Buying Property In Malta In 2025: Your Guide To The Process, Prices, And Property Types

Dreaming of a Mediterranean home or looking to diversify your portfolio with a strong European investment? Malta's real estate market continues to offer a unique blend of old-world charm, modern convenience, and robust value for buyers in 2025. Here's what you need to know about the process, prices, and what your budget can secure.

Why Malta?

Malta attracts high-net-worth individuals and expatriates for its safe environment, rich history, and strategic location between Europe, Africa, and the Middle East. Whether you're seeking a primary residence, a Plan B, or a sound investment, Malta's property market is vibrant and diverse.

Malta stands out among European countries for its exceptionally favourable property tax regime. Unlike most EU nations, Malta does not impose any annual property tax on homeowners, meaning once you purchase a property, there are no recurring ownership taxes to pay. This contrasts sharply with many European countries, where annual property taxes typically range from around 0.1% to over 1.9% of the property's value.

The Buying Process: Step-by-Step

Hire a Notary and Lawyer
- Engage a notary and, ideally, a property lawyer to guide you through legalities and ensure a clear property title.
Property Search
- Explore listings online or visit Malta to view properties in person. Estate agents can help match your preferences and budget.
Promise of Sale (Konvenju)
- Once you find the right property, negotiate terms and sign a Promise of Sale agreement. This legally binds both parties and typically requires a 10% deposit.
AIP Permit (For Non-EU Buyers)
- Non-EU citizens generally need an Acquisition of Immovable Property (AIP) permit, except for Special Designated Areas (SDAs) properties. The permit process takes about 35 days and costs €233.
Due Diligence and Financing
- The notary conducts legal searches. Secure your financing or mortgage if needed.
Final Deed and Handover
- Once all conditions are met, sign the final deed, pay the balance and stamp duty, and receive the keys to your new property.

What Can You Buy?

€375,000-500,000

Modern apartments or maisonettes in central or suburban areas (e.g., Sliema, St. Julian's, Mellieħa). Expect 2-3 bedrooms, quality finishes, and possibly a balcony or small yard. Character townhouses in smaller towns or older apartments in prime locations are also possible.

€500,000-700,000

Larger apartments or penthouses with sea views, luxury finishes, and spacious terraces in sought-after areas. Modern townhouses or semi-detached homes in quieter neighbourhoods. Some houses of character or converted farmhouses in villages.

€700,000-1,200,000

High-end penthouses, luxury villas with private pools and gardens in prestigious areas such as Madliena or Santa Maria Estate. Fully renovated houses of character or larger, detached properties with ample outdoor space.

Property Types

Apartments & Penthouses

Apartments are the most common type of residential property in Malta, especially popular in urban and coastal locations such as Sliema, St Julian's, and Valletta. They range from compact studios and one-bedroom units ideal for young professionals or first-time buyers, to larger, luxury apartments with multiple bedrooms.

Penthouses are a premium segment of apartments, typically occupying the top floors of buildings. They offer expansive outdoor terraces or roof gardens, panoramic sea or city views, and often come with high-end finishes and smart home technologies. Penthouses appeal to buyers seeking luxury living combined with privacy and outdoor space without the maintenance of a standalone home.

Modern apartments increasingly incorporate smart home features like automated lighting, remote-controlled heating, and integrated security systems, aligning with Malta's growing focus on sustainability and convenience. Developers are also emphasising energy efficiency, with solar panels and advanced insulation becoming common in new builds.

Townhouses & Houses of Character

Townhouses and houses of character are traditional Maltese homes, often found in historic towns and Urban Conservation Areas (UCAs) such as Mdina, Rabat, and parts of Valletta and Birgu. These properties are prized for their architectural heritage, featuring limestone façades, wooden balconies, internal courtyards, and vaulted ceilings.

They offer a unique blend of history and charm but usually require renovation or restoration to meet modern living standards. Buyers interested in these properties often appreciate authenticity and cultural value, and they tend to attract those who want a lifestyle steeped in Maltese tradition. Due to their heritage status, renovations are subject to strict regulations, which can increase costs and timelines, but successful restoration can significantly enhance property value and appeal.

Villas

Villas in Malta are spacious, detached or semi-detached homes typically located in exclusive residential neighbourhoods such as Madliena, Iklin, or the limits of St Paul's Bay. They often feature private gardens, swimming pools, drive-in garages, and multiple living floors.

