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Buy Investment Property in Malta

Recently, Malta has become a popular destination for international property buyers to buy property for Malta Residence, as a Holiday home or as a Buy-to-Let property. The recommended areas for property purchase in Malta are Special Designated Areas (SDA's), where there are no restrictions on foreign buyers, and these Developments offer luxury lifestyle, including pools, gyms, and beachfront locations. New SDA's open in 2019 include Apartment blocks, in South Malta, within Tigne Point and Pender Gardens, and the Shoreline.

Foreign investors can apply for Malta Permanent Residence (Malta Golden Visa) or Malta Citizenship for Exceptional Services by Direct Investment. To be eligible for High Net Worth Immigration to Malta, Investors just need to buy a property valued at a minimum of 320,000 Euros, and they can include their family members and dependents in the application. Therefore, buying property in Malta is a fast and efficient method of obtaining Malta Permanent Residence or Citizenship for High Net Worth Individuals from non-EU countries. Contact our Malta Immigration Consultants and Lawyers by telephone or visit us in our offices in Brisbane, Australia, Singapore, Hong Kong, London, UK and Lisbon, Portugal.

Why Buy Property in Malta?

Outlined below are reasons to buy property in Malta, in 2024:

1. Property Prices are Increasing - According to a Knight Frank LLP Global House Price Index, Malta has edged out Hong Kong to take the prize for the country with the highest residential price gains in the June 2018 quarter. Based on figures taken from Malta's own Central Bank, home prices on the island rose some 17 per cent in the three months to June 2018, when compared to the same period in 2017, which means Malta is the fastest-growing property market in the world.

2. High Economic Growth - Malta's growth rate has been forecast to reach 5.6% in 2018 and 4.5% in 2019, and Malta's GDP growth rate is one of the highest in the EU.

3. Business Investments in Malta - Investment is expected to grow strongly in 2019, supported by projects in the health, technology, and telecoms sectors. In addition, big-name companies are choosing to be based in Malta, in the financial sector, iGaming companies, pharmaceuticals, and aviation firms. Furthermore, Malta is the first jurisdiction worldwide to regulate Bitcoin, cryptocurrencies, and blockchain technology.

4. Safe Investment - Malta's property market remains a safe, solid, and comfortable investment for both local and foreign investors, with property prices still being affordable for most investors.

5. Low Stamp Duty - In 2018, the Malta government decreased the stamp duty charged on properties on the island of Gozo, from five to two per cent.

6. EU Country - Malta has been an EU member country since 1 January 2008, and uses the Euro currency. It is also a member of the Schengen Area since December 2007.

7. Malta Citizenship for Exceptional Services by Direct Investment - The new Maltese Naturalisation for Exceptional Services by Direct Investment commenced in September 2020 with the intention to encourage and stimulate investment in Malta property.

Malta Locations for Buying Property

Malta is only 316 sq. kilometres in area, and the top locations for buying property in Malta are in 6 regions:

  • The 'Harbour'
  • Valletta - the capital city
  • The 'Central' region
  • The 'South' region
  • The 'North' region
  • The island of Gozo

The Harbour

The Harbour zone is extremely popular with expats, with a large presence of international companies. Sliema is known for its rocky beaches, water sports, and panoramic views of Valletta. St. Julian's is next to Sliema, and has a thriving nightlife, tourism, luxurious hotels and ethnic restaurants. For relaxation, visitors walk along the promenade to Spinola Bay and Balluta Bay, with its impeccable Balluta Buildings, built on the art nouveau style. Famous sites in St Julian's include the tallest building in Malta, Portomaso tower at 98 metres, and Spinola Palace. The Harbour region includes the following cities:

  • Sliema
  • St. Julian's
  • Gzira

Valletta - Capital City of Malta

Valletta is the capital city of Malta, famous for its stunning architecture, and designated as a UNESCO World Heritage Site. Tourist attractions include Parliament buildings, National Museum of Archaeology, Grand Master's Palace, Upper Barrakka Gardens and City Gate. The grid of narrow streets boasts some of Europe's finest art works, palaces, churches, grandmaster auberges, piazzas and museums. The warm Mediterranean city is busy by day yet retains a timeless atmosphere by night through the stunning architecture that surrounds you. The Valletta region includes the following cities:

  • Valletta
  • Floriana
  • Pieta

Central region of Malta

Birkirkara is the largest, oldest and most heavily populated city in the centre of Malta with 25,775 inhabitants in an area of 2.7 km. Tourists like to visit The Old Railway Station, a memory from Malta's railway past, with a public garden around it. Today most of Birkirkara is modern but the town still retains its traditional Maltese characteristics of narrow streets and alleys. The city's older part is separated from the newer part by a small garden. Popular tourist sites include St Helen's Church, Ta' Ganu Windmill, and the Aqueduct. The Central region includes the following cities:

  • Birkirkara
  • Mosta
  • Attard
  • Lija

South region

Malta's Airport is situated in the South region. The main town is Marsascala, which is an ancient fishing village, with a picturesque bay, located in the southeast corner of the island. Marsascala's bay has a promenade continuing all the way to St Thomas Bay with views of low shelving rocks, colourful fishing boats and saltpans. The town of Marsaxlokk has a small sandy beach on the east side, and stunning St. Peter's Pool at Delimara is 20 min away by foot. St. Paul's bay is excellent for diving, snorkelling and cliff jumping down into the natural pool. The South region includes the following cities:

  • Marsaskala
  • Marsaxlokk
  • Birzebugga

Malta's North region

Mellieha is popular with expats, comprising an abundance of holiday homes and villas, with a quieter atmosphere than in Bugibba/Qawra. There are some wonderful beaches here, too, not only in Mellieha but also nearby in Ghan Truffieha and Armier Bay. The town of Qawra has a rocky coastline and beautiful sea views and is part of the resort of St Paul's Bay to the north of Malta. Historical attractions include: Qawra Tower located at Qawra Point. Moreover, Qawra's long promenade extends from the Qawra Palace Hotel hugging the craggy coastline for 2km all the way into the heart of Bugibba and beyond. The North region includes the following cities:

  • Buggiba
  • Qawra
  • Mellieha

Gozo Island

The capital of Gozo is Victoria (Rabat), where the Citadel can be found. The charm of Malta's sister Island is immediately apparent; it's greener, more rural and smaller, with life's rhythms dictated by the seasons, fishing and agriculture. The island boasts numerous historical sites, forts and amazing panoramas, plus one of the archipelago's best-preserved prehistoric temples, gantija Temple. Other tourist sites on Gozo include: Azure Window, Ramla Bay (one of Gozo's best beaches), Our Lady of Ta Pinu Basilica, The Citadel and Dwejra Tower. Gozo island region includes the following cities:

  • Victoria
  • Gharb
  • Marsalforn

Steps To Buy Property in Malta

1. Find a Property - Select an Immovable Property and negotiate the price.

2. Preliminary Agreement (Konvenju) - Sign the Preliminary Agreement, known as 'Konvenju'. This is an agreement binding both the purchaser and the vendor to enforce the transaction within an established date (term of Konvenju) subject to the terms and conditions. 

The Preliminary Agreement is usually valid for three months and after the signing (but before entering into a final deed of sale). The buyer would need to enagage a Notary to carry out the necessary searches into the property to confirm everything is in order before proceeding. At this stage, 1% of the 5% total stamp duty fee is payable to the Inland Revenue and a 10% deposit is paid by the buyer. The remaining 4% of the stamp duty will be paid with the publication of the final deed.

In addition, note that the 1% of stamp duty will be refunded if the final deal fails to materialize and that the deposit agreed on during the signing of the Preliminary Agreement will be handed over to the seller if the buyer does not sign the final deed without a valid reason at law.

The following terms must be agreed before the Preliminary Agreement is signed:

  • Price
  • Ground Rent
  • Features included in the price
  • Payment terms
  • Works to be undertaken by the owner
  • Terms of Preliminary Agreement / Promise of Sale

3. Provisional Stamp Duty - After signing the Kovenju, you must pay 1% provisional stamp duty as part payment of the full 5%, and the balance is due on signing of the final deed. If you are purchasing your first immovable property, the stamp duty on the first is removed as a concession and calculated at 5% on the remaining balance of the property.

4. Deposit - Pay an agreed deposit on the property, which is usually 10%.

5. Verify Legal Title - The Notary Public carries out the mandatory searches to verify legal title and to ensure that there are no outstanding debts, hypothecs or liens on the property Purchaser is to complete all the special requirements e.g. organise bank loan, check on building permits, etc. as agreed upon with seller and stipulated in the konvenju.

6. Bank Account - Arrange meeting with a Malta Bank and open a bank account.

7. Sign the Final Deed - The final deed is read and agreed upon and the balances due will be paid accordingly. The balance payments are: balance of the selling price to the vendor; the balance due to the Commissioner of Inland Revenue for stamp duty as well as 1% Notary fees to the Notary Public.

Malta MPRP Eligibility - Malta Permanent Residence Programme

To be eligible for the MPRP, applicants should meet the following requirements:

  • be third country nationals, non-EU, non-EEA and non-Swiss
  • not hail from sanctioned countries, as announced from time to time by the Agency
  • not benefit under other pertinent regulations and schemes
  • be in receipt of stable and regular financial resources, sufficient to maintain themselves and their dependants, without recourse to the social assistance system of Malta
  • show they have capital assets of not less than €500,000, out of which a minimum of €150,000 must be financial assets
  • be fit-and-proper individuals and have a clean criminal record
  • not pose any potential threat to the national security, public policy, public health or public interest.

Residence (MPRP) and Citizenship of Malta

For information about the Malta Permanent Residency Programme (MPRP) to become a Malta Permanent Resident or Malta Citizenship by Naturalisation for Exceptional Services to become a citizen of Malta, eligibility criteria, and how our Immigration Consultants can assist you, click on the following VisaConnect website pages: