Affirming that you want to have an additional home is a natural choice to a lot of people. When it comes to buying a high-quality property in Malta it could be a very satisfying experience for property owners and an incredibly life-changing choice. This guide will guide you through the entire procedure of purchasing Malta real estate available for sale.
Why should you buy a property in Malta
The purchase of property buying property in Malta is secure and safe. In fact, it could be among the most secure real estate transactions in Europe.
How do I purchase property for sale in Malta?
Malta comprises three islands that are inhabited (Malta, Gozo, and Comino). Which one to buy Republic of Malta real estate is dependent on your lifestyle preferences and whether you are more a city person or a more peaceful and tranquil.
In general, there are two options when it comes to buying Malta real estate available for sale you can either purchase a property yourself or through the Malta Citizenship by Investment Program. In order to be eligible under the Citizenship by Investment program, you have to complete an Malta property investment of at least EUR700,000 or sign an agreement to rent at an amount of at least EUR16,000 per year.
Cities to buy property in within Malta
The best cities to purchase properties located in Malta comprise Sliema, St. Julian’s and Gzira. These cities are well-known for the variety of eateries and nightlife venues, as well as shopping destinations available, as well beautiful seaside views.
Valletta And Mdina are both great cities to purchase homes in because they have stunning architecture, a vibrant tradition, and the most active life style.
If you’re looking to live a relaxed lifestyle, then or Zebbug, Rabat, or Gozo are great options. These are the places to escape the hustle and bustle of cities and unwind in a relaxed village vibe.
The types of properties in Malta
The diverse market for property in Malta means there’s plenty of different property types in Malta. You’ll find houses that are of top quality property in Malta.
From houses, apartments and houses with character to terraced houses, farmhouses as well as bungalows, villas and villas Today, a large portion of Republic of Malta real estate is being bought by foreigners and furnished in a retro fashion. The island is famous for its mix of traditional Maltese architecture and a contemporary style of living.
Malta property market background and overview
The property market in Malta has seen an unprecedented increase in the last couple of years. Over the last five years, Malta’s property market has seen steady growth both in the amount of transactions in real estate as well as in total volume.
The growth in Malta is due to the increase in foreigners who are moving to Malta or purchasing property. Rentals have also been successful, as renting a property is considered to be a profitable business with a high yield on your investment.
What are the prices of property in Malta?
Property purchases in Malta is still in high demand within Malta. It is a popular choice for property buyers in the Maltese Islands, with home ownership accounting for around 80percent. In the past 10 years apartment rentalsused for residential use as well as for rental investmenthas exploded.
Maltese property is in a steady growth over the last three years. According to the Central Bank has attributed these to the Malta’s Individual Investor Programme and to the exemption from stamp duty to first time buyers.
The current average asking prices for homes are in the range of:
EUR204,707 for a studio that has a single bedroom.
EUR400,000+ for 3 bedroom apartment
EUR723,000 for three-bedroom duplexes
EUR1.5 million to purchase a four-bedroom villa
Step-by-step guide to buy a property in Malta
The requirements for purchasing a property
Non-residents are able to purchase properties in Malta in the event that they have the AIP permit. A cost of EUR233 is payable per permit (subject changes at government’s discretion) Permits are typically being issued within 35 days.
AIP permits are not required to purchase properties. AIP Permit is not required to purchase property in Special Designated Zones, and for EU citizens:
Have resided in Malta for 5 years in a row.
Are you looking to purchase a property for your family to live in?
Looking to purchase a property to invest in
In addition, foreign nationals as well as EU citizens can only purchase the property they want in Malta typically to be used for owner-occupancy, however they may purchase additional properties in the “Special Designated Areas’.
Malta property available for rent
Malta rental property is permitted subject to certain conditions. Foreign-owned property can be rent out only when the property’s value is at or above EUR233,000, includes an outdoor pool, as well as being registered with the Hotel and Catering Establishments Board. Foreign-owned property can only be available for leases of a short duration. agreements.
Purchase property in special Designated Areas
There are a variety of Malta properties that are luxurious to be sold. These luxurious developments are complete with porters, reception area, pools and parking facilities are located in prime locations across all of the Maltese islands. These Malta real estate developments that are luxury to be sold fall within the “Special Designated Areas’ and as therefore, you’re not subject to any limitations, or require the AIP permit. The main benefit of buying an apartment in this region is that it confers all the rights of the Maltese national, regardless whether your EU citizen or not.
Tax on property purchases in Malta
Usually, buyers pay a certain amount of tax upon purchasing the property Malta. Buyers typically pay tax of 5% during the transfer of property. The first 1% is due on the promises to sell agreement the rest of the 4% is paid at the final act of transfer. Be aware this for Maltese as well as EU citizens who resided in Malta for a continuous period of 5 years and have the right to reduced rates of stamp duties from to 3.5 percent on the initial EUR150,000 of the acquisition fee.
Purchase property using Malta Citizenship by Investment
If you’re a citizen of another country and considering moving to Malta There are several visa options available to you. Malta Citizenship by Naturalization for Exceptional Services (MEIN), often referred to in the Malta Citizenship by Investment Program offers passports to investors in exchange for an investment of a certain amount in Malta.
The investor needs to make a significant direct investment of EUR600,000, or EUR750,000 depending on the duration of the residency chosen, which is either 12 or 36 months (extra EUR50,000 is needed to each of the dependents). They also must invest EUR700,000 into residential real estate or sign an agreement to rent at an amount of at least EUR16,000 annually, which has to be kept for five years. Furthermore, a mandatory donation of EUR10,000 to any registered charitable, cultural, sports research, animal welfare or other artistic non-governmental approved organisation or society is required.
Malta passport benefits
There are many benefits that come with the Malta passport, such as security and stability for personal and financial matters and global mobility, instant acces to EU and the freedom to live, work and study anywhere on the European continent.
This tax structure is especially advantageous for foreigners who have residential status, as they do not pay tax on capital gains or foreign-sourced income.
Malta real estate transaction costs
Stamp duty of 5% (currently 2 percent for Gozo until the end of 2019)
From 1% to 3% of the notarial fee
EUR600 search and registration fees
EUR233 AIP permit cost (where it is applicable)
The process of purchasing property
The first thing you need to do is find an official notary or a lawyer that specializes in property law. After that, you should begin searching for the right property in Malta that is suited to your specific requirements.
Next, you must discuss the details of the contract together with your seller, until you receive an official written contract, also known as Konvenju. Konvenju or the ‘promise of sale’.
Pay the deposit fee as well as the first fifth of stamp duty. This is similar to a tax when purchasing properties within Malta, (1% of the purchase price agreed upon.)
The notary must complete all searches to make sure that the property has a legal title.
You can apply for a bank loan in case you require one
After all conditions have been met the final agreement is made and is ratified by both parties.
Once the price has been paid, buyers will be able to receive keys.
The seller pays any taxes she has to pay from selling the property.
Does it make sense to buy a house in Malta?
Malta is one of the most thriving real estate markets around the globe and is ranked highly in Europe in the sole instance. There are numerous advantages when buying a home in Malta such as the fantastic climate, excellent incentives offered by the government to businesses as well as the possibility to earn EU citizenship. Since it is a small Mediterranean state, Malta has something to offer everyone – from islanders to partygoers and even entrepreneurs. Malta is the perfect location when you’re planning for a place to make a move in Europe.
buying a house for sale in Malta is a great investment. In addition, you will be able to make an investment that is sustainable and long-term for your family and yourself If you decide to purchase real estate through the Citizenship by Investment scheme, you and your loved ones will be given Malta passports.
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