What To Know Before Buying A Commercial Property In Malta

What To Know Before Buying A Commercial Property In Malta


In recent years, Malta has also become known as a hub for innovative start-ups and a leader in the fields of blockchain technology and digital nomadism. With its favorable business environment and growing reputation as a leading economic hub, Malta is an ideal destination for businesses looking to unleash their potential.  The island also has a long and rich history of being favourable to foreign business owners for a variety of reasons, but the number one motivation is always the legal and tax system. This small Mediterranean island has been praised for its financial framework and online iGaming sector, as well as its stable credit rating. This provides business owners with a sense of stability when choosing Malta as a location to invest in commercial properties.

How To Buy A Commercial Property In Malta

In recent years, Malta’s real estate market has been booming, with property values steadily rising. This trend is unlikely to change in the near future, as the Maltese population continues to view real estate as a good investment. Not to mention, the country’s proximity to Europe and Africa makes it an ideal location for businesses that want to expand their reach to new markets. With its strong infrastructure and highly skilled workforce, Malta is well-positioned to continue attracting local and foreign businesses in the years to come.

If you are thinking of purchasing commercial property here, the services of a reputable estate consultant are invaluable. A good agent will be able to search the local market for the right property on your behalf and guide you through the process from start to finish. Here are the main steps you need to look out for when buying a commercial property on the island:

Know What You Want

Before you meet with your consultant, you need to have a general idea of the property you want to purchase. You may want to consider the amount of space you require as well as any extra rooms such as board rooms, break rooms, and storage rooms. Since your choice will influence your future operations, as well as any plans for expansion, it’s best to consider each detail carefully.

Search The Market

After you have all your requirements down, your agent will assemble a portfolio of candidates that will suit your interests, and together, you can go and see the property in person. Once you have found a space that meets your demands, the agent will help to negotiate the terms of the lease on your behalf. It is important to remember that the commercial real estate market is very different from the residential market, so it is crucial to have experienced and knowledgeable representation.

Prepare The Documents

Once you’ve found the perfect piece of property for your business, there are still a few hurdles to jump. You’ll need to complete all the necessary paperwork and applications. Your real estate agent will be able to help you with this, as they know all the notaries and state departments that need to be involved. 

First, the Preliminary Agreement ( or “Konvenju” ) will be drawn up by both sides. This is a legal contract that binds both parties to finalize the transaction by a certain date. After the contract is signed, the buyer needs to pay 1% of the stamp duty as a partial payment, and then 5% upon signing the final deed. The 10% deposit will also be due at this time.

It’s also crucial to remember that having the right permits for your business is your responsibility to obtain. Once everything has been completed and approved, you’ll sign the Final Deed, and together with your agent, you’ll go over the entire contract to make sure all parties are in agreement. Then, the remainder of the purchase price will be paid as well as other costs ( stamp duty, notary service, etc. ).

commercial property types

Commercial Property Types

Commercial property in Malta is viewed as a different sector divided into sections based on the property type. Usage classes are required to be known by the buyer in order for them to get the right permits and be able to open their business on the island. Otherwise, a lengthy process of reclassification will take place and will likely delay your plans by a long shot.

To avoid any headaches down the line, make sure you do your research well and engage the services of a reputable agent. They will be able to guide you through the process and ensure that everything is on board. With that in mind, here are the main commercial property types you can opt for:

Category A

Class 1 – Dwelling for residential accommodation, lodging, or personal residence, part of which is also used for a commercial occupation or to render a service. 

Category B

Class 2A – Residential Institution – Residence for people in need of care on a temporary or permanent basis, such as a hospital or nursing home.

Class 2B – Non-residential Institution – museum, library, or public hall.

Class 2C – Educational Institution – school, nursery, day centre, etc. 

Category C

Class 3A – Guesthouse, Palazzino, Boutique Hotel, hostel, etc.

Class 3B – Hotel

Class 3C – Assembly & Leisure Premises – cinema or theatre, health club, etc.

Class 3D – Marine Leisure Premises for mooring, sailing, diving, or any marine-based sport or recreation.

Category D

Class 4A – Offices

Class 4B – Retail premises of all retail goods and their display except motor vehicles.

Class 4C – Food & Drink Establishment wherein no cooking is allowed.

Class 4D – Food & Drink Establishment wherein cooking is allowed.

Category E

Class 5A – Light Industry including product/process development, crafts, etc

Class 5B – General Industry as in the industrial process.

Class 5C – Specialised Industry as in the processing of metals, minerals, etc. 

Category F

Class 6A – Storage & Distribution

Class 6B – Boatyards 

Category G

Class 7 – Agriculture – crops or animals

Category H

Class 8 – Aquaculture

Find The Right Property For Your Needs With Dhalia Real Estate

With plenty of foreign companies choosing to set up on our shores, Dhalia Real Estate Services is at the forefront of providing commercial property for sale in Malta. We work closely with developers and contractors with whom we have developed a strong working relationship over time. This allows our agents to keep informed about exciting new office developments and commercial blocks.

Since 1982, we have assisted in the sale or lease of all types of commercial real estate:

  • Retail shops and complexes
  • Food and beverage outlet
  • Office spaces and blocks
  • Hotels, warehouses, and land

Our team of experienced consultants at Dhalia has been carefully selected to handle property sales for the commercial sector. We are highly experienced in brokering deals at various levels and across a full range of commercial property types. Our experience spans from private to institutional and corporate investors. You can work with us to find space within a major business development, which comes with its own infrastructure and equipment, or if you’d like we can also help you find an independent office.