* 1. Moneys from a property sale may be repatriated to any country and currency of choice. * 2. Local mortgage facilities are available for up to 90% of the purchase price. * 3. Deeds and documents may be published and read in English. * 4. Purchasers may benefit from special concessions on the importation of personal effects and pets. * 5. Properties within certain designated areas or with swimming pools may be rented out. * 6. No rates or local council taxes. * 7. Multiple property purchase permitted in special designated areas. * 8. Very beneficial Tax Advantages for non-Maltese taking up Residency in Malta.

BUYING - NON-MALTESE/INTERNATIONAL BUYERS

The procedure for property purchase is very simple. Once the selling price is agreed upon, a Preliminary Agreement or Promise of Sale (Convenium) is drafted and signed in the presence of a Notary Public (nominated by the purchaser), binding the vendor to sell and the purchaser to buy the property at the agreed price within a stipulated time and under other terms agreed upon by the parties to the agreement.

The agreement for non- Maltese buyers will include a 'subject to the acquisition of the A.I.P. permit' clause. It is common practice that 10% of the purchase price is deposited on account of the purchase price on the Promise of sale Agreement, or as agreed between the parties. The preliminary agreement is normally termed, but not necessarily, for a period of three months. This is also subject to agreement according to the requirements of the two parties. During this period the Notary Public carries out searches to ascertain the validity of the title.

On the expiration of the agreed period, if all the conditions of the preliminary agreement are satisfied, a final deed of sale will be entered into between the parties to the agreement and full ownership is attained.

The situation regarding purchase of property by EU citizens following Malta’s accession to the EU.

In its negotiations with the EU, Malta has obtained a special derogation with regards to EU citizens purchasing property in Malta, whereby a EU citizen will be allowed to purchase a second property in Malta (outside specially-designated areas) if he/her has resided on the Maltese Islands for a continuous period of at least five years.

Conditions for Property Purchase

Non-Maltese may purchase a holiday home in Malta under the following terms and conditions:

  1. A preliminary agreement or promise of sale must be signed undertaking to purchase a property of not less than € 104,509 in the case of an apartment or maisonette, and not less than € 174,333 for a house or any other type of residential property. Naturally, properties in shell form or requiring renovation may be purchased at lower figures, provided that the estimated cost of works for completion (as confirmed by an Architect) plus purchase price total not less than the € 104,509 in the case of an apartment, and not less than € 174,333 for any other type of residential property. The thresholds are adjusted on a yearly basis according to the inflation rate.
  2. An A.I.P. (Acquisition of Immovable Property) Permit (cost Lm100/€233) is required from the Ministry of Finance and is normally granted within 2 months of application. The Notary Public will apply for the permit after a promise of Sale Agreement has been signed.
  3. A non-resident may sell his/her property to another non-resident, provided that efforts have been made to find a local buyer. Once again, approval is required from the Ministry of Finance.
  4. Moneys for the purchase have to originate from a source outside of Malta.
  5. Properties having historical value or listed as part of the Island's heritage may not be purchased by non-residents. This does not apply to most farmhouses and houses of character on the market.

Other Purchase Expenses

Before committing on a Purchase it is important to budget for the following expenses:

  1. Stamp Duty or Transfer tax at 5% of the value of the property
  2. Legal/Research and Notary Fees between 1% - 1.5% of the value of the property
  3. Ministry of Finance fee €223 on application for an Acquisition of Immovable Property Permit (A.I.P Permit). This is applicable only for non-residents.

The AIP Permit

The Notary Public applies for the Permit on behalf of the Purchasers after a Promise of Sale agreement has been signed. The Notary will Require 3 passport photos, and a Passport photocopy of each of the purchasers appearing on the agreement. The €223 fee may be settled on the Promise of Sale or on the Final Deed as agreed with the Notary.

  1. Application may be refused if applicant is not of a good conduct.
  2. The acquisition (final deed) must take place within a (renewable) period of 6 months.
  3. The property may not be sold in part or converted into more than one dwelling house. Likewise, plots are to be developed into one single property within 2 years.
  4. Adjoining property as an extension, or a garage, can be purchased.

Properties need to be sold together as a whole.