Nestled in the heart of the Mediterranean, Malta forms part of an archipelago consisting of three islands - Malta, Gozo and Comino. Malta is the bustling economic and cultural hub of the Maltese islands, whereas Gozo offers more of a tranquil countryside charm. Comino is renowned for its crystal-clear waters with no year-round residents.
Known as the jewel of the Mediterranean, the Maltese islands enjoy picturesque beaches, 300 days of sunshine and a rich tapestry of history, offering an exceptional lifestyle that blends modern convenience with timeless heritage. Beyond its natural beauty and historic appeal, Malta has become a prime destination for foreign nationals seeking citizenship or residency.
Strategically located between Europe and Africa and an EU Member, Malta offers some of the most popular citizenship and residency programmes available. With a thriving real estate market and a favourable tax structure, the island presents a compelling opportunity for foreign investors and expats alike.
Buying Property in Malta as a Foreigner
For many foreign investors and expatriates, purchasing property in Malta is an attractive prospect. Whether you're looking for a holiday home, an investment, or a place to settle down —you may be asking yourself: Can foreigners buy property in Malta? The short answer is yes, but there are a few important rules and requirements around property regulations that you should be aware of when purchasing a property in Malta.
Many foreigners own property in Malta, and the various rules and regulations you will have to abide by when buying property in Malta as a foreigner will be dependent on where the property is situated. For non-EU residents, buying investment property in one of Malta’s many Special Designated Areas (SDAs) can often be the better choice. SDAs, also known as Lifestyle Developments, are among the best places to buy property in Malta.
What are Lifestyle Developments or Special Designated Areas?
Lifestyle Developments are specific high-end residential locations that are afforded a special status, marking the development as an SDA. More often than not, SDAs offer complimentary services and luxury amenities such as members-only gym facilities, designated underground parking, a swimming pool, and concierge services, amongst other conveniences.
Well-established and popular SDAs in Malta include but are not limited to;
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Tigne Point Lifestyle Development – Sliema: Penned a vision of modern comfort and sophisticated living. Tigne Point is a mixed-use, holistic development set against the historical backdrop of Valletta’s bastions and the Mediterranean Sea. This sought-after destination features a retail mall, lively piazza, outdoor leisure areas, and corporate offices, with residents enjoying a plethora of exclusive amenities, including a waterfront swimming pool, fitness facilities, and so much more.
- Portomaso Lifestyle Development – St Julian’s: Located on the beautiful Maltese coastline, Portomaso is a luxurious residential complex renowned for its high-end residences and award-winning yacht marina. Portomaso Lifestyle Development shares space with the renowned 5-star Hilton Hotel and is also home to The Laguna Lifestyle Development - one of Malta’s most sought-after residential areas built around a man-made lagoon, offering residents a unique experience with world-class amenities and an unmatched lifestyle.
- Mercury Towers Lifestyle Development – St Julian’s: An architectural icon designed by Zaha Hadid, Mercury Tower redefines luxury living in Malta. This 31-floor twin-tower development offers a fusion of contemporary elegance, world-class amenities, and breathtaking views. Crafted for those who seek an elevated lifestyle, every detail—from the striking design to the refined finishes—has been meticulously considered to create an unparalleled residential experience.
Whilst there are a number of established SDAs across Malta and Gozo, many new Lifestyle Developments are being built with properties available for purchase on plan. These new and highly sought-after developments include;
- Ora Residences Lifestyle Development – St Julian’s: Set in the heart of St George’s Bay, ORA Residences is a groundbreaking development that redefines luxury living. With two vertical towers seamlessly covered in lush greenery, ORA blends flawless design with a unique, sustainable approach to urban living. Embracing the present moment, ORA captures the essence of modern living, offering residents a vibrant, soulful home where contemporary design meets nature.
- Verdala Terraces Lifestyle Development – Rabat: Tucked away in a tranquil corner of Rabat, just steps from Mdina, Verdala Terraces embodies the essence of luxurious, contemporary living. Designed for those who seek refined elegance, this exclusive collection of residences offers an unmatched level of sophistication, harmoniously blending with the natural beauty of the Maltese countryside.
