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Top reasons to buy property in Malta

The decision to say “yes” to having an additional residence is natural for many. In the case of purchasing a quality property in Malta this can be a satisfying experience for property owners and an incredibly life-changing choice. This guide will walk you through the entire procedure of purchasing Malta real estate available for sale.

Why should you buy a property in Malta

A property purchase purchasing property in Malta is secure and safe. In fact, it could be among the most secure real estate transactions in Europe.

What is the best place to buy an investment property Malta?

Malta comprises three islands that are inhabited (Malta, Gozo, and Comino). The best place to purchase Republic of Malta real estate is dependent on your lifestyle choices, as well as whether you are more a city person or a more peaceful and tranquil.

In general, there are two options to purchase Malta real estate either by alone or under the Malta Citizenship by Investment Program. In order to be eligible under the Citizenship by Investment program, you have to complete an Malta property investment of at least EUR700,000 or sign an agreement to rent at the minimum of EUR16,000 per year.

Cities to buy property in within Malta

The best cities to purchase properties within Malta comprise Sliema, St. Julian’s and Gzira. These cities are well-known for their variety of restaurants and nightlife venues, as well as shopping destinations available, as well breathtaking seaside viewpoints.

Valletta as well as Mdina are both great cities to purchase homes in Mdina and Valletta, since they are renowned for their gorgeous architecture, an enthralling cultural heritage, and provide an accelerated life style.

If you’re looking for a laidback, lifestyle, then you’ll find that Zebbug, Rabat, or Gozo are great options. These are the places to escape the hustle and bustle of cities and unwind in a relaxed village vibe.

The types of properties in Malta

The diverse market for property in Malta means there’s an abundance of properties in Malta. You’ll be able to locate homes that are of top quality property in Malta.

From apartment buildings, houses and houses with character to terraced homes, farmhouses villas, bungalows, and farmhouses Today, a large portion of Republic of Malta real estate is being bought by foreigners and furnished in a retro fashion. The island is famous for its mix of traditional Maltese architectural style with a modern perspective.

Malta property market background and overview

The property market in Malta has experienced an unprecedented increase in the last couple of years. Over the last five years, Malta’s property market has experienced steady growth both in the amount of transactions in real estate and overall volume.

This increase is mostly due to the increasing number of foreigners who are moving to Malta or purchasing properties. Rentals have also been successful, as renting a property is considered to be a profitable investment and a great yield on your investment.

What is the average price for property in Malta?

Property purchases in Malta is still in high demand in The Maltese Islands, with home ownership accounting for over 80percent. Over the past decade there has been a surge in demand for apartmentused for residential use as well as for rental investmenthas exploded.

Maltese property is on the rise over the last three years. It is believed that the Central Bank has attributed these to the Malta’s Individual Investor Programme and to the exemption from stamp duty of first-time home buyers.

Presently, average asking prices for homes are in the range of:

EUR204,707 for a studio that has a single bedroom.
EUR400,000+ for 3 bedroom apartment
EUR723,000 for duplexes with 3 bedrooms.
EUR1.5 million on a four-bedroom villa

A step-by-step guide on how you can purchase property in Malta

The requirements for purchasing a property

Non-residents are able to purchase properties in Malta when they are granted the AIP permit. A cost of EUR233 is for each permit (subject changes at government’s discretion) Permits are typically being granted within 35 days.

AIP permits are not required to purchase properties. AIP Permit is not required to purchase property in Special Designated Zones, and for EU citizens, they can:

Are a resident of Malta for five years continuously
Are you looking to purchase a property for your family to live in?
Are you looking to buy a property to invest in

In addition, foreign nationals as well as EU citizens can only purchase the property they want in Malta typically to use for owner-occupancy. However, they may purchase additional properties in the “Special Designated Areas’.

