How To Buy Property in Malta and Get Residency

Buying Property in Malta

If you're considering buying property in Malta and want to obtain residency, there are a few steps you need to follow. Firstly, you should identify the type of property you're interested in and its location, as this will impact your eligibility for residency. 

Once you've found a property that meets your requirements, you should engage the services of a reputable real estate agency such as Malta Sotheby’s International Realty, to guide you through the buying process. 

You should also ensure that you have the necessary funds to cover the cost of the property and any associated fees, such as stamp duty and legal fees. 

Finally, once you've completed the purchase and obtained residency, you can enjoy the benefits of living in Malta, including its warm climate, vibrant culture, and relaxed lifestyle.

Various Methods of Acquiring Residency in Malta by Purchasing a Property

Malta offers various residency programmes all of which require the applicant to hold a qualifying residential property. Different programmes have different minimum property investment values.

As part of the application for obtaining Maltese citizenship, applicants are to buy a property in Malta with a minimum value of EUR700,000. On the other hand, to obtain Permanent Residency, the minimum property price is EUR350,000. In order to obtain residency under a tax programme (GRP/TRP) the minimum purchase price of a property is EUR275,000.

Malta Global Residence Programme & The Residency Programme

The Malta Global Residence Programme is a residency-by-investment programme designed to attract high-net-worth individuals and their families to live and invest in Malta. The programme offers a range of benefits including a reduced flat tax rate of 15% on foreign income remitted to Malta, as well as visa-free travel throughout the Schengen area. The programme is ideal for individuals seeking a desirable Mediterranean lifestyle, tax-efficient residency, and access to a global business hub.

Property Investment Requirement

Applicants must be non-EU/EEA nationals and purchase a property at a minimum value of €275,000 for a property situated in the North of Malta or €220,000 for a property situated in Gozo or the South of Malta.

Other Eligibility Criteria

The application process involves a due diligence check, biometric data collection, and the submission of required documents. The applicant must be financially self-sufficient, in possession of sickness insurance in respect of all risks across the whole of the European Union, normally covered for Maltese nationals, for himself and his dependents, and must also be a fit and proper person.

Malta Permanent Residency Programme

The Malta Permanent Residency Programme (MPRP), formerly known as the Malta Golden Visa Programme, is available to Non-EU investors and their families, subject to eligibility criteria and background checks, as well as a financial investment.

Property Investment Requirement

If purchased, the property value must be a minimum of €350,000 for a property situated in Malta or €300,000 for a property situated in Gozo or the south of Malta.

Other Eligibility Criteria

The process includes due diligence checks, biometric data collection, and the submission of the necessary documents. Applicants must be financially self-sufficient, possess private health insurance for themselves and their dependents, and meet the criteria of being a fit and proper person.

Malta Citizenship by Direct Investment Regulations

Aiming to attract high-standing and reputed individuals from all over the world, and keeping Malta at the forefront of the Investment Migration market, the government of Malta has released the new expedited route for Citizenship by Investment. A key distinction that sets this programme apart from the aforementioned ones is that it provides applicants with citizenship, not merely residency.

Property Investment Requirement

Applicants of the MEIN would need to invest in a property or real estate in Malta with a minimum value of €700,000 and retain it for at least five years from the date of the certificate of citizenship.

Other Eligibility Criteria

The application process involves a due diligence check, biometric data collection, along with the submission of required documents tha delve into the applicant’s source of wealth and source of funds. The applicant must be financially self-sufficient, in possession of a private health sickness insurance for themselves and their dependents, and must also be a fit and proper person.

Benefits of owning property in Malta

• Investment potential: Owning property in Malta can be a great investment opportunity as property values have been steadily increasing in recent years, providing owners with potential long-term returns.
• High rental demand: Malta's tourism industry is booming, resulting in high demand for rental properties. This can be an excellent opportunity for property owners to generate rental income throughout the year.
• Citizenship by investment: Malta offers a Citizenship by Investment Programme, which allows foreign nationals to acquire Maltese citizenship by investing in property on the island.
• Strategic location: Malta's location in the Mediterranean makes it an attractive location for both business and leisure, providing property owners with excellent accessibility and convenience.
• Tax benefits: Malta offers various tax incentives for property owners, including tax deductions for interest paid on home loans and reduced rates for first-time home buyers.
• Quality of life: Malta is known for its Mediterranean climate, beautiful beaches, rich history, and excellent healthcare and education systems, making it an attractive destination for those looking to relocate or retire.

Property Purchase Process

The property purchase process in Malta typically involves several steps. 