- Townsquare Lifestyle Development – Sliema: Crafted to offer an elevated lifestyle, Townsquare blends luxury living with modern convenience, creating a dynamic urban oasis. The vibrant development seamlessly combines residential, commercial, and social spaces across 12,000 sqm, providing a unique, walkable community. Featuring 159 luxury residences and expansive green spaces, Townsquare redefines urban living with its distinctive 27-story tower and sleek triangular design.
Other popular Special Designated Areas in Malta include;
- Fort Cambridge Lifestyle Development, Sliema
- Southridge Lifestyle Development, Mellieha
- Pendergardens Lifestyle Development, St Julian’s
- Tas-Sellum Residence Lifestyle Development, Mellieha
- The Shoreline Lifestyle Development, Kalkara
- Fort Chambray Lifestyle Development, Ghajnsielem, Gozo
- Kempinski Residences Lifestyle Development, San Lawrenz, Gozo
Properties that fall within an SDA generally offer a higher rate of return on investment due to the development's prime location, residential amenities, landscaped gardens, and overall ambience, making them a popular choice for both local and foreign buyers.
Real estate purchases in SDAs afford Third Country Nationals (TCN) all of the same property rights as that of a Maltese Citizen – meaning that as a foreigner, they can purchase a property without restriction, irrespective of whether they are EU citizens or not.
In addition, properties bought in an SDA can be leased out without restrictions, and there is no limit to the number of properties a foreigner can purchase. But you may be wondering how to buy property in Malta that falls outside of a Lifestyle Development.
You can view all of Malta and Gozo's Lifestyle Developments here.
Whilst not impossible, additional steps need to be taken. Should an expat opt to purchase property that falls outside of an SDA, then they will first need to apply for an Acquisition of Immovable Property (AIP) permit.
AIP Permits – A Guide to Conditions for Buying Property in Malta.
Individuals who are not Maltese Nationals, regardless of whether they are a first-time buyer or not, may be subject to certain restrictions on the property that they purchase. Foreign nationals wishing to buy property in Malta are restricted to purchasing one residential property (after being granted an AIP permit), which must be used for their own occupancy.
The Capital Transfer Duty (CTD) Department is responsible for the processing of applications by non-residents to acquire immovable property for sale in Malta. AIP permits are usually issued within 35 days after going through a review and approval process at a fee of €233,00.
Buying A Property in Malta Outside of Lifestyle Developments as a Non-EU Citizen
Non-EU citizens or TNCs buying a house outside of an SDA will need to obtain an AIP permit, and the requirements are based on the total value of the property.
TNCs may only purchase one residential property outside of an SDA, and the property must be used as their primary residence. However, TNCs who purchase property with their EU spouse will enjoy the same rights as their spouse, providing that the purchase is made jointly between the pair.
Buying A Property in Malta Outside of Lifestyle Developments as an EU Citizen
Previously, EU citizens were also required to apply for an AIP permit if they wished to purchase property outside of a Lifestyle Development; however, that is no longer the case. EU citizens who have been residents of Malta for at least five years are exempt from needing an AIP permit to purchase property outside of SDAs.
Those who do not meet the minimum required five-year residence do not need to apply for an AIP permit, provided the property they are purchasing will be used as their primary residence. Should they wish to purchase a property as a secondary residence, an AIP permit will be needed.
There is also no need for an AIP permit if you are an EU citizen and you are purchasing immovable property for business purposes.
Exemptions for AIP Permits as a Non-EU Citizen
Per the subsidiary legislation entitled the Malta Residence and Visa Programme Regulations, third-country nationals (non-EU/EEA/SWISS nationals) who have been legally residing in Malta for at least five (5) years on a permanent basis are eligible to apply for long-term residence status.
In the event of a successful application, a residence permit will be issued for a period of 5 years, and an AIP permit shall no longer be required to buy property in Malta outside of a Special Designated Area. In addition, non-EU citizens with long-term residency can also benefit from all the incentives and reductions introduced by the local government in relation to Malta’s stamp duty and property tax.
