
Accounting
Preparing financial reports
Distributing profits
In addition, a trust can perform almost any other management function specified by the contract. Depending on the particular case, they may also offer financial planning, tax optimisation schemes and similar services.
Trusts can be useful to anyone who possesses considerable assets. Trusts are usually set up to secure assets and property and to optimise taxation. They also have inheritance applications: assets held in trust do not require probate as they are no longer part of the settlor’s estate, and so are unaffected by the contents of his/her will.
Benefits and features of trusts
Other than the specific purposes for which trusts can be used, there are some common benefits that apply to all types of trust:
Anonymity. In most countries, the content of wills as well as the names of the owners of real estate or other assets are publicly available. The names of the beneficiaries of the trust usually remain unknown, and therefore using a trust to hold real estate or distribute assets allows you to maintain your privacy.
Suppression of income. The ability to transfer all property and assets to the trust allows you to declare an insufficient availability of personal assets and to apply, for example, for a lower tax rate.
Tax avoidance. In many offshore jurisdictions, trustees are not obliged to report the income of the trust to the tax authorities of the country in which the beneficiaries reside.
Charity. In some countries, all property handed over to a charity is required to be managed under a trust.
Capital preservation. Trusts can be used to protect the beneficiaries (for example, the settlor's children) from their own inability to manage the funds. The conditions of the trust can prescribe limits on the use of the money or the age when the beneficiaries acquire the authority to dispose of the funds and utilise the assets.
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