Malta is a beautiful insular state found in the Mediterranean Sea and it is often the choice of foreign investors in the real estate sector in this country. Persons who want to move or retire to Malta are looking for different types of properties, while business owners are interested in office spaces and entrepreneurs – in houses that can be used for holiday rentals. Our company incorporation agents in Malta give you professional advice regarding the property market in Malta and they can help you find your dream house.
Real estate prices in Malta
Maltese properties have various styles and features, but they all have one thing in common – an unbeatable Mediterranean charm. Apartments and houses in Malta offer spectacular harbour views and other more expensive options are available, such as luxury villas. Property prices in Malta vary according to their type, whether we speak about apartments, studious, villas or condominiums. Popular locations for property purchases in Malta include the island’s capital, Valletta and also cities like Gozo, Sliema, Mellieha, St. Paul’s Bay and Marsaxlokk. Valletta’s waterfront remains a popular and cosmopolite location and it is close to various touristic attractions, shops, restaurants and bars. The prices for a two-bedroom apartment in Valletta can start from EUR 200,000, depending on the facilities offered. One of our company formation agents in Malta can tell you more about how you can buy a property in this country. They can also help you register a company in Malta and deal with the authorities in charge of incorporation.
Buying a property in Malta
Once you decide on purchasing a property in Malta, it is important to pay attention to an initial deposit of approximately 10% of the price involved that must be deposited in a bank account, as part of the reservation. A preliminary sale agreement is then signed, representing the contractual obligations of the parties involved. A notary or lawyer can take care of the necessary legal steps before signing the final sale agreement for a property purchase in Malta. After the property is bought, the new owner must register it at the Land Registry. Our company formation specialists in Malta can help you throughout the legal procedure. You can also watch the following video presentation:
Do I need a real estate due diligence in Malta?
Yes, it is recommended to ask for real estate due diligence procedures before buying a property in Malta. Foreign citizens interested in buying residential or commercial properties should solicit real estate due diligence and talk to our company formation agents in Malta about this important aspect. Real estate due diligence might reveal:
- • Possible hidden problems related to the property that are not stipulated in the sale contract.
- • Financial encumbrances or unpaid bills by the property owner.
- • If the property is rented or there are other persons involved in ownership.
- • If there are any mortgage payments you are not aware of.
Such issues can be correctly revealed by a complete report after a real estate due diligence procedure that can be initiated by one of our specialists. A technical inspection of the property is needed and that to see if all the licenses and permits are obtained in legal ways. It is important to have support for the property purchase process, and that to be sure that you make the right decision regarding the acquisition. You can talk to one of our company formation agents in Malta or you can solicit legal support from our advisors.
How do I buy a property as a non-EU citizen in Malta?
Non-EU citizens will have to pay attention to a few requirements imposed for purchasing a property in Malta. For instance, the Acquisition of Immovable Property permit or the AIP is necessary for a property purchase in Malta. This document is issued by the Ministry of Finance after a preliminary verification of the potential client. The entire process may take up to 3 months and non-EU citizens will have to look for a property worth at least EUR 69,000, for family use, in order to obtain the AIP permit. The Maltese authorities have the right to verify the criminal record and to clarify if that the person who wants to invest in the real estate sector in Malta is not a potential threat to the country’s interests. More than that, non-EU citizens will have to prove the source of the funds before buying a real estate property in Malta. Feel free to talk to our consultants and also ask information about how to obtain a visa for Malta as a non-EU citizen.
Short facts about the Energy Performance Certificate
EPC is the Energy Performance Certificate issued for buildings that are about to be sold. This is an important document that respects the European laws referring to property construction and purchase and that must be presented by the seller, alongside the documents of the property. The buyer is normally informed about the energy performance of the building, even if he or she purchases a single property. It is important to note that the EPC is issued by an expert in the field, registered with the Building Regulation Office in Malta. If you need more details on this topic, please feel free to address one of our specialists.
