Real estate
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Malta property investments: conditions, benefits and requirements for non-residents

Maltese legislation allows non-EU citizens to buy and rent real estate in the country. Foreign investors in Maltese property can obtain temporary or permanent residency. Having rented or purchased housing in Malta is also a prerequisite for getting citizenship by naturalisation for exceptional services by direct investment.

Discover the benefits of being a property owner in Malta and explore the specifics of the Maltese real estate market.

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Author • Igor Buglo

Answered questions about buying and maintaining real estate in Malta

Fact checked byJulia Loko

Reviewed byVladlena Baranova

Malta real estate investment in 2024

Malta property investments: conditions, benefits and requirements for non-residents

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5 reasons to invest in real estate in Malta

1. Residency and citizenship opportunities. Investing in property can lead to eligibility for residency under specific investment programs. Besides, it is one of the conditions for obtaining citizenship under the specific naturalisation procedure for investors.

Getting the status of a resident provides additional benefits such as the right to live, work, and study in Malta​​.

2. Prospects for price growth. Malta’s residential property prices continue to grow, despite a temporary slowdown in demand. According to the Central Bank of Malta, in Q1 2023, property prices were 10,51% higher than in Q1 2022. During the year to Q2 2023, the nationwide property price index increased by 8,3%.

3. Solid investment. Real estate in Malta is considered a secure and tangible asset. The country’s small size and growing population drive high demand for property, which supports the increase in property prices.

4. Getting a rental income. Real estate investors can rent out their properties. Malta’s buoyant rental market, driven by a steady influx of expatriates and tourists, provides opportunities for stable rental income throughout the year.

According to the study by the Housing Authority of Malta published in March 2024, the average gross rental income in the country is €12,000 per year.

5. Lifestyle and location. Malta’s Mediterranean climate, rich history, and vibrant culture make it a desirable living location. The island also boasts a low crime rate and a high living standard, attractive to investors and residents.

Malta is recognised as the third most relaxed country in Europe, after Iceland and Ireland. The country’s relaxation score is 7.8 out of 10, which is significantly higher than those of Norway, Denmark, Switzerland, and Finland. Factors contributing to Malta’s high score include the number of hiking trails, spas, yoga or pilates centres, and national parks per 100,000 people.

Essentials on real estate in Malta

Practical Guide

Essentials on real estate in Malta

Malta real estate market at a glance

Despite its small size, Malta boasts a robust and well-developed construction industry, with ongoing projects especially concentrated in the northern region. Tens of thousands of square metres of new housing enter the market every six months, and properties are offered for sale in new large residential complexes.

Property prices have shown a stable increase over the years, with downfalls being very rare and usually due to market corrections rather than a decline in property values.

The COVID‑19 pandemic affected the entire real estate market of Malta, but not as severely as in some other countries. During this period, the total value of sales remained relatively stable. Starting in the second quarter of 2022, the property price index in Malta has been increasing.

The rental market experienced a decrease but recovered quickly, with rental prices now surpassing pre-COVID values.

Several main reasons contributing to Malta’s high real estate prices include the following:

  • a lack of new space due to Malta’s limited land resources;

  • interest from foreign investors acquiring Malta citizenship by naturalisation for exceptional services by direct investment and purchasing or renting housing in the country;

  • the huge popularity of Malta among British pensioners who consider the island as a suitable place to own a holiday home.

House price index in Malta and the EU

Cost of real estate in Malta

The cost of purchasing real estate in Malta depends heavily on location, with significant differences between areas such as Sliema and Gozo.

The average cost per square metre in the central business and tourist areas is about €6,500, while in other areas, it is €4,500.

Demand for real estate is supported by year-round tourism: up to 3 million tourists visit Malta annually, which is approximately six times more than the country’s population. As a result, real estate in Malta is being quickly sold, and property prices are increasing by 5 to 7% per annum.

While Sliema and Valletta represent the higher end of the market with its luxurious apartments and vibrant lifestyle, Gozo and St Julian’s offer more affordable options with a quieter and more relaxed living environment. These variations highlight the diverse investment opportunities and lifestyles available across the Maltese islands.

Property prices in Malta by region

Region

Cost of 1 m² in the city centre

Cost of 1 m² outside of the city centre

Valletta

€7,500

€3,800

Sliema

€4,900

€4,000

St Julian’s

€4,300

€2,800

Gozo

€2,800

€1,500

Buying Malta real estate for rent

The country’s growing tourism and expatriate community bolster Malta’s vibrant rental market. Properties are highly sought after for short-term holiday lets and long-term leases, serving a diverse clientele that includes tourists, professionals, and retirees.

