Maltese real estate is in a bubble (Change my mind)

[MarkusCostigan]

> 5. The 5% refund will soon be abolished (Caruana), we don't know when yet but it's quite certain.
(If you didn't pay 5% there would be no point in staying in Malta as a company)

Can somebody explain what this is? I googled Caruana Malta with no luck.

https://www.maltatoday.com.mt/news/...ul_corporate_tax_regime_in_major_policy_shift

Malta to overhaul corporate tax regime by 2025 in major policy shift​

Malta’s corporate tax regime is in for a major overhaul and the new structure and rates will be adopted for the basis year 2025, Finance Minister Clyde Caruana says​

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https://newsbook.com.mt/en/cassola-...ion-for-local-and-foreign-companies-in-malta/​

Cassola proposes equal corporate taxation for local and foreign companies in Malta​

With the recent publication of a new legal notice transposing the EU directive on corporate taxation into Maltese law, Cassola’s proposition seeks to address the existing tax rate disparities that have long been a point of contention for business lobbies and tax justice campaigners.
Cassola condemned the prevailing situation wherein Maltese companies face a 35% tax rate on their profits, while foreign counterparts often benefit from rebates, ultimately paying as little as 5%.

In any case, pressure from the EU is very strong. Also in light of the fact that a "domiciled Maltese" pays 35% cit which is madness, while the non-dom pays 5%.
The fun is over and a cit between 10%/15% is presumed?
Furthermore, see also the new EU directive on shell companies... 99% of holding companies requesting reimbursement...

Everyone knows that the game will end sooner or later, in fact they are also right to squeeze in as much as they can at this point.​

 

[MarkusCostigan]

Another piece added to the puzzle.

The European Court of Justice on Tuesday said Malta needs to end its golden passport programme that allows wealthy foreigners to buy citizenship, as it infringes EU law.

https://www.reuters.com/world/europ...nst-maltas-golden-passport-scheme-2025-04-29/

We will see at the end of the year if there will be updates on the full imputation system if they keep it for how long.

 

[Martin Everson]

Well without the golden passport scheme it will become very difficult to shift the 1m euro plus properties being sold in the SDA's.

Such as this property below.

https://www.maltasothebysrealty.com/property/4-bed-apartment-for-sale-in-st-julians/306087

There is a whole real estate market built around the golden passport across Malta in the SDA's. Without a replacement the property bubble may indeed burst at the high end very quickly.

 

[brianK]

In the last 20 years I've heard so many people warning about "bubble about to burst in real estate" any moment now, in London, Germany, New York and many other places. 99% of them were wrong.

Yeah, that’s also what I feel like I’ve been reading a lot about, but still, housing prices keep rising dramatically every year in the capitals, and the average wage earner doesn’t stand a chance of affording rent or buying a home.

 

[MarkusCostigan]

I've already started hearing about gaming betting companies getting laid off because of AI.
And think that the main models need 4/5 months and hundreds of millions of dollars every time. Even a fine-tuning or incremental training can take a couple of months.

Tick Tock.