The Power of Property Investment in Malta

By Benji Psaila – Head of Sales & Letting at Malta Sotheby’s International Realty

Investing in property has always been a time-honoured strategy for wealth preservation and growth, but few real estate markets offer the unique advantages that the island of Malta does. This Mediterranean gem has become a prime destination for high-net-worth individuals (HNWIs) seeking luxury properties, a stable investment environment, and access to European markets. In this article, we explore why investing in property in Malta is a smart move, delving into its thriving real estate market, investment migration options, and practical considerations for property buyers.

A Strong Property Market
Malta’s private property market is one of the most robust and resilient in Europe. Despite global economic fluctuations, Malta's real estate sector has continued to show strong growth year on year and to be a key contributor to Malta’s economy. The island’s strategic location, favourable business climate and status as an EU member state, attracts investors from around the world. As reported in the KPMG Construction Industry and Property Market Report 2024, the Malta National Statistics Office (NSO) has recorded an upward trend in Promise of Sales in Malta.

Despite a contraction in promise of sales agreements in 2022, the market rebounded in 2023, with the upward trend continuing into the first half of 2024. By mid-2024 the number of Promise of Sale agreements had risen by 5.7% compared to the corresponding period in the previous year. KMPG concluded that these trends reflect the evolving dynamics of Malta’s property sector.

At the start of 2025, the Malta Developers Association (MDA) reported that 2024 was a record-breaking year for the property market, with 16,739 promises of sale agreements signed. The total value of these agreements reached €5 billion, representing a 5.5% increase over the previous record and an impressive 11% rise in the number of agreements compared to the previous year. Such results clearly demonstrate the economic growth brought about by the property sector in Malta and reflect the constant increase in real estate demand.

A steady increase in Property Value
Property value in Malta has steadily increased over the years, driven by a combination of limited land availability and a growing demand from both locals and international buyers. According to the Central Bank of Malta, the Maltese property market recorded a 7% increase in property prices for 2024. Whilst the luxury property segment saw even stronger growth, with prices rising by approximately 9% year-on-year. Additionally, foreign buyers accounted for 27% of property transactions, highlighting Malta’s appeal to international investors.

The island’s limited size and population growth ensure that demand outpaces supply, particularly in high-end segments. This dynamic results in rising property prices, creating attractive returns on investment for property owners.

Malta’s rental market also remains robust, with average rental yields ranging from 4% to 6% depending on the location and type of property. In prime areas such as Sliema and St. Julian’s, rental demand remains high, driven by expatriates working in Malta’s booming finance, gaming, and technology sectors. Short-term rental opportunities, particularly in tourism hotspots, also provide lucrative income streams for real estate investors.

Luxury Property in Malta
Luxury properties, in particular, are highly sought after attracting affluent individuals who value Malta’s relaxed yet upscale lifestyle. Malta offers a unique blend of modern sophistication and historical elegance. Buyers can choose from sprawling villas with private pools, penthouses with panoramic views, or restored townhouses in heritage-rich locations. Areas such as Sliema, St. Julian’s, and Valletta offer exclusive homes with stunning sea views, historic charm, and proximity to high-end amenities. The demand for these luxury residences ensures that property owners see their investments significantly appreciate over time.

A property stakeholder consultation led by KPMG, presented in their 2024 Construction Industry and Property Market Report, shed light on key trends shaping the high-end property segment in Malta. The report highlighted that demand for luxury properties, particularly villas valued at over €2 million, has remained strong throughout 2024, driven largely by limited supply. Stakeholders also noted that properties offering more in terms of quality—such as larger spaces and extensive outdoor areas—tend to sell faster, reflecting buyers' preferences for premium features and lifestyle-focused investments.

Malta Sotheby’s International Realty is a leader in luxury property, representing prestigious properties of exceptional quality across Malta and Gozo. Their team of dedicated associates are committed to providingdiscerning buyers interested in smart and sound investments with the white glove service expected from the Sotheby’s International Realty brand. 

Why Buying Property Is Popular with Foreigners
Malta’s real estate market is highly attractive to foreign buyers for several reasons. English is an official language in Malta, making it easy for international investors to navigate the buying process.

For those relocating to Malta, the island offers a safe and stable environment with a high standard of living, excellent healthcare, and an international school system, which appeals to expatriates and their families.

Malta also boasts a high quality of life, with a warm Mediterranean climate, rich cultural heritage, and a vibrant social scene. The island offers excellent connectivity to major European cities, making it easy for residents to travel for business or leisure.

Foreign buyers are also drawn to Malta’s advantageous tax regime, which includes no inheritance tax, no wealth tax, and favourable capital gains tax conditions. Additionally, Malta’s property laws are straightforward, ensuring that property rights are well-protected.

Investment migration initiatives that Malta offers are also key motivators for foreigners to buy property in Malta. Relevant programmes require property investments and provide pathways to European residency or citizenship, making Malta particularly appealing to high-net-worth individuals seeking both lifestyle benefits and secure investments.

Investment Migration in Malta
The key investment migration options available to HNWI and their families are the Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment (MEIN) and the Malta Permanent Residence Programme (MPRP).

• Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment: This programme allows individuals to obtain Maltese citizenship by making a property investment, along with other financial contributions. Applicants must purchase a property valued at a minimum of €700,000 or lease a property with an annual rental value of at least €16,000.

• Malta Permanent Residence Programme: The MPRP grants permanent residency to applicants who invest in Maltese real estate. The minimum property investment required is €375,000 for a property purchase in Malta or Gozo. Alternatively property may be leased for an annual rental value of at least €14,000. Applicants must also pay a government contribution and meet other financial requirements.

Both options provide investors with access to Malta’s high-quality healthcare, education, and business opportunities, as well as visa-free travel within the Schengen Zone. For HNWIs, these programmes offer a pathway to European residency or citizenship while securing a valuable property asset.

Accredited agents in Malta, such as CSB Group, will assist HNWI, and their families with the preparation and submission of the relevant investment migration applications.

The Property Buying and Renting Process in Malta
Purchasing property in Malta is a straightforward process. Once a buyer identifies a suitable property, a preliminary agreement known as a “Konvenju” (Promise of Sale Agreement) is signed. This binds both parties to the sale, subject to conditions such as financing and property inspections. The buyer then pays a deposit, typically 10% of the purchase price.

Taxes and fees include a 5% stamp duty, notary fees, and registration costs. It’s worth noting that foreign buyers need a special permit known as an Acquisition of Immovable Property (AIP) permit unless they are purchasing property in a Special Designated Area (SDA) also known as a Lifestyle Development where an API permit is not required. Purchasing property within an SDA affords foreign buyers with all the same property rights as a Maltese Citizen.

Renting property in Malta is also a popular option, especially for investors seeking rental income. Lease agreements are generally straightforward, and landlords can expect steady demand from expatriates and tourists alike.

Investing in Malta: A Wealth of Opportunities
Investing in property in Malta offers a unique combination of financial returns, lifestyle benefits, and strategic advantages. The island’s growing real estate market, fuelled by increasing demand and limited supply, provides investors with a stable and appreciating asset. Luxury properties in Malta offer more than just a place to live—they are a gateway to a prestigious lifestyle and a sound investment for future growth.

Coupled with attractive investment migration options, Malta remains a top choice for high-net-worth individuals seeking to diversify their portfolios while gaining access to Europe’s markets and lifestyle. With its resilient property market, investor-friendly policies, and unparalleled charm, Malta truly offers a powerful investment opportunity.