Frequently Asked Questions
Most frequent questions and answers
General
Malta boasts a top-performing and stable real estate market, featuring consistent capital and rental income growth. Over the past five years, even amidst the pandemic, Malta’s property prices have risen at an average rate of 5.1% per year.
Absolutely! You can buy property anywhere in Malta without being a resident. However, you will need to apply for an Acquisition of Immovable Property (AIP) permit. Additionally, properties located in Special Designated Areas can be bought without an AIP permit.
Yes, depending on the property’s value and your specific needs, you can apply for either permanent residency or Maltese citizenship through the Citizenship by Investment program.
As an international buyer, you have a wide range of options when looking for property in Malta. Choices include luxury apartments, Mediterranean villas or bungalows, traditional townhouses, magnificent palazzos, terraced houses, and houses of character. Your choice of property and location will depend on your desired lifestyle.
Obtaining a home loan in Malta is possible through most local banks on the island. You’ll need to submit an application demonstrating a steady and regular income.
Yes, through our network of trusted partners, acquiring real estate with cryptocurrencies has been made feasible.
Currently, a 5% stamp duty applies to the property value or contract price. Additionally, you’ll need to cover notary fees, search fees, and architect fees.
To rent out a property in Malta, you will need to prepare the property by ensuring it meets the required standards, register it with the Housing Authority, advertise the property, screen potential tenants, sign a rental agreement, and collect rent.
Yes, there are regulations governing the rental of property in Malta. For instance, rental properties must meet minimum standards and be registered with the Housing Authority. Additionally, rental income is subject to tax, and landlords must declare this income on their annual tax returns.
Yes, rental income is subject to tax in Malta. Landlords must declare their rental income on their annual tax returns and pay the appropriate taxes or pay a flat rate of 15% on the gross income.
EU Residency & Citizenship
The Malta Permanent Residence Programme (MPRP) offers reputable foreign individuals and their dependents the opportunity to obtain permanent residency status, allowing them to reside, settle, or stay indefinitely in Malta.
Third-country nationals who are not part of the EEA or Swiss nationals are eligible to apply for the MPRP.
To qualify for the MPRP, applicants must have a clean criminal record, possess assets worth at least €500,000, pay relevant fees and contributions, and fulfil other requirements such as renting or purchasing property and obtaining health insurance.
Yes, to be eligible for the MPRP, you must rent or purchase a suitable residential property in Malta and maintain it for a specified minimum period.
The Citizenship by Investment program allows foreign individuals and their dependents to obtain residency and citizenship in Malta.
Eligible applicants must have a clean criminal record, pay relevant fees and contributions, and fulfil other requirements such as renting or purchasing a property.
There are two options: a fast-tracked route taking 12 months or a longer option of 36 months. Residency must be held for the respective minimum periods before citizenship is granted.
Tax & Incorporation
Malta offers a range of incentives to attract foreign businesses, including tax refunds for shareholders, tax exemptions for holding companies, and reduced tax rates for high-value-added companies. This makes Malta an attractive location for businesses looking to establish a foothold in Europe.
Malta’s favorable tax system, stable political and economic environment, and strategic location in the Mediterranean make it an ideal location for businesses looking to relocate to a business-friendly and well-connected hub.
While the corporate tax rate in Malta is 35%, foreign shareholders can receive a refund of up to 6/7ths of the tax paid, resulting in an effective tax rate of 5%. This makes Malta an attractive location for businesses looking to maximize their profits.
As a member of the European Union, Malta provides businesses with access to the EU market and beyond, making it a strategic location for international trade and investment. This can provide your company with a significant advantage in today’s global economy.
Setting up a holding company in Malta provides benefits such as tax exemptions on dividends and capital gains, access to double taxation treaties, and a robust legal framework.
Malta has a well-educated, skilled, and multilingual workforce, making it relatively easy for businesses to find and hire employees. This provides your company with access to a talented pool of workers who can help drive your business forward.
Malta has no specific restrictions on business types and actively promotes itself as a hub for innovative industries such as tech, financial services, and healthcare. This makes Malta an attractive location for businesses looking to tap into Europe’s growing digital economy.
Opening a virtual office in Malta can provide your company with a registered address, mail forwarding, and other administrative services. This can help your company establish a professional presence in Malta without the need for a physical office.
The Buying Journey
The time it takes for you to buy a property in Malta may vary based on several factors. Generally, if go through bank financing it takes around 3-6 months, if you are not using bank finance, it can be significantly faster.
When purchasing a property in Malta you will need to search for the ideal property for your requirements using a trusted real estate agent, make an offer, appoint a notary public, conduct due diligence, sign a preliminary agreement called a Konvenju or Promise of Sale, and then complete the final deed of sale.
To buy a property in Malta, you’ll need a valid passport or ID card, proof of income, and proof of funds. Other documents like a residency permit or power of attorney may be required on a case-by-case basis.
The preliminary agreement in Malta is a legally binding contract between you and the seller that outlines the terms and conditions of the sale. It is signed prior to the final deed of sale, giving assurance for both the seller and buyer.
The notary public in Malta is a legal professional who supervises the buying process and ensures that all legal requirements are met, similar to that of a property lawyer or solicitor. They undertake property-related searches, draft contracts, and review legal documents on the buyer’s behalf.
The due diligence process when buying a property in Malta involves conducting a comprehensive investigation of the property to ensure it is free from legal or financial issues.
The duration for completing the due diligence process in Malta varies based on different factors. On average, it takes 2 to 3 months to finalise.
The final deed of sale in Malta is a legal document that transfers property ownership from the seller to the buyer.
Being physically present in Malta is not mandatory for property purchase. However, visiting the property and meeting the notary public in person is recommended for a seamless buying process.