Malta’s real estate market offers various investment opportunities, from modern apartments to traditional Maltese townhouses and luxury villas, catering to different investment scales and preferences​​.

Rental yields typically range from 5 to 10% annually, with popular areas like St Julian’s and Sliema potentially offering up to 15% due to their proximity to amenities and tourist attractions.

Over the next four years, the Malta rental market is anticipated to grow at an annual rate of 3,94%, reaching a total volume of $456.90 million by 2028. This growth is primarily driven by Malta’s thriving tourism sector and appealing tax benefits for international investors.

Types of real estate in Malta

Apartments are the most common type of property in Malta. More significant new buildings often feature terraces to enhance comfort and light. Apartments are usually located on one floor, but duplexes and triplexes exist.

Apartments share common elements like an entrance, staircase, and elevator. Maintenance and cleaning costs for these common areas are shared among the building’s apartment owners.

Maisonettes are similar to apartments. The key difference is that the main entrance leads directly outdoors rather than to a common hallway. Maisonettes tend to be smaller than apartment buildings.

Duplex maisonettes consist of two stacked units; the lower unit often includes a small garden or courtyard, while the upper unit may utilise part of the roof. Single maisonettes frequently exist within larger buildings, typically with garages situated on the ground floor.

Townhouses or detached dwellings are located in the older parts of cities or villages. Townhouses with a double frontage have a more expansive frontage or face two streets. Distinctive features of townhouses include original wooden openings, patterned shingles, and a small back garden or a courtyard.

Farmhouses. Traditional Maltese farmhouses, located in old villages or on the outskirts of towns, once belonged to Maltese farmers. These buildings, which can be up to 500 years old, have been modernised to include contemporary amenities while preserving their historic charm.

Character houses are similar to farmhouses but are often located in urban settings. They may have multiple stories and showcase traditional architectural features, such as stone arches, traditional Maltese patterned tiles, and large windows. Like farmhouses, they can also be centuries old.

Terraced houses are usually two-storied. Such houses may include a porch, a modest garden, a patio, or a garage. Many terraced houses were built between the 1960s and 1980s.

Villas are detached homes with extensive grounds, swimming pools, and comfortable outdoor and indoor living spaces. Villas are frequently found in affluent areas such as Santa Maria Estate in Mellieha or High Ridge and Madliena in Swieqi.

Penthouses are built on top of apartment buildings and encompass all living space on a single level. Duplex penthouses are spread over two levels, connected by an internal staircase, and the topmost floors often feature amenities like terraces, barbecue areas, or swimming pools.

Examples of properties in Malta

https://immigrantinvest.com/wp-content/uploads/2020/11/schermata-2020-10-14-alle-11.52.50-e1602669741655.jpg

location iconMalta, Kalkara

€300,000 — €1,900,000

Apartments in a large-scale residential project on the first coastline
square icon71 m² — 310 m²
bed icon1—3
bathroom icon1—3
https://immigrantinvest.com/wp-content/uploads/2022/04/6f873cef.jpeg

location iconMalta, Sliema

€920,000 — €1,300,000

Apartments in a new residential high-rise project near the sea
square icon176 m² — 211 m²
bed icon2—3
bathroom icon2
https://immigrantinvest.com/wp-content/uploads/2023/10/4-9.jpg

location iconMalta, Valletta

€1,510,000 — €3,370,000

Modern apartments not far from sea in Valetta
square icon123 m² — 281 m²
bed icon1—3
bathroom icon1—3

Best places to buy real estate in Malta

The ideal location to buy real estate in Malta varies based on personal preferences, lifestyle, and investment goals. Urban areas like Valletta, Sliema, and St Julian’s offer vibrant city living with strong rental markets, while places like Mdina, Rabat, and Gozo provide a more tranquil and historical setting.

Valletta is the capital city of historical significance and has a vibrant culture. It boasts a robust rental market driven by tourism and business travellers. It has a high potential for property appreciation, making it attractive to investors seeking high rental yields and cultural enthusiasts.

Sliema is a popular residential and commercial area with modern amenities, excellent waterfront properties, and shopping districts. Its strong expatriate community appeals to families, professionals, and investors desiring a dynamic urban environment.

