Obviously, we were shocked like many by the decision of the UK to vote to leave the EU.
The MD of our associates in Malta, Frank Salt Real Estate has prepared the notes of guidance below for our UK clients, which I hope are useful.
Malta depends heavily on both tourism and property purchases from the UK – and the essence of the message that nothing is changing in the short/medium term – and that other arrangements will be put in place by Malta to safeguard that historic relationship
Our currency brokers are also on standby to provide advice and guidance on the most effective ways to buy your Euros for property purchase.
If you are able to come to Malta, we can also arrange appointments for you to meet with independent financial advisers to discuss your own pension and tax arrangements.
You can also use this link to browse for properties yourself:
So what happens now?
Nothing immediate, for EU nationals living in Britain and Britons living elsewhere in the EU including Malta, as well as for businesses in Malta or the UK.
This was a referendum and there is a long process ahead before UK actual leave the EU.
Will there be any immediate changes to the current residence schemes for UK nationals?
The freedom for UK nationals to reside in Malta under the current residence schemes will remain unchanged and any changes will all depend on negotiations that could take years.
How many years will it take for UK to exit?
Many believe it will take two years to set a timeline and another five years for the UK actually leave the EU. Until then all should remain unchanged.
What will likely happen?
The first likely option is for the UK to become a member of the European Economic Area (EEA) which allows free movement within the EU, like Norway and Switzerland. That would mean that UK residents may continue to purchase property and take up residence in Malta without difficulty.
What will happen to UK nationals residing in Malta?
There should be no changes, as historically the stand taken by the government has been not to apply any changes retrospectively.
Are there any immediate threats?
The main problem is uncertainty, which may have a negative effect on all business in general, this should gradually fade as people become informed of what effect it may have on their status.
The second problem is the rate of exchange between the Pound and the Euro, as of today it will cost a UK resident 5% more to purchase a property in Euros due to the rate of exchange and this may slide further and cost up to 10% more.
Malta could actually benefit as an EU financial jurisdiction if financial companies decide to quit London and opt to move to Malta.
Will there be any change in health care services?
The treatment of UK patients living in Malta and treatment of Maltese patients in UK hospitals is not likely to be affected since it is regulated by reciprocal arrangements.
Has the Malta government made any statements to this effect?
Yes, our Prime Minister Joseph Muscat said. “There are solutions. EU will discuss deals on this front. If there is no EU deal then we would seek a bilateral agreement between Malta and UK,”
In view of the size of our market which allows a certain level of adaptability, Malta has always managed to transform a crisis or negative situation into an opportunity to generate business, profits and wealth.
Darren De Domenico
CHIEF OPERATIONS OFFICER