Tax & Property Requirements for Malta’s Citizenship & Residency Programmes
Over the years, Malta has successfully introduced a number of residency and citizenship programs aimed at attracting high-net-worth individuals to become tax residents and citizens of Malta. These citizenship and residency programmes are hugely popular as successful applicants are granted the freedom to travel to 170 destinations visa-free, gain access to world-class health care, gain a foothold into the European business market due to its strategic location and enjoy the safety and security that comes with living in one of the safest countries in the world.
The below is a quick guide summarising property and investment requirements for each programme;
General Residence Citizenship Requirements
Most programmes require a property purchase or long-term rental contract for a period of no less than 5 years. In addition, successful applicants will be expected to make a once-off donation to a Maltese registered NGO as well as a once-off capital contribution to the Maltese Government. These requirements are dependent on the specific programme and will vary depending on the applicant, their spouse and any dependents.
Citizenship by Investment - Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment Regulations (MEIN)
The Maltese Citizenship by Naturalisation for Exceptional Services by Direct Investment Regulations allow high-net-worth individuals and their families the possibility of acquiring a residence in Malta and eventually obtain Maltese citizenship through direct investment.
Applicants will need to purchase a property with a minimum value of €700,000 or obtain a residential rental agreement valued at a minimum of €16,000 rent per annum. A full list of requirements for the MEIN programme can be found here.
Residence by Investment – Malta Permanent Residence Programme (MPRP)
The Malta Permanent Residence Programme allows non-EU citizens the chance to obtain residency in Malta. Families can apply and, if successful, receive a five-year permanent residency permit. The property requirements for the Malta Permanent Residence Programme are a property purchase of no less than €375,000 in Malta or Gozo or a residential rental contract with a minimum value of €14,000 in Malta or Gozo.
The property purchase or rental must be held and maintained for a period of five years and must serve as the permanent residence of the applicant and any included dependents. A full list of requirements for the MPRP can be found here.
The Global Residence Programme (GRP)
The Global Residence Programme is designed to attract individuals who are not EU, EEA or Swiss Nationals. The programme grants successful applicants tax residency in Malta, offering a special tax status whereby successful applicants pay a flat 15% tax rate on foreign income brought into Malta. Additionally, tax residents are not taxed on foreign-sourced capital gains, whether the funds are remitted to Malta or not. Foreign capital invested locally is only taxed on interest or dividends.
Applicants will need to hold a qualifying property in Malta, which will serve as the primary residence of the applicant that has a minimum value of €220,000 in Gozo or the South of Malta, or €275,000 in other areas of Malta, or applicants can opt for a residential rental investment of at least €9,600 per year in Malta, or €8,750 annually if renting in Gozo or the South of Malta. A full list of requirements for the GRP can be found here.
The Malta Tax Residence Programme
Similar to Malta’s Global Residence Programme, the Malta Tax Residence Programme affords EU Citizens (who successfully apply) a flat 15% tax rate on all income brought into Malta, while income earned abroad but not remitted to Malta remains tax-free. Capital gains made outside of Malta are also not taxable, even if the funds are transferred to Malta. A minimum annual tax of €15,000 is required, payable in full the year the special tax status is granted or revoked.
Additionally, applicants cannot reside in any other country for more than 183 days per year. One of the requirements to qualify for this programme is a property purchase in Malta with a minimum value of €275,000 or a property purchase of no less than €220,000 in Gozo or the South of Malta. Alternatively, applicants can opt for a residential rental investment of at least €8,750 annually if the rental is in Gozo or the South of Malta. A minimum annual rental of €9,600 will be required for properties anywhere else in Malta.
A full list of requirements for the Malta Tax Residence Programme can be found here.
What Types of Property Can You Purchase in Malta?
International buyers looking to buy property in Malta can choose from a variety of options, including Houses of Character, Townhouses, Luxury Apartments, Magnificent Palazzos, Traditional Terraced Houses, and incredible Mediterranean Villas or Bungalows, among others.
What you purchase and where you purchase the property will all depend on the type of lifestyle you are interested in. From luxurious penthouses with breathtaking views to picturesque homes of character full of tradition or converted Palazzos fit for royalty and modern high-rise apartments, Malta Sotheby’s International Realty has a wide and diverse portfolio of Malta’s best properties for you to choose from. Let us guide you through your property purchase.