St Julian’s is renowned for its nightlife, dining, and entertainment options. Home to luxury developments and high-end properties, this area is ideal for investors focusing on rental income and for individuals who enjoy an active social scene.

Mdina and Rabat offer historic and tranquil settings with charming, character-filled properties and rich cultural heritage. Their scenic views and lower density attract those seeking a quieter lifestyle amidst historical allure.

Gozo’s rural and relaxed atmosphere contrasts with mainland Malta. It features stunning landscapes and traditional properties, and it is increasingly popular among expatriates, retirees, and those looking for a peaceful retreat or holiday home.

Each area offers distinct advantages, making Malta a diverse and appealing destination for real estate investment.

Gozo real estate investment

Most buildings in Gozo are constructed from the island’s native limestone, known for its warm, honey-coloured hue

Conditions and requirements for buying property in Malta by non-residents

Restrictions on the purchase of real estate. As a general rule, citizens of other countries, including the European Union, can buy only one property in Malta. Unrestricted property purchases are available only to Maltese citizens and EU citizens who have lived in Malta for a minimum of five years.

Such restrictions help prevent foreigners' unlimited acquisition of real estate and mitigate the risk of distorting local property prices.

Obtaining a permit for property purchase. To buy a property in Malta, a foreigner must obtain an Immovable Property Permit, AIP, at the AIP section of the Capital Transfer Duty Department.

The permit process typically takes 35 days. The fee for issuing the permit is €233, irrespective of the property’s value.

To obtain an AIP permit, the buyer selects the property, fills out an AIP application form, and submits a copy of the promise of sale or a preliminary contract if already in place.

To be granted an AIP permit, applicants must meet several conditions:

  1. The property will be used exclusively for residential purposes and, therefore, cannot be rented.

  2. After publication, a copy of the final notary deed must be submitted to the AIP department.

  3. The property may not be subdivided or sold as multiple dwelling units.

No permit is needed if the property in Malta is located in Specially Designated Areas, known as SDAs. In such areas, luxury residential complexes have security, closed yards, swimming pools, gyms, and other recreational facilities.

Buying an SDA residential property

Special Designated Areas in Malta, or SDAs, are specific zones designated by the Maltese government where foreign nationals can purchase property without the usual restrictions applied to non-Maltese buyers. These areas are intended to attract foreign investment in real estate and promote economic growth.

Individuals and companies can buy real estate in an SDA, and the sale transaction can be completed in two months instead of four or six months. Demand for housing in SDAs is steadily increasing, with prices rapidly rising even during construction.

There are 14 SDAs in Malta and Gozo. Of these, two SDA complexes are under construction, and two are planned, according to the data released for 2024.

The list of SDA regions in which foreign investors can purchase apartments, penthouses, and villas under a simplified procedure is as follows:

  1. Portomaso Development plus Extension I, St Julian’s, Malta.

  2. Cottonera Development, Malta.

  3. Tas-Sellum Residence, Mellieha, Malta.

  4. Madliena Village Complex, Malta.

  5. Smart City, Malta.

  6. Fort Cambridge Zone, Sliema, Malta.

  7. Ta' Monita Residence, Marsaskala, Malta.

  8. Pender Place and Mercury House Site, plus Extensions I, II, III, IV, and V, St Julian’s, Malta.

  9. Quad Business Towers, Mriehel, Malta.

  10. Southridge, Mellieha, Malta.

  11. Mistra Heights, Mellieha, Malta.

  12. Fort Chambray, Mellieha, Gozo.

  13. Kempinski Residences, San Lawrenz, Gozo.

  14. Vista Point, Marsalforn, Gozo.

SDA complexes are planned to combine the convenience of urban and resort life. They are located on or near the coast and close to historical areas.

SDA residential property benefits include the following:

  • no need to obtain permission from the authorities of Malta to purchase housing, which reduces the purchasing process to 2—3 months and saves the buyer time and money;

  • the opportunity to buy multiple properties at the same time;

  • higher return on investment due to the right to hold and rent out several properties;

  • a prospect of selling the property with an income in future due to dynamic growth of real estate prices in SDAs: the price of an SDA property bought at the construction stage often increases by 8—10% per annum compared to price growth of 3—5% per annum for residential real estate in Malta outside SDAs;

  • an opportunity to obtain temporary or permanent residency in Malta.

How to buy a property in Malta

Buying a property in Malta takes from a few weeks to 3 months. The cost of the entire transaction is 7—15% of the property’s value.

