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For foreign nationals interested in purchasing property in Malta, the process is relatively straightforward but comes with specific legal requirements, particularly regarding permits and eligible property types. Below is a simplified guide to help foreigners navigate the process of buying a home in Malta.
Once the necessary permits are secured (if applicable), the buyer can proceed to choose a property. In Malta, foreign buyers have access to a diverse range of properties. These can include modern apartments in urban areas, traditional villas in the countryside, historic houses of character, and luxurious properties in Special Designated Areas (SDAs). SDAs are exclusive zones that allow foreign buyers to purchase property without the need for an AIP (Acquisition of Immovable Property) permit. These areas often feature highend
residential developments with upscale amenities like swimming pools, gyms, restaurants, and marinas, offering a luxurious living experience.
Additionally, properties in rural areas may include restored farmhouses and palatial villas, blending traditional Maltese architecture with modern comforts. Whether a buyer is looking for a contemporary flat,
a historic home, or an exclusive investment opportunity in a high-end development, Malta offers a variety of options to suit different tastes and budgets.
After selecting the property, the buyer and seller will sign a preliminary agreement, which outlines the terms of the sale, including the agreed purchase price and any conditions. This agreement is typically binding and will involve a deposit of around 1% to 10% of the purchase price.
Non-EU citizens who wish to purchase property in Malta must first apply for an Acquisition of Immovable Property (AIP) permit, unless the property is in a Special Designated Area. EU citizens do not need a permit to purchase property for business activities or investment, such as rental properties.
The buyer’s legal representative (usually a notary) will conduct thorough due diligence on the property. This includes verifying ownership, checking for any encumbrances, and ensuring that the property is free from legal disputes. The notary will also confirm that the property meets all necessary legal and planning requirements. Usually this process takes between 3 to 6 months.
Once all checks are completed, the final deed of sale is signed by both parties in the presence of a notary.
The buyer will pay the remaining balance of the purchase price, and the property is transferred into their name. The notary will then register the transfer with the Land Registry, finalising the process.
The buyer is required to pay stamp duty, which is generally 5% of the purchase price. If the property is being bought as the buyer’s primary residence, they may be eligible for a reduced stamp duty rate of 3.5% on the first €200,000. Additionally, the buyer may need to pay other associated costs such as notary fees, legal fees, and registration charges.
After the final agreement, the notary will file the deed of sale with the Public Registry and the Land Registry. The property will officially be transferred to the buyer’s name, and they will receive the necessary documentation proving ownership.
Foreign buyers purchasing property as their primary residence in Malta may also be eligible for residence permits, depending on the purchase type and their specific situation.
When buying property in Malta, several fees and charges should be considered by foreign buyers to understand the total cost of their investment. Here’s a breakdown:
• Standard Rate: 5% of the property’s purchase price.
• Primary Residence Discount: Reduced to 3.5% on the first €200,000 for eligible buyers.
• This tax is paid at the time of the final deed.
• Ranges from 1% to 2.5% of the property’s value.
• Fees are based on the Notarial Council Guidelines and include drafting the contract, verifying ownership, and ensuring no outstanding debts on the property.
• Applies to non-EU nationals purchasing property outside Special Designated Areas.
• Fee ranges from €200 to €500.
• These cover the cost of registering the deed with the Public Registry.
• Often included in the notary’s overall service fees.
• If a bank or institution requires a valuation (typically for mortgage purposes), fees range from €150 to €500 depending on the property’s complexity.
• Includes legal fees, administrative charges, and potentially home insurance.
• Fees vary depending on the bank, loan amount, and terms.
• Some properties in Malta are sold freehold, meaning no additional annual charges.
• Others are subject to ground rent, an annual fee paid to the landowner. This can range from a nominal amount to a higher fee, depending on the terms of the property title.
• Typically 5% of the property’s purchase price.
• This fee is generally paid by the seller, not the buyer, unless otherwise agreed.
The cumulative fees typically amount to 7-10% of the property’s value, excluding the purchase price. Buyers should budget accordingly to cover these expenses.
Foreign buyers may secure mortgages through Maltese banks, though terms vary. A substantial deposit, often around 20-30% of the property value, is usually required. Additional insurance or guarantees might also apply depending on the lender. Understanding these costs upfront ensures a smooth buying process and helps avoid unexpected expenses.
Non-residents looking to buy a holiday home in Malta can purchase one property, but they must first obtain an AIP (Acquisition of Immovable Property) permit. However, this requirement does not apply to properties in Special Designated Areas or to EU citizens buying a property as their primary residence, even if they haven’t lived in Malta for five continuous years.
For EU citizens who have lived in Malta for at least five years, there are no restrictions on the number of properties they can buy. If one spouse is an EU citizen and the other is a non-EU citizen, they can also purchase property without needing an AIP permit, as long as it is for their primary residence.
No AIP permit is required if the property is being purchased for residence, investment, or business purposes, but the purchaser must declare this intention in the purchase contract.
If an AIP permit is needed, the property must meet a minimum value, which is updated annually. In 2024, the minimum value is €174,274 for apartments, maisonettes, and penthouses, and €300,619 for villas, townhouses, or other properties.
An AIP (Acquisition of Immovable Property) permit is required for non-residents who wish to buy property in Malta, unless they are purchasing in an SDA (Special Designated Areas) or intend to use the property as their primary residence in the EU. Non EU, also need an AIP permit except in Special Designated Areas. The AIP permit ensures compliance with the rules governing foreign property ownership in Malta, including approval from the Maltese government and minimum property values, which are updated annually.
EU citizens who intend to buy a property as their primary residence in Malta, even if they have not lived in the country for five continuous years, do not need a permit. However, EU citizens who have resided in Malta for at least five years can purchase any number of properties without the need for a permit.
No permit is needed to purchase property for business activities or investment, such as rental properties.
Special Designated Areas are high-end residential developments where property ownership rules are the same for both Maltese and foreign residents. No AIP permit is required, and foreign nationals can purchase any number of properties and lease them out without restrictions.
Entities based in the EU can acquire property for their business purposes without needing a permit. However, non-EU owned companies or entities must apply for a permit, which is only granted if the property is intended for industrial, touristic, or economically beneficial projects.
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