When purchasing property as a foreigner, you will need the services of trusted professionals to get the process done correctly. Choosing the right professionals will save you time and money, while also ensuring you don’t find problems down the line.
When buying property in Malta, the law requires that the seller presents an energy performance certificate to the buyer. This document informs the buyer about the energy performance of a building. Certificates are prepared by a qualified assessor who is registered with the Building Regulation Office. The certificate is valid for 10 years unless there are significant changes made to the building.
Individuals who obtain Maltese citizenship can retain “non-domiciled” status and benefit from an advantageous tax system of the Maltese Islands. As a general principle, Maltese residents who are non-domiciled are only required to pay tax on income earned or received within the country.
People who are residents with non-domicile status, with an income of €35,000 or more annually arising outside of Malta which is received in Malta, must pay a minimum of €5000 in tax. Regular tax rates apply to those with an income of less than €35,000 per year.
Global residents can benefit from Malta’s double taxation agreements with most EU countries, USA, Canada, and Australia.
Any non-Maltese national purchasing property in Malta which will not be their primary residence will require an AIP permit.
EU citizens purchasing property in Malta as their primary residence do not need an AIP permit.
If an EU citizen has resided in Malta for more than 5 years, then they will not require an AIP permit, whether this will be their primary residence or not.
If an EU citizen is purchasing property in Malta as a second home (and therefore not as a primary residence), then they will require an AIP permit.
The minimum property values are:
These values are subject to change according to the Property Price Index.
A fee of €233 is charged per permit, and the permit is usually issued within 35 days.
Immovable Property (AIP) permit from the Maltese government. When buying property in an SDA this permit is not necessary. Anyone may buy property in Malta within special designated areas, without restrictions or permits.
*Stamp duty is exempt on the first €175,000 of the price, and 5% on the remainder, when purchasing a place of residence as a first-time buyer.
Real estate agency fees are the responsibility of the vendor.