Real estate in Malta

Buyer's guide

• Who can buy real estate in Malta

  

  Real estate trade with foreigners is limited in Malta: they obtain a permit — AIP. Without a permit investors can buy real estate in SDAs (Special Designated Areas). These are Class A coastal residential complexes, both front-row and second-row. The property can be rented out.

  Malta and European Union citizens can buy real estate without a permit if:

  • this will be their only residence which they buy for themselves;

  • they have been living in the country for more than 5 years.

• Real estate prices by region of Malta

  

  Prices for Maltese real estate grow by 3—6% annually. The country consists of three islands: Malta, Malta, Gozo, and Comino. The priciest properties are in Malta, in close proximity to Valletta, the capital.

  The average cost of buying a house in Malta is € 3,005 per 1 m². The cities with the highest cost per 1 m² of residential property are Valletta (€5,900), Floriana (€5,300), Siggiewi (€3,850), Attard (€3,800), Gzira (€3,200), Marsascala (€2,800) and Sliema (€2,600). The cheapest property on the island of Gozo, its average cost is €1,050 per 1 m².

• Real estate buying process in Malta

  

  Purchasing real estate takes up to 3 months. First, the investor chooses a property. Immigrant Invest has its own database of verified real estate objects.

  Then the buyer and the seller sign the promise of sale and purchase agreement, and the buyer makes a down payment of 10—15% of the object value.

  The next step — obtaining an AIP permit when buying property outside the SDA complex. Then the parties sign the main sale and purchase contract: the investor pays the remaining
  85—90% of the object’s price. The buyer and the seller are handed the notarized copies of the agreement, and the original document is kept in the central state archive of Malta.

• Taxes on property purchase in Malta

  

  Real estate buyers in Malta pay a one-time property transfer tax, a stamp duty, and service fees. In total, the associated costs will amount from 8 to 15% of the value of the contract of sale:

  • property transfer tax — 5%;

  • stamp duty — 2—7%;

  • notary fee — 1,18—2,95%;

  • agency fee — 1,18%;

  • purchase permit (AIP) — €350;

  • architect’s report — €300.

• Residence permit, permanent residence, or citizenship in Malta by investment in real estate

  

  Permanent residence — Malta Permanent Residence Programme. The investor pays state fees and contributions, makes a donation to a charitable organization, and buys real estate for at least €300,000.

  Malta citizenship can be obtained only by naturalisation for exceptional services by direct investment. The investor obtains a residence permit first and passes a Due Diligence check. If their candidacy gets approved, in 1 or 3 years they buy real estate for at least €700,000 and apply for citizenship.