Villas appeal to buyers seeking privacy, luxury, and ample outdoor space, making them popular with families and high-net-worth individuals. Many villas are built with modern layouts and luxury finishes, while some are traditional farmhouses converted into elegant residences. Basement garages are a common feature, allowing the ground floor to be fully dedicated to living space. Some villas also include "flatlets" - self-contained units that can be rented out or used for guests, enhancing investment potential.

Maisonettes

Maisonettes are a uniquely Maltese property type that combines features of apartments and townhouses. Typically spread over one or two floors, maisonettes have their own private entrances, unlike standard apartments, which share communal access. They often come with small outdoor spaces such as backyards, terraces, or gardens, especially ground-floor maisonettes. Upper-floor maisonettes may benefit from access to roof space or airspace, which can sometimes be developed further. Maisonettes offer more privacy and space than apartments, making them attractive to families or buyers seeking a home-like feel without the maintenance of a full house. Duplex maisonettes, covering two floors, are also available and provide even more living space.

The most popular neighbourhoods for property investment in Malta in 2025 combine vibrant urban living, historic charm, and coastal luxury. Here are the key areas favoured by investors and expatriates:

Sliema
Known as Malta's premier residential and commercial hub, Sliema offers modern waterfront apartments, luxury developments like Tigné Point, and Victorian townhouses with gardens. It attracts families, professionals, and investors seeking a bustling urban lifestyle with strong rental demand.
St Julian's and Portomaso
Famous for nightlife, dining, and entertainment, St Julian's includes upscale developments such as Portomaso with luxury apartments, a yacht marina, and premium amenities. It's ideal for investors targeting high rental yields and expatriates who enjoy an active social scene.
Valletta
Malta's historic capital blends rich culture with modern living. Valletta is attractive for investors seeking property appreciation and rental income from tourists and business travellers. Its compact cityscape offers apartments with character and strong long-term growth potential.
Birgu (Vittoriosa)
A quieter alternative to Valletta, Birgu is a historic seafront town with a marina and lower property price thresholds for residency permits. It appeals to buyers looking for character homes and a more relaxed lifestyle near the capital.
St Paul's Bay and Qawra
Popular with expatriates and holidaymakers, these northern coastal towns offer more affordable apartments with sea views and good rental prospects. St Paul's Bay has a large number of rental contracts, making it attractive for buy-to-let investors.
Mdina and Rabat
For those seeking tranquillity and history, these inland towns provide charming houses of character and a peaceful environment, appealing to lifestyle buyers and niche investors.
Gozo
Malta's sister island offers rural charm, stunning landscapes, and traditional properties. Increasingly popular with retirees and expatriates, Gozo is ideal for those wanting a quieter retreat or holiday home.
Emerging Areas: Gzira and Central Malta
Gzira, located between Msida and Sliema, offers scenic views and a blend of city life with waterfront access. Central and southern Malta are gaining attention for better value and long-term growth potential, with increasing rental demand.

Associated fees to buying Property;

When buying property in Malta, buyers should budget for several typical legal and associated fees:

Stamp Duty: This is the largest tax payable by the buyer, generally 5% of the purchase price. For first-time buyers, there may be exemptions or reduced rates on the first €200,000. Stamp duty is paid in two parts: 1% on signing the Promise of Sale and the remaining 4% on the final deed signing.

Notary Fees: Charged by the notary public who handles the legal transfer, due diligence, and registration. These usually range between 1% and 3% of the property price, often around 1.5% to 2.5%. The fees are typically paid in two stages- about one-third on signing the preliminary agreement and the balance on the final deed. The exact amount depends on the complexity of the transaction and the notary's workload.

Architect Fees: Buyers often hire an architect to inspect the property and verify permits. Fees average between €200 and €500, depending on services such as site inspection, permit checks, and surveys. An architect's report is usually required if applying for a mortgage.

Bank Fees (if financing): If taking a mortgage, expect processing fees around 0.3% to 1% of the loan amount, plus life and property insurance costs. These vary by bank and individual circumstances.

Searches and Registration Fees: These cover property title searches and registration with the Land Registry, typically around €600. This ensures the property is free of encumbrances or legal issues.

Additional Possible Fees: Ground rent recognition fees (if applicable), fund transfer fees, and currency conversion charges may also apply.

Why Work with Attard Baldacchino?

Navigating Malta's property market requires expert guidance, especially for non-EU buyers. At Attard Baldacchino, we combine a decade of experience, a human-centred approach, and rigorous due diligence to ensure your purchase is seamless and secure.

Ready to explore your options or have specific questions about Maltese real estate? Book a free consultation with our team today-we're here to help you find your perfect Maltese property.

Would you like more details on a specific property type or advice on relocating to Malta? Let us know!

Citations:

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.