Foreign Buyers

Acquisition of Immovable Property in Malta by Non Residents


Buying Property in Malta as a Foreigner

The AIP section of the Capital Transfer Duty (CTD) Department is responsible for processing applications by non-residents looking to acquire immovable property in Malta. The section issues permits for those applications which satisfy a number of business criteria. If you’re interested in buying property in Malta as a foreigner, read on to find out what you need to know.

According to the Government of Malta, attracting a larger volume of foreign residents to the island would benefit the local economy, with no major adverse effects likely to come about. This, of course, is provided that the inflow of foreign residents kept within reasonable levels and the housing stock continued to grow steadily.

The CTD Department has recently embarked on an ambitious programme to boost its customer service offering. The premises were upgraded to ensure a better, friendlier office environment for clients. The department also invested heavily in technology, installing a robust infrastructure and many custom-built software systems to that same end.


Applying for a permit to buy immovable property


Documents needed when buying property in Malta as a foreigner

All applicants need to:
  • Fill the AIP application form completely.
  • Produce a copy of the promise of sale or preliminary agreement of the immovable property being acquired, if entered into.

First-time applicants need to:
  • Produce two passport-size photographs of non-resident applicants.
  • Produce a photocopy of the passport showing applicant's particulars.

Applicants who already owned Immovable Property need to:
  • Produce copy of deed of sale of previous immovable property.

Limited liability companies who apply for a permit need to:
  • Produce Memorandum and Articles of Association of the company.
  • Give details of shareholding directors.
  • Produce evidence showing that the purpose of the company is for the development of the economy of Malta.

When your application is approved, you’ll be informed by a notice. The applicant will then be issued with a permit against a payment of €233. The applicant may then enter into a contractual agreement to buy the immovable property.


Conditions for buying immovable property


If you’re interested in buying property in Malta as a foreigner, read these conditions below:

Citizens of all European Union member states—therefore including Maltese citizens—who have resided in Malta continuously for a minimum of five years at any time before the acquisition date may acquire immovable property freely, without obtaining a permit under Chapter 246 of the Laws of Malta.

However, those who haven’t resided continuously in the country for the stipulated time can only buy the primary residence or any immovable property required for their business activities or supply of services without the necessity of obtaining a permit under Chapter 246 of the Laws of Malta.

EU citizens who have not met these requirements need to get a permit under Chapter 246 of the Laws of Malta to acquire immovable property for secondary residence purposes.

Individuals who are not citizens of a European Member state can't acquire immovable property unless they’re granted a permit in terms of Chapter 246 of the Laws of Malta.

There are defined zones in Malta called special designated areas (SDAs), where there are absolutely no restrictions to acquisition. There’s also no restriction on acquiring property through inheritance, and there are also several other special exemptions. Different rules apply to the acquisition by bodies of persons.

Acquisition by Individuals

Maltese and EU Citizens – both with 5 years continuous residence in Malta

Maltese and EU Citizens – without 5 years continuous residence in Malta

Others

Primary Residence1

No restrictions – No need to apply

No restrictions – No need to apply

Prior authorisation is required*

Secondary Residence or any other immovable property2

No restrictions – No need to apply

Prior authorisation is required*

Prior authorisation is required*

Causa Mortis devolutions

No prior authorisation is required

No prior authorisation is required

No prior authorisation is required

Grave or site

No prior authorisation is required

No prior authorisation is required

No prior authorisation is required

Redemption of ground rent

No prior authorisation is required

No prior authorisation is required

No prior authorisation is required

Property in a Special Designated Area

No prior authorisation is required and no limit

No prior authorisation is required and no limit

No prior authorisation is required and no limit

Divided or undivided share in immovable property where person had previously acquired a share in such immovable property in accordance with the provision of this Act

No prior authorisation is required and no limit

No prior authorisation is required and no limit

No prior authorisation is required and no limit

Transfer of immovable property in an inheritance between co-heirs

No prior authorisation is required – No limit

No prior authorisation is required – No limit

No prior authorisation is required – No limit

Partition of immovable property between co-owners

No prior authorisation is required – No limit

No prior authorisation is required – No limit

No prior authorisation is required – No limit

Donation of immovable property to a spouse, descendant or an ascendant in the direct line and their relative spouses – in the absence of descendants to a brother or sister and their descendants

No prior authorisation is required – No limit

No prior authorisation is required – No limit

No prior authorisation is required – No limit

Immovable Property required for the person’s business activities or supply of services by such person

No prior authorisation is required – No limit

No prior authorisation is required – No limit

No permit granted unless required for an industrial or touristic project or as a contributor to the development of the economy of Malta



Notes
*: A permit won’t be granted if the applicant has already acquired immovable property in Malta; other conditions also apply.

  1. This presupposes a change of ordinary residence if the purchaser is not already a resident of Malta.
  2. This would typically include holiday homes where there is no change of ordinary residence.

Additional Information

With over 21 years of experience within the real estate market, Damcar Properties Unite is best positioned to help you find your dream home. With our main office located in Msida, we strive to provide our clients with the very latest investment opportunities in-line with their budget and requirements.