Eligibility Requirements for Foreigners Buying Property in Malta
There are a couple of general conditions that expats need to adhere to when purchasing property in Malta as a foreigner, these include but are not limited to;
- Be in possession of a valid passport travel document.
- Be in possession of a recognised health & life insurance policy.
- Be a fit and proper candidate.
- Have proof of finances in order to afford the property.
Your Step-By-Step Process on How to Purchase a Property in Malta as a Foreigner
The real estate market in Malta has experienced remarkable growth in recent years, with the island's forecast for the private property market remaining stable and optimistic. It is then no wonder that buying property in Malta is a sound and smart investment.
While purchasing property in Malta is quite straightforward, there are a few crucial processes that need to take place to successfully purchase property in Malta. This is especially true for first-time buyers who have not previously gone through this process. Here is a step-by-step process on how to buy property in Malta as a foreigner.
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Finding the right Real Estate Agency to assist you in your property search;
While property can be purchased directly from a vendor(owner) as a non-Maltese citizen, it is advisable to work with a registered and accredited Real Estate Agency that can connect you with an experienced and qualified agent to assist you in finding a home that best suits your needs.
Malta Sotheby’s International Realty is a registered and accredited agency with all of our real estate agents being licensed under the L.N. 291 of 2020, the "Real Estate Agents, Property Brokers and Property Consultants Act, 2020" ("Act"). With expert local knowledge and a vast global network, Malta Sotheby’s International Realty prides itself in being Curators of the Unique and a leader in luxury real estate.
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Selecting an Architect;
Once you have decided on the property that you wish to purchase, it is important to find an architect to inspect the structure of the property and ensure that everything is in good order.
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Selecting a public notary;
A notary will prepare the documents for the Promise of Sale. The Notary will also inspect all of the paperwork and check the title while preparing a final deed of sale. You can find all the Notaries in Malta here.
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Sign a Promise of Sale;
Your agent will negotiate the price and conditions with the seller on your behalf. Once both parties agree, a Promise of Sale, also known in Maltese as a "Konvenju", will be signed at the Notary's office, and the agreed-upon deposit will need to be paid.
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Obtaining an AIP permit;
Depending on where the property you are purchasing is located and for how long you have been a resident in Malta, you may require an Acquisition of Immovable Property (AIP) permit. Applicants must include two passport-sized photos, a copy of the promise of sale or “Konvenju” agreement and a copy of the applicant’s valid passport.
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Sign The Final Deed of Sale;
A final deed of sale will be signed at the Notary's office, upon which you will be required to pay all outstanding funds for the purchase of the property as well as the real estate agency fees, Notary fees and the Stamp Duty associated with the purchase of the property. If there is a bank loan involved, then the final deed will be signed at the Bank's office.
What are the Costs and Fees when Purchasing a Property in Malta?
Architect Fees
You need an architect to inspect your property and make sure it's in good order. You also need the architect to get you a site plan and fill out bank documents if a home loan will be required. Architect fees are usually between €200 and €500.
Once you have signed the final deed and taken ownership of your property, the only fees left are your stamp duty, notary fees, and estate agency fees.
Stamp Duty
Stamp duty could be considered a form of property tax in Malta. Malta stamp duty is calculated at 5% of the value of the immovable property. 20% is payable upon signing the promise of sale, and the remaining 80% is payable upon the final signing of the final deed of sale. Certain exceptions are afforded to first-time buyers.
Notary Fees
Notary fees are paid to the Notary for preparing all the necessary documentation for the promise of sale and the final deed of sale. The Notary carries out all due diligence checks necessary to ensure the successful sale and transfer of the property. Notary fees are usually 2 – 2.5% of the total value of the property.
Energy Performance Certificate (EPC)
An EPC certificate would need to be applied for. This is the responsibility of the Seller and is obtained from an Energy Performance of Buildings (EPB) assessor.
Estate Agency Fees
The majority of Real Estate Agencies in Malta charge a 5% + 18% VAT fee of the property purchase price, which is typically paid by the seller of the property.
