Malta is home to a variety of extremely high-end and luxurious properties that have held their value throughout the 2008/2009 financial turmoil. Villas and houses of character as well as luxury apartments have proven to be a great and stable investment for investors looking to earn a good yield on investment. As per the Central Bank, the advertised prices for properties increased to a positive level in March. Statistics showed that in the first quarter this year, the prices were up 4.5 percent comparison to the previous year.
It is the Acquisition of Immovable Property Permit (AIP)
The citizens from all EU member states who have been for a period of time in Malta continuously for at least five years prior to the date of purchase are able to acquire immovable properties without needing to obtain the AIP Permit. However citizens of every EU member states who haven’t lived continuously within Malta over a of five years can only buy their primary residence or any other immovable property needed for their business operations or for the supply of services and those who have not been within Malta at least for a that is five years must obtain the AIP permit to purchase immovable property to be used for secondary reasons of residence. People who aren’t citizens of the EU state are not able to purchase any property that is immovable until they have been granted an AIP permit under Chapter 246 of the Laws of Malta.
Procedure for purchasing properties for sale in Malta:
Select a property and negotiate prices with sellers.
We prepare and discuss the Preliminary Agreement of sale that is suitable for both parties.
The Preliminary Agreement is signed in your office (or in your absence one of our lawyers on your behalf, through authority) and the seller.
It’s usually for 3 months, however the duration of a shorter or longer period may be agreed upon.
Normally , a down payment of 10 percent of the purchase cost is paid to us prior to the signing of this contract. This is forfeited to the seller if the sale isn’t completed by you, without legal grounds.
The contract is binding on each party to adhere to their contract for contract subject to the list of conditions or processes being followed prior to the expiration date.
Signature of the final Deed of Sale and passing of the keys to new owners of the property.
We are able to offer a complete service for the preparation, review and negotiation of the preliminary agreements suggested by sellers. Our role over the term of three months of the Preliminary Agreement consists of:
Conducting the required legal searches and trace the title of the seller to the property in order to confirm that the property legally belongs to him and is not impacted by any obligations (hypothecs or privileges, etc.) which could affect the property.
Appointing an architect to verify whether all necessary permits for planning are in place. Also, make sure the property is not in use to allow you to immediately take possession.
Application to obtain an AIP permit (the Government authorization needed for non-residents seeking to buy properties in Malta. It takes 1-3 months to process.
Drafting the Maltese will that governs the property you own in Malta.
To provide our customers with an unbeatable service, we’ve built relations with property sales professionals that provide the same quality of customer service and commitment that our clients have come to receiving from us. They will take you to the hotel and drive around on different property tours, perhaps during weekends if your time is constrained.
The most common fee charged to buyers and sellers by private real estate brokers for their services amounts to one percent each. The brokerage commission charged to local realtors is included in the cost and is paid by the seller alone.
The purchase of property in Designated Areas
There are designated areas in Mata which are known by the name of Special Designated Areas (SDAs) where there are no limitations on acquisition. There is no limitation to inheritance acquisition and there are a number of additional exemptions. Different rules are applicable to the acquisition of the body of a person.
There are many SDAs across Malta as well as Gozo. This includes Madliena village located in Madliena located in the surrounding countryside and with views of the sea; San Lawrenz, Kempinski development in Gozo and Fort Cambridge in Sliema. A typical two-bedroom house located in one of the most desired areas of Sliema and St. Julians, near the beachfront and near everything, can be priced between EUR 150,000 up to EUR 200,000 , depending on the quality of finish and location. Apartments in SDAs will typically range between EUR 180,000 for the most basic ones, up to EUR 400 000 or more for luxury villas.
Purchase of Property for sale in Malta Via Companies
It has become more and more common to purchase property in Malta through the company. It is typically done for the purpose of using the earnings that remain inside an organization directly. The company does not distribute the earnings from the corporation to the shareholders’ personal accounts which means there is no further dividend tax. This is also a good option to safeguard assets.
The purchase of property through trusts
Property in Malta can also be purchased through the use of trusts. Trusts are established in Malta is controlled through the Trusts and Trustees Act 2004. Malta has earned a name as a reputable and stable trust jurisdiction, founded on a contemporary trust legislation, appropriate authorization and supervision of trustees as well as an established judicial system.
Trusts are increasingly being used for various amounts of assets protection as well as estate planning. Families from both countries aren’t afraid to give up the pride of ownership of their own property and opt for a well-planned family-friendly strategy and a competent property management offered by a trust firm, which is often recommended by the trusted lawyer of the family.
It is typical for property to be purchased through trust to be used by the newly-arrived Malta residents’ families and their friends. It is also to be managed and maintained in the best interest of the beneficiaries to maximize the value of the property that is placed in trust. As property trustees who specialize We are able to effectively manage a portfolio of real estate efficiently by bringing together knowledge not only in trusts and financial management, but as well in the field of property investment, development and management as well having extensive expertise in property deals in Malta.
Renting Property in Malta
Renting a house in Malta is a simple process. The rental agreement is executed in a matter of days once all the details are agreed upon by the lessor and the lessee.
Property Management
Residents of Malta who don’t reside on the island for a long time, there is the option of hiring a property management firm. It will typically take care of needs such as arranging the collection of rent, tax issues as well as insurance coverage key, utility bills, and inventory.