How To Sell Inherited Property In Malta: A Short Guide
Inheriting property is often both a blessing and a burden. You may not have the funds to maintain it or make any modifications, but you don’t feel comfortable simply getting rid of the house that was passed down from your family. Selling it becomes your only option if you want to keep up with its maintenance costs, which means navigating Malta’s complex legal system for real estate transactions to find a buyer who will pay the right price. But don’t worry, in this blog post, we’ll provide an easy-to-follow quick guide on how to sell an inherited property in Malta – covering everything from finding buyers and managing taxes/legal documents/contracts all the way through to obtaining approval from Maltese authorities!
General Conditions When Selling Property In Malta
The process of selling your property is straightforward and secure. Once you identify a buyer and come to an agreement on the sale price, terms, and conditions, you need to execute a Promise of Sale Agreement with them. This legally binds both parties until they sign the final deed of sale document.
After the Preliminary Agreement has been signed, it is customary for buyers to place a 10% deposit of the total price with either a notary or estate agent. Should they fall through on signing the final deed without any legal basis, this percentage will be issued in your favor as compensation.
Property owners have complete freedom in determining the sale price of their property, including all proceeds from movables. When it comes to foreign nationals selling real estate, they can repatriate the entire sale abroad. Just bear in mind that a notary must receive clearance from local tax authorities before signing off on the final documents.
Conditions When Selling An Inherited Property In Malta
In Malta, when a person inherits immovable property as part of an estate, it is customary to have a notary register a deed of causa mortis. This document officially declares the ownership of the property and provides the Maltese government with a value for it. Representatives from the Maltese authorities regularly review this value to ensure that all assets are assigned current market values. It’s just one of many ways in which the government oversees and controls property transactions within the country.
In order to get the necessary valuation, you must also have a certified Land Registry site plan with the correct measurements from an architect. With a vacant property, your best bet is to reach out to an established real estate agency and get them to estimate its current market value. At Dhalia, you can find the right professionals to make the complicated process of selling your inherited property easier by offering a comprehensive market analysis to ensure your home is accurately valued.
You may think that selling a run-down property will be daunting, but there are simple ways to make it more appealing and increase its value without spending a fortune. The front yard is often the first thing people see when visiting a property. It should be refreshed and free of dead vegetation to make it attractive, with any remaining clutter removed. Another great way to spruce up an older home is by replacing broken light bulbs, which can make the interior look much brighter and more modern.
If your property is in top-notch shape and includes some furniture pieces, we recommend you professionally stage the home. This will make an impressive impact on potential buyers and give it a boost of marketability.
When it comes to selling your inherited property, you’ll be subject to the following conditions:
If you inherited a property before November 25th, 1992, and are looking to sell it, you may be subject to a withholding tax of 7%, which is the final rate based on the transfer value.
If the property was inherited after November 25th, 1992, then you can choose to pay either a 12% withholding tax on the discrepancy between transfer value and acquisition cost or opt for a 10%, 8%, or 5% final withholding tax, depending on when it was bought.
There are various cases wherein sellers may be able to receive a deduction or be exempt from the withholding tax rate, such as if the immovable property were the residence of a deceased parent. This is why it’s important to work with a registered and accredited real estate company, such as Dhalia Real Estate, to guarantee that you receive the necessary guidance and assistance with meeting Malta’s tax regulation system.