Can a Home Loan be obtained in Malta?
It is possible to acquire a home loan in Malta from the majority of the local Maltese banks available on the island. You will be required to submit an application and be able to demonstrate a steady and regular income.
Applicants will also require a life insurance policy as well as home insurance. A professional real estate agency such as Malta Sotheby’s International Realty would be able to support you and streamline the process with your chosen Bank. Maltese banks tend to offer flexible terms with reasonable interest rates.
What are the Advantages of Buying a Property in Malta?
Besides Malta’s favourable weather conditions, Malta’s strategic location allows easy access to the rest of Europe, making it an attractive investment destination for wealthy individuals and international companies. Those who wish to do business in Malta will find the island very appealing in terms of international business and trade as English is one of the country's two official languages, not to mention Malta’s favourable tax laws.
Because of its popularity as an investment location, Malta enjoys a strong GDP with year-on-year growth, attracting many foreign workers, which pushes the demand for property up and thereby ensures a stable property market and steady growth.
In addition, those living in Malta enjoy an affordable cost of living and a high quality of life, with Malta being one of the safest countries in the whole of Europe with a health system that is ranked in the top 20 globally.
Malta’s rich history and a strong sense of tradition and culture is a massive draw for tourism each year, where thousands of people come to visit the capital city of Valletta, a UNESCO World Heritage Site.
What is the Current Property Market Like in Malta?
Property in Malta remains the preferred method of investment, which is why property values and prices have been on the rise for the past few years. The homeownership rate in Malta is 82.6%, which is significantly higher than the European Average.
In recent years, the purchase of apartments has increased quite substantially as buyers opt to purchase not only for residential reasons but also as a rental investment; this is due to the dramatic influx of expats choosing to live and work in Malta, which contributes to Malta’s successful economic growth each year.
Living in Malta
If you are a foreign national thinking of making Malta your permanent residence, you are definitely on the right track, and the best time is now. The Maltese government welcomes and supports expats through a number of residence programmes. The benefits include indefinite residence in Malta and free access to EU countries.
Obtaining Maltese citizenship comes with its own advantages, including privacy, stability, mobility, comfort, and visa-free access to the EU and Schengen area. Foreign nationals with a residential status are not taxed on foreign sources of capital gains and foreign income that is not remitted to Malta.
Where to Live in Malta
The small island of Malta spans only 14.5 kilometres wide and 27 kilometres long yet provides a number of versatile properties in unique locations. For those who seek the hustle and bustle of city life, popular localities such as St. Julian’s and Sliema offer a cosmopolitan lifestyle with a number of amenities to enjoy right on the seafront that spans their eastern borders.
Many modern professionals or those with young families enjoy the localities that surround these two major cities, such as Swieqi, San Gwann and Gzira, which often offer more spacious living accommodations and peaceful surroundings while still being a stone’s throw away from the excitement of the popular cities of Sliema and St. Julian’s.
Those who wish to be in a less urban environment while still enjoying modern-day amenities opt for luxurious villas and converted historic properties in the prominent areas of Naxxar, Mellieha, Mosta, and San-Pawl tat-Targa.
Those seeking tradition, history and rich culture may prefer historical towns such as Rabat and Birkirkara. They both offer incredible homes suitable for every taste. These villages enjoy a rich history and a number of local attractions. The ancient city and former capital, Mdina, also known as the Silent City, sits on the border of Rabat and attracts thousands of visitors each year who marvel at the historic homes and grand palazzos.
Gozo – Malta’s sister island – also offers a number of remarkable properties, and many people who crave quiet and serenity select Gozo as their location to retire or purchase a secondary home when they need a weekend getaway or summer holiday home.
How We Can Help You Buy Property in Malta
As your property expert, we at Malta Sotheby’s International Realty realise that we are at the centre of your white glove experience with the Sotheby's brand. We understand that our role is more than just that of an agent - but also as your partner in finding a home or business premises that suit your vision for the future. We focus on servicing the luxury high-end residential and commercial property market in Malta in both sales and rentals, providing our local and foreign clients with a full turn-key real estate service.
