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BUYING IN MALTA
Before
you start searching around for a property, you should do some important
homework that will surely help in saving you precious time, and making
the right decision more quickly.
- Price. ...most important
thing. Go to a Bank, and see what in reality you can buy. This will be
saving you time visiting properties that afterwards you discover that
you cannot buy.
- Location. ...second most important thing. Where
do you want to live. Do you drive? Does living far from shops, schools,
work, church, and bus stops affects you. Can you live in the center of
a noisy and busy town? Or do you prefer a more peaceful surrounding far
from the village center.
- Property. ...now knowing your budget
and location, you can start focusing directly on the property you need,
more than the property you want. Type of property available on the
market at your budget, size, what is needed most, bedrooms, bathrooms,
yard, terrace, roof, garage, study, views, and so on.
- This is were we can definitely help.
- Before
meeting to sign the promise of sale, (Konvenju), make sure to clear
points like price, groundrent, if any, works to be done by vendor,
rights of buyer, other movable things, like furniture, appliances, etc;
subject to bank loan for a period of time, building permit, approval by
an architect, time frame for the signing of final contract, usually 3
months, but can be discussed and agreed by both parties. Try to get
these notes written on a piece of paper, and signed by both parties.
This will safe you time, arguing on issues in front of the Notary.
- A
ten percent deposit is normally paid in favour of the vendor, and hold
by the notary, until the subject to permit is cleared from the bank,
and the research about the property is done. The notary then passess
the paid deposit, in favour of the vendors.
- Please remember
that if you do not appear to sign the final contract, without a valid
reason accepted by the Maltese laws, the paid deposit will still be
forfeited in the vendors favour.
- Both the vendor, and the purchaser has the duty to honour all the conditions agreed by both parties, on the promise of sale.
- Maltese Citezens do not require, in any case, any permit to purchase a property.
- Stamp duty.
- Stamp
duty is paid by the purchaser, and is calculated at a 3.5 per cent on
the first €117,000 of the purchased property, and at 5 per cent on the
remaining balance, and is subject that the property is bought as a
place of residence, and that it is the only property owned by the
purchaser.
- 5 per cent duty is paid by purchaser on the total
price of the purchased property not being his/her residence home, or
not being the only property owned by the purchaser.
- A
provisional 1 per cent stamp duty of the total price, is paid by the
purchaser, at the promise of sale, and is deducted from the amount to
be paid on the final contract. It is also refunded back, if the final
contract fail to mature.
- Notary public fee.
- A Maltese
Notary public is the official person, normally chosen by the purchaser,
and is responsible to carry out all the necessary work, like searches,
titles, etc; and finally publish the sale in the public registry. The
fee paid in favour of the Notary public is calculated at around 1 per
cent of the total sum of the property, but may sometimes vary dew to
the level of title research, and is dew by the purchaser.
- Agency fees.
- Open agency. ... 5 per cent + Vat of the sale price.
- Sole agency. ...3.5 per cent + Vat of the sale price.
Before
you start searching around for a property, you should do some important
homework that will surely help in saving you precious time, and making
the right decision more quickly.
- Price. ...most important
thing. Go to a Bank, and see what in reality you can buy. This will be
saving you time visiting properties that afterwards you discover that
you cannot buy.
- Location. ...second most important thing. Where
do you want to live. Do you drive? Does living far from shops, schools,
work, church, and bus stops affects you. Can you live in the center of
a noisy and busy town? Or do you prefer a more peaceful surrounding far
from the village center.
- Property. ...now knowing your budget
and location, you can start focusing directly on the property you need,
more than the property you want. Type of property available on the
market at your budget, size, what is needed most, bedrooms, bathrooms,
yard, terrace, roof, garage, study, views, and so on.
- This is were we can definitely help.
- Before
meeting to sign the promise of sale, ( Konvenju), make sure to clear
points like price, groundrent, if any, works to be done by vendor,
rights of buyer, other movable things, like furniture, appliances, etc;
subject to bank loan for a period of time, building permit, approval by
an architect, time frame for the signing of final contract, usually 3
months, but can be discussed and agreed by both parties. Try to get
these notes written on a piece of paper, and signed by both parties.
This will safe you time, arguing on issues in front of the Notary.
- A
ten percent deposit is normally paid in favour of the vendor, and hold
by the notary, until the subject to permit is cleared from the bank,
and the research about the property is done. The notary then passess
the paid deposit, in favour of the vendors.
- Please remember
that if you do not appear to sign the final contract, without a valid
reason accepted by the Maltese laws, the paid deposit will still be
forfeited in the vendors favour.
- Both the vendor, and the purchaser has the duty to honour all the conditions agreed by both parties, on the promise of sale.
- EU
Citezens residing on the Maltese Islands for a minimum of 5 years from
the date of their first property, need not to apply for a permit to
acquire other properties
- Stamp duty.
