Malta First Time Buyers

Malta First-time Buyers Scheme

As part of Malta's Budget 2022, first-time buyers scheme allows eligible buyers to receive a grant of €15,000 for purchase of property in Malta and €30,000 for purchase of property in Gozo, provided the applicant is officially recognised as the owner of a private residential Urban Conservation Area (UCA) property, the owner of a private residential property that was built more than 20 years ago and has been vacant for more than seven years, or the owner of a new private residential property built in traditional Maltese architecture (See guidelines for Malta first time grants).
It is important for applicants to have their notary register the deed with the Office of the Commissioner for Revenue along with legal proof confirming that they are first time buyers. Malta's first-time buyers scheme is only applicable on deeds signed after the 12th October 2021, for a period of 3 years. First-time buyers purchasing property with the purpose of establishing their residence are exempted from paying stamp duty on the first €200,000 of its price. Anything above this amount is charged at 5% in Malta, and 2% in Gozo. To know more details about Malta's first-time buyers scheme and any modifications that may follow, get in touch with us.

Common Mistakes by First-time buyers Malta

As first-time buyers in Malta, it is possible to miss or disregard some things that may become an issue in the future. The most common mistake that first-time buyers can make is spending all their savings on the purchase without considering the future monthly expenses that come, including utility bills, insurance, and maintenance costs. They also have little idea about reputable real estate agents in Malta and can end up working with an unqualified agency. Investigating the neighbourhood is not something buyers consider to be essential which can have a significant effect on your lifestyle. Lastly, make sure to carry out a thorough research, take your time in finding the perfect property and review the terms of the contract before finalising the purchase..

Finding a Property in Malta for First Time Buyers

When searching for a property for sale in Malta, the first thing you need to do is make a list of your requirements, including location, size, type of property, and your budget. You should be open about whether you want to live in a peaceful or a crowded area and the amenities you’d need nearby including schools, supermarkets, and public transport, today and in 5 years. Share with your consultant the size and the style of property you would prefer. You can schedule a meeting with a property consultant by contacting us, and once you mutually decide with them which properties you would like to visit, the viewings can be organised. On these viewings, make sure to give everything a good look and be open with your consultant about anything that might concern you. Taking your time to look around the area would also be beneficial for the future.

Buying Process in Malta

The process of buying a property in Malta can seem complicated for first-time buyers with little knowledge of its real estate market. However, a competent real estate agent will speed up the process for you. Our expert consultants at Arcus estates, will guide you through the property transfer easily.

Promise of Sale Agreement

Once a property has been carefully decided on, hire a notary public who will help you with legal matters. Your consultant will then lodge the Application for Immovable Property (AIP) and acquire a permit. This permit is not needed if you're buying a property in one of Malta's Special Designated Areas (SDAs). The consultant should make an offer and negotiate with the seller after which a Promise of Sale Agreement (known as konvenju in Malta) is drawn up by the notary. A deposit of 10% of the purchase price is paid along with a 1% provisional duty (part of the total 5% stamp duty).  The agreement is automatically valid for 3 months during which the final deed can be signed otherwise the date on which the final deed is to be signed can be mentioned in the agreement.

Signing of Final Deed

After the step concerning the promise of sale agreement is complete and all duties are fulfilled, all parties gather in one place to sign the final deed. The contract of purchase is read out loud and if all parties are okay with it without any objections, the final deed is signed. All the remaining fees are settled including the balance of the stamp duty, and notarial fees. The contract is then registered at the public registry by the notary.