Affirming that you want to have an additional residence is natural for many. When it comes to purchasing a quality property in Malta it could be a satisfying experience for property owners and an incredibly life-changing choice. This guide will walk you through the entire buying process for Malta real estate available for sale.
Why should you buy a property in Malta
The purchase of property 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 is comprised of three islands that are inhabited (Malta, Gozo, and Comino). Which one to buy Republic of Malta real estate is dependent on your lifestyle preferences and whether you are more a city person or more tranquil.
In general, there are two options when it comes to buying Malta real estate either by alone or under the Malta Citizenship by Investment Program. To be eligible to be eligible for Citizenship by Investment program, you need to create an Malta property investment of at least USD 700,000, or sign an agreement to rent at the minimum of EUR16,000 per year.
Cities to buy property in to purchase property in Malta
The top cities to purchase properties located in Malta are Sliema, St. Julian’s and Gzira. These cities are well-known for their variety of restaurants and nightlife venues, as well as shopping destinations that are available, as beautiful seaside views.
Valletta as well as Mdina are great cities to invest in homes because they have stunning architecture, a vibrant cultural heritage, and provide the most active life style.
If you’re looking for a laidback, lifestyle, then you’ll find that Zebbug, Rabat, or Gozo are good choices. These are the places to escape the hustle and bustle of cities and unwind in the traditional village setting.
Types of property in Malta
Malta’s varied property market ensures there’s an abundance of properties in Malta. You’ll be able to locate homes that are of top quality real estate in Malta.
From apartment buildings, houses or houses with character to terraced houses, farmhouses as well as bungalows, villas and villas Today, a large portion of Republic of Malta real estate is being purchased by foreigners, and decorated in retro fashion. The island is famous for its mix of traditional Maltese architectural style with a modern perspective.
Malta property market background and overview
Malta’s real estate market has experienced unimaginable growth over the past few years. Over the last five years, the sector has seen steady growth both in the amount of transactions in the real estate sector 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 proved successful, and renting a property is considered to be a profitable business with a high yield on your investment.
What is the average price for property for sale in Malta?
The purchase of property in Malta is still in high demand in The Maltese Islands, with home ownership accounting for over 80percent. In the past 10 years there has been a surge in demand for apartment used for residential use as well as for rental investmentis on the rise.
Maltese property is on the rise over the last three years. According to the Central Bank has attributed these to the Malta’s Individual Investor Programme and to the stamp duty exemptions of first-time home buyers.
Presently, price of homes for sale range from:
EUR204,707 for a studio with a bedroom.
EUR400,000+ for 3 bedroom apartment
EUR723,000 for three-bedroom duplexes
EUR1.5 million on a four-bedroom villa
Step-by-step guide to buy a 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 issued within 35 days.
The AIP permits isn’t required to purchase properties in Special Designated Zones, and for EU citizens:
Have resided in Malta for five years continuously
Are you looking to purchase a property to live in?
Looking to purchase a an investment property
Additionally, foreign nationals and EU citizens are able to purchase only an apartment in Malta generally to be used for owner-occupancy, however they are able to purchase additional properties within the “Special Designated Areas’.
Malta property available for rental
Malta rental properties are feasible subject to certain conditions. Foreign-owned property can be let out for rental only when the property’s worth is above EUR233,000, has an outdoor pool, as well as being registered with the Hotel and Catering Establishments Board. Foreign-owned property can only be available for leases of a short duration. agreements.
Purchase a property in the Special Designated Areas
There are a variety of Malta real estate developments that are luxury available for sale. These luxurious developments come with porters, reception area, pools and parking spaces that are constructed in prime locations across all of the Maltese islands. These Malta luxurious real estate properties to be sold fall within the “Special Designated Areas’ and as they are not subject to any restrictions and you don’t require the AIP permit. One of the advantages of purchasing properties in this region is that it grants you exactly the same benefits as the Maltese citizen, regardless of whether the buyer is an EU citizen or not.
Tax on the purchase of property in Malta
Usually, buyers pay a certain amount of tax upon purchasing properties in Malta. Buyers typically pay tax of 5% during the transfer of property. 1percent is due upon the promises to sell contract, and the remainder of 4 percent is due upon the final declaration of transfer. It is important to note the following: For Maltese or EU citizens who resided in Malta for a continuous period of 5 years and have the right to reduced rates for stamp duty, from to 3.5 percent for the first EUR150,000 of the acquisition fee.
Purchase property using Malta Citizenship by Investment
If you’re a non-native and considering moving to Malta and are considering it, there are several visa options available to you. Malta Citizenship by Naturalization for Exceptional Services (MEIN), commonly referred to by the Malta Citizenship by Investment Program offers passports to investors as a reward for making an investment of a certain amount within the country.
The investor needs to make a significant direct investment of EUR600,000 or EUR750,000 according to the period of residence chosen, which is either 12 or 36 months (extra EUR50,000 is needed per dependent). They also must invest EUR700,000 in real estate for residential use or sign the rental agreement with the minimum of EUR16,000 annually, which has to be kept for five years. Furthermore, a mandatory contribution of EUR10,000 to a registered charity, cultural, sport or scientific animal welfare or an artistic non-governmental organization or society has to be made.
Malta passport benefits
There are numerous benefits that come with an Malta passport, such as stability in the financial and personal spheres and global mobility, instant acces to EU as well as the ability to live, work and study wherever on Europe.
This tax structure is especially advantageous for foreigners who have residential status, as they do not pay tax on capital gains or foreign-sourced income.
Malta real estate transaction costs
Stamp duty of 5% (currently 2 percent for Gozo up to the end of 2019)
From 1% to 3% for notarial fees
EUR600 search and registration fees
EUR233 AIP permit cost (where the permit is in effect)
The process of purchasing property
The first thing you need to do is find an official notary or an attorney who is experienced in property law. After that, you should begin searching for an apartment in Malta that will meet your particular requirements.
It is then time to discuss the details of the contract together with your seller, until you have an official written contract, also known as Konvenju. Konvenju or the ‘promise of sale’.
Pay the deposit fee as well as the first five percent of the stamp duty. This is the equivalent of a tax for purchasing properties within Malta, (1% of the price of the property purchased.)
The notary must complete all searches to make sure that the property is legally title.
Request a loan from a bank when you need one
When all conditions are satisfied and all conditions are met, a final agreement can be drawn up and ratified by both parties.
The purchase price is settled and the buyer will receive the keys.
The seller pays any taxes she has to pay from selling the property.
Does it make sense to buy a house in Malta?
Malta is among the most robust real property markets in the world and is ranked highly in Europe in the sole instance. There are numerous advantages when buying a home in Malta including great conditions, fantastic incentives from the government for business and also the opportunity to obtain EU citizenship. Being a tiny 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 to get into Europe.
buying a house for sale in Malta is a great investment. In addition, you will be able to secure an investment that is sustainable and long-term 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 receive Malta passports.
