Buying Procedures

GENERAL PROCEDURES

To obtain an indication of the types of properties available for sale, we suggest that you browse through the selection of properties listed on our website. This list is not exhaustive and we strongly suggest that you get in touch with us for further lists and assistance.

Our networked branches ensure that details on every one of the several thousand properties listed on our database are updated promptly, while new properties coming on the market are uploaded within twenty four hours from when these are registered on our books. Once we know what your requirements and budget are, we can proceed to show you a choice of properties which we believe will suit you. Should you so wish, we can sort out your accommodation here in Malta or Gozo for the duration of your stay, and organize your inspection visits to your choice of properties

The signing of the final deed is, however, always subject to clear title and the issue of any relative permits to purchase, if necessary. The agreements and contracts are written in English. On signing the preliminary agreement, a sum equivalent to 10% of the price is lodged with the agent or notary public as stake-holder. This deposit will be forfeited in favour of the vendor should the purchaser fail to complete the final deed of transfer for no valid reason at law.

The agreement is usually valid for three months (term prescribed by law) or as mutually agreed by the parties. During the period between the signing of the preliminary agreement and the signing of the final deed of sale, a Notary Public engaged by the purchaser will carry out the necessary researches into the property to confirm good title, as well as submit the application for a permit to purchase, to the Ministry of Finance if such permit is necessary.

Once the relative permit has been issued and researches have proved clear title to the property, the final contract of sale may be entered into – the deed of sale being drawn by purchaser’s Notary. The balance of the purchase price and Stamp Duty plus legal expenses are paid on the signing of the contract when vacant possession to the property is handed to the purchaser.

EXPENSES

Expenses related to the acquisition of property include:

• 5% stamp duty,
• 1% notarial fee (apx.),
• €600 searches and registration fees (aprx.)
• €233 AIP permit fee (where applicable).
• These costs are the liability of the purchaser, whilst agency fees are borne by the vendor.

CONDITIONS FOR BUYING PROPERTY

Non-residents may freely purchase property in Malta, subject to obtaining an AIP permit, if such permit is necessary. An AIP permit will not be required to purchase properties in Special Designated Areas and, in the case of EU citizens who :

• Have been resident in Malta for at least five continuous years;
• Intend to purchase a property which is to serve as their primary residence; or
• Who intend to purchase a property for investment purposes.
• Where one of the spouses is an EU citizen and the other spouse is a non-EU citizen, both can likewise benefit from the exemption outlined above and acquire property without the necessity of obtaining an AIP permit, provided the acquisition is being made to establish therein their primary residence.

Also exempted is the acquisition of immovable property by an EU national for the conduct of one’s business activity or for the supply of services by such person. In such a case, a declaration reflecting the purchaser’s intention for the acquisition should be inserted in the relative contract of purchase.

Where the purchase requires an AIP permit, the property must satisfy a certain minimum value which changes periodically and which currently stands as follows: € 136,972 for apartments and maisonettes and €236,582 for villas, townhouses and other property. These values are index linked and thus may be subject to revision annually.

The property purchased has to be used solely as a residence by the applicant and his family. This condition will be waived once the applicant obtains the relative permit to rent the property.

The above-mentioned individuals may only own one property in Malta and Gozo (except in special designated areas where one may purchase more than one property). Once these applicants have purchased a property in Malta and wish to acquire another one after having sold the first one, they may do so after obtaining permission from the Ministry of Finance. Applications for permission to acquire another property are normally favourably considered. Permission will be granted subject to the first property being sold.

Citizens of all European Union member states, who have resided in Malta continuously for a minimum period of five years at any time preceding the date of acquisition, may freely acquire more than one immovable property without the necessity of obtaining a permit.

EU citizens, who have NOT resided in Malta for at least five years, but have the intention of purchasing their primary residence i.e. take up residence in Malta, do not require a permit. Nor do they require such a permit to purchase immovable property required for their business activities or supply of services.

Individuals who are NOT citizens of a European Member State may acquire immovable property after they obtain the relative permit (AIP permit) in terms of Chapter 246 of the Laws of Malta from the Ministry of Finance, unless they acquire property located in a Special Designated Area.

When purchasing a property in a Special Designation Area, no restrictions whatsoever apply. Foreigners (EU and non-EU) may purchase any number of units within such developments without the need for an AIP permit, hence such purchases are not governed by any of the above mentioned conditions.

ACQUISITION OF PROPERTY BY A GROUP OF PERSONS

A body of persons, other than a commercial partnership, established in and operating from a European Union member state may freely acquire immovable property that is required for the purpose for which it has been set up as long as it is directly controlled by citizens of a European Union member state who have resided in Malta continuously for five years.

A commercial partnership established in and operating from a European Union member state (therefore including Malta) may freely acquire immovable property that is required for the purpose for which it has been set up as long as such partnership is controlled by and at least 75% of its share capital is held by a person (or persons) who is a European Union member state citizen and who has resided in Malta continuously for five years.

Any other body of persons will require a permit, which is only granted if the property is required for an industrial or touristic project or as a contributor to the development of the economy of Malta. Permission may be refused for the purchasing of a property, which is considered to be of historical interest.

Mortgage facilities are available for the purchase of property from all banks in Malta, subject to status. (Refer to Obtaining bank loans in Malta).