Malta First-time Buyers Scheme
The Maltese government has extended the first-time buyers scheme for 2025, reducing the financial burden on aspiring homeowners in Malta. Under this scheme, individuals buying their first home in Malta are exempted from paying stamp duty on the first €200,000 of the property price. The remaining amounts are charged at a standard rate of 5% no matter the location of the property. Qualified first-time buyers can also receive a grant of up to €40,000 for properties in Gozo and up to €15,000 for properties in Malta. Note that these incentives will only apply to properties acquired until December 31, 2025, unless the scheme is renewed. For more information about Malta's first-time buyers scheme and other enquiries, please contact our team at Arcus Estates.
Eligibility Criteria for the First-Time Buyers Scheme
To qualify for Malta's first-time buyers scheme, you need to meet the following requirements:
· You and your partner (if applicable) must not have owned property before in or outside of Malta.
· You must be Maltese or an EU citizen (for couples, only one partner needs to meet this requirement).
· The property must serve as your primary residence.
· For grants, the property needs to be situated in an Urban Conservation Area in Malta, be over 20 years old and empty for more than 7 years (Vacant property scheme Malta), or be a new property built with traditional Maltese architecture.
The Housing Authority Malta conducts thorough checks to see if applicants meet these criteria before accepting them into the programme. This is to ensure that the scheme only benefits genuine first-time buyers.
Common Mistakes by First-time buyers Malta
Buying your first home is always an exciting experience. But you need to proceed with caution to prevent costly errors that can negatively impact you as a homeowner. Here are five common mistakes many people make when buying a property in Malta.
Miscalculating the Budget
One of the biggest mistakes new homeowners make is not calculating their budget well before making their purchase. A home is a huge investment. Aside from the price of the property, there are several other expenses that you need to pay, such as the notary fees, agency commissions, utility connections, and taxes. To avoid unpleasant surprises, it's important to factor all these costs into your budget right from the start.Rushing the Process
Property purchases involve many legal procedures that take weeks, if not even months. But you need to exercise patience and take it one step at a time. Rushing through the process can make you miss some fine details that can lead to costly problems in the future. As a first-time buyer, you need to take your time and review every document before you sign.
Having Unrealistic Expectations
Many homebuyers also have unrealistic expectations when choosing their first property. Select the type of property that you can afford in the area that you want to live in. If you cannot buy a property in your preferred area, be flexible on the location. Don't overburden yourself by choosing a property beyond your financial reach.
Buying on a Whim
Another common mistake is purchasing a home impulsively. Before buying a house in Malta, you need to plan well and do your research on the property. Check out the location, condition, and long-term value of the property. Buy with your head, not your heart.
Not Working with a Professional
The process of buying a property can be overwhelming, especially if you are a first-time buyer. Doing it on your own can lead to big mistakes that can cost you dearly in the end. So, it's important to work with a professional agency that can help and guide you through each step of the process.
Finding a Property in Malta for First Time Buyers and Whom to Consult
When looking for a property for sale in Malta, the first step is to decide on the kind of property you want. Create a list of all your requirements, including the type of property, size, location, and your budget. Decide whether you want to live in a serene area or a crowded location in the heart of the city. Then, you need to determine the amenities you want in your property. Do you want a property with a private swimming pool or one close to schools, shopping malls, hotels, and restaurants? To ensure you make the right choice, you may want to work with experienced real estate agents who can help and guide you through the property purchase process. Our experts at Arcus Estates have a strong understanding of Malta's real estate market and can direct you towards properties that meet your needs and budget.
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
The Promise of Sale Agreement, also known as "konvenju," is one of the most important steps when acquiring a home in Malta. Once you've chosen your property, you will need to hire a notary public who will handle legal matters for you. Your consultant will apply for Acquisition of Immovable Property (AIP) permits, which will allow you to legally own a property in Malta as a foreigner. This permit is not needed for properties located in Special Designated Areas (SDAs).
Once you have completed the negotiations, you'll be asked to pay a deposit of 10% of the purchase price plus 1% provisional duty (part of the total 5% stamp duty). The agreement remains valid for three months, during which you must sign the final deed.
Signing of Final Deed
Next, you will sign the final deed to complete your property purchase. All parties involved will gather at the notary's office, where the contract of purchase will be read out loud. If everyone agrees with the terms, signatures are collected, and any remaining fees are settled. Your notary will then register the contract at the public registry, officially transferring the ownership of the property to you.