From the series Living, Land & Law: Fortnight Insights – Article 8
Can foreigners buy property in Malta? What are the legal requirements, including the Acquisition of Immovable Property (AIP) Permit, Special Designated Areas (SDAs), and other regulations for non-residents?
Malta is a sought-after destination for property investors. Firstly, if a foreigner, or even a local in this regard, comes across a property which is to his liking, the first thing to do is to consult an architect to inspect the property, making sure that there are no structural defects, and that everything is according to the law. A notary must also be consulted to draw up the promise of sale agreement. During the interim period between the promise of sale agreement and the signing of the final deed, the notary is entrusted to make sure that the seller is legally bound to transfer the property, and that he has a legal title over it. Therefore, the notary will carry out the necessary research on the property, making sure that the property is being sold unencumbered and free. The notary will also verify any property guarantees and check planning permissions and building regulation certificates.
Another requisite imposed by the law, irrespective of whether the property is being bought by locals or foreigners is the Energy Performance Certificate, which is to be presented by the seller, in line with the EU Directive (EPBD) and Maltese Law (Energy Performance of Buildings Regulations, Subsidiary Legislation 623.01). This document makes the buyer aware of the energy performance of the property being sought after. The certificate itself is issued by a qualified assessor, of the Building Regulation Office, and usually remains valid for a period of 10 years, unless the property would have undergone drastic changes.
However, then, there are some additional requirements imposed on foreigners when buying property in Malta. First, the buyer would need to apply for the Acquisition of Immovable Property Permit (AIP), which is a requisite for all non-residents wishing to buy property on the island, and which permit allows the purchase of only one property, and which cannot be rented out. Nonetheless, if the non-resident is an EU citizen, and is purchasing the property in Malta to serve as his/her primary residence, then, the AIP Permit is not required. Moreover, if the non-resident is an EU citizen and has resided in Malta for over five years, the AIP Permit is not required, regardless of whether the property will be his/her primary residence or not. Any person who has been granted the long-term residency status in Malta also does not require an AIP Permit to purchase property in Malta. Therefore, as per subsidiary legislation ‘Malta Residence and Visa Programme Regulations’, third country nationals who have been residing in Malta for at least five years, in a continuous manner, are eligible to apply for the long-term residence status. Therefore, the exceptions are as follows:
- EU citizens residing in Malta for over five years
- EU citizens buying a primary residence
- EU citizens buying property for investment
- Any person who has been granted long-term residency status in Malta.
To be granted an AIP Permit, the minimum purchase value for properties currently stands at*:
– Flat or Maisonette: €174, 274.00
– Any other property: €300,619.00
As a note, the value of the property in shell form may be less than that stipulated above, as long as it reaches the minimum standard after completion.
Nonetheless, these values may still differ in Southern Malta and Gozo.
The permit itself costs two hundred and €233.00* and is usually issued within 35 days. The requirements for an AIP Permit application include two passport-sized photos, a copy of the preliminary agreement of sale, and a photocopy of the full passport.
There are also a number of additional impositions for the granting of the permit, namely:
- The immovable property is to be used for residential purposes
- A copy of the notarial final deed is to be submitted to the AIP Section after its publication
- The immovable property may not be sold in party, or otherwise into more than one dwelling house
- The immovable property cannot be rented out.
If the property which is sought after is in a Special Designated Area (SDA), the AIP Permit can also be done away with. Special designated areas include*:
- Madliena Village, Madliena
- Sotuhridge, Mellieħa
- Tas-Sellum Residences, Mellieħa
- The Quad, Mrieħel
- Trident Park, Mrieħel
- Ta’ Monita Residence, Marsaskala
- Smart City, Kalkara
- Pendergardens, St Julians
- Portomaso, St Julians
- Mercury Towers, St Julians
- Tigne Point, Sliema
- Piazzetta, Sliema
- Fort Cambridge, Sliema
- St Angelo Mansions, Vittoriosa
- Kempinski San Lawrenz, Gozo
- Fort Chambray, Gozo
- Vista Point, Gozo
These areas offer more luxurious properties, and hence foreigners are even encouraged to buy properties here. Accordingly, the requirement for the AIP Permit has been done away with. Moreover, foreigners are also allowed to rent their property, as long as it is located in an SDA, and as long as a licence, either in a ‘Superior’ or ‘Comfort’ category from the Ministry of Tourism Authority is issued.
*at the time of the publication of this article.
Our team of property law experts at Sciberras Advocates in Malta is here to assist with any property issues you may encounter. Feel free to reach out to us at [email protected] for professional support.
Este artigo destina-se apenas a fins informativos e não deve ser interpretado como aconselhamento jurídico.
Artigo e pesquisa realizados por Sra. Caitlin Turner, atualmente a frequentar a licenciatura em Direito (com honras) na Universidade de Malta.
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