In order to buy a property in Malta, the best thing to do is to have a legal adviser consult an attorney-at-law and to agree on a written preliminary contract “convenium” or, in Maltese, “Konvenju”, often also “Promise of Sale Agreement” Called, with the involvement of a notary. This formulates the preliminary contract, which is signed by him and the purchasing parties. In Malta, the buyer usually designates this notary for the preliminary contract and also for the final notary contract “Final Deed”.
Further Details you need to know before getting to the real estates of Malta
In the preliminary contract, only the rough framework of the purchase is specified, such as the “Term of Konvenju” period of at least three, usually 6, and at most twelve months, within which the “final deed” is to be signed and the parties are committed to the To create the prerequisites for the “final deed”, eg the freedom from the burden on the property. A deposit of 10% of the purchase price is usually agreed and paid to the notary. This manages the deposit in trust on his other account. This payment also has to be paid through the notary, the stamp duty of 1%. This is due for the purchase of the Malta real estate in the total amount of 5% so that when the “final deed” is completed, the remaining 4% of this “stamp duty” is incurred. This is comparable to our real estate transfer tax.
PURCHASE OF REAL ESTATE BY CORPORATE COMPANIES IN MALTA & GOZO
Entities with few exceptions must apply for a permit to purchase real estate. This is only granted if the property is used in a way that contributes to the growth of the Maltese economy. This can be in the industrial or tourist area. If the property proves to be historically valuable, no permit will be issued.
Conditions for EU citizens
In general, EU citizens can only buy one property, unless the second property is in a separately designated area or is used by the owner as a business.
EU citizens do not have the above authorization if they have been living in Malta for five or more years. In this case, several properties can also be acquired without special permits.
In the specially designated areas, citizens from EU countries as well as from outside the EU can buy as many properties as they want without AIP permission. In Malta, these areas are Pender Gardens, Madliena Village, Fort Cambridge, Tigné Point, Portomaso, Tas-Sellum, and St. Angelo Mansions. In Gozo Chambrai is one of them.
Also, no approval is required if the property is used as the primary residence. This also applies if one of the two spouses is not an EU citizen. However, this intention must be stated in writing in the purchase contract.
If you buy the property as an investment or want to start a business in Malta, you are also exempt from the AIP permit.
