Buying Property in Malta and Gozo

Malta and Gozo are becoming increasingly popular locations for the purchase or rental of second homes.
Situated at the very heart of the Mediterranean Sea, with easy access from all major cities in Europe, North Africa and neighbouring states, the islands have many advantages to offer, including the following:

• An excellent climate with pleasant all year round weather.
• Genuinely friendly and hospitable people who will make it easy to integrate within the local community.
• Very low levels of crime which make Malta one of the safest places in the region.
• A member of the European Union since 2004, Malta is an independent republic enjoying political stability.
• English is one of the two official languages of the Islands and is spoken fluently by everyone.
• The island boasts a high standard of hospital and medical services, both private and public.
• Excellent schooling, often exceeding international standards, with a choice of English-speaking schools and University.
• A relatively low cost of living.
• A stable property market offering a wide variety of properties in all price ranges, and good prospects for capital growth.

These, together with an abundance of historical and cultural attractions, crystal clear seas, a variety of sporting facilities (including world class diving) and a lively calendar of events, make these islands a favourite for those seeking their dream ‘Place in the Sun'. Moreover, the residency conditions are very attractive and include a favourable tax regime and the absence of Rates or Council taxes.

LEGAL

• Procedure of Property Purchase in the Maltese Islands
• Purchase Expenses
• Selling Expenses
• Acquisition of Immovable Property Permit for foreigners

Procedure of Property Purchase in the Maltese Islands

Once a property to the liking of a client is identified, and an offer is made and accepted, as well as terms and conditions are agreed upon - then a preliminary agreement (Konvenju) is signed. This is an agreement whereby the vendor and the purchaser bind themselves to sell or to buy the property at an agreed price and within an agreed timeframe.

A deposit (typically but not specifically 10%) is paid and is held by the notary, estate agent or vendor depending on what has been agreed.

The preliminary agreement (Konvenju) is usually written by and signed in front of a notary - being the only official allowed at law to publish deeds.

The agreement may be subject to some conditions (e.g loan, architects approval etc.,) as agreed by the parties, but a time frame is usually given within which these are valid so as not to leave the vendor in uncertainty for too long.

Once the notary has carried out the searches on the title of the property, and bank loans are approved - then the contract can be signed.

A loan would involve a sanction letter and it is important that all insurances are taken out and conditions of sanction are met well before contract due date to avoid last minute hiccups.

A typical time frame between preliminary agreement (Konvenju) and contract is 3 - 6 months. This time frame an be much longer or shorter as part of negotiations.

If a bank hypothec needs to be cleared on contract, then the contract will usually be held at a bank - although the notary might collect funds due to the bank him/ herself, in which case this would not be necessary.

If a loan is to taken out to purchase the property, then the contract will be held at the issuing bank.

Purchase Expenses

1. Stamp Duty as per table below:

2. Notarial Fees

Selling Expenses

1. Agency Fees as agreed
2. Capital Gains if applicable as per table below:

Acquisition of Immovable Property Permit

Foreign purchasers might or might not need permission from the Ministry of Finance (AIP Permit). See table below: