• Why Malta?
    Property in Malta

    Buying Property in Malta

    Buying property in Malta as an investment or even for personal use is a considered a reasonable thing to do from any standpoint.

    In 2008, Malta became a member of the European Union and is one of the most politically stable countries in the world. Malta provides security when it comes to investments and banking practices are renown for being professional and discrete. Socially, Malta is a safe country with low levels of crime. Investing in the Maltese property market typically results in a positive outcome.

    The Maltese are said to be cautious investors and believe in owning property as opposed to renting. This led to an increase in property prices and has kept the Malta property industry firm. A increasing relocation from the southern areas to the central and northern areas of Malta have also contributed to new properties being continuously developed and older ones being restored and remodelled.

    Over the last ten years, the Maltese real estate industry has seen an annual improvement in property value, until the last few years in which the markets were influenced in a different way. The properties that fell in the low to middle price range have seen a slight decline in value whilst the high-end market did not see much change.

    Malta Property Real Estate is proud to have a large catalogue of properties on the market both for long-term and short-term letting. Evolving our services to include Maltese properties for sale is the next natural step. Our database of properties for sale in the Maltese Island contains various types of properties, ranging from apartments, maisonettes, townhouses, farmhouses, penthouses and villas, which can be found with or without pools or sea views.

    Several positive opportunities exist in each type of Maltese property investment, and Malta Properties takes pleasure in guiding valued patrons through their property journey.

    In contrast to unjust practices that may take place in other countries such as outbidding, also known as “gazumping”, our purchasing process is straightforward and uncomplicated, and it protects both the seller and the purchaser.

    All legal papers may be requested in Maltese or English, and Malta Properties can advise clients about a reliable Notary, but clients are free to employ a Notary of their choosing.

    Procedures and Costs

    Upon all property requirements being matched, the estate agent or seller is contacted. Once a suitable property is chosen and a purchase price agreement is settled on, the seller and purchaser sign a preliminary agreement. This agreement is binding both parties to sell/purchase immoveable property under the terms and conditions that were agreed upon, and is locally known as a ‘konvenju’. At this time the buyer is also required to pay 10% of the selling price as a deposit. In addition to this, a 1% stamp duty is also paid to the notary for registration of the purchase agreement and to pay the Commissioner of Inland Revenue.

    This purchase agreement is typically valid for three months, and during this period the notary performs due diligence in order to prove the legitimacy of the ownership and that no outstanding debts are attached to the property. Once this has been established, and the purchaser completes all the essential necessities like securing a ban loan, the Final Deed is drafted for the buyer and seller to sign. Upon signing of this deed, the balance due on the selling price and stamp duty is paid. With this, the sale is concluded.

    Throughout this period, Malta Properties is at hand to assist clients with any problems that might be encountered along the way. We have always had successful relationships with the foremost banks in Malta and are able to set up meetings for our clients with a bank of their choice.

    After the parties involved have fulfilled the conditions stated in the Preliminary Agreement, the date is agreed upon for the signing of the Final Deed. The site of the signing varies, depending on what the client wants. It could be held at their selected bank’s legal offices, or at a Malta Property office, or at the office of a Notary Public. The Final Deed is examined and verified, and the balances due are then settled accordingly. These include checking whether the balance due to the seller, the balance due for stamp duty, as well as 1% Notary fees to the Notary Public, have been paid.

    Below is a summary of expenses incurred whilst purchasing a house:

    1) Stamp duty: 5% on the total price of the selling price. First-time buyers benefit from lower stamp duty: 3.5% on first €116,468 and 5% on the rest of the buying price.
    2) Deposit on ‘konvenju’: 10% of the selling price.
    3) Notary charges: Usually 1-1.5% and are being paid on contract. 
    4) Recognition Fee (Laudemium): Due to vendor or third party.

    The Malta Budget of 2014 has established that first-time buyers who are Maltese citizens that have never owned an immovable property before 1st of January 2014 and who are going to settle their contract in 2014, will be exempted from paying the 3.5% duty on the first €150,000 of the property bought. First time buyers will save up to €5,250 on their first residence. 

    Benefits of Buying Property in Malta

    Buying property in Malta has many benefits, such as:

    • Resale of property is permitted
    • Repatriation of the full resale price and additionally, the profits, is allowed
    • Non-residents and non-Maltese citizens are granted mortgages for property purchase
    • The renting of a purchase property is allowed on the condition that it is worth more than €232,937 and if registered as a holiday home with a hotel or catering business
    • 15% tax payable on all rental income
    Assistance Provided by Malta Properties
    1. Help with finding the most suitable property according to the clients’ requirements
    2. The setting up of appointments to visit the properties chosen
    3. Assistance up until the property is found
    4. Negotiating with property seller in order to secure an optimal market price and payment terms
    5.  The setting up of an appointment to sign the Preliminary Agreement (known as ‘Konvenju’ locally) between both parties.