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 Special Designated Areas, SDAs. These are Class A coastal residential complexes, both front-row and second-row. 

  The property bought in SDA can be rented out unless it is used as a place of residency for permanent residency or citizenship.

  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.

  Read the article →

• Property prices by region of Malta

  

  Prices for Maltese real estate grow by 3—6% annually. 

  The country consists of three islands: Malta, Gozo, and Comino. The priciest properties are on the island of Malta, near the capital Valletta.

  The average cost of real estate in Malta is €3,300 per 1 m². The cities with the highest cost per 1 m² of residential property are:

  • Valletta — €5,625;

  • Sliema — €4,450;

  • Siggiewi — €3,870;

  • Gzira — €3,200;

  • Attard — €2,630;

  • Marsascala — €2,250.

  The cheapest property on the island of Gozo, its average cost is €1,000 per 1 m².

• Property purchase procedure in Malta

  

  Purchasing real estate takes about 4 months. 

  First, the investor chooses a property. Immigrant Invest has its own database of verified real estate.

  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 property value.

  The next step is 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 property price. The buyer and the seller are handed the notarised 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 8 to 15% of the value of the contract of sale:

  • a property transfer tax — 5%;

  • stamp duty — 2—7%;

  • a notary fee — 1.18—2.95%;

  • an agency fee — 1.18%;

  • an AIP purchase permit — €350;

  • an architect’s report — €300.

• Residency and citizenship in Malta by investment in real estate

  

  Permanent residency can be obtained through the Malta Permanent Residence Programme. 

  The investor pays state fees and contributions, donates to a charitable organisation, and buys real estate for at least €375,000. Another real estate option is to rent accommodation for at least €14,000 per year.

  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, they can apply for citizenship in 1 or 3 years and fulfil investment conditions. 

  One of the investment terms is to buy or rent accommodation in Malta. Purchasing real estate requires at least €700,000 while renting implies paying at least €16,000 per year for at least 5 years.