Overseas Buyers Guide for Malta
Overseas Buyers Guide for Malta
At Sara Grech, we are committed to helping you find the perfect property, whether you are a local or not
Overseas Buyers Guide for Malta
Welcome to our Overseas Buyers Guide for Malta, where we delve into why Malta and Gozo have become sought-after investment destinations for those seeking their dream home, on a sunny island. With abundant cultural attractions, an incredible climate, and a safe family environment boasting wonderful beaches and world-class diving locations, it’s no wonder that more and more foreign buyers are choosing Malta.
The buying process in Malta and Gozo is straightforward and renowned in Europe for its safe and uncomplicated legal procedures. Contracts are always written in English, ensuring clarity, while property transfers offer binding agreements and guaranteed security of title.
Budget & Requirements
Start by identifying your needs and budget. Whether you’re envisioning a sea view from a modern apartment or a tranquil House of Character in a quaint village, clarity is key. If you require a mortgage, now is the time to consult with your bank or mortgage advisor to solidify your financial position.
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Viewings
With the competitive nature of the Maltese property market, early viewings are crucial. Our team at Sara Grech ensures swift viewing arrangements, even providing chauffeured visits if needed. We’re committed to accompanying you throughout the viewing process, answering any questions, and facilitating negotiations.
Make an Offer & Preliminary Agreement
Once you’ve found your ideal property and your offer is accepted, the next step is signing a Preliminary Agreement, also known as the ‘Promise of Sale.’ This agreement outlines mutually agreed terms and conditions, binding both parties to the transaction. During this stage, a 1% stamp duty fee is payable, along with a 10% deposit by the buyer.
Final Contract of Sale (Final Deed)
Upon completion of all conditions outlined in the Preliminary Sale agreement, the final deed is signed. The Notary drafts the contract, and upon agreement by both parties, the balance is paid to the seller. The keys are exchanged, and the contract is registered at the Public Registry by the Notary.
Additional costs
Stamp Duty
In Malta, the standard rate of Stamp Duty is 5%. However, various government incentives may apply, potentially reducing this rate based on individual circumstances. Here’s what you need to know:
- Payment Structure: 20% of the total stamp duty is payable upon signing the ‘Promise of Sale’ agreement, commonly referred to as the ‘Konvenju’ in Maltese, with the remaining balance payable upon the final deed of purchase.
- First-Time Buyer Exemption: The Maltese government offers a stamp duty exemption on the first €150,000 for first-time buyers, potentially resulting in savings of up to €5,250. Both foreigners and Maltese nationals can benefit from this scheme, subject to specific criteria.
- Urban Conservation Area (UCA) Exemption: Properties located in Urban Conservation Areas or those with traditional Maltese features may qualify for tax exemption on the first €750,000. This incentive applies to both vendors and purchasers.
- Other Incentives: Additional incentives include reduced stamp duty rates for second-time buyers and those with disabilities. For properties in Gozo, residential purchases may qualify for a reduced stamp duty rate of 2% if specific conditions are met.
Restoration Grants
First-time buyers can avail of incentives of up to a maximum of €100,000 for property-related expenses when restoring a home in a UCA zone (Urban Conservation Area). For more detailed information, feel free to consult one of our team members.
Notary Fees
A Notary, acting as a public official appointed by the government, plays a crucial role in the property transaction process. Here’s what you need to know about Notary fees:
- Fee Structure: Notary fees typically range from 1.5% to 2.5% of the property price and are paid in two stages: 33% upon signing the preliminary agreement and the remaining 67% upon the publication of the final deed of sale. These fees are calculated according to the Notarial Council Guidelines.
- Role: The Notary verifies that the property is unencumbered and free from any issues relating to banks or individuals.
Ground Rent
If a property involves ground rent, the buyer will need to consider the following:
- Recognition Fee: The buyer must pay a recognition fee equivalent to one year’s ground rent (known as the ‘laudemium’) to the ground rent owner.
- Ground Rent Payment: Additionally, the buyer will be responsible for paying the ground rent for the property itself. Therefore, there will be two ground rent payments in the first year.
Registration Fees
| Property Value in € | Rate € |
| up to €11,646.87 | 13.98 |
| 11,646.87 – 23,293.73 | 18.63 |
| 23,293.73 – 46,587.47 | 27.95 |
| 46,587.47 – 69,881.20 | 37.27 |
| 69,881.20 – 93,174.94 | 46.59 |
| 93,174.94 + every 23,293.73 = | 9.32 |
We at Sara Grech are committed to ensuring transparency and providing comprehensive guidance throughout your property purchasing journey in Malta. Feel free to reach out to our team for further assistance or clarification on any aspect of the buying process – we understand the significance of purchasing property, both financially and emotionally. Our experienced team is here to guide you through every step of the process, ensuring a seamless and rewarding experience in acquiring your dream property in Malta.