Buying a New Home
One of the most important decisions that you take in life is when purchasing a new home. Our company helps you whether you are purchasing your first residence or moving home. In this sector our company has a reputable track record which is necessary when choosing the right company to help you in your decisions.
Our property consultants are there to identify your needs and expectations and provide a familiar environment where you feel confident to rely on. The next step is that once we have helped you find the right property we try to get you the best possible price including all conditions to be agreed in the convenium and consequently in the final deed. Hence our company will monitor the sale till the deed is finalized and until the final contract is signed.
First Time Buyers
Stamp Duty on documents and transfers
3.5% on the first Lm30,000 of the immovable property contract price. This is applicable only on the purchase of one’s place of residence and subject to the purchasers not having other property. 5% on the amount greater than Lm30,000 of the immovable property contract price, or on the full price if the concessions mentioned previously are not applicable.
The Notary who is normally chosen by the purchaser would normally charge a fee of approximately 1% of the immovable property price.
Capital Gains Tax
7% of the immovable property contract price is charged as provisional capital gains tax or 12% tax at source on the selling price.
Notification of a promise of sale
Promises of sale related to the sale of property or any other transfer will be notified to the Inland Revenue Department. Upon such notification a 1 percent provisional duty on documents calculated on the value of the property being transferred is payable. The payment made will be deducted from the duty on documents payable on the deed of sale or will be refunded whenever the promise of sale is cancelled.
Promises of sale that will not be registered according to these regulations will not be legally valid.
Many overseas buyers looking for a second home opt to purchase property under the above classification.
- Funds plus profits may be repatriated using both country and currency of choice.
- Local mortgage facilities are available for up to 90% of the purchase price.
- Deeds and documents are read and published in English.
. Conditions for Property Purchase
- Non-Maltese persons may purchase a holiday home in Malta under the following terms and conditions:
- A preliminary agreement or promise of sale must be signed undertaking to purchase a property of not less than Lm39,800 (€79,600) in the case of an apartment or maisonette, and not less than Lm66,200 (€154,000) for any other type of residential property. Naturally, properties in shell form or requiring renovation may be purchased at lower figures, provided that the estimated cost of works for completion plus purchase price total not less than Lm39,800 (€79,600) in the case of an apartment, and not less than Lm66,200 (€154,000) for any other type of residential property, or more. This amount shall be adjusted on a yearly basis in accordance with the inflation rate.
- An A.I.P. (Acquisition of Immovable Property) Permit (cost Lm100/€233) is required from the Ministry of Finance and is normally granted within 3 months of application.
- A non-resident may sell his/her property to another non-resident, provided that efforts have been made to find a local buyer. Once again, approval is required from the Ministry of Finance.
- The property being purchased must be used solely for personal use by the purchaser and his/her immediate family.
- 5% stamp duty of the immovable property contract price and approximately 1% of the immovable property contract price for the notary’s fees also have to be added to the purchase cost.
All the above concessions and conditions apply to foreign residents with the following exceptions:
- EU citizens may apply for a Residence Permit at the Immigration Department, Police Headquarters, Floriana if they intend to stay in Malta for more than three months.
- For non-EU citizens, extended visas to remain in the country may be obtainable from the Immigration Department, Police Headquarters, Floriana, normally at 3 month, 6 month or annual intervals.
- Proof of income and health cover is required by the authorities to ensure the resident will not be a burden on the country.
- Local income tax payable is limited to income received into Malta and/or income arising in Malta. (If resident in Malta for less than an aggregate total of 6 months per calendar year no tax whatsoever is due).