Is buying luxury property in Malta the best investment?

Malta is such a tiny island that were it not due to its location, which is situated the middle of southern Europe in northern Africa it would easily been left unnoticed.


Malta is a tiny island that would not have been for its enviable geographical location the middle of southern Europe in northern Africa it would be left out. The island is blessed with additional advantages to its name. It has a Mediterranean climate and food for instance. A cosmopolitan view of life, where people are more fluent in their own native Maltese language, and where English spoken is second in. Sports are abound, culture thrives and art is everywhere. the educational standards are very excellent. The safety of Malta is its second word and foreigners are able to enjoy the benefits of taking a leisurely stroll at sunset an absolute delight that is not available elsewhere. The possibility that Malta has consolidated its European position through its accession to the Euro-zone indicates that it is an additional European nation worth noting.

What is the reason behind Malta as a Luxury Destination?

Why is that? Being small doesn’t mean that the country isn’t poor or that its possibilities are limitless. In fact, Malta’s performance in the field of finance and economics in recent times has proven that the standard of living standards on Malta is still high. It is certainly enough to support those who are seeking luxury who regularly test staying in Malta. If they’re looking for a quick visit as part of a costly cruise, or they are there to explore the possibilities of future business ventures or retirement, the rich enjoy the benefits of Malta and the property in Malta and the majority of them choose to stay at least for a short period each year.

Luxury Developments and SDA’s

The most effective way to know more about a place is to reside in it. The decision to buy luxury property for sale in Malta has never been easier for EU citizens or non-EU citizens. This is due to what the local real estate industry refer to as SDAs. They are specially Designated Areas in which investors from abroad can benefit from a variety of advantages. If you are in the wealthy foreign buyers looking to purchase property in Malta, you are able to have the same rights as those Maltese citizens benefit from. There is no restriction to the amount of properties you can to buy and you’ll be able to ultimately rent out these properties at your choice.

There are currently several dozen SDAs in Malta and Gozo which comprise luxury commercial and residential areas like Smart City, Portomaso, Fort Cambridge, Fort Chambray and many more.

Maltese Procedures for Property Purchase

It is a simple process that is monitored and in compliance with the law. Once you’ve spotted an property you might be interested in purchasing then you can sign an Promise of Sale agreement in the presence of your agent for real estate as well as the seller, and a notary for your trust. The buyer is required to pay a certain percentage (usually between 10 percent and 30 percent) of the final price at the time of signing the contract of sale. The duration of the time between the date of signing this agreement and signing of the closing sale deed is negotiated between you and the seller. It could vary from the standard minimum of three months, to the maximum of six months. In any case extensions are possible as are longer time periods dependent on whether the property you’re buying is planned or in shell project, provided that both parties have agreed to this and sign it again by a notary.

Promise Of Sale

It is crucial to consider the Promise of Sale period is vital as it has been set to have enough time for the notary to complete the notarial searches in accordance with the law. They will determine a number of tenets including that the property is not subject to be handed over the new owners and it’s built in accordance with the guidelines, such as health and safety rules.

Finding a Bank loan

The need for a Bank Loan could be required for you if you are an overseas buyer. the real estate professional in Malta can assist you in getting this loan over the time of the guarantee of sale. Non-residents of Malta purchasing a property must contact the bank from which they are planning to obtain a loan to learn about the specific conditions for loans, however generally, home loans can be the maximum limit of 20% of the value of the property and repayments for loans have to be paid back until retirement age. The rules can alter based on the rules and bank permits. There will be a range of essential documents to provide when you apply for a mortgage including evidence of income, a reference from the bank, an architect’s appraisal report, bank statements promise of sale agreements as well as passports and other documents that are standard:

Final Deed of Sale

Final Deed of Sale is only executed after the notary has cleared all papers and documents and when any bank that is involved in the transaction has been identified through its extensive research and documents. When that deed has been signed by buyer and seller before the agent for the property and notary the notary will confirm the final payment has been made and then sign the deed in accordance with the requirements by law.


The cash due to third parties by you as a buyer may include notarial charges, fees for legal searches, taxes stamp duty, and other fees:

Government stamp duty 1percent is due in the first agreement, and 4% on the deed’s finalization; The total amount is five percent of the value of the property.
Around 1% of cost of buying the property is paid by the notary.
About EUR582 to be paid out as disbursement for the study of title, liabilities and other related issues based on the character of the property and the time it was constructed;
EUR233 (if needed) as a charge to obtain an AIP permit;
Fees for agency are generally paid by the vendor
Legal fees, as applicable, must be paid to the company using these services.

Acquisition of Immovable Property

It is the AIP Permit translates into the Acquisition of Immovable Property Permit and is primarily based on the type of property that you are buyingand the function. Primary residences, secondary residences SDA businesses, properties, and all other types of property are controlled by a particular permit when you’re a non-Maltese, or a non-EU citizen who has not resided in Malta for five consecutive years.

Capital Gains Tax

It is the Capital Gains Tax which may be called CGT of the amount of 8.8%, is payable on a property that is sold. If the property is purchased and used as personal residence and used for at least three years before it is sold, the property is tax-free. There are other exemptions to this rule, contingent on the nature of the owner (company and private) and the amount of time that the property has been held by the owner.

Oyster Christie’s International Real Estate Malta
Head Office: Block 15, Level 0, Vjal Portomaso, Portomaso, St. Julian’s | Sales Office: The Hilton, Vjal Portomaso, St Julian’s, PTM 01, St Julian’s, Malta

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