Purchasing properties for residence permits in Malta
Malta Residence and Visa Programme is quite beneficial to foreigners interested in relocation to this country. Buying a property in Malta worth at least EUR 250,000 is the first step for joining the governmental programme. In exchange, foreigners can gain a residence permit with a validity of 5 years. We would like to highlight the fact that this programme is directed to non-EU/EEA citizens who want to relocate to Malta. The complexities are minimal, and most formalities refer to the preparation of the documents prior to submission to the relevant authorities. Assistance and guidance for property purchase in Malta can be offered by our specialists, so make sure you send your inquiries right away. Plus, if you would like to activate in the real estate sector and start a business in this field, you can be helped by one of our company formation agents in Malta who can manage the formalities.
Fees for property acquisitions in Malta
Besides the prices for a property in Malta, customers should also pay attention to the fees and taxes involved in the transaction. The following table can be quite helpful in this case:
|Taxes & Fees||Rates|
|Real Estate Agent||3.5%|
|Up to EUR 10,000||1%|
|Between EUR 10,000 – 500,000||0.50%|
|More than EUR 500,000||0.25%|
These are a few of the taxes and fees, at approximate rates, that you should consider at the time you wish to buy a property in Malta. Feel free to talk to our consultants and ask for guidance and support. We remind you that our team can help you with the company formation process in Malta if you want to do business in this country.
Reasons to invest in Malta’s real estate sector
Many investors consider Malta a great touristic destination that offers plenty of opportunities in this productive sector. Being among the preferred destinations for tourists in Europe, investing in the real estate sector in Malta is seen as a great business opportunity that can generate significant profits. Among the business ideas in Malta’s real estate sector, international entrepreneurs can rent residential houses and villas or can activate in the construction sector and expand their portfolios for extra profits. Besides that, it’s quite easy to open a real estate agency in Malta and develop such activities in this appealing domain, whether as a Maltese or non-Maltese citizen, as long as you understand and respect the laws controlling this sector. We have gathered some facts and figures about the real estate sector in Malta that you might find it useful:
- An increase of approximately 11% rate of property prices in Malta was registered in Q1 of 2019.
- Q4 of 2019 revealed that property prices rose by 4.72% compared to the same period of 2018.
- Having no stamp duty for properties worth at least EUR 150,000 modified the prices in the past few years.
- Stamp duty refunds up to EUR 3,000 are available for second-time property buyers in Malta.
FAQ about property purchase in Malta
Yes, there are no restrictions for foreigners wanting to purchase a property in Malta, as long as this is not state-owned. One of our agents can manage the entire formalities. They can also help foreigners start a company in the real estate sector in Malta.
Once decided on buying a property in Malta, the documents preparation starts. A preliminary agreement guarantees the purchase, mentioning that such a contract will comprise information about the parties involved in the transaction.
Yes, it is recommended to plan a real estate due diligence process and make sure that the future acquisition is not subject to litigation. The sale-purchase contract can be verified from a legal point of view, helped by our specialists.
Yes, the future owner of the property in Malta must observe all the steps for registration. In this case, the Land Registry enters the discussion because it is the institution that deals with all the properties available in Malta.
Yes, a technical inspection guarantees that the property you are about to purchase in Malta has no problems from this point of view. Normally, a technical inspection is part of a real estate due diligence procedure.
AIP is the Acquisition of Immovable Property permit issued for non-EU citizens by the Ministry of Finance. This document shows such citizens can legally buy a property in Malta.
The Stamp duty is set at a 5% rate in Malta. Other taxes apply for property purchase, but you can find out more from our specialists.
18% is the standard VAT rate imposed on property acquisition in Malta. You can discuss further details in this matter with our agents.
The property tax in Malta is set at 0.5% for properties not exceeding EUR 50,000. In the case of properties worth more than EUR 500,000, a property tax of 0.25% is imposed.
Malta is highly attractive from an investment point of view and the real estate sector makes no exception. Some want to relocate to Malta and need to buy a property, while others are interested in starting a business in the Maltese real estate sector. In any case, there are many opportunities in the field, Malta being highly appreciated for the multitude of offers.
If you want to invest in real estate in Malta, please contact our company formation agents in Malta. We can help you start a business here and provide various legal services, including information about the legislation related to foreign investments.