If you are considering buying a holiday home in Malta, this guide is a great starting point to successfully buying in Malta

The Maltese archipelago is renowned the world over as a proverbial picture book of scenic venues, idyllic locations and historic architecture. As a result, the island group’s popularity as a holiday destination sees many thousands of tourists visiting the country for holidays year-round.

Because Malta is also within easy reach to the rest of Europe and English is widely spoken as one of the national official languages, this all contributes to an unforgettable experience. A substantial number of visitors cannot forget the islands once back home and end up investigating buying and eventually purchasing a property here.

  • You do not have to pay premium prices for accommodation when visiting Malta
  • You can come and go at any time during the year and always have a place to stay
  • You can rent the property out (fulfilling some criteria) when you are not in residence
  • Your asset appreciates at an above average rate: according to globalcitizensolutions.com the Maltese real estate market is one of the best in Europe

Further financial advantages are:

  • A property that was owned as a sole or ordinary residence for more than three years is exempt from tax or taxation on capital gains
  • Malta has no restrictions on the repatriation of capital
  • Mortgages are available to non-residents as long as adequate guarantees are provided
  • If you buy in a Special Designated Area, you can buy as many properties as you want and you can rent them out immediately

For those that buy properties in towns and villages outside Special Designated Areas, the acquisition of the required AIP permit for non-residents is fast and inexpensive.

Purchasing real estate in Malta is a simple, uncomplicated process and it is very safe. After seeing the property options available with your local agent, the next step is obviously deciding on which one to buy.
With your heart set on your new property of choice, you will then have to engage in signing a Promise of Sale or preliminary agreement as the first official step towards owning it. This will bind both parties contractually to the purchase and sale as agreed upon.

The Promise of Sale is in most cases valid for three months or as agreed upon by both the parties involved and at this time a 10% deposit is usually paid to the agent or a Notary. It will be the responsibility of the Notary to then further, right up to the time of signing the final Deed of Sale, do the necessary due diligence checks to confirm that everything is in order regarding the property and all parties involved.

The Notary will also apply for all permits such as AIP (Acquisition of Immovable Property) if needed and if anything from the purchaser’s side causes cancellation of the sale, the 10% deposit will be favoured to the vendor. All contracts are done in English although there are a lot of Latin terminology and phrases, so if you do not understand the meaning of these, make sure to ask your Notary to explain this to you as you will have to sign at some stage that you have understood everything as stated in the particular contract.

When your permits have all been approved and the title of the property is unquestionable, you will be asked to sign the Contract of Sale or Deed of Sale. At this stage you will have to pay the balance of the purchase price, plus stamp duty and all other sundries. When this is all done and the property is registered in your name, you become the rightful owner.

Costs Involved (estimates)

  • Stamp Duty of 5%
  • A 1-3% notarial fee (estimate)
  • €600 for searches and registration fees
  • €233 for an AIP Permit (where needed)

For expert guidance through the whole process of purchasing or renting a property in Malta contact us and we will put you in touch with all the relevant authorities and legal advisors and help you choose the right property that best suits your needs whilst helping you settle in. Alternatively, visit our Malta Partners.

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