With its mild Mediterranean climate, high standard of living and delicious, fresh food, it’s not hard imagine why a lot of people are contemplating making the move to Malta. It’s also among the more affordable destinations in Europe with regards to costs of living. This gorgeous archipelago island is a favorite destination for UK retired people, as well as expats who want to play, work and take in the sun.
If you’re thinking of moving to Malta then you’ll require a new place to reside. Find out more in our complete guide to purchasing real estate within Malta for a non-native with a focus on average prices for properties and mortgage tips, as well as tax and fees and more.
What is the real estate market similar to in Malta?
As with many other countries around the world the economy of Malta – and consequently its property market has been impacted by the coronavirus epidemic in 2020.
Prior to the health crisis in the world in Malta, the property market was experiencing modest but steady growth. the prices rising by more than 11% in 2018 and only 2.5 percent in 2019.
However, despite the outbreak and the property market in Malta was resilient throughout 2020, when prices increased by five percent. Many experts are now forecasting that when Malta’s economy begins to grow and it opens its doors to tourists, the demand for and the prices of property will be rising quickly2. This is an ideal time to pick the opportunity to purchase a lower-cost property.
How simple is it to buy a property in Malta as foreigner?
There is no requirement to be an residents of Malta to purchase property in the country, however you’ll need something referred to by the name of An AIP (Acquisition of Immovable Property) permit. There is a cost to pay and you’ll obtain your permit within 35 days.
For foreigners as well as EU citizens who purchase properties in Malta There is a one property limit. This means that you are only able to possess one home or apartment in Malta, unless you purchase in an specific Designated Area (SDA). In these luxurious areas resorts or developments which encourage foreign investment and permitted, you are able to purchase as many properties as you want but without having to apply for an AIP.
Property purchase in Malta following Brexit
The positive side is that British expatriates can still purchase properties in Malta even though the UK has quit the EU.
The same rules apply to Brits like all non-EU citizens. You’ll have to obtain an AIP permit. It will be restricted to 1 property, except if your search in a Special Designated Area.
Can I purchase a an apartment in Malta and obtain residency?
For the majority of foreign buyers, it is necessary to obtain the appropriate visa or permit to work in order to stay in Malta for longer than 90-days. If you have funds in your bank there’s a plan by which you can purchase properties in Malta and obtain the status of a resident.
It’s referred to by it’s known as the Malta Citizenship by Investment Program is a program targeted towards high-net worth people. If you’re able to invest between EUR600,000 to EUR750,000 under the program, you can remain for Malta from 12 to 36 months (the more you invest the shorter the time needed) and then invest an additional EUR700,000 into residential real estate and you’ll be eligible to become a citizen and receive the possibility of obtaining a Maltese second passport within 3 to 5 years.
The most reputable places to buy property in Malta
If you’re in search of excellent food, shopping, and entertainment, visit one of Malta’s cities or towns to begin your property search. Sliema, Gzira and St. Julian’s are renowned for their numerous restaurants and bars, lively atmosphere and breathtaking coastal scenery.
Did You Know? Property Market offer the latest property for sale in Malta.
Do you have a bit more money to put towards your dream home? The capital of Malta Valletta has beautiful architecture and a vibrant cultural scene. Malta’s international airport is just a few minutes from the city. You could also consider purchasing the property in Malta’s previous capital Mdina located within the Northern Region. It is a popular tourist destination with plenty of interesting historical sites to visit and is peaceful due to its non-car-free city center.
If you’re looking for a tranquil, country life should consider properties available in areas such as Zebbug and Rabat as well as the northern islands of Gozo. In Gozo, you’re more likely to experience the tranquil, traditional village, away from the hustle and bustle that is the urban.
Where can I look for an apartment in Malta?
Agents and property agencies
There are a variety of options to locate a property in Malta:
By contacting an estate broker
A portal online that puts owners directly in contact with potential buyers
The word of mouth, or through advertisements in the area which you’re looking for.
If an estate agent is employed, usually is employed for the vendor or seller – who is also responsible for commissions.
If this is the first time you’ve bought a home in Malta or abroad, a specialist buyer agent or broker from abroad could provide valuable advice and insight on the market in Malta. There will typically be a charge for this service. You should be sure to know of what you’ll be getting in return, since the prices may differ.
How can I select the correct property?
Types of properties
You’ll find a range of modern, chic apartments, traditional homes, terraced homes as well as villas, maisonettes and converted palaces in Malta. In the cities with a lot of construction such as Sliema as well as St. Julian’s, you’re more likely to see properties to purchase.
Outside of the most popular regions of Malta there is a chance to enjoy more space and greater value for money – particularly on Gozo where prices tend to be less expensive than elsewhere in the country.
However, if you’re looking for traditional Maltese home, you should head to the south or southeast. In Maltese, you’ll find historical homes that could be more than 500 years old.
The condition of the property
It’s a good idea although it’s not required by law to conduct a survey for any property you decide to purchase prior to committing to purchase it. The older houses like typical Maltese stone homes you’ll see in rural and village areas are likely to have hidden issues which can be costly to repair. Your lawyer can assist you to identify a professional surveyor.
A step-by-step guide on how to purchase properties in Malta as an international buyer
The process of purchasing a home in Malta is fairly simple, as is the case with buying homes in other regions of Europe. Here are the essential steps:
Apply for an AIP permit via the official website of the government in the event that you’re buying within a Special Designated Area.
Find a notary public to hire – this person is responsible for conducting searches as well as other legal procedures to aid in the process of buying.
Think about hiring a lawyer that specializes on property law for Malta.
Start your search for a property by looking through the property listings is a great starting point, however you should plan at least one visit to Malta to gain a better understanding of the area and see homes in person.
Send the seller an offer and then agree to the terms of sale. Your lawyer can assist you in this.
Make a preliminary arrangement with the seller. This is referred to informally as Konvenju, also known as the Promise of Sale or Konvenju This is a commitment to conclude this transaction within a specific period of time and in accordance with the conditions and terms.
After signing the Konvenju agreement, you’ll generally pay 1percent of the total Stamp Duty due, and also an additional 10% payment (based on the cost of the sale).
Get a mortgage If you are in need of one.
Your notary will conduct Public Registry and Land Registry searches before drawing up an official contract of sale.
The purchase funds are transferred, and you are given you the keys for the new house!