Living It Up: A Guide to Buying Property in Malta

At face value, Malta is a sun-speckled island in the middle of the Mediterranean. However, a closer look reveals its vibrant lifestyle, dynamic business environment, and close proximity to major international destinations.

It's no wonder that the country has become a much sought-after residential destination. In fact, foreigners seeking to benefit from Malta’s residence by investment programme may opt to purchase residential real estate on the islands, in order to qualify for their Malta permanent residence status. If you happen to be on the lookout for your dream home in Malta, we're covering the key points here.

Buying Property in Malta

Can foreigners buy property in Malta? The answer is yes, both third country nationals and EU citizens can purchase property in Malta. However, this may be subject to the fulfilment of specific conditions.

Here's how the process works:

●      Upon identifying the property to be purchased, a promise of sale is signed by both the prospective buyer and the seller. A deposit (typically equivalent to 10% of the property's value) is handed to a notary to secure the property. This deposit is forfeited to the seller in the eventuality that the buyer pulls out of the agreement (unless this is due to law or conditions of the preliminary agreement itself).

• Following the signing of this preliminary agreement, a series of checks is conducted by the notary to ensure that everything is in line and the legal title of the property can be transferred.

• The duration of this agreement is decided by the two parties in consultation with the notary.

• The buyer is required to pay stamp duty, legal expenses and any other professional fees (such as architectural consultations). All buyers are required to pay a stamp duty fee that is equivalent to 5% of the property's value. However, EU citizens can benefit from Maltese tax benefits such as First Time Buyer and Second Time Buyer schemes.

Is there anything that is different for third country nationals? In the case of non-residents, the purchase of property is subject to an Acquisition of Immovable Property (AIP) permit and a limit of one property per person. A correctly completed permit application is typically processed within 35 days and a fee of € 233 is applicable. Applicants must meet the minimum property value of €143,410 for apartments and maisonettes and the minimum value of €247,701 for all other property types.

Many foreign buyers also ask if property is expensive in Malta. Real estate constitutes a significant asset in Malta with prices for an apartment typically starting at around €200,000. Prices vary according to the type of property and the location where it is situated. Properties in highly sought after locations like Sliema, St. Julian's, and Valletta typically correspond with more premium prices while more decentralised areas offer a broader range of price points.

Types of Properties Available

With its variegated history and contemporary outlook, Malta truly offers a property for everyone. From distinguished historical homes to sleek penthouses, and anything in between; there is a vast range of property options to choose from in Malta.

• Houses of Character (Traditional Maltese houses) - As the name implies, houses of character are historical properties that are imbued with charm and traditional features. These houses often date back hundreds of years and are usually situated in village or city cores. Over the years, many have been lovingly restored while many unconverted options are still available as well.

• Townhouses - These beautiful houses can be traced back to the post-WWII period and can be described as serene urban oases in the midst of Maltese communities. Featuring  airy rooms, courtyards or gardens; a Maltese townhouse can be the perfect property for those seeking elegance and character.

• Villas - Villas in Malta are often situated in villa areas and very often feature extensive spaces, pools and luxurious finishes.

• Bungalows - Although not very common, both bungalows and detached bungalows can be found in Malta. Often situated in picturesque locations, these properties provide sprawling spaces for living and entertaining.

• Terraced Houses - This type of development abounded during the 1980s and the 1990s. Terraced houses often feature two or three storeys with a garage and a backyard or garden.

• Maisonettes - This type of property can be described as a house that is  situated on one floor. Some maisonettes are situated on the upper floor and may benefit from roof space while ground floor maisonettes may include a yard.

• Penthouses - Taking pride of place in residential developments, penthouses are situated at the top of apartment blocks and offer perfect contemporary living spaces complete with large terraces or outdoor areas.

• Apartments - From pied-à-terres to multi-bedroom options, there is a wide range of apartments to choose from in Malta. Many apartments pertain to newer developments and feature all the modern amenities and conveniences that one would want.

A Closer Look at Special Designated Areas

Are you keen on buying property in Malta but you would like a more flexible purchasing process? Special Designated Areas (SDAs) may be the perfect answer.

SDAs are a number of land parcels that have been earmarked for the creation of luxurious developments. These areas are:

Malta

• Portomaso Development (St. Julian’s)

• Cottonera Development

• Manoel Island (Gżira)

• Tigne Point (Sliema)

• Tas-Sellum Residence (Mellieħa)

• Madliena Village Complex (Swieqi)

• Smart City (Kalkara)

• Fort Cambridge (Sliema)

• Ta’ Monita Residence (Marsascala)

• Pender Place and Mercury House (St. Julian's)

• Metropolis Plaza (Gżira)

• Quad Business Towers (Mrieħel)

• Southridge (Mellieħa)

• Mistra Heights (Mellieħa)

  
  Gozo

• Fort Chambray (Għajnsielem)

• Kempinski Residences (San Lawrenz)

• Vista Point (Marsalforn)

There are many benefits that are linked with the purchase of an SDA property. For instance, no AIP (Acquisition of immovable property) permits are necessary and no restrictions on the number of properties which may be acquired apply. Moreover, it is possible to rent out SDA properties thereby creating an excellent return on investment.

Is it time to make Malta your second home? Reach out on property@ab.eu to for a free consultation with a Malta-licensed Real Estate Agent.

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