Property
Conveyancing

Historically coveted by many an Empire, Malta’s strategic location, unabating sunshine, crystal clear seas and Mediterranean routed locals continue to lure many foreigners to its shores.

Typically hewn out of local lime stone, Maltese real estate can be said to be one of the oldest in the world. Modern times have brought their own architectural flavour – reflecting the increasing demand for this sought-after commodity. Space for development is in constant demand and property values are continually on the rise.

We focus on assisting clients in acquiring and leasing of all types of Maltese immovable property, advising them on all matters relating to both residential and commercial premises, including:

  • Directing them to the best investment options available for the specific requirements, including assisting during negotiations;
  • Drafting of lease agreements or preliminary agreements (promise of sale) and the Deed of Sale or any other contract;
  • Supporting with the securing of finance;
  • Notarial services and personal & corporate tax assessment;
  • Application for the Acquisition of an Immovable Permit (AIP);
  • Helping to set-up of Property Holding Companies;
  • Engaging the appropriate Architects and Engineers to survey the property as well as procure the relevant certificates and permits.

Frequently Asked Questions

Who can own property in Malta ?

As a general rule, “Maltese residents” as defined in the law may freely acquire immovable property in Malta.  Where immovable property is acquired by “non-residents” or companies with foreign beneficiaries, a permit referred to as an “AIP Permit” may be required.

While persons not requiring an AIP Permit are unrestricted in terms of the amount of property they can buy and the respective use of such, those person requiring an AIP Permit are subject to certain limits in terms of quantity and the intended use, which is limited to:

(a)   primary residence purposes; or

(b)   the carrying out of business activities or the supply of services.

Who needs an AIP Permit ?

Physical persons do not require an AIP permit if:

  • they are citizens of Malta or of any other EU Member State; and
  • they have previously resided in Malta/EU for a continuous period of five years.

The same applies for Companies, incorporated or registered in, or under the laws of a Malta or another Member State, the Ultimate Beneficial Owners (UBOs) of which are persons who do not require an AIP permit.

If a Company does include a UBO who requires an AIP Permit, Maltese law exempts the Company from requiring an AIP Permit in so far as the beneficial owning of the above mentioned UBO does not equal or exceed twenty-five per cent of its ownership.

What is a Special Designated Area ?

AIP permits are not required to purchase property that is located within a Special Designated Area (SDA).

No matter how many immovable properties are purchased within a SDA, or within multiple special designated areas. Moreover, owners of properties located in such an area are also free to lease such properties to third parties, notwithstanding the fact that one of the conditions generally attached to an AIP permit is that the owners do not lease out the property.

The list of special designated areas is regularly updated by means of a legal notice.

Who can lease property in Malta ?

Any person is able to lease property in Malta insofar as they are legally capable of doing so.

Malta has specific laws in place which ensure that both the Lessee and the Lessor are protected and a dedicated Authority to which each lease contracts are submitted for vetting and registration.

Leases for residential purposes, which are for periods of less than 6 months are considered to be Short-Term Leases where as those exceeding this are defined as Long-Terms Contracts, and there are differences in the rules and tax which attach themselves to the two. 

 

Real Estate Agencies

While it is not obligatory for one to secure a leasehold through a Real Estate Agent, this is typically the most expedient way to find the right property. Having assisted many clients in relocating to Malta means means we only direct anyone to most professional and trustworthy operators. 

 

 

May I become Maltese Resident by acquiring property in Malta ?

While Malta does offer a number of opportunities to persons seeking to become a resident; most of which would necessarily involve securing a suitable property as a residential address, the fact is that it is not possible for any person to register for a Maltese Residence Permit simply by acquiring property by way of leasehold or ownership.

Each of Malta’s Immigration programmes does have an immovable property requirement, so be sure to understand what qualifies as a suitable property should you have in mind to avail yourself or either of the options being offered.

 

Are there any property taxes ?

Buying Property 

A duty is imposed on transfers (stamp duty) which is payable on the transfer of property. The purchaser pays 5% of the transfer value of the property. 1% is paid on the promise of sale agreement, whilst the remaining 4% is paid on the final deed of the transfer.

First time buyers and persons buying property in Urban Conservation Areas (UCAs) are eligible for reduced rates of duty. 

Selling Property 

Malta imposes a tax on the sale of properties situated in Malta. The normal sales tax rate is 8% of the transfer value of the property. Tax is charged on the market value of the property (less brokerage charges)  regardless of whether the seller is making profit on the sale.

Sales tax rate may be reduced in a few instances, including when an owner has  occupied the property as residence for at least three (3) years.

No taxes are levied for merely owning property, nor should you expect to pay any council taxes.

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