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Buying a Property in Malta & Gozo

Opting to acquire a second home often feels like a natural progression for many individuals, particularly when they start exploring the potential for these properties to serve as investment ventures. Malta stands out as a prime destination for such endeavors, basking in the warm embrace of the Mediterranean sun nestled between Sicily and the North African coast.

Throughout its history, Malta has been coveted and inhabited by various cultures and nations, including the Moors, Romans, French, and British. Fortunately, acquiring your dream home with a breathtaking balcony view doesn’t necessitate waging war.

Perusing the featured properties of a real estate agency reveals a straightforward process for purchasing a townhouse along the stunning shoreline. Indeed, numerous individuals have already embarked on this journey, especially following recent changes in Malta’s citizenship by naturalization policies. These changes have opened avenues for qualification under programs such as the Malta Citizenship by Naturalization for Exceptional Services by Direct Investment (CES).

Why buy in Malta

Investing in real estate in Malta, whether it’s commercial or residential, offers a stable and reliable investment opportunity. Acquiring property in Malta stands out as one of the most advantageous transactions you could make in Europe.

Moreover, Malta boasts a remarkably low cost of living compared to the UK, USA, and other EU nations. This translates to significant benefits if you’re considering retiring in Malta, ensuring you can enjoy a plethora of advantages.

Warm climate and the beautiful Mediterranean Sea
Extensive array of property listings for both residential and commercial purposes
Superb quality of life
Gateway to the EU
Favorable tax rates
Politically stable and secure nation
The opportunity to utilize property investment as a contribution towards one of the three investments necessary for Malta’s naturalization program.

Where to Buy Malta RealEstate?

Officially known as the Republic of Malta, this nation comprises several islands, with the largest three – Malta, Gozo, and Comino – being inhabited. The capital, Valletta, resides on the largest island. Despite its modest size, with a population of approximately 500,000, Malta ranks as the world’s tenth-smallest country by land area and, due to its high population density, as the fourth most densely populated sovereign state.

Malta boasts two major urban areas, offering a diverse range of modern apartments, historic residences, and even commercial properties to cater to various preferences. However, determining where to invest in real estate in Malta hinges largely on your lifestyle inclinations, whether you lean towards urban vitality or the tranquility of rural life.

Generally, there are two avenues for acquiring immovable property in Malta: purchasing property independently or through what was previously known as the Malta Citizenship by Investment Program. Following recent adjustments, it’s more accurately termed a citizenship by naturalization scheme. Eligibility for non-Swiss, non-EEA, and non-EU citizens hinges on substantial investment in Malta and compliance with the program’s criteria.

Tigne Point in Sliema stands out as an exceptional locale for luxury residences, villas, or penthouses. Formerly neglected, redevelopment has transformed it into a prime destination for townhouses and similar properties. The inauguration of The Point Shopping Mall in 2010 further enhances its appeal, while its labyrinthine streets offer ample opportunities to capture Malta’s distinctive charm through photography.

Property Types

Malta offers a rich variety of properties, ensuring that foreign buyers have an abundance of options to explore. Whether you’re seeking apartments, maisonettes, villas, historic dwellings, or charming older properties, along with terraced houses, bungalows, farmhouses, and contemporary listings at compelling prices, you’ll find it all in your property search. Even if you’re in the market for a commercial property, Malta has options to suit your needs.

Currently, a significant portion of real estate in the Republic of Malta has been acquired by foreigners, often adorned with retro styling. Malta is renowned for seamlessly blending traditional Maltese architecture with modern elements.

The property market in Malta has been witnessing remarkable growth in recent years. Over the past decade, the Maltese real estate sector has experienced consistent expansion, both in transaction volume and overall interest.

This growth can largely be attributed to the influx of international buyers relocating to Malta or investing in Maltese property to qualify for the Malta Permanent Residence Program. Additionally, the rental market has thrived, with property ownership not only seen as a lucrative business venture but also as a means to achieve substantial returns on investment.

Property Prices

The demand for property ownership in Malta remains robust, with homeownership accounting for 80 percent of all property purchases within the Maltese islands. Over the past decade, there has been a noticeable surge in demand for apartments, both for residential use and as investment properties.

The Central Bank attributes this growth in international interest to Malta’s residency and citizenship programs, as well as the stamp duty exemption for first-time buyers.

Currently, the typical asking prices for real estate properties in Malta are approximately:

€22000 – €400,000 for a one-bedroom studio
€300,000 – €400,000 and above for three-bedroom apartments
€500,000 + for three-bedroom duplexes
€2,500,000 + for a four-bedroom villa

What are the steps?

Engage a notary and commence your search:
Begin by engaging a notary, preferably one with expertise in property law in Malta. Subsequently, reach out to an estate agent to initiate your search for a real estate property tailored to your specific requirements.

Secure a promise of sale:
Proceed to negotiate the contract particulars with the seller until you secure a written agreement known as a Konvenju, or a ‘promise of sale’.

Fulfill the deposit requirement:
Submit the deposit fee along with the initial installment of the stamp duty, akin to a property acquisition tax in Malta, amounting to one percent of the agreed purchase price.

Validate property title legality:
Your notary should perform essential searches to validate the legal title of the property.

Organize your finances:
If necessary, apply for a bank loan to facilitate the purchase.

Execute the property transfer agreement:
Upon fulfillment of all conditions, a final agreement is drawn up and mutually accepted by both parties.

Receive possession:
Upon payment, the buyer receives possession of the property keys.

Settle tax obligations:
The seller settles any outstanding taxes resulting from the property’s sale.

Taxes on Purchasing Property

Individuals purchasing property in Malta are subject to taxation on the real estate they acquire. Typically, buyers are required to pay a five percent stamp duty during the property transfer. Additionally, one percent is paid upon the signing of the promise of sale agreement, with the remaining four percent settled during the final deed of transfer.

It’s important to note that Maltese and EU citizens who have maintained residency in Malta for five continuous years are entitled to a reduction in the stamp duty rate. Specifically, the rate decreases from five percent to 3.5 percent on the first €150,000 of the property acquisition fee.