How to get Malta residence permit by the purchase of property

Maltese legislation allows foreign investors to obtain an official status in the country. There are three opportunities for non-EU citizens:

1. Get a residence permit under the Malta Global Residence Programme.

2. Obtain permanent residency under the Malta Permanent Residence Programme.

3. Apply for Malta citizenship for exceptional services by direct investment.

Each path requires purchasing or renting residential real estate. Rent is more popular because it is cheaper and faster, but the purchase may be more profitable over time.

The minimum housing price depends on the status you apply for and the property’s region.

This article focuses on getting permanent residency in Malta by purchasing a property. The Malta Permanent Residence Programme allows an investor to get a PR permit in several months, including 4—6 months to process the application.

Malta permanent residence by investment in real estate may suit an applicant, who wants to get a life-long status in Malta, allowing them to live there, and travel to the Schengen Area visa-free. There is no obligation for the PR permit holders to spend time in Malta or restrict its amount in other countries.

Foreigners may buy properties in any region of Malta. Usually, they may purchase residential real estate for themselves and need a special permit, but some areas are exempt from restrictions. Also, some nuances of choosing an object depend on the location and an investor’s goals.

Special Designated Areas (SDA) are complexes where non-Maltese citizens may buy a property without any restrictions. They are allowed to purchase several objects and rent them out. Also, there’s no need to get permission for the purchase.

SDA complexes are situated in attractive locations and offer different types of properties. Popular resorts like St. Julian’s and Sliema have their own SDAs. Investors may choose properties on the islands of Malta or Gozo, depending on the minimum investment requirements and locations’ benefits.

Explore the benefits and requirements of the Maltese investment programme

Regions to buy a property. The northern parts of Malta are the most developed and, as a result, expensive. There are developed transport infrastructure and high building density. Small towns flow over one another; they all have schools, hospitals, shops and restaurants. Investors prefer such coastal locations: Mellieha, St Julian’s, Sliema, and Pembroke. St Julian’s, Sliema and Msida are also popular with people moving to Malta for business or work.

The South of Malta and the island of Gozo are not so developed, and their investment attractiveness is lower than in other areas of the country. However, the minimum investment in property for getting a Malta permanent residence permit is also lower there.

Applicants for a residence permit may choose any Malta property for sale: an apartment, a house or another home they prefer. The main requirement is to fit within the price stated by the program.

An average price of an apartment per square metre in Malta is around €2,600 if an object is outside a city centre. The highest prices are in the places that are centres of tourism and business, for example, Valletta or St. Julian’s. The lowest prices are on the island of Gozo; they may be twice lower than average.

Examples of properties in Malta

Malta, Kalkara

€300,000 — €1,900,000

Apartments in a large-scale residential project on the first coastline

71 m² — 310 m²

1—3

1—3

Malta, Sliema

€920,000 — €1,300,000

Apartments in a new residential high-rise project near the sea

176 m² — 211 m²

2—3

2

Malta, Valletta

€1,510,000 — €3,370,000

Modern apartments not far from sea in Valetta

123 m² — 281 m²

1—3

1—3

Malta has no annual property tax, so you pay it once when you buy a home. There is a stamp duty of 2 to 7% from the estate cost and a property tax — of 5% from the cost of the object.

There are additional expenses for the execution of the transaction:

• 1–2,5% notary fee and 18% VAT from its amount;

• 1–2% agency fee and 18% VAT from its amount;

• €350 AIP (Acquisition of Immovable Property) permit, not needed for SDA‑property.

If the land under a house is in rental, investors pay the land tax of €40 to €250 per year. And the tax on rental income is up to 35%.

When you sell real estate in Malta, you pay a property transfer tax of 5 to 12%, depending on the term of ownership.

The process of buying a property in Malta can be divided into four stages:

As we’ve already said, there are two ways of participation in MPRP: renting and buying real estate. The first way may seem more attractive, but it is not quite so cut and dried. There are several benefits of buying real estate to consider.

Buying a liquid asset. Real estate in Malta rose in price faster than in other EU countries. It grew 25% in five years, from 2015 to 2020. In 2020 despite the pandemic, prices went up by 5—9%. Housing prices index in Malta increased to 149 points in the first quarter of 2023. It means that on average, prices grow by 5% a year.

Getting passive income. Real estate leasing can give you a gain of about 3‑5% per year, and the profit may be higher if you buy a property in a location popular among tourists. In comparison, interest rates in EU banks do not rise higher than 1,5%.

The target audience for rent is foreigners or young families without their property. Villas and houses are not as popular for renting as apartments. The maximum demand is for flats from 75 to 120 m², accommodating families of three or four. Contract with deposit is standard practice.

Investors can rent their Malta real estate out if they participate in MPRP or get citizenship for exceptional services. They cannot lease their properties if they obtain a Malta temporary residence permit under the GRP.

Malta Permanent Residence Program allows getting permanent residence by foreigners without:

• criminal records or violations of migration law,

• socially dangerous sicknesses, such as HIV.

There is no opportunity to participate for citizens of EU, EEA, Swiss and sanctioned countries.

The program allows adding family to the application:

Malta permanent residence as a solution for a large family

• a spouse,

• children under and over 18,

• parents,

• grandparents.

Children and parents should be principally dependent on the investor. The family composition has an impact on the investment amount and additional fees.

Investors have two options for participating in the MPRP: renting or purchasing real estate. The minimum period of rent or ownership is five years after obtaining a residence permit.

In both cases, there are mandatory administrative and state fees, donations to Maltese organisations and buying medical insurance:

• €40,000 — an administrative fee;

• €58,000 — the government contribution if you rent real estate;

• €28,000 — the government contribution if you buy real estate;

• €2,000 — a charitable donation.

So, the fixed part starts from €70,000. The contribution fee for parents and grandparents is an additional €7,500 per person.

There are also related expenses on health insurance, document translation, apostille and notary.

In addition, applicants should have regular and stable financial resources. The amount should be sufficient to maintain themselves and their dependents. And have capital assets of not less than €500,000, out of which a minimum of €150,000 must be financial assets.

Individual cost calculation for permanent residence in Malta

Get the cost calculation

A right to live in Malta. Investors and their family members may live in Malta with a permanent residence permit as long as they wish. However, they are not obliged to: they will maintain their status even if they don’t visit the country.

Malta permanent residence: benefits and disadvantages for investors

Another benefit of Maltese residency is that we could call it a “second choice”. Investors don’t have to live permanently on islands, but they should own or rent real estate. So, in an emergency, investors can relocate promptly to Malta.

Visa-free travel to the Schengen Area. A Maltese residence permit allows you to visit the Schengen Area countries without a visa and stay there for 90 days out of 180.

Access to high-quality medicine and education. The investor and their family have access to Maltese health and education systems. Moreover, many British and American universities have their branches in Malta.

An opportunity to get Malta tax residency. Malta attracts investors and entrepreneurs through its taxation system.

Permanent residence doesn’t give you tax benefits, but if you move to Malta or stay in the country at least 183 days during the year, you become a tax resident and pay taxes in accordance with Maltese legislation. In some cases, it may help to reduce the tax burden.

If you transfer your business to Malta, you may enjoy some of the system’s advantages: for example, shareholders of Maltese companies can return up to 100% of the corporate tax paid by the company.

Malta has Double Tax Avoidance Agreements with more than 80 countries. India, France, Canada and China are on this list.