Published on and written by Cyril Jarnias
Considering setting up your business in Malta? Congratulations! This small Mediterranean island offers a dynamic business environment and attractive tax benefits. But before you dive in, you need to find the perfect premises to launch your operations. Whether you’re looking for an office, warehouse, or commercial space, this article will guide you step by step in your quest for the ideal location in Malta.
The Hunt for Premises: Winning Strategies to Find the Hidden Gem
Finding the right premises for your business in Malta might seem daunting at first, especially if you’re unfamiliar with the local real estate market. Here are some proven strategies to facilitate your search:
Hire a Specialized Real Estate Agent
Maltese real estate agents know the market inside out and can save you valuable time. Choose a professional specializing in commercial real estate, ideally bilingual in English and Maltese. They can advise you on the best areas based on your business type and negotiate the best rates.
Explore Dedicated Business Areas
Malta has several modern business parks offering spaces suitable for companies. SmartCity Malta in Kalkara or the Mriehel Business District are options worth considering, with their state-of-the-art infrastructure and concentration of innovative businesses.
Use Specialized Online Platforms
Websites like MaltaProperty.com or CommercialProperty.com.mt list numerous professional premises for rent or sale. You can conduct targeted searches based on your criteria (size, location, property type).
Network with the Local Business Community
Join professional groups on LinkedIn or attend networking events in Malta. Peer recommendations can lead to great opportunities, sometimes even before they hit the market.
Good to Know:
Competition can be fierce for the best locations, especially in sought-after areas like Sliema or St Julian’s. Be prepared to act quickly once you find the ideal premises.
Key Players in Maltese Commercial Real Estate
Several agencies have established themselves as references in Malta’s commercial property market. Here’s a selection of the most reputable ones:
- Frank Salt Real Estate: An institution in Malta, with a dedicated commercial property division
- Dhalia Real Estate: Offers a wide selection of offices and commercial spaces across the island
- Remax Malta: An international network with strong local presence
- Belair Property: Specialist in high-end properties, including for businesses
- Perry Estate Agents: A reputable local agency known for its in-depth market knowledge
These agencies typically offer comprehensive services, from property search to lease negotiation, including legal assistance. Don’t hesitate to contact several to compare their offerings and approach.
The Importance of Due Diligence
Before committing, make sure to thoroughly check the property’s condition and compliance with local regulations. A reliable agent will guide you through this process, but it may be wise to hire a specialized lawyer to review the lease or purchase agreement.
Good to Know:
Some agencies offer “property finders,” a personalized service to find properties matching your exact criteria. This can be particularly useful if you have specific needs or aren’t on-site.
Paperwork and Formalities: What You Need to Know
Renting or buying commercial premises in Malta involves some administrative procedures. Here are the main documents you’ll need:
- A valid ID (passport or European identity card)
- Proof of your company’s legal existence in Malta (business registry extract)
- Bank references or financial guarantee
- A business plan, sometimes required for long-term leases
- All the above documents
- Proof of financing (bank loan agreement if needed)
- An AIP permit (Acquisition of Immovable Property) for non-EU residents
The Commercial Lease Agreement
In Malta, commercial leases are generally more flexible than in other European countries. The standard duration is 3 to 5 years, but shorter or longer periods can be negotiated. Ensure the contract clearly specifies:
- Lease duration and renewal conditions
- Rent amount and revision terms
- Cost allocation between owner and tenant
- Premises usage conditions
- Termination clauses
Good to Know:
In Malta, it’s common to pay a security deposit equivalent to 3 months’ rent, plus the first month’s rent in advance. Plan for this in your cash flow budget.
The Bottom Line: How Much Does It Cost?
Commercial property prices in Malta vary significantly by location, property type, and quality. Here are some approximate figures to help budget your project:
- Premium areas (Sliema, St Julian’s): €250-350/m²/year
- Intermediate areas (Ta’ Xbiex, Msida): €180-250/m²/year
- Outlying areas (Mosta, Qormi): €120-180/m²/year
- Prime locations: €600-1000/m²/year
- Secondary commercial areas: €300-500/m²/year
- Industrial areas: €60-100/m²/year
Add to these amounts common charges (typically 10-15% of rent) and agency fees (usually one month’s rent).
Purchase: An Option to Consider
If you’re considering a long-term presence, purchasing could be an interesting alternative. Purchase prices range between €2,000 and €5,000/m² for offices, depending on location and property quality. The advantage is benefiting from long-term property appreciation.
Good to Know:
Malta offers advantageous tax rates on real estate capital gains, which can make investment particularly attractive for businesses.
Business Hotspots at Gentle Prices
If you’re looking to optimize costs while benefiting from a business-friendly environment, here are some areas to consider:
Mriehel
This rapidly developing area offers modern office spaces at more affordable prices than Sliema or St Julian’s. It benefits from good road connections and is attracting more and more businesses.
Qormi
Ideal for businesses needing storage space or workshops, Qormi offers industrial and commercial premises at competitive rates. Its proximity to the airport is an additional advantage.
Msida
Close to the University of Malta, Msida offers a good balance between accessibility and cost. It’s an interesting option for startups and small businesses.
Birkirkara
Malta’s largest city offers a variety of professional premises at reasonable prices. Its central location makes it a strategic choice for many businesses.
Marsa
This industrial area undergoing transformation offers interesting opportunities for businesses seeking large spaces at lower costs. Urban renovation projects are underway, which could enhance long-term investments.
Good to Know:
Less central areas often offer more flexible leases and landlords more open to negotiation. Don’t hesitate to leverage competition.
Support: Business Setup Assistance
The Maltese government and various local organizations offer support to facilitate business setup. Here are the main ones:
Malta Enterprise
- The “Business Development and Continuity Scheme” which can cover up to 50% of setup costs
- Tax credits for businesses setting up in Gozo (Malta’s neighboring island)
- Grants for renovating industrial premises
MIMCOL (Malta Investment Management Company Limited)
This entity manages several industrial parks where businesses can benefit from subsidized rents during their initial years of operation.
Municipal Assistance
Some municipalities offer tax incentives or local tax reductions to attract businesses. This is particularly true in developing areas like Smart City Malta.
European Funds
Malta benefits from European structural funds, with a portion allocated to SME development. Grants can be obtained for equipment purchases or premises renovation.
Subsidized Incubators and Coworking Spaces
For startups and small businesses, spaces like the MITA Innovation Hub or Life Sciences Park offer offices at preferential rates, along with business support.
Good to Know:
Eligibility criteria for these supports vary. It’s recommended to contact Malta Enterprise or a local consultant to assess options suitable for your project.
Conclusion: Malta, Land of Opportunities for Your Business
Finding the ideal premises for your business in Malta requires time and research, but opportunities are plentiful. Whether you choose a modern office in Sliema, a warehouse in Qormi, or coworking space in Smart City, you’ll certainly find a solution that fits your needs and budget.
Remember to surround yourself with the right professionals (real estate agent, lawyer, accountant) to navigate the legal and administrative aspects of your setup smoothly. And most importantly, take time to explore the island: beyond business advantages, Malta offers an exceptional living environment that might just win over your employees!
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
