Property for Sale in Malta

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Irrespective of whether one chooses to purchase a property or rent a property in Malta, one needs to take an informed decision. Tumas Developments has a wealth of local knowledge and expertise to assist everyone from young couples and first-time buyers, to second home buyers and property investors. Consequently, when searching for your dream property in Malta, it is important to understand the multitude of buying and selling jargon/ terminologies that you will encounter along the way.

Below are some of the commonly used terminologies :

Preliminary Agreement :

More commonly referred to as a ‘Konvenju’ in Maltese, the Preliminary agreement is a safe, binding “promise of sale” that is signed between the property buyer and seller. This agreement, drafted by a notary public, highlights the basic legal conditions of a purchase /sale. On signing the Preliminary agreement a buyer usually leaves a deposit of 10% of the property price, as well as a 1% fee for government stamp duty, with the notary public.

Stamp Duty :

The 5% Stamp duty is paid by the buyer of a property to the local authorities, through the services of a notary public. It is paid as 1% of the selling price on the signing of the Preliminary Agreement, and the remainder of 4% upon the signing of the final deed.

Notary Fees :

A Maltese notary public is responsible for conducting all of the relevant searches with the Public Registry to ensure that the property title is in order. 

Approximately 1% - 1.5% ( depending on volume of searches ) of the property price is due as notarial fees. The purchaser is free to choose his or her own notary, as this expense is also paid by the purchaser. Fees may vary depending on the amount of work that the notary is required to undertake on that specific property.

Special Designated Area :

These are specific locations/projects on the island, where foreigners may purchase under the same conditions as locals. For example a foreigner may purchase more than one property in such a location. In fact, Tumas Developments’ have built three projects, namely : Ta’ Monita in Marsascala, Tas-Sellum in Mellieha and Portomaso in St Julian's. These are all Special Designated Areas, and so foreigners can buy multiple properties here, enjoy the benefit of being able to rent them out legally and save on paying a fee of €233 for an AIP permit.

Freehold :

A freehold property is any property that is free from the burden of paying an annual ground rent payment to the landlord. A ground rent is an annual fee/burden, one has to pay to the original landowner. It would be wise to check the type of ground rent imposed on a property with the notary public.

Property Tax :

Malta does not impose a wealth property tax on real estate, and so purchasing a property is a simple and clear process for locals and foreign residents.

AIP Permit :

On purchasing an immovable property in Malta, a non-resident will require an A.I.P permit. This term means Acquisition of Immovable Property.  As the policy stands today, the minimum value for the purchase of an apartment or maisonette cannot be less than €101,938 and €169,850 in the case of a house or villa. If a property is still unconverted, incomplete or in a shell form stage, completion costs can be taken into account to make up the total amount.  An AIP permit is NOT required when purchasing a property in a Special Designated Area.

Final Deed :

Once all conditions laid out in the Promise of Sale are completed, all parties are required to meet to sign the final deed. At this stage if a bank loan has been obtained the final deed must be signed at the bank’s offices, where the remaining balance of the purchase price of the property (usually 90%) is then paid to the seller. On final deed all parties are required to settle any expenses , such as notary fees, services etc  in relation to the property purchase....and the keys are handed over.

Finally the notary registers the contract at the Public Registry.


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