There is no need to come to the country and participate in the registration if the investor arranges a power of attorney for lawyers to conduct the transaction.

1

2—4 weeks

Property selection

Immigrant Invest will help you find the right property and contact the seller or estate agent to view it or discuss the sale details.

2

10 days

Hiring a notary

The notary does the essential work:

  • apply for a purchase permit;

  • perform the basic duties of the transaction;

  • represent your interests before the seller’s notary;

  • draft the purchase agreement.

Only the notary has the right to certify transactions, keep the deposit and be the intermediary for fees and taxes.

3

2+ weeks

Signing the preliminary agreement for the sale of real estate

When the investor has made his choice, their notary contacts the seller or their real estate agent. The notary verifies that the selected property is legally clear and free of encumbrances and obstacles. Then the notary draws up a preliminary contract of sale with the seller or their lawyer.

The purchase agreement must contain the following terms:

  1. Price of the property.

  2. Technical condition and description of the property.

  3. Land taxes.

  4. Any repairs or other work to be done by the seller before the final sale.

  5. Furniture and appliances, if included in the transaction price.

  6. Contract term: most often 3 months, less often 6 to 12 months. Until that time, the seller must complete all agreed-upon work.

  7. The purpose of the purchase. The document should reflect the record if the investor buys real estate for permanent residence or citizenship. Then, if the investor is denied this status, they can cancel the transaction without loss.

4

Up to 5 days

Payment of stamp duty and deposit

The buyer deposits 10—15% of the transaction price. All transfers in a real estate transaction shall be executed at the notary. At this stage, we help the investor arrange a mortgage if they buy the property with borrowed funds.

After signing the preliminary contract, the notary then submits a notice of the pending transaction and remits the stamp duty of 1% of the property’s value to the Malta Internal Revenue Department, IRD. The IRD confirms that the transaction is registered.

5

2+ weeks

Signing the real estate purchase agreement

The notary prepares the final sale contract. The buyer pays the remaining stamp duty of 4% of the property price, notary, and registration fees. If a buyer needs a permit to purchase the property, the notary executes the AIP Permit.

The notary delivers the original contract to the Central State Archive of Malta, and the buyer and the seller keep a copy.

Obtaining residency or citizenship as a buyer of real estate in Malta

The investment amount does not depend on the family composition. Investors can sell the property and recoup their investment if they relinquish their Malta residence permit.

Additional requirements include

  • paying the administration fee of €5,500+,

  • annual taxes of at least €15,000, and

  • purchasing medical insurance.

To apply for the Malta Permanent Residence Programme, property buyers must acquire a property worth at least €300,000 in the south of Malta and on the island of Gozo or at least €350,000 if located in other parts of the country.

Applicants can also rent real estate. In this case, the minimum rental price is €10,000 or €12,000, depending on the property location.

Other investment conditions include paying government fees, making donations, and confirming assets of at least €500,000, of which €150,000 are liquid financial assets. All these requirements are mandatory.

Property investors cannot obtain Malta citizenship directly. Instead, they can apply for citizenship by naturalisation for exceptional services by direct investment and get Malta passports in one or three years of residency in the country.

To qualify, the purchased property must meet the following two conditions:

  1. As indicated in the purchase and sales contract, the cost of the property cannot be less than €700,000.

  2. For the first 5 years of ownership, the property can only be used as the investor’s residence and cannot be rented or sold.

Another option is to rent real estate for at least €16,000 per year.

Other mandatory conditions for getting Malta citizenship by naturalisation for exceptional services are as follows:

  • contribute to the National Development and Social Fund of €600,000+;

  • make a charitable donation of €10,000;

  • pass a strict Due Diligence check.

Investors first obtain Malta residency and maintain it for 1 or 3 years, depending on the chosen investment amount. After the specified time, they become eligible to apply for citizenship.

Discover your path to Maltese citizenship

Schedule your online meeting today.

Igor Buglo
Igor Buglo

Head of the Maltese office, MBA

Main points about Malta real estate investment

  1. Non-EU citizens can purchase property in Malta and qualify for citizenship or residency. This offers benefits such as the right to live, work, and study in Malta.

  2. Maltese real estate has shown consistent price growth over the years, making it a solid investment. The limited availability of land and high demand from international investors contribute to this upward trend.

  3. The buoyant rental market in Malta, driven by a steady influx of expatriates and tourists, provides lucrative rental income opportunities. Areas like Sliema and St Julian’s offer particularly high rental yields.

