Purchasing a Property in Malta as Non-EU Resident
Is it Easy for non-EU Residents to Buy Maltese Property?
That’s what we’ll explore today.
You see, many countries impose restrictions on foreigners buying property. Some require meticulous paperwork. Others restrict what you can buy.
Malta takes the opposite approach. It eases the process as much as possible – especially when it comes to buying residence.
Pros of Buying Maltese Property
After buying property, you can sell it later at full price. That is, you can sell for a price tag that covers the taxes while netting you profit.
Also, non-residents are allowed to take on mortgages, though permission is required from Malta’s central bank.
Malta’s local banks are also lenient towards investors. You can get multiple sources of financing to expand your economic ventures.
Just note that EU citizen members have more advantages than foreigners when getting property. We’ll mention the differences between each below.
For Buying Residence: All That’s Needed is an AIP Permit
AIP standards for “Acquisition of Immovable Property Permit.”
It allows foreigners to purchase apartments after acquiring a cheap permit (from the Finance Ministry).
The permit costs anywhere between EUR 169 to 205 (for houses), and EUR 101 to 551 (for maisonettes and flats).
Also, it comes with a low processing time of 6 to 8 weeks!
What About EU Citizens?
They have their own set of criteria for buying Maltese primary residence.
Normally, for foreign applicants to buy more than a single property or land, they’ll need to reside in Malta for 5 years.
EU citizens are a different story. They can buy multiple property without a permit, even if they haven’t been in Malta for the allotted time period.
In fact, EU citizens can also buy property for service supplies and business ventures – even without getting a permit!
Speaking of business…
What About Rules for Commercial Partnerships?
They do receive buying advantages if they operate from an EU member state – but there are certain conditions to note.
- The partnership needs to be established in Malta, but they can operate from an EU country.
- The owner must be a European citizen. They should have resided in Malta for 5 years prior.
- The partnership’s majority shares must belong to the owner (at least 75%), and the company must be managed by them.
With those conditions in place, commercial partnerships can buy land for any intention they desire.
Others not fulfilling those conditions need to get a permit.
Also, the permit’s only given for touristic/industrial projects, and any projects that contribute to the Maltese economy.
Finally, note that Malta is a bit stringent regarding historical property. You might be refused a permit if you’re attempting to purchase those.
Next: Malta’s Property Taxes
Malta is considered a tax haven by most standards. But it does have different regulations depending on the property’s purpose.
Capital Gains Tax
Maltese regulations do not levy taxes on property and wealth. So you can get property in Malta, and you won’t pay taxes if it appreciates in value.
Assuming you buy property but prefer to reside elsewhere, you won’t be subjected to taxes.
The main exception is if you decide to turn the property into an income sources – as in this case by renting it out.
Foreign nationals pay a 15% flat tax on income (which is quite advantageous).
Selling real estate in Malta comes with complex tax procedures.
It’s a long process that should be mentioned in a separate article.
To make the process easier, we recommend asking for legal guidance (to streamline the process as much as possible).
In Summation: Malta’s a Ripe Market
It’s an excellent location for EU citizen member to invest in property. It’s also not bad for non-EU residents.
All that’s required of them is a permit, which shouldn’t be difficult to acquire!