The basic requirement to obtain a property in Malta is to get an AIP permit. AIP represents Acquisition of Immovable Property. The requirements in terms of the AIP are set out in the table below.
AIP Permit
Maltese and EU Citizens - both with 5 years continuous residence in Malta | Maltese and EU Citizens - without 5 years continuous residence in Malta | Non-Maltese and Non-EU citizens | |
Primary Residence | No restrictions - No need to apply | No restrictions - No need to apply | Prior authorisation is required* |
Secondary Residence or any other immovable property | No restrictions - No need to apply | Prior authorisation is required* | Prior authorisation is required* |
Property in a Special Designated Area** | No prior authorisation is required and no limit | No prior authorisation is required and no limit | No prior authorisation is required and no limit |
Immovable Property required for the person's business activities' or supply of services by such person | No prior authorisation is required and no limit | No prior authorisation is required and no limit | No permit granted unless required for an industrial or touristic project or as a contributor to the development of the economy of Malta |
*A permit will not be granted if applicant has already acquired immovable property in Malta – an exception however lies with 'Special Designated Areas'. ** The Special Designated Areas are the following:
- Portomaso Development, St. Julian's, Malta
- Portomaso Extension I, St Julian's, Malta
- Cottonera Development, Cottonera, Malta
- Manoel Island / Tigne Point, Tigne/ Gzira, Malta
- Tas-Sellum Residence, Mellieha, Malta
- Madliena Village Complex, Malta
- Smartcity, Malta
- Fort Cambridge Zone, Tignè, Malta
- Ta' Monita Residence, Marsascala, Malta
- Pender Place and Mercury House Site, Malta
- Metropolis Plaza, Gzira, Malta
- Fort Chambray, Ghajnsielem, Gozo
- Kempinski Residences, San Lawrenz, Gozo
- Pender Place and Mercury House Site, Extensions I, II, III, IV and V, Malta
- Vista Point, Marsalforn, Gozo
The purchased property must be intended for one of the following:
- Personal residential use of the applicant exclusively;
- Other purposes approved by Government;
- An approved industrial or touristic project;
- Any other project or purpose which is considered to contribute to the development of the Maltese economy.
Transaction costs/ Disbursement:
- Government stamp duty - 5% of the value of the property. 1% is paid on the preliminary agreement and 4% upon the final deed;
- Approximately 1 % of the purchase price of the property is charged by the notary;
- Approximately €582 due as disbursement for the researches into title, liabilities amongst other – depending on the nature of the property and when it was built;
- €233 as a fee for an AIP permit (if required);
- Legal fees (where applicable) paid by the party engaging such services;
- Agency fees due are usually borne by the vendor.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.