  4. Real estate prices vary significantly by location, with central areas like Valletta and Sliema being more expensive than regions like Gozo. Purchasing real estate involves additional expenses, including stamp duty, notary fees, and transaction costs.

  5. Buying property in Malta involves selecting the property, hiring a notary, signing a preliminary agreement, paying a deposit and stamp duty, and signing the purchase agreement. The transaction typically takes a few weeks to three months.

Immigrant Invest is a licensed agent for citizenship and residence by investment programs in the EU, the Caribbean, Asia, and the Middle East. Take advantage of our global 15-year expertise — schedule a meeting with our investment programs experts.

Essentials on real estate in Malta

Complete guide

Essentials on real estate in Malta

  • Master the residency process
  • Get expert tips and documents
  • Estimate costs accurately

Frequently asked questions

  • Can I get residency in Malta if I buy a house?

    Yes, you can obtain residency in Malta by purchasing a house. Two residence programmes allow this, each with specific requirements and benefits.

    1. Malta Permanent Residence Programme, MPRP. This option requires you to make a significant financial investment, including purchasing or renting property in Malta. The programme provides permanent residence status and visa-free travel within the Schengen area. The exact investment amounts and other financial requirements vary, so it’s advisable to consult with a certified agent.

    2. Malta Global Residence Programme. Aimed at non-EU nationals, this programme allows you to qualify for residency by buying or renting property in Malta. The required investment in property varies depending on the location within Malta. No minimum stay is required under this programme, making it flexible for those who may not wish to live in Malta full-time.

    Both programmes provide the right to reside in Malta and enjoy its lifestyle and benefits but come with different financial commitments and conditions. It’s important to review the specifics of each programme to determine which best suits your needs and to work with authorised representatives to ensure compliance with all legal requirements.

  • Is real estate a good investment in Malta?

    Yes, the prices for Maltese real estate continue to rise. Tourism supports real estate demand. Up to 3 million tourists visit Malta every year, while the country’s population is about half a million.

    Renting a residential property brings from 5 to 10% per annum. In the most popular cities, Sliema and St Julian’s, real estate can be rented out with an annual yield of 15%.

    Real estate in Malta is sold quickly, and prices increase by 5—7% per year. Even during the pandemic, property prices have not fallen.

  • Can foreigners buy property in Malta?

    Citizens of other countries, including the European Union, can usually buy only one property in Malta. Maltese property may be purchased without restrictions by Maltese citizens or EU citizens who have lived in Malta for at least 5 years before the property’s purchase date.

    To buy property, third-country nationals are required to obtain a special permit called an Immovable Property Permit, or an AIP.

  • How much does it cost to buy a house in Malta?

    The cost of the house depends on the property location, area, and condition. The average price per square metre in the central business and tourist areas is about €6,500, and €4,500 elsewhere.

  • How much is property tax in Malta?

    Real estate tax is charged only once on a real estate purchase. The tax rate is 5% of the property’s value.

    In addition, buyers of real estate in Malta pay stamp duty, fees for notaries, confirmation of the architect, and other costs. In total, these costs amount to 8% to 15% of the value of the contract of sale.

  • How to buy property in Malta?

    Buying a property in Malta takes from several weeks to 3 months. The investor does not need to come to the island: the process may be remotely controlled. To do this, the investor has to draw up a power of attorney on the lawyers to conduct the transaction.

    First, the buyer must select the property, inspect it, or discuss the sale details. The buyer or their legal representatives then select a notary who performs the main duties of the transaction, represents the buyer’s interests before the seller’s notary, and is responsible for drafting the purchase and sale agreement.

    The transfer of ownership of the property occurs after completion of the following stages:

    • signing of the real estate purchase and sale agreement;

    • payment of the contract amount;

    • payment of property tax and other fees;

    • registration of the transaction with the Malta Revenue Department (IRD).

    The notary delivers the original contract to the Central State Archive of Malta, and the buyer and the seller keep a copy.

  • Where to invest in Malta real estate?

    The best properties for investment in Malta are located in Specially Designated Areas known as SDAs. In such areas, luxury residential complexes with security, closed yards, places for recreation, swimming pools, and gyms are situated.

    Individuals and companies can purchase real estate in SDAs, and the sale can be completed in two months instead of the usual four or six. Demand for housing in the SDA is steadily increasing, with prices rising even during construction.