FAQ
What is the proper procedure for buying immovable property in Malta for non-residents?
Once a potential buyer finds the immovable property, he/she must then sign a promise of sale, which is a written agreement that must be included with an A.I.P. application form. You can get this form from the Capital Transfer Duty Department of the Inland Revenue Division or download it from the department’s website.
How long does it take for an application to be processed?
Following the procedures outlined in the Quality Service Charter, the A.I.P. Section is required to issue the permit within at least 35 days depending on whether the application was correctly presented.
What must I include along with my application to acquire immovable property in Malta?
The following items of documentation are required upon submission of an application:
two passport sized photos;
copy of promise of sale;
photocopy of passport with relevant details highlighted.
Are there fees for an A.I.P. Permit?
Yes. This fee is €232.94.
What is the minimum immovable property cost that a non-resident must pay to obtain an immovable property?
To buy a flat or maisonette, the minimum price is €92,546.01. For all the other types of immovable property the minimum price is €154,199.86.
Are there any conditions attached to the use of the permit?
1) immovable property must be used for residential purposes;
2) a copy of the notarial deed must be submitted to the A.I.P. section subsequent to publication.
Can I rent my immovable property to third parties?
Strictly speaking, the answer is no. An immovable property may not be rented to third parties. The only exception is in the case of villas with swimming pools or properties in special designated areas.
Can I buy more than one immovable property in Malta?
Non-residents, are allowed to purchase only one immovable property in Malta unless it is situated in a Special Designated Area e.g. Portomaso Development, Tigne' Development, Cottonera Waterfront, Fort Cambridge and Fort Chambray.
I am married to a Maltese; is a permit still required to buy immovable property in Malta?
If you are married to a Maltese resident or another E.U. Member state, where such spouses purchase together a certain immovable property in the islands may be considered a “resident of Malta.”
Will there be a charge when I purchase a property through ARCestates?
No, ARCestates does not charge buyers for using its services.
What is the current rate for Stamp Duty for Maltese residents purchasing their first home?
The rate is 3.5% for the first € 69.881 (Lm 30,000) and 5% for the remaining balance. Basically, 1% of this amount is required at the time a Preliminary Agreement is signed. The rest will be due once the final contract/deed is signed.
If I own my own residence and want to buy a summer residence or an investment property, what is the Stamp Duty?
This will be 5% of the purchase price.
Do foreigners pay Capital Gains Tax?
Unless the foreigner has lived as permanent resident on the property for three consecutive years, the answer is yes.
How long must a foreigner wait in order to apply for citizenship?
After five years
What types of residency permits are available for foreigners?
Temporary residency
Permanent residency
Can a foreigner obtain a bank loan?
Yes. Many Maltese banks will offer non-Maltese citizens loans of up to 90% of the immovable property’s value
If a buyer needs to apply for a Bank Loan what he/she must take to the Bank?
* Proof of Identity
* Copy of Promise of sale
* Proof of Income
* Details of existing loan/s (if any)
What ratios are used by financial institutions for singles and couples respectively?
For single buyers, the ratio will be 4 times his/her annual salary. As for couples, the ratio is calculated at 3.5 times the annual joint salary (or 4 times the higher income plus income of second).
What types of schools are there in Malta and how easy is it to enroll my child?
Malta is known for its high educational standards at every level. Most of the Maltese population is Catholic so many of the country’s schools are privately funded church institutions. Government sponsored school operate tuition-free while there are several other private institutions that charge fees on a quarterly basis during the school year. Education is available to non-residents. Secondary education is represented by four main colleges each having high academic standards. Beyond the secondary level, there are tertiary or Master’s level educational institutions such as MCAST or the University of Malta.
How safe is Malta to live in?
With its low crime rate, Malta is considered an exceptionally safe country to live in. The Maltese are very courteous and hospitable in most instances. Malta is a very small island making it very easy to get around and one can capture the beauty of the island in a few days. It is almost impossible to get lost. There are also police stations in every town controlling the few incidents. The weather in the Maltese islands is also 'safe' with very few 'bad storms'.
What are the advantages of investing in Malta?
Since Malta has already established a reputation as a premiere travel destination, it is should not be surprising that there are reasons to invest in the country. The wealth of cultural and historical attractions and the exception weather all year round, are great incentives to start with. Add to this the fact that the country’s second language is English and you may begin to see the appeal to many foreign investors. Those who visit Malta may decide to return with the intention of making the island their home or as a regular vacation spot. As a result, the rental property market in Malta is experiencing increases since many properties are sold as rental investments. It also helps that Malta is known as a “tax haven,” meaning that there are no rates, no municipal taxes, no federal taxes and no provincial taxes. With the country’s decision to join the European Union in 2004, the property investment market has improved further. It is now easier to buy property in Malta; this has made the island a main attraction for more property investors.
Quick Search