- Stamp duty is paid
by the purchaser, and is calculated at a 3.5 per cent on the first
€117,000 of the purchased property, and at 5 per cent on the remaining
balance, and is subject that the property is bought as a place of
residence, and that it is the only property owned by the purchaser.
- This
measure only applies, if any EU Citezen have sold his overseas
properties, and that the purchased property is the only property owned
by purchaser.
- 5 per cent duty is paid by purchaser on the total
price of the purchased property not being his/her residence home, or
not being the only property owned by the purchaser.
- A
provisional 1 per cent stamp duty of the total price, is paid by the
purchaser, at the promise of sale, and is deducted from the amount to
be paid on the final contract. It will be refunded back, if the final
contract fail to mature.
- Notary public fee.
- A Maltese
Notary public is the official person, normally chosen by the purchaser,
and is responsible to carry out all the necessary work, like searches,
titles, etc; and finally publish the sale in the public registry. The
fee paid in favour of the Notary public is calculated at around 1 per
cent of the total sum of the property, but may sometimes vary dew to
level of title research, and is dew by the purchaser.
- Agency fees.
- Open agency. ... 5 per cent + Vat of the sale price.
- Sole agency. ...3.5 per cent + Vat of the sale price.
Before
you start searching around for a property, you should do some important
homework that will surely help in saving you precious time, and making
the right decision more quickly.
- Price. ...most important
thing. Go to a Bank, and see what in reality you can buy. This will be
saving you time visiting properties that afterwards you discover that
you cannot buy.
- Location. ...second most important thing. Where
do you want to live. Do you drive? Does living far from shops, schools,
work, church, and bus stops affects you. Can you live in the center of
a noisy and busy town? Or do you prefer a more peaceful surrounding far
from the village center.
- Property. ...now knowing your budget
and location, you can start focusing directly on the property you need,
more than the property you want. Type of property available on the
market at your budget, size, what is needed most, bedrooms, bathrooms,
yard, terrace, roof, garage, study, views, and so on.
- This is were we can definitely help.
- Before
meeting to sign the promise of sale, ( Konvenju), make sure to clear
points like price, groundrent, if any, works to be done by vendor,
rights of buyer, other movable things, like furniture, appliances, etc;
subject to bank loan for a period of time, building permit, approval by
an architect, time frame for the signing of final contract, usually 3
months, but can be discussed and agreed by both parties. Try to get
these notes written on a piece of paper, and signed by both parties.
This will safe you time, arguing on issues in front of the Notary.
- A
ten percent deposit is normally paid in favour of the vendor, and hold
by the notary, until the subject to permit is cleared from the bank,
and the research about the property is done. The notary then passess
the paid deposit, in favour of the vendors.
- Please remember
that if you do not appear to sign the final contract, without a valid
reason accepted by the Maltese laws, the paid deposit will still be
forfeited in the vendors favour.
- Both the vendor, and the purchaser has the duty to honour all the conditions agreed by both parties, on the promise of sale.
- Buyers
from outside the EU, need to apply for an Acquisition of Immoveable
Property (AIP) permit, which is usually granted within less than two
months, and is subject to. A) price, being not less than €99,000 on
purchasing of an apartment, and €165,000 on purchasing of any other
property. B) The owner may use the property only as his/her residential
home, however, should the owner wishes to rent it to third parties, may
obtain a license from the Malta Tourism Authority. To do so, the
property needs to be meeting first class standards, or a
villa/bungalow/farmhouse with a private pool. C) Property of Historical
interest or importance, cannot be purchased, and a Government architect
will be sent to take a decision about the property. D) Evidence of
foreign funds being transferred to a local bank account before the
signing of the contract must be produced to the local Authorities.
- There
is certain Designated Areas, that need not an AIP permit from non EU
Citezens, provided that the minimum purchase for an Apartment is not
less than €92,500, and €154,500 on any other type of property.
- Stamp duty.
- 5
per cent duty is paid by purchaser on the total price of the purchased
property not being his/her residence home, or not being the only
property owned by the purchaser.
- A provisional 1 per cent stamp
duty of the total price, is paid by the purchaser, at the promise of
sale, and is deducted from the amount to be paid on the final contract.
It is also refunded back, if the final contract fail to mature.
- Notary public fee.
- A
Maltese Notary public is the official person, normally chosen by the
purchaser, and is responsible to carry out all the necessary work, like
searches, titles, etc; and finally publish the sale in the public
registry. The fee paid in favour of the Notary public is calculated at
around 1 per cent of the total sum of the property, but may sometimes
vary dew to the level of title research, and is dew by the purchaser.
- Agency fees.
- Open agency. ... 5 per cent + Vat of the sale price.
- Sole agency. ...3.5 per cent + Vat of the sale price.
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