Malta’s real estate market is booming, offering a range of properties for those looking to buy a house in Malta. Whether you’re a foreign buyer or a local, the process is straightforward, but it helps to understand the key steps. This guide provides an easy breakdown of how to buy a property in Malta, especially if you’re a foreigner.
Key Steps to Buy a House in Malta
If you’re new to the Maltese property market, these are the main steps you need to follow:
- Work with a Real Estate Agent: A local agent can guide you through the process, especially if you’re unfamiliar with the Maltese property market.
- Property Checks: Ensure there are no legal issues with the property, such as outstanding debts or mortgages.
- Preliminary Agreement: Once you’ve agreed on a price, you’ll sign a pre-sale contract and pay a deposit, typically around 10% of the property’s value.
- Final Contract: After completing the legal checks, sign the final contract, and the property is officially yours.
Having a local lawyer or notary can help streamline the process, and if you can’t be present, they can handle the paperwork for you through a power of attorney.
Special Considerations for Foreigners Who Want to Buy a House in Malta
If you’re not from the EU, there are a few extra steps when buying a house in Malta. Foreign buyers need an Acquisition of Immovable Property (AIP) Permit from the Ministry of Finance. There are also minimum property values to meet, such as around €70,000 for apartments and €117,000 for other properties. You also need to show that your funds come from outside Malta.
Non-EU buyers can only use the property for personal use, not for rental, unless it’s in specific areas like Tigné Point or Portomaso. Another option is to participate in Malta’s residency programs, which offer benefits for those investing in property.
The Buying Process to Buy a House in Malta
Here’s a simple breakdown of the buying process:
- Search for a Property: Use an agent or online listings to find your perfect home.
- Preliminary Agreement: Negotiate the price and sign a pre-sale contract, paying a 10% deposit.
- Legal Review: A notary will check for any legal problems with the property.
- Final Contract: You and the seller sign the final contract, completing the purchase.
Registering the House
After the purchase, you must register the property with the Maltese Land Registry. Your notary or lawyer will handle this for you, ensuring everything is in order.
Residency When You Buy a House in Malta
Buying a house in Malta can help you get residency. EU and non-EU buyers can apply for ordinary residency if they buy or rent property. Non-EU buyers who invest in high-value homes can also qualify for special residency programs like the Global Residence Programme, which offers a flat tax rate on foreign income.
Retirees also benefit from buying a house in Malta, as the country has favorable tax rates and a high standard of living. Malta’s Retirement Programme allows retirees to buy property and gain residency, with certain financial and insurance requirements.
Financing Your Home in Malta
If you need a mortgage to buy a house in Malta, foreign buyers must get approval from the Maltese Central Bank. You’ll also need to open a local bank account. Some banks may ask for a preliminary agreement before approving a loan.
It’s a good idea to get legal advice when applying for a mortgage, especially if you’re not familiar with the local procedures.
Additional Costs When You Buy a House in Malta
When buying a house in Malta, remember to budget for these extra costs:
- Stamp Duty: Usually 5% of the property value.
- Real Estate Agent Fee: Typically around 3.5% of the property price.
- Notary Fees: Varies depending on the transaction complexity.
Buying a House in Malta Made Simple
Buying a house in Malta is a simple process, especially with the help of a real estate agent and lawyer. From getting an AIP permit to finalizing the contract, following these steps will ensure a smooth transaction. Whether you’re looking for an investment, a retirement home, or a place to live, Malta offers a range of options that suit different needs and budgets. With the right guidance, you can easily buy a house in Malta and enjoy all that this beautiful island has to offer!
