A property purchase in Malta can be a challenge for foreigners. It’s difficult to know the guidelines, how to do it as well as what’s acceptable you can expect. This guide will assist you to learn more about the process and what you can do to ensure your safety when purchasing a property in Malta.
The Malta property market
The property market in Malta is lively and offers a great selection of properties for lease and for purchase. There’s a variety of properties available including old Maltese houses to contemporary apartment buildings and luxurious villas.
Malta’s real estate market is fairly balanced and steady, due to the interest and enthusiasm of foreign buyers. Prices have dipped slightly during the downturn , but not crashing in the extreme.
What are the properties available on the market in Malta and where can you find them
There’s an array of modern, well-designed apartments, historical houses, converted palazzos villas, terraced homes and even maisonettes available.
Although it is only a short distance from Italy and some of the oldest towns, including their beautiful townhouses and traditional houses, remind us of Sicily but are more wealthy and therefore, the costs are much more expensive in Malta as compared to Sicily.
The island’s central hub The three cities of Malta – St.Julian’s, Sliema and the Three Cities – is one of the most well-known areas in Malta.
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The area is densely populated, which means that most properties are apartments, whether new constructed or renovated. Prices are significantly impacted due to the proximity of the property to the beachfront. This area is extremely popular for buy-to-let investors and the properties are offered at attractive prices.
To have more space and reduce the bustle, take a look to the east or west from the hub.
Gozo is more affordable in comparison to Malta when it comes to real estate.
It also offers old-fashioned homes, hidden in rural villages that are sleepy and a variety of exciting new projects including Fort Chambray. Fort Chambray renovation, which perfectly blends the island’s breathtaking beauty with the ease of high-end, modern apartment units, which overlook the harbor at Mgarr.
purchasing an investment house in the Malta’s Special Designated Areas
Particular Designated Areas (SDAs) for villas are located throughout the islands.
Villas are expensive in Malta because of the shortage of land. However, when you purchase one, you will get lots of value for budget – typically the plot which is included in the villa is huge and the house will be very spacious.
There’s a chance to purchase a house constructed in the seventies and remodel it. This can save you dollars, but these villas are not often offered for sale.
If you want to reside in traditional Maltese home, you have to stay away from the centrality towards the southeast and south. Traditional homes with character will cost more due to their exclusivity. However, it is important to take into consideration all the other costs associated from an old house.
Older homes in Malta could be as old as 400 years old, and have astonishingly high-quality stone walls and a small central courtyard. They usually are located right from the streets of the villages and towns that are old and don’t have much outside space, however if well-designed and renovated, they can be gorgeous homes brimming with the charm and character.
In addition to traditional properties and villas There are many developments that are being developed across the country. Most new constructions are situated inside Special Designated Areas and are typically high-profile, well-known developments because of their style features, amenities and features.
Properties within SDAs generally are modern and well-equipped homes generally the homes in an SDA is likely to have amenities available on site.
For instance, Tigne Point, a development located in Sliema is home to a huge shopping center and cafes offices as well as 385 apartments, and an island marina that is located on Manoel Island.
Due to their top-quality quality and convenient location, SDAs are very popular for locals as well with foreign buyers, and are forming diverse communities made up of Maltese and expats from various nationalities.
The process of purchasing a property and costs
The purchase of the property in Malta for non-natives requires the issuance of the AIP (Acquisition of Immovable Property) permit.
AIPs are not required for a home you want to purchase is located in an special Designated Area (SDAs) or will be used as your principal home.
But, once you have resided in Malta during at minimum five consecutive years, you are able to buy any property without limitations.
If you’ve made a decision to purchase the property that you would like to buy, subsequent steps are relatively easy and make purchasing property in Malta an easy process.
After a buyer has located an appropriate property, and the price, along with other conditions are agreed between the buyer and seller both the buyer and seller sign into a Preliminary Contract (the Promise of Sale, or “Konvenju”).
The Agreement is actually an agreement to sell made by the seller, and the promise to purchase by the buyer within a specified time.
The Agreement also outlines other conditions and terms including the approval of the loan an institution or structural check of the property conducted by an engineer or designer of buyer’s preference as well as other conditions.
In the course in the Agreement, Public Registry and Land Registry searches are conducted to determine the legal title to the property.
After signature of an Preliminary Agreement, the buyer must pay one percent of the sum total of stamp duty. The remainder will be paid upon the signing of the date of the final deed. Typically in this stage the buyer is required to make a payment of 10 percent of the amount agreed upon of the house.
The preliminary Agreement must be filed at the Commissioner of Inland Revenue within 1 day of the date of signature.
If the search for the property have been completed successfully and no issues have been uncovered that could make the purchase unattainable The Notary will then draft the final sale deed.
Following the signature of the final deed at the time of signing, the buyer pays the funds to the seller, and the keys are given to the buyer. This is the final step in the ownership transfer.
When buying a house, one must take into account the cost of stamp duty and registration fees, notary fees for property searches, legal fees as well as a portion of the commission paid to agents. In Malta the buyer is take no part in the fee of the agent because the fee is fully paid by the seller.
The stamp duty rate is five percent. legal fees are 1.5 percent Agent fees (paid by the vendor) 5 percent, plus VAT.
If the house you are looking to purchase is a brand new construction, you’ll have to plan for the construction of a brand new kitchen as in Malta kitchens aren’t included in the purchase price. If you buy an older house and you want put aside some funds to purchase heating and air conditioning.
CEBI, Level 3, Dar Ġuzeppi Zahra, University of Malta, L-Imsida MSD 2080, Malta