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Property ownership in Malta

 
 

Acquisition of property in Malta by Third Country Nationals is regulated by the Immovable Property (Acquisition by Non-residents) Act.  This piece of legislation defines the conditions for purchasing property.

CONDITIONS FOR PURCHASING IMMOVABLE PROPERTY IN MALTA

Individuals who are not citizens of a European Member state may not acquire any immovable property unless they are granted a permit in terms of the law. This does not apply to spouses of Member States or Maltese citizens

However, certain exemptions to obtaining a permit exist. There are defined zones in Mata, referred to as special designated areas, where there are absolutely no restrictions to acquisition. These are:

  • Portomaso Marina Development, St. Julians, Malta;
  • Portomaso Extension I, St Julians, Malta;
  • Cottonera Development, Cottonera, Malta;
  • Tigne Point, Tigne, Malta;
  • Tas-Sellum Residence, Mellieha, Malta;
  • Madliena Village Complex, Malta;
  • SmartCity, Malta;
  • Fort Cambridge Zone, Tignè, Malta;
  • Ta’ Monita Residence, Marsascala, Malta;
  • Pender Place, St. Julians, Malta;
  • Metropolis Plaza, Gzira, Malta;
  • Fort Chambray, Ghajnsielem, Gozo;
  • Kempinski Residences, San Lawrenz, Gozo.
  • Vista Point complex Marsalforn Gozo


There is also no restriction on acquisition through inheritance and there are also several other special exemptions.

Aquisition by Individuals                                                              Third Country Nationals
 
 
 
 
 
 
 
Primary Residence1
Prior authorisation is required*
 
 
Secondary Residence or any other immovable property2
Prior authorisation is required*
 
 
Causa Mortis devolutions
No prior authorisation is required
 
 
Grave or site
No prior authorisation is required
 
 
Redemption of groundrent
No prior authorisation is required
 
 
Property in a Special Designated Area
No prior authorisation is required and no limit
 
 
Divided or undivided share in immovable property where person had previously acquired a share in such immovable property in accordance with the provision of this Act
No prior authorisation is required and no limit
 
 
Transfer of immovable property in an inheritance between co-heirs
No prior authorisation is required - No limit
 
 
Partition of immovable property between co-owners
No prior authorisation is required - No limit
 
 
Donation of immovable property to a spouse, descendant or an ascendant in the direct line and their relative spouses - in the absence of descendants to a brother or sister and their descendants
No prior authorisation is required - No limit
 
 
Immovable Property required for the person's business activities' or supply of services by such person
No permit granted unless required for an industrial or touristic project or as a contributor to the development of the economy of Malta
 
 
Notes
 
 
* : A permit will not be granted if applicant has already acquired immovable property in Malta; other conditions also apply.
 
 
1 : This presupposes a change of ordinary residence if the purchaser is not already a resident of Malta.
 
 
2 : This would typically include holiday homes where there is no change of ordinary residence.
 

  • The minimum price purchase for an immovable property is € 103,906 for the purchase of a flat or maisonette and € 173,129 for the purchase of any other immovable property. 
  • Property cannot be rented out, unless situated in Designated Special Areas or you have a permit
  • As a non-resident, you are allowed to purchase only one immovable property in Malta unless it is situated in Designated Special Areas.
  • Immovable property is to be used for residential purposes
  • A copy of the notarial deed is to be submitted to the AIP section after its publication that the immovable property may not be sold in part, or otherwise into more than one dwelling house.


ACQUISITION BY BODIES 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. A commercial partnership established in and operating from an 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 and at least 75% of its share capital is held by a person (or persons) who is a European Union Member state citizen. 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.


PROCEDURE

All applicants need to:

  • Fill the AIP application form completely.​​
  • Produce a copy of the promise of sale or preliminary agreement of the immovable property being acquired, if entered into.

First-time applicants need to:

1. Fill in AIP application form completely

2. Produce a copy of the promise of sale, which is checked by a solicitor, and decides whether or not the TCN may apply for an AIP permit

3. Produce two passport size photographs, and a photocopy of the applicant’s particulars

4. Application is received by the department.

5. A police check is carried out on the applicant

6. Once the application is vetted, a letter will be sent to the applicant or his representative that the application has been approved and is ready for collection

7. Once the fee of 232.94 euros is paid the permit is issued and is valid for six months

8. Within the period of 6 months, the applicant must enter into deed of sale with property seller

Applicants who already owned Immovable Property need to:

  • Produce copy of deed of sale of previous immovable property.

Limited liability companies who apply for a permit need to:

  • Produce Memorandum and Articles of Association of the company.
  • Give details of shareholding directors.
  • Produce evidence showing that the purpose of the company is for the development of the economy of Malta.

When the application is approved, the applicant or mandatory will be informed by a notice. The applicant will then be issued with a permit against a payment of €232.94. The applicant may then enter into a contractual agreement to buy the immovable property.

FEES

Expenses involved in the purchase of property are:

  • Duty on documents: 5% of value of property payable in two stages: 1% with the signing of the preliminary agreement which must now be registered with the Inland Revenue to have validity, and 4% with publication of the final deed.

  • Legal Fees: 1% (approximately) of purchase price payable in two stages: 33% with the signing of the preliminary agreement and 67% with publication of the final deed.

  • €583 for the researches into title, liabilities etc.

  • €232.94 for the Acquisition of Immovable Property (AIP), a Government permit which a non-resident, who wishes to acquire property in Malta, must obtain.If you have found your property through the services of a Registered Estate Agency, then brokerage fees are only due by the seller; if the property has been found through the services of a private agent (broker), then you must pay 1% as a brokerage fee to this private agent.​ 





Last updated in June 2014
 Contact Name
Capital Transfer Duty Department
46, Monti di Pietà Buildings
Merchants Street
Valletta

 Telephone
+356 2299 8171

 Email