The Maltese government does not restrict anyone from purchasing property in Malta as long as all requirements of property acquisition permits and licenses are followed accordingly. As a general rule, the properties acquired should not be used for rentals or modified into other structures—they should be solely used for residency. Apart from family, guests may be allowed to live there only when the landlord is available. Unlike in most EU states where citizens can acquire not more than one property, in Malta it's possible to buy another property after being a resident for 5 years.
Important information for non-EU residents
Foreigners from out of the EU community may need to acquire special permits to be able to buy properties. The most crucial permit to have is the AIP (Acquisition Immovable Property) which is issued by the finance ministry. The processes may take up to 12 weeks. A minimum of €70 000 prices of the property is expected for apartments and €116.500 for other properties in order to be issued with the AIP permit.
After receiving the AIP permit, the client is only able to acquire the property after showing bank receipts proving that the money is from outside Malta. As mentioned before, there are strict rules concerning the occupation of the property in Malta—they should strictly be used for residential purposes.
Step by step procedure
One of the initial steps in buying a house in Malta involves hiring a notary public. A notary public is there to file an applicatication for the Acquisition Immovable Property permit. This agent may help the client all the way through the purchasing processes of the property.
The notary agent will also assist with drafting a “convenium” ( Purchase Agreement) after the property has been found and selected and communicated to the selling personnel. The 2 parties, the buyer and seller need to come to an agreement with the contents of the contract which they will eventually conclude by signing or not signing. If the signed contract is for a vacation property, immediately after signing the agreement the new property owner has to pay a deposit of ten percent and including a one percent fee for stamp duty. The stamp duty goes to the notary public to be used for payments to the CIR (Commissioner of Inland Revenue) and registration of the PA.
After the whole process has been done, there is a stalling period which takes about 3 months before the final deed can be produced. In the period of these 12 weeks, the notary public takes its time to validate the authenticity of the property documentation. After thorough scrutiny and when the period has passed, the notary public creates a final deed document which is to be signed by both the buyer and seller. Payments of the remaining credit for the acquisition of the property may, therefore, be done as soon as signing has been completed. The stamp duty also has to be paid for at this point and the sale will be said to be legally completed.
Why invest in Malta?
One of the best things about the state of Malta is that its legislation does not impose a tax on acquisition of immovable properties and wealth. This puts Malta in a better position to attract more visitors and foreign business people who want to reside in the state.
It is imperative that you inquire for in-depth information in regards to purchasing properties in Malta from expert lawyers and accountants. Our team of accountants, lawyers, and consultants stay au courant with the latest business trends and regulations in Malta. They can also help with legal counsel on how to set up a company in Malta including giving a profound understanding of the nations’ tax system. Thus, you can be confident that you will get relevant info which guides you to do everything the right way and in your favor.