Buying A Property In Malta As A Foreigner
Malta has become increasingly popular among foreigners in the past few years who wish to buy property abroad for investment or residential purposes. Malta’s warm climate, rich history, and stable economy makes it a very attractive investment destination. In the following guide, we introduce you to all the important steps of buying a property in Malta as a foreigner and its perks.
How to buy a property in Malta as a foreigner?
Here is a step by step guide to buying a property in Malta as a foreigner
Application for Immovable Property (AIP) permit
Firstly, foreigners are required to obtain the Application for Immovable Property (AIP) permit with the help of a real estate consultant unless their desired property is in a Special Designated Area.
Property Search
The next step is your property search. Tell your consultant about the lifestyle you want to lead, along with your budget, the size, and the style of property you want. Properties can be searched for online but it’s preferable to visit and view them in person.
Hire a Laywer / Notary Public
Once you've decided on a property, it is essential to hire a lawyer and a notary public, who will assist you in the legal matters of the property buying process.
Promise of Sale Agreement
After the consultant makes an offer to the seller, a Promise of Sale Agreement (known as konvenju in Malta) is drawn up by the notary, which states a specified timeframe within which the sale must be completed. The buyer should pay a deposit of 10% of the purchase price along with a 1% provisional duty (part of the total 5% stamp duty).
The notary public is supposed to search for the property’s legal title in the Public Registry and Land Registry, after which the final deed is signed with all parties gathered in one place.
Once the balance as well as the notarial fees are settled, you're all ready to move into your new home in Malta.
Who qualifies to buy a property in Malta?
Foreigners are free to buy property in Malta provided they have a valid travel document, a health insurance, and are financially stable. An AIP permit must be obtained if the property is not in any of the Special Designated Areas of Malta. EU citizens who have been residents of Malta for five continuous years or wish to buy a residence to live in don't need an AIP permit. Projects that come under SDA's of Malta include Tigne Point and Fort Cambridge in Sliema and Pender Gardens, Mercury Towers, and Portamaso in St.Julians.
Best Locations to Buy a Property in Malta as a Foreigner
Deciding on where to buy a property in Malta depends entirely on whether you want a peaceful lifestyle or it's the crowded city life you're interested in.
- St Julian’s, Gzira, and Sliema, having many shops, restaurants, and clubs, offer residents an entertaining lifestyle.
- Valletta and Mdina are the cities that best showcase the Maltese culture and offer multiple work opportunities.
- For a blissfully quiet life, you can never go wrong with buying a property in Gozo.
Is it a Good Investment for Foreigners to Buy a Property in Malta?
Buying a property in Malta as a first-time buyer can be scary, but we assure you that it is a good investment. Malta's low cost of living, low crime rate, and highly-ranked health system makes it one of the best places to live in Europe. Business oriented individuals will find Malta’s central location in Europe, its favourable tax regime, and the nation's fluency in English incredibly attractive.
Malta Property Investment
Property investment in Malta has significantly increased over the past years, mainly due to its astonishingly stable property market. There has been rising interest from foreigners in buying real estate here. In Malta, there are no limits to the types of property you can make an investment in, including apartments, maisonettes, villas, townhouses, bungalows, and farmhouses.
Malta Property Prices
Property prices in Malta largely depend on their location. On average, 1-bedroom apartments are priced at €232,913, 3-bedroom apartments cost more than €400,000, and 4-bedroom villas are available for €2,938,107.
Property Investment Schemes in Malta
A property investment in Malta will surely offer you high returns, but if you buy real estate under the Malta Citizenship by Naturalization for Exceptional Services by Direct Investment scheme, you and your family can get Maltese passports in just 12 to 36 months in return for making a qualifying investment in the nation. The Malta Global Residence Programme is also a way for economically self-sufficient non-EU, non-EEA, and non-Swiss nationals to acquire Maltese residency by maintaining a permanent address in Malta. Maltese residency is attainable by making a property investment through the Malta Permanent Residence Programme as well.
For further directions on buying property in Malta as a foreigner, get in touch with us today.