Buying property for sale in Malta is not as complicated as one may think it is however, we have created a guideline listed below to assist you and to take in to consideration when taking that important decision to invest here in Malta.
Buying a Property in Malta:
- Type of Property
- Property on plan or currently on the market
- Finished property /or in shell form
- Preferred location / s
- Neighborhood and Amenities.
- Internal / External area (sqm)
- Number of Bedrooms and bathrooms
- Price indication
- Financing the property - Do you require a home loan
- Tax / duty applicable – Any available Government incentives.
- Target date for the purchase of the property
- Is the property being purchased for personal residential purposes or as a Rental investment (Buy to Let)
With many years of experience in the Real Estate industry, we understand that every client is different, has various requirements and of course different budgets to invest, thus Inside Homes Real Estate is in a position to assist you in your property search, as we believe that our services here are to assist you to purchase the property of your choice and not to sell you a property. Our focus is on you and your requirements and it is our goal to ensure we find you the property you are searching for.
Once the decision has been taken and the Property has been identified and chosen, below you may find the next steps in the Property buying procedure in Malta.
Property Buying Procedure
Buying a property in Malta as a Non-EU citizen may differ slightly to buying a property by EU citizens/local and we are here to provide you with all the information and guidance with regards to valuations and market analysis. Malta offers a variety of schemes, incentives and financial assistance that make the buying experience a whole lot easier to purchase a property in Malta and Gozo. From first time buyers to second home owners and property investors, we have a wide range of alternatives for all.
Once you have identified and chosen the property, negotiated and agreed the price for your new property and your finances are in place a ‘Promise of Sale’ or ‘Konvenju’ is drawn up by the Notary to secure an agreement between yourself as the purchaser and the Vendor to buy / sell the property within an agreed period of time and subject to various stipulated conditions. All agreements and contracts are written in English and / or Maltese.
Standard payments made during the promise of sale are the 10% deposit of the agreed purchase price and the 1% provisional stamp duty. Both payments offset against the final balance due on the final deed. Throughout the agreed time period as stipulated on the promise of sale the Notary ensures that all the legal searches and various related verifications are up to date, valid and registered with the competent authorities.
Once the Notary has completed the said legal checks and collated all the necessary documentation, the purchaser and the vendor in conjunction with the Notary agree a day and time to sign the final deed and once payments have been issued, the contract is declared complete and is transferred to the new owners including the handing over of the keys to your new home or investment.
Buying Property Expenses
There are a number of expenses that come along with purchasing a property in Malta, below we have compiled a list to give you a guide line of what to expect during the buying process:
- Agency fee / or broker’s fees are payable by the vendor
- If the Acquisition of Immovable Property (AIP) Permit is required (Non EU citizens), a fee of € 232.94 is payable to the
- Ministry of Finance (This is usually done by the Notary)
- The standard deposit required at the ‘promise of sale’ agreement is 10% of the agreed property purchase price
- Stamp Duty equivalent to 5% is not paid on the first €150,000 of the immovable property price (applicable to Maltese and EU citizens taking up permanent residency in Malta, declaring their new property as their first primary residence), the balance is payable at 5%.
- Second home owners, Non-permanent residents and non EU citizens are requested to pay 5% of the total value of the property.
- Recognition Fee equivalent to one year’s ground rent to be payable on immovable property subject to ground rent if applicable
- Notary Fees payable vary approximately at 1% to 2.5% of the property purchase price.
(Taxes and interest rates may change from time to time and Authorities may issue tax incentives, therefore it is highly recommended to check prior to proceeding with the promise of sale)
At Inside Homes, we offer a wide range of services besides the sale of a variety of property types including Villas , Apartments, Penthouses, Farmhouses, Houses of Characters and Maisonettes, we further offer a wide selection of ‘buy to let’ options. The rental market is vibrant and the return of investment is between 5% and 12%, you can further rely on our professional assistance to manage and rent the property.
Our website provides you with a vast range of property options, details and photos are only a click away, alternatively feel free to contact one of our Property consultants to assist you in your property search.
Contact details: click here
Property Value in Malta
Throughout 2014 and 2019 Malta has experienced one of its best economical periods, interest and investments have constantly been on the increase and although all sectors in the Business industry have seen a constant rise in investment, the Property industry is second to none and market experts continue to predict the market will continue to increase in the coming years.
The price of property in such a vibrant market is defined by a number of factors, namely:
- Location – as in all parts of the World and Malta is no different, ‘location’ is one of the main factors that keeps the property appreciating whether located in the Country side or on the seafront.
- Consideration and attention to the standard of finish and maintenance of the property be it a Villa, Apartment, Terraced house and Penthouse. History and age of the property along with main features, internal / external areas, number of rooms, terraces, garden, pool and garage.
- Neighborhood and Amenities and accessibility.