Whether it is for a primary or secondary residence, in Malta it is not more difficult than elsewhere to buy a property provided that you are well prepared and patient. However, before buying, it is important to be advised by professionals.
What you need to know before buying property in Malta
First, it is necessary to ensure that you have the necessary funds to purchase a property. If this is not the case, contact a banker who will be able to guide you in this area. Indeed, the question of money is the first one asked by a real estate agent.
Then it’s time to look for your dream property. Knowing that in Malta the demand is important and that interesting properties sell quickly, to put the maximum chances on your side, be flexible with the seller. Indeed, if you are not the only one interested in the property, try to stand out by accepting the dates that are proposed to you, by arranging the seller to the maximum. This could work to your advantage.
Finally, when you have found the ideal property for you, you will need to contact a notary to carry out the necessary administrative procedures, in particular signing the preliminary sales agreement. This compromise will go until the final signature, carried out at the bank if you contract a credit, if not, at the notary. Don’t forget to keep a written record.
Buying a primary residence
You will not need a permit to purchase a residence in Malta. A dwelling is considered primary beyond 186 days per year spent on the island. These days do not have to be consecutive.
After the purchase of your first property, you will be able to buy other properties in Malta as long as you have been resident there for 5 years.
Maltese resident tax status
When becoming a homeowner in Malta, you can apply for the “Global residence program” status which was introduced in 2013.
This program allows you to be taxed at only 15% on your income. It is open to residents of the European Union and Switzerland. Other requirements to qualify for this program are to own a property in Malta from €220,000 minimum to €275,000 maximum, and finally, it must be declared as a primary residence.
The minimum tax liability for this program is 15,000€.
Retired owners in Malta
When becoming a homeowner and retired in Malta, it is possible for you to apply for the “Malta retirement programme” which was introduced in 2012.
Like the Global Residency Program, this program allows you to be taxed at only 15% on your income, however it is easier to access than the previous one.
To apply for this program, all you need to be is a resident of the European Union or Switzerland receiving a pension as a source of income.
When applying for this status, you must own a property in Malta worth at least €250,000 to €275,000, and also declare that you are in Malta as your main residence.
The minimum annual tax liability to qualify for this program is 7500€.
