Buying Property in Malta and Gozo
Buy Property in Malta – Buying Real Estate in Gozo
Finding the right property for you has never been so easy. Use our search feature to save yourself time and to find properties that suit your needs. Just browse through our database of properties and if you find a property of interest simply contact the owner or agent directly by using the contact details provided.
Below are some guidelines to help you through the process of purchasing property in Malta and Gozo.
- >Property Purchase Information
- >Additional information for Foreign Nationals
- >Home Loans
Property Purchase Information
Questions to consider before starting your search:
- >What area would you like to live in?
- >What type of property would you like?
- >What property size best fits your current and future needs?
- >Would you prefer a more modern or a traditional home?
- >What is your budget and how will you finance your purchase?
Once you find the property you would like to purchase it is advisable to contact an architect to ensure the property is structurally sound.
The next step is to contact a licensed notary to draw up the promise of sale, which is a legally binding contract between the purchaser and the buyer. Notary fees usually range between 0.5% to 1.5% on the final property price.
Before signing the promise of sale be sure to check the following points:
- >The agreed price
- >Whether the property is freehold or ground rent has to be paid
- >What fixtures, fittings and furniture are included in the price?
- >How payment will be affected?
- >Are there any pending works that need to be completed?
- >Are all relevant permits in place?
- >Any deposits already paid are shown in the promise of sale
- >Duration of promise of sale
The Notary (employed by the purchaser) will, within 3 weeks of signing the promise of sale agreement, register the said agreement with the Commissioner of Inland Revenue and pay 1% of the sale price on account of Duty due by the purchaser on the final deed of sale.
The Notary will also carry out researches on the property and verifies clear legal title, assuring that there are no outstanding debts, hypothecs or liens on the property.
The purchaser must honour all the conditions mentioned in the promise of sale agreement e.g. Bank application for loan in good time, ascertaining that the property is covered by a building permit etc.
The vendor in turn must honour all the conditions that are mentioned in the promise of sale, which apply to him or her e.g. Completion of works agreed upon etc.
- >The deed is signed at the bank if a bank loan is required.
- >The contract of purchase is read out and if all is in order all the parties concerned sign it.
- >The balance due is paid to the seller. Remember that any deposits previously paid should be subtracted from the purchase price.
- >All outstanding fees and taxes are then paid.
- >Keys to the property are passed on to the purchaser.
- >The notary public registers the contract at the public registry (and the land registry if applicable).
Stamp Duty on the purchase price must be paid as to 1% on signing of the preliminary agreement and the balance on signing of the final contract, together with the notarial fees and cost of searches.
When the property being purchased is to be used as purchaser’s ordinary place of residence, stamp duty is charged at 3.5% on the first € 150,000 and 5% on any amount over € 150,000.
For any other property purchase, Stamp Duty is charged at 5% on the total value of the property.
No Stamp Duty is charged on the value of the movable property (furniture and fittings) being transferred with the immovable property.
Please not that these are just guidelines. Different circumstances may require different procedures. Your notary will guide you through the process and ensure that all necessary steps are followed.
Additional information for Foreign Nationals
- >Individuals who are NOT citizens of a European Member State may acquire immovable property after they obtain the relative permit in terms of Chapter 246 of the Laws of Malta from the Ministry of Finance.
- >Citizens of all European Union member states, including Maltese citizens, who have not resided continuously in Malta for a minimum period of five years, require a permit under chapter 246 of the laws of Malta to acquire immovable property for secondary residence purposes i.e. holiday homes.
- >The relative permit will be issued usually within 6 weeks, under the following terms and conditions:
- -The value of the property purchased must be above €101,551 in case of Apartments/Maisonettes and €169,205 in case of houses. These values are index linked and thus may be subject to revision.
- -The property 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. See Letting Property
- -The immovable property purchased may not be sold or otherwise converted into more than one dwelling house.
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, under chapter 246. Nor do they require such a permit to purchase immovable property required for their business activities or supply of services.
- >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.
- >If a loan is required this can be obtained from any local bank subject to status.
HSBC Bank Malta offers very attractive Home loan products. Visit the HSBC Malta Website to find out more about current rates and terms on all Home Loan products. You may also contact HSBC Call Centre on (+356) 2380 2380.
Bank of Valletta offer a professional management service to assist you in finding the appropriate financial option that best suits your needs and requirements. Contact them on (+356) 21312020 or visit their website www.bov.com
Banif have also designed each home loan package with unique benefits and competitive interest rates – so you can make the most out of your money. Please visit Banif direct on www.banif.com.mt or call them directly on (+356) 2260 1000 for further details.