Buying an Apartment in Malta for Non-EU Nationals

Have you ever dreamed of living on an island in the ocean? Preferably in the Mediterranean? If you are a non-EU national wanting to buy a property that meets these requirements, look no further than Malta. Here is all the background information you need to make a decision.

Why Malta?

Malta, Gozo, and Comino make up an archipelago in the Mediterranean.

This stunning destination experiences three hundred days of sunny weather a year. You can enjoy this pleasant climate by sunning on the scenic beaches and exploring the beautiful bays that Malta offers.

Malta has a rich history with a multitude of magnificent temples known as the Megalithic Temples of Malta which were constructed in the period 3600 BC to 2500 BC. Due to their primacy, they belong to the group of UNESCO World Heritage Sites.

The cost of living in Malta makes it very affordable for the middle to upper classes and is lower than many places in Western Europe.

Malta is favoured by UK citizens seeking to retire. Many expatriates also choose it as an ideal location for work and recreation.

How Easy Is it to Buy Property in Malta?

You will be able to buy a property that is located in the Specially Designated Areas (SDA), which are also called Lifestyle Developments. This will entitle you to the same rights that citizens of Malta enjoy.

As a non-EU national looking for a housing purchase outside of the SDAs, you will need to apply for an Acquisition of Immovable Property (AIP) permit. This permit should be approved within 35 days after application. The same conditions apply to expatriates who are known as Third Country Nationals.

The cost of an AIP permit is €233,00.

Third Country Nationals who have an EU spouse can purchase their home together, giving the TCN equal rights in Malta to their spouse.

The Process of Purchasing an Apartment in Malta

The process of purchasing an apartment in Malta is a simple one.

The first step is to select an apartment that you are interested in buying. It is advisable to use an estate agent if you are considering real estate for sale in Malta as a non-EU national. Thereafter you hire an architect who will make sure that the property is structurally sound.

The buyer and seller must then agree on the price as well as any additional conditions. This is confirmed by signing an agreement to purchase/sell immovable property. This is a binding legal contract.

The title will be assessed by a public notary who will document the Promise of Sale (Konvenjuin Maltese) for signing, and prepare the final deed of sale.This requires the buyer to pay 10% of the purchase price as a deposit. When the latter is signed by both parties, the buyer will settle all outstanding monies (purchase price, estate agent’s commission, notary fees, and stamp duty). If the buyer took a bank loan, the duties of the notary will be carried out at the lending bank.

Note that the Promise of Sale is valid for three months and defaults to the seller if the buyer withdraws from the agreement without valid legal cause.

Criteria for Purchasing Property in Malta

Maltese legislation determines the criteria for purchasing property in Malta.

The AIP permit is dependent on the minimum value of the property. This is either for a townhouse or villa valued at less than €163,905 or a maisonette or apartment valued at less than€98,370.

Acceptable uses of the property are for the sole residential use of the buyer, for a pre-approved tourist or industrial project, for a purpose for which the Maltese government has given permission, or for uses that play a role in the development of the economy in Malta.

The Capital Transfer Duty Department houses the AIP section and is the body that handles applications for non-Maltese residents to buy property.

If you have legally lived in Malta for a minimum continuous period of five years, you can apply for a long-term residency. This bestows a permanent status. In this case, an AIP permit is not required, and the applicant is entitled to property tax and stamp duty incentives.

Buying and selling property in Malta is subject to local laws. Here are some highlights that you should know before you proceed with your first investment here:

Most non EU buyers will need to get the relevant visa or work permit enabling them to stay in Malta for more than 90 days. But if you have enough cash in the bank, there is a scheme through which you can buy property in Malta and get residency status.

The Malta Citizenship by Investment Program is designed for wealthier people. By investing an amount of €600,000 to €750,000 in the scheme and residing in Malta for 12 to 36 months, then spending €700,000 on a residential property, you can apply for Maltese citizenship. The more the initial investment in the program, the shorter the required duration of residence is.

With this guide, you should be in a better position to consider making the move to Malta.