Real Estate | Malta
Overview
The Maltese real estate market has in recent years been one of Europe’s success stories, experiencing five years of consecutive growth prior to the global COVID-19 pandemic, both in the number of properties purchased and overall volume.
Holding period of real estate: Minimum of five years
Minimum real estate investment: EUR 700,000
Type of ownership: Sole or shared ownership
Rental income opportunity: 3–5%
Are there any restrictions on the acquisition of real estate in Malta by foreign buyers?
Foreign investors may purchase only one property in Malta, except for property purchased in a special designated area (SDA), which is unlimited. When purchasing outside an SDA, the purchased property cannot be rented out.
How can immovable property in Malta be acquired?
Once an offer has been accepted and a notary has been instructed, there are two steps to the property purchase that buyers need to consider: the promise of sale and the final deed.
Does the applicant need to open a bank account in order to purchase property, and if so, what is the procedure?
A Maltese bank account is not required. The buyer transfers the funds directly into the notary’s account and the notary then makes all the payments on behalf of the buyer.
What additional expenses will the real estate transaction incur?
- Stamp duty at 5% of the sale price
- Notary fees at approximately 1.5% of the sale price
- Architect’s fee of approximately EUR 1,000
What kind of returns can be expected from property investment in Malta?
Over the recent years, the return on capital investment has been in excess of 5%, while the yield on rental income is approximately 3.5%.
How is rental income taxed?
Rental income is taxed at a standard rate of 15%.