Malta Property Tips and Advice for the non-Maltese |
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Some conditions do apply and some buyers may have to apply for a special permit, but overall Malta property buying procedures are quite straight forward.
Malta has long been an attractive country for non-Maltese to relocate in and the abundance of property for sale in Malta makes it easier for you to find just the property that you’re looking for.
Buying Property in Malta & Gozo: Procedures
Preliminary Agreement
Once you select the property that you want to purchase and a price is agreed upon with the seller, an appointment is made to sign a Preliminary Agreement (konvenju in Maltese).The Preliminary Agreement is basically an agreement that binds the purchaser and the seller to finalize the transaction within an established date.
The agreement is subject to a number of conditions. Upon signing this agreement, it is required to pay 1% provisional stamp duty. This is a part payment of the full 5% stamp duty. The balance has to be paid upon signing the final deed.
The Preliminary agreement for non-Maltese buyers will also include a 'subject to the acquisition of the A.I.P. permit' clause.
This A.I.P permit (Acquisition of Immovable Property) is required from the Ministry of Finance. It is normally granted within 2 months of application.
The Notary Public will fill out all the necessary documents and apply for the permit. The €232.94 fee will be settled either upon signing of the Preliminary agreement, when signing the final deed or as agreed with the Notary.
A deposit needs to be paid on signing the Preliminary Agreement. Usually this amounts to 10% of the selling price.
The Preliminary Agreement is done so that during the term of the agreement, a notary public carries out important searches/tasks that include:
- verification of legal title.
- ensuring that there are no outstanding debts, liens or hypothecs on the said property.
You will have to organise a bank loan (if required).
If the property is still under construction, the vendor is bound to complete all the works that were agreed upon in the Preliminary Agreement.
Final Deed
As soon as the above are completed, a date is set for the signing of the Final Deed.The venue will be at a local bank’s legal office or at the office of a notary public. On the day, the final deed is read and agreed upon. All balances due are paid on this day.
The payments that are due on the day of the final deed are the following:
- balance of the selling price to the seller.
- balance due to the Commissioner of Inland Revenue for stamp duty.
- 1% notary fees to the notary public.
For more information, advice and tips on buying property in Malta, visit the AIP website.
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