If you’re a non-resident interested in purchasing a property in Malta, there are a number of small, yet important requirements which non-residents need to comply with.
Non-EU/Malta residents who wish to acquire property in Malta must obtain a permit for the acquisition of immovable property (AIP). This permit allows non-residents to purchase property in Malta, subject to a number of conditions.
How to apply for the AIP permit?
After identifying the immovable property which they wish to purchase, the buyer will then enter a ‘convenium’-a written agreement. A copy of this must be attached to the AIP application form which can be collected from the Capital Transfer Duty Department of the Inland Revenue Division or downloaded from the website. The permit will be issued within 35 days, provided that the application is correct as per its Quality Service Charter. Along with the convenium, one must also submit:
- two passport-sized photos;
- a photocopy of their passport.
Besides this, the applicant must also pay a fee of €233.
Conditions when applying for the AIP permit
To apply for the AIP, the applicant must purchase an apartment or maisonette for a minimum of €115,772, or €192,899 for the purchase of any other immovable property. If the property is bought unconverted or in shell-form, then the minimum value must include the costs of finishing.
Properties which are of historical interested or in a historical area cannot be purchased. In this case, an architect must be appointed to inspect the property in order to decide whether it can be considered of historical importance or not. This, however, does not apply to houses of character or farmhouses, which can be purchased.
There are also three main conditions imposed on the permit:
- The immovable property must be used for residential purposes;
- A copy of the notarial deed must be submitted to the AIP section;
- The immovable property may not be sold into more than one dwelling house.
In the case where the applicant wishes to resell the property purchased under an AIP permit, this is only valid towards Maltese residents.
Non-residents are only allowed to purchase one immovable property in Malta unless the property in question is situated in Special Designated Areas. These are areas where there are no restrictions on the acquisition of property. This includes the following areas:
- Fort Chambray;
- Portomaso Development;
- Cottonera Development;
- Manoel Island / Tignè Point;
- Tas-Sellum Residence (Mellieħa Project);
- Madliena Village Complex;
- Fort Cambridge Zone, Tignè;
- Ta’ Monita Residence, Marsascala;
- Pender Place and Mercury House site;
- Kempinski Residences, San Lawrenz, Gozo;
- Metropolis Plaza, Gzira;
- Portomaso Extension I, St Julians;
- Pender Place and Mercury House site, Extensions I, II, III, IV and V, St Julians.
Furthermore, the immovable property acquired by AIP permit cannot be rented out to third parties and must be used for personal residential use of the applicant only. The owner must be present in the case of private guests residing at the property.
This is subject to a number of exceptions including:
- other purposes approved by Government,
- an approved industrial or touristic project, or
- any other project which is considered to benefit to the development of the Maltese economy.
Legal Entities and the AIP Permit
Should legal persons, excluding commercial partnerships, which are established and operate in the EU wish to purchase immovable property for the use of their company, they may freely do so.
In the case of commercial partnerships, if they are established and operate from an EU member state, they may freely acquire immovable property. This is under the condition that 75% or more of its shareholding is held by one or more EU citizens.
In any other case, the purchase of property by legal entities is not allowed. However, if the project contributes to the economic development of Malta or is an industrial or touristic project, a permit may be issued by the Minister.
If you’re a non-resident looking to purchase a property in Malta, look no further than Island Properties. We offer our clients a large selection of properties all over the Maltese Islands together with excellent customer support!
For more information, contact us today via email on email@example.com or give us a call on +356 2033 4455. Also remember to follow our Facebook and Instagram for regular updates and content!