Malta property available for rental

Malta rental properties are permitted subject to certain conditions. Properties owned by foreigners may be let out for rental only when the property’s value is above EUR233,000, has an indoor pool or is registered at the Hotel and Catering Establishments Board. Foreign-owned property can only be let out on short-term lease agreements.

Purchase property in the Special Designated Areas

There are a variety of Malta real estate developments that are luxury to be sold. These luxurious developments come with porters, a reception area, pools and parking facilities are constructed in prime areas across all of the Maltese islands. These Malta real estate developments that are luxury available for sale are classified under “Special Designated Areas’ and as therefore, you’re not subject to any limitations, or require the AIP permit. The main benefit of buying properties in this region is that it grants you all the rights of an Maltese citizen, regardless of whether your EU citizen or not.

Tax on the purchase of property in Malta

Usually, buyers have to pay a certain amount of tax upon purchasing properties in Malta. Buyers typically pay tax of 5% during the process of transferring property. The first 1% is due on the promises to sell contract, the rest of the 4% is paid at the final declaration of transfer. Be aware this for Maltese or EU citizens who have been residents in Malta for at least 5 years and can enjoy an increase in the amount for stamp duty, from percent to 3.5 percent on the initial EUR150,000 of the acquisition fee.

Purchase property through Malta Citizenship by Investment

If you’re a citizen of another country and considering moving to Malta and are considering it, there are numerous visa programs that are available to you. Malta Citizenship by Naturalization for Exceptional Services (MEIN), commonly referred to in the Malta Citizenship by Investment Program offers passports to investors in exchange for an investment that is eligible within the country.

The investor has to make an extraordinary direct investment of EUR600,000 or EUR750,000 depending on the duration of the residency chosen, which is either 12 or 36 months (extra EUR50,000 is needed to each of the dependents). The investor must also make a commitment of EUR700,000 in real estate for residential use or sign an agreement to rent at an amount of at least EUR16,000 per year, which must be kept for five years. Furthermore, a mandatory donation of EUR10,000 to any registered charity, cultural, sport or scientific animal welfare or other artistic non-governmental approved organisation or society has to be made.

Malta passport benefits

There are many benefits of having the Malta passport, such as stability in the financial and personal spheres as well as global mobility, quick entry into the EU and the freedom to live, work and study anywhere on Europe.

This tax structure is beneficial to residents of countries with residence status, since they don’t pay taxes on capital gains or income derived from foreign sources.

Malta real estate transaction costs

Stamp duty of 5% (currently 2 percent for Gozo until the end of 2019)
From 1% to 3% of the notarial fee
EUR600 search and registration fees
EUR233 AIP permit cost (where it is applicable)

The process of purchasing property

The first thing to do is find an official notary or an attorney who is experienced in property law. You can then begin looking for an apartment in Malta that is suited to your specific requirements.
It is then time to discuss the details of the contract and the vendor until you have an official written contract, also known as Konvenju. Konvenju or”promise of sale”.
You must pay the deposit and the first fifth of stamp duty. This is similar to a tax when purchasing properties within Malta, (1% of the price of the property purchased.)
The notary must make all necessary searches to confirm that the property has a legal title.
Request a loan from a bank in case you require one
After all conditions have been met the final agreement is made and is ratified by both parties.
The purchase price is settled and buyers will be able to receive keys.
The seller pays the taxes she is liable for from selling her property.

Do you think it is worth buying a property in Malta?

Malta is among the most thriving real property markets in the world which is particularly strong in Europe all by itself. There are numerous benefits of buying property in Malta including great conditions, fantastic incentives from the government for business and also the opportunity to earn EU citizenship. Since it is a small Mediterranean state, Malta has something to offer everyone – from the party-goers to islanders and even entrepreneurs. Malta is the perfect location for those looking for a place to make a move in Europe.

Buying property for sale in Malta is an excellent investment. You will not only be able to make an affordable and long-term investment for your family and yourself and your family, but also if you opt to purchase real estate through the Citizenship by Investment scheme, you and your family members will be given Malta passports.