St. Julians, Malta
Dragonara Business Centre, Office 506, Dragonara Road,
Paceville, St Julian’s, STJ 3141 Malta
+356 (277) 811-04
Vienna, Austria
Doblhoffgasse 9, 1010
+43 (650) 540-49-79
All offices

Real estate investment in Malta

Malta restricts the sale of real estate to foreigners: a buyer needs a special permit.

Statistics confirm the liquidity of investments: residential property prices grow by 1.2% each quarter. Five years ago, an apartment of 100 m² cost €241,000. Today it’s sold for €301,000.

€3,005 Average price per 1 m²
of housing in Malta
€220,000 Minimum investment amount
to get a residence permit
8—15% Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in Malta

€3.5 million

Penthouse in Sliema,
100 metres to beach

€1.2 million

Apartment with a sea view,
500 metres from the beach

€240,000

Apartment in 2 km
from the sea

What do investors buy?

Apartments. The most expensive ones are in the Grand Harbour district on the coast near Valletta.

  • apartments
  • maisonettes and duplexes
  • penthouses

Villas. The most expensive ones are in the north of the island of Malta.

  • villas with terraces and townhomes
  • restored palaces and castles

Malta residence permit or citizenship by real estate investment

In Malta, there are state programs for obtaining a residence permit and permanent residence: Malta Global Residence Programme and Malta Permanent Residence Programme for investors.

One of the program’s conditions is renting or purchasing real estate. Maltese property owners can also obtain citizenship by naturalisation for exceptional services by direct investment if they pass a rigorous Due Diligence check and prove their ties to the country.

How to obtain Malta citizenship

Minimum property value for a Malta residence permit, permanent residence or citizenship

€700,000
Citizenship by naturalisation
€300,000+
Permanent residence by investment
€220,000+
Residence permit by investment

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Taxes and associated costs

Purchase
Ownership
Sale

Property buyers pay a one-time purchase tax, stamp duty and special fees. The total associated costs will range from 8% to 15% of the purchase agreement value. When buying an apartment worth €740,000, the investor will spend €851,000, including all additional purchase costs.

8—15% Of the contract value are related costs when buying a home
Purchase expenses
Tax on the purchase of the real estate
5%
Stamp duty

Depends on the property location

2—7%
Notary fee

Depends on the property location

1.18—2.95%
Agency fee

Usually, the seller pays it,
but it all depends on the agency

1.18%
AIP Permit  

If the property is in an SDA,
the permit is not required

€350
Architect’s assessment

Confirms that the property complies with building codes like a passport from the Record of Deeds

€300

Taxes

There is no property tax in Malta. Tax on land that belongs to a villa or an apartment building is only payable if the land is leased out long-term. In this case, the tax will range between €40 and €250.

If the owner rents out the property, they pay a tax of 35% on the rental income.

€3,400 Approximate annual expenses on utilities and maintenance of a 176 m² apartment in SDA with four registered residents

Communal payments

Utilities. Water and electricity are paid according to the meter. The rate depends on the number of registered residents. There is no central heating and domestic gas network in Malta.

In summer, water in the houses is heated in special tanks on the roof and with electric water heaters in winter. Air conditioners or electric heaters are used for heating.

If the owner needs gas, it can be purchased in balloons. A balloon costs €5.5.

Property owners or management companies determine maintenance payments for the elevator, cleaning, repairs, security, and swimming pools. The maintenance is paid once a year.

Internet, TV and telephone connection costs from €20 to €100, depending on the tariff and locality.

Electricity, water
€120—200 

per month

Garbage collection
€0 

at the expense of the state

Maintenance of the house

Elevator, cleaning, repairs, security

€100—150 

per year

€500—1,000 

per year in an SDA

 

A property seller pays capital gains tax and an agency fee if a licensed real estate agency handles the sale.

Capital gains tax is paid on the difference in value if the property is sold for more than it was purchased. If the Maltese Tax Office considers the sale and purchase agreement price too low, the tax will be charged on the market property value, not the transaction amount.

8—9% Of the contract value are related costs when selling a home
Sale expenses
Capital gains tax
8%
Agency fee

When selling through a licensed agency

1.18%

Frequently asked questions

Can foreigners buy property in Malta?

Yes, with limitations. Foreigners who want to buy real estate in Malta need a permit issued under the Acquisition of Immovable Property Act and only buy one property. However, these limitations don’t apply to property in the Special Designated Areas in Malta.

How much is real estate in Malta?

Malta real estate prices are growing by 5—10% every year, and in some cases by 15—20%. For example, in the popular tourist region of the country, the Northern Harbor. The most inexpensive objects are located on the island of Gozo. The average price of 1 m² of housing is €3,005.

Is it worth buying property in Malta?

Malta real estate is an investment that allows one to obtain a residence permit or permanent residence, as well as one of the conditions to obtain citizenship by naturalization on the basis of direct investment by exceptional merits.

Investors are also attracted by the possibility of profitable investments in real estate. The price of Maltese properties is growing by 1,2% on a quarterly basis. If in 2017 an investor had bought an apartment for €241,000, today they could have sold it for €301,000.

Can non-EU citizens buy property in Malta?

Yes, but there are limitations. Non-EU citizens who want to buy real estate in Malta require a permit issued under the Acquisition of Immovable Property Act and only buy one property. However, these limitations don’t apply to property in the Special Designated Areas in Malta.

How much are property taxes in Malta?

Property buyers pay a one-time 5% tax. Aside from that, there are no property taxes in Malta.