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
of housing in Malta
€220,000
Minimum investment amount
to get a residence permit
to get a residence permit
8—15%
Buyers’ related expenses,
of the transaction amount
of the transaction amount
How the residential property price index is growing in Malta
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.
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 40+ guides on European countries
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Taxes and associated costs
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—200per month |
Garbage collection |
€0at the expense of the state |
Maintenance of the houseElevator, cleaning, repairs, security |
€100—150per year €500—1,000per 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 feeWhen 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.
