The entire process of Buying & Renting in Malta

Investing in Maltese Property
As an EU member state, having access to Malta is access to the whole European Union.

Malta is the perfect combination of stable democracy, a dynamic economy, and islands shining in the heart of the Mediterranean. As an EU member state, having access to Malta is access to the whole European Union.

Numerous foreigners choose to stay in Malta by the more than 300 days of sunshine a year and easy to adopt English-speaking environment. The pro-business government, a thriving fintech sector, a rising financial centre, and the new citizenship/residency program make Malta an ideal country to invest in.

Yet Malta is more than that! With the low crime rate and easy access to top-level healthcare, living in Malta is one of the safest choices in Europe.

Malta Property Market

Properties in Malta range from classic penthouse style, modern apartment to luxury houses. Value of residential properties in Malta has increased in more than 35% since 2013 due to the increasing market demand.

If you prefer to stay closed to Malta’s economical hub as well as restaurants in Sliema and St. Julian’s area. For those who cherish luxury lifestyle, Specially Designated Area (SDA) in Malta is best option to provide you highest living standards.

Whether you are looking for buying a home or an investment, IGA Real Estate is here to help and support you to make the right decision. Contact us for more information.

Reside in Malta by investment

With the new citizenship and residency by investment programs – Citizenship for Exceptional Services by Direct Investment Programme and Malta Permanent Residence Programme, Malta is a perfect location for global investors and entrepreneurs.

For those who seeks for residency, among other financial contributions to the government, you need only to buy a residential property worth minimum 300,000 EUR or to rent for over 10,000 EUR a year. On top of that, to encourage for property on the smaller island of Gozo a lower price threshold has been set.

In the meanwhile, those who intend to become a citizen, you must invest at least 600,000 EUR depending on the period of the you’ve been in the country. Additionally, it’s required purchasing a residential estate at minimum 700,000 EUR or entering a rental agreement at least 16,000 a year.

IGA Real Estate has a group of experts to support you in the whole application and investing process. Contact us for more information.

The Luxury Real Estate Agent of Choice

IGA Real Estate is focused on servicing the luxury residential and commercial property market throughout the Maltese Islands and is best in its class for representing unique high value properties.

Procedure when Buying Property in Malta

In most cases, in order to be able to proceed with a property purchase in Malta the following requirements need to be met: 

  • A deposit, normally 10% of the total property price, is to be paid on the initial contract known as Promise of Sale (POS), together with 1% of the property value payable as provision tax (stamp duty). The Promise of Sale is a process that takes place before signing the final contract where the Buyer & Seller are agreeing and committing to the terms of the Sale, while the relevant searches are carried out by the Notary to ensure property is free from any charges or litigation and the ownership is correct.
  • Stamp Duty equivalent to a maximum of 5% (dependent on ongoing government schemes) of the total property price is paid on the final contract (of which the 1% paid at POS stage would be deducted) No other property taxes are levied against the buyer in Malta.
  • Other expenses include Notarial Fees which are paid by the buyer and Architect fees to confirm the property is built in line with regulations.
  • Other fees may include bank charges and legal fees depending on financing of the purchase and insurance fees that may be necessary (Usually Property and Life policies

In addition, individuals who are not citizens of Malta may be subject to certain restrictions or be required to apply for an Acquisition of Immovable Property Permit (AIP) to be able to buy property in Malta. Interestingly, properties situated within Special Designated Areas (SDAs), usually luxury lifestyle developments, are exempt from restrictions on acquisition and also enjoy other favourable allowances.

Procedure when Renting Property in Malta

Renting is a favourable and convenient option in Malta for many people as the rental market offers various high-quality accommodation ranging from small apartments to large penthouses and villas situated across the island. You would easily and quickly be able to find desirable accommodation for both short and long lets ranging from a short-term holiday home to a lease of several years. 

The rental market is more often subject to fluctuating time frames and special arrangements made between the landlord, the lessee, and the agency where applicable, and therefore more prone to variations within the market. These include but are not limited to;

  • Initial security deposit – standard equivalent to 1-3 month rent but this is subject to negotiation
  • Payment of monthly rent 1-3 months in advance – once again this is subject to negotiation
  • Condominium & Maintenance Fees, although normally included in quoted monthly rental
  • Deposit on Utilities (water & electricity) for short term leases only. Long Term leases legally require direct billing to the tenant therefore no deposits are collected on long term leases.
  • Agency Fees if any