We’ll Hold your Hand Every Step of the Way
CENTURY 21 Malta offers professional real estate services to clients wishing to purchase or rent properties in Malta. We carefully listen to your needs to give you the best property advice possible. We’ll select properties that fit your requirements and accompany you on viewings. We will also carry out negotiations to reach the correct market price. CENTURY 21 Malta trains consultants to offer optimum service to ensure that your property hunt is as hassle free as possible.
What you Need to Know
Once you find a property and the seller accepts your offer, you will need to sign a ‘Promise of Sale’. This is a legally bound document between the buyer and the seller. On signing the ‘Promise of Sale,’ the customer needs to pay 10% deposit on the contract amount; they will also need to pay 1% temporary stamp duty. When signing the final deed, you will need to pay the balance due for the property to the seller together with the balance for stamp duty (a further 4%).
If the buyer is a Citizen of the European Union and declares that he shall reside in the purchased property as his sole ordinary residence, they will get a preferential rate of 3.5% stamp duty on the first €150,000 of the price. Transfers made until 31st December 2016 will benefit from a reduction of €5,000 in stamp duty.
European Union citizens who have the intention of taking up residence in Malta will not require a