Buying in Malta – maltasaleproperty.com

Step by step process of buying a property in Malta

Finding the right Real Estate Agency to signing the final deed of sale.

1. Finding the right Real Estate Agency to assist you in your property search

While property can be purchased directly from a vendor (owner) as a non-Maltese citizen it is advisable to work with a registered and accredited Real Estate Agency that can connect you with an experienced and qualified agent to assist you in finding a home that best suits your needs.

2. Selecting an Architect

Once you have decided on the property that you wish to purchase it is important to find an architect to inspect the structure of the property and ensure that everything is in good order.

3. Selecting a public notary

A notary will prepare the documents for the Promise of Sale (more about this in the next section). The notary will also inspect all of the paperwork and check the title while preparing a final deed of sale.

4. Sign a Promise of Sale

Once you have decided on the property that you wish to purchase it is important to find an architect to inspect the structure of the property and ensure that everything is in good order.

5. Sign The Final Deed of Sale

A final deed of sale will be signed at the Notary’s office, upon which you will be required to pay all outstanding funds for the purchase as well as the real estate agency fees, Notary and Stamp Duty Fees associated with the purchase of a property. If there is a bank loan involved, then the final deed will be signed at the Bank’s office.

It is important to note that if the property is located outside of a Special Designated Area (SDA) also known as a Lifestyle Development and you are a non-EU citizen or are an EU citizen who has been living in Malta for less than five years then before you can sign the promise of sale, you will need to apply and acquire an AIP permit which will give you the right to buy your property.

What are the Costs & Fees when Purchasing a Property in Malta?

Architect Fees

You need an architect to inspect your property and make sure it’s in good order. You also need the architect to get you a site plan and fill out bank documents if you take a home loan. Architect fees are usually between €200 and €500. Once you have signed the final deed and taken ownership of your property the only fees left to pay are your Stamp Duty, Notary Fees and Estate Agency Fees.

Stamp Duty

Stamp duty could be considered a form of property tax in Malta. Malta stamp duty is calculated at 5% of the value of the immovable property. 1% is payable upon signing the promise of sale and the remaining 4% is payable upon the final signing of the final deed of sale.

Notary Fees

Notary fees are paid to the notary for preparing all the necessary documentation for the promise of sale and the final deed of sale. The Notary carries out all due diligence checks necessary to ensure the successful sale and transfer of the property. Notary fees are usually 2 – 2.5% of the total value of the property.

Energy Performance Certificate (EPC)

An EPC certificate would need to be applied for. This is the responsibility of the Seller and is obtained from an Energy Performance of Buildings (EPB) assessor.

Estate Agency Fees

The majority of Real Estate Agencies in Malta charge a 5% + 18% vat fee of the property purchase price. This would be already included in the price when advertised on social media.

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SDA – Special Designated Area

A Special Designated Area (SDA) is a particular status that is granted to a development of apartments, houses, villas, and penthouses within Malta or Gozo.

Under the terms of the status, the houses can be purchased by both EU and non-EU citizens without the need for an AIP permit. This means the individual can purchase as many homes as they wish, and they can also rent them out as they deem fit, without any issues.

These developments are extremely popular, not merely due to the administrative benefits. They are predominantly high-end, luxurious complexes that are in desirable areas served by many amenities. Most offer resident-only swimming pools, gyms, parking, security and CCTV, shops, and car-free zones.

Properties in SDA’s provide a smart investment, a superior standard of living, and impeccable and stylish surroundings in Malta’s most sought-after areas.

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AIP Permit – Acquisition of Immovable Property

Non-EU/Malta residents who wish to acquire property in Malta must obtain a permit for the acquisition of immovable property (AIP). This permit allows non-residents to purchase property in Malta, subject to a number of conditions.

How to apply for the AIP permit?

After identifying the immovable property which they wish to purchase, the buyer will then enter a ‘convenium’- a written agreement. A copy of this must be attached to the AIP application form which can be collected from the Capital Transfer Duty Department of the Inland Revenue Division. The fee payable on the issue of a permit is €233 and is independent of the value of the property being transferred. The permit will be issued within 35 days, provided that the application is correct as per its Quality Service Charter.

Conditions when applying for the AIP permit

To apply for the AIP, the applicant must purchase an apartment or maisonette for a minimum of €143,410, or €247,701 for the purchase of any other immovable property. If the property is bought unconverted or in shell form, then the minimum value must include the costs of finishing.

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Whether you want to rent out your property, want to sell or buy a property, at The Real Estate Company you are at the right address.
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