Real Estate Investment in Malta: One of the world’s smallest and most densely populated countries, Malta offers amazing weather, political stability, low crime levels, a location in the center of the Mediterranean Sea, and a calm, balanced way of life.
In Malta, you are never far from the seashore, while a different choice of property selection from traditional Maltese homes to new build developments allows everyone to find a property to their taste.
Country overview
Malta has the 3 largest islands: Malta, Gozo, and Comino. These 3 islands are occupied, with the Comino having only a few official permanent citizens while having a bird sanctuary and nature preserve. The country also has many small islands, all abandoned. Therefore, the two large urban areas available for the purchase of the property are “Valletta” and Gozo. Malta, often called Valletta, is the largest of the islands.
Related to the large main island of Malta, Gozo is significantly less developed and offers its unique personality. Gozo is considered the center of water sports, the top diving destination in the Mediterranean Sea, and is known for its rural and natural hills and ancient historical temples.
Official figures show that 97% of the local community view Malta as their first language, but 88% also speak English, making property purchases and everyday life in Malta very useful for worldwide buyers, investors, and tourists. Easily, legal documents that assist in the purchase of a property can also be in English or Maltese languages.
Maltese Type Properties
Malta offers a variety of properties to match different tastes. The traditional Maltese house name with marble floors and golden stone walls often conforms to the local tradition, and many traditional characters combine modern and contemporary interiors with beautiful aspects of the house. Apartments/flats are the most popular type of property in Malta.
Maisonettes, with private entry, are Maisonettes, which are flats that are usually located on the ground floor or lower floor of buildings. There are some exceptional new construction developments available for both apartments and villas to choose from.
Traditional house
Those who favor a more traditional style of property should look for traditional Maltese limestone properties, character houses, breathtaking Palazzo, and farmhouses, which usually come with acres of land. Many such buildings are different in their design and some have been around for many centuries. These properties are often renovated by new owners, adding to the uniqueness, character, and style of traditional Maltese homes featuring modern décor and modern appliances within the building.
You may have already come across such character Maltese buildings as they can often draw attention to Pinterest, Instagram, and other social platforms, as the combination of gorgeous interior design and exceptional architectural features makes them very attractive and unique homes.
Single-level bungalows with private pools and gardens are also a popular option, while they are looking for apartments, but can explore converted terraced houses, preferring more traditional properties.
Malta is a very small country that offers a great variety of flavors and busy tourist spots as well as villages and natural beauty to match the slow-paced environment. It is recommended to visit both the beautiful Valletta region and tranquil Gozo before deciding which place will suit your preferences.
Malta Individual Investor Program (IIP)
Under the criteria of the Maltese Individual Investor Program (IIP), the minimum price of a property in Malta should be EUR 350,000. This amount can also buy you an apartment, or a small house in some places. For those considering the luxury end of the real estate market, EUR 1,5 military properties. You can buy a beautiful house with direct sea access or a modern beautifully done apartment. Property prices have been rising in Malta for the past few years, from the influx of international investors to obtain a Maltese residence and therefore to buy or rent property in Malta, as well as the availability of land and the high value of Malta. Popularity. Reason among British retirees.
How to do Real Estate Investment in Malta
Once the proper property is found and the sale price is negotiated and accepted by the seller, the initial agreement needs to be signed, also known locally as Konvenju. The agreement obliges both parties to the transaction and specifies a date by which everything needs to be finalized.
Initial cost
At this stage, the following payments will be made by the buyer:
An agreed deposit, usually it is 10% of the value of the property
1% of stamp duty.
Both the seller and the buyer must work on completing their side of the deal specified in Kowaju, such as the buyer collecting any necessary forms and specifying in the initial agreement, also ensuring the buyer’s notary search. There is no inherent problem with the property.
Final cost
When the above process is completed, the final deed will have to be signed. A specific date will be arranged to sign the deed, which is usually in the notary’s office. At this stage, the buyer must transfer the remaining amount to the seller, as well as pay the remaining stamp fee and notary fee. Overall, approximately 8% of the value of the property should be allocated for purchase-related expenses:
- 5% of property value – stamp duty
- 1 – 3% of the value of the property – notary fee
- 0 – 1% – Finance fees and other fees like property registration
If the property is located in a registration area, the notary must also apply to the Land Registry with proof of ownership to enter the property by local law.
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Property in Malta for non-EU residents
Non-European citizens as well as European citizens who do not live in Malta will require a permit to purchase real estate in Malta. The AIP (Acquisition of Immovable Property) Permit should be issued by the Ministry of Finance. It takes 6 to 8 weeks to obtain a permit, and the minimum price range requires the property to be sold, which is € 103,906 for a flat or maid and € 173,129 for any other real estate.
Special area
However, both Malta and Gozo have several areas known as specially designated areas, where properties can be purchased without any restrictions and an AIP permit.
An ideal house in the Mediterranean Sea
Malta is quickly becoming a luxury hub in the Mediterranean Sea, with crystal clear waters, rich history, and beautiful real estate. The island attracts more than 1.6 million tourists every year, more than 3 times the number of residents in the country, and the attractive opportunities offered by investment and residency programs in Malta make this country an attractive destination for real estate investment.