1. Upon deciding on a particular property and making an offer, the buyer and seller must agree on the terms of the sale and sign a preliminary agreement, which includes a deposit of 10% of the purchase price. 
2. Then, a notary public is appointed to oversee the rest of the process, including conducting searches to ensure there are no outstanding debts or issues with the property. 
3. Once everything is in order, the final contract of sale is signed, and the buyer pays the remaining balance of the purchase price. 
4. The notary public then registers the sale with the Land Registry and transfers the property title to the buyer. It's worth noting that foreign buyers may need to obtain special permits and comply with certain regulations, such as the Acquisition of Immovable Property (AIP) permit, before being able to purchase property in Malta.

Malta Property Taxes and Fees

The country does not impose any tax on the ownership of a property in Malta. Property tax in Malta is charged solely on the sale of a property, whereby there will be a final withholding tax of 8% on the transfer value. Additionally, buyers must pay a stamp duty tax of 5% on the property's purchase price, as well as a notary fee and registration fee. There is also an annual ground rent fee for leasehold properties. It is important for property investors in Malta to consult with a legal or financial professional to understand all the taxes and fees associated with property ownership to avoid any surprises or misunderstandings.

Financing Your Property Purchase in Malta

The most common way to finance a property purchase in Malta is through a mortgage. Several banks and financial institutions in Malta offer mortgage options, ranging from fixed-rate to variable-rate mortgages. To qualify for a mortgage, applicants must meet specific requirements, including proof of income, creditworthiness, and a deposit payment. 

The deposit payment is usually a percentage of the property's value and can range from 5% to 20%. Besides mortgages, alternative financing options include personal loans, bridging loans, and equity release schemes. It is crucial to seek professional advice before committing to any financing option to ensure that you make an informed decision that meets your financial needs and capabilities.

Property Management and Maintenance

Property management and maintenance are essential aspects of owning a rental property. Finding a reliable property manager can be helpful in ensuring that your property is well-maintained and your rental income is maximized. Property managers take on various responsibilities, such as finding tenants, collecting rent, and handling maintenance requests.

Maintenance costs are also a critical consideration when owning a rental property. Regular maintenance and repairs are necessary to keep the property in good condition and attract quality tenants. It's important to factor in these costs when setting rental rates to ensure that you can cover these expenses while still generating a profit.

Ultimately, property management and maintenance are critical aspects of owning a rental property, and proper attention to these areas can help ensure long-term success in the real estate industry.

Benefits of Obtaining a Maltese Residency

• Access to Malta's public healthcare system, which provides affordable and comprehensive medical services to residents.
• Ability to work and do business in Malta, which has a thriving economy and a favourable tax system.
• Visa-free travel to all 26 countries in the Schengen Area, which include popular destinations such as France, Italy, and Spain.
• A safe and stable environment, with a low crime rate and a high standard of living.
• Access to world-class education, including universities and vocational schools that offer a range of programmes in English.
• A multicultural society with a welcoming attitude towards foreigners, making it easy to integrate and make new friends.
• A Mediterranean climate, with warm and sunny weather for most of the year.
• A rich history and culture, with numerous UNESCO World Heritage sites and a vibrant arts scene.
• A wide range of recreational activities, including water sports, hiking, and cultural events.
• Affordable cost of living compared to other European countries, making it a great option for retirees or those looking for a more affordable lifestyle.

How to apply for Malta Residency in a step-by-step process

• Determine your eligibility: Make sure you meet the eligibility criteria for Malta residency. This may include financial requirements, health insurance coverage, and a clean criminal record.
• Choose the right programme: Decide which residency programme is best suited for you, based on your individual circumstances. 
• Prepare your documents: Gather all the necessary documents required for your application, such as your passport, birth certificate, marriage certificate (if applicable), bank statements, and proof of health insurance.
• Our team will have the application submitted to the relevant agency.
• Pay the application fee: Pay the required application fee, which varies depending on the residency programme you have chosen.
• Wait for a decision: Wait for a decision on your application. This can take several weeks or months, depending on the complexity of your application and the programme opted for.
• Complete any additional requirements: If your application is approved, you may need to complete additional requirements, such as obtaining a Malta ID card or registering with the Malta tax authorities.
• Finalise your residency: Once all requirements have been met, you will receive your residency certificate and can officially move to Malta.
• Renew your residency: Remember to renew your residency permit as required by the programme you have chosen. Some programmes require annual renewals, while others may require renewals every two years or more.
• Consider citizenship: If you are interested in becoming a Maltese citizen, you may be eligible to apply after living in Malta for a certain period of time and meeting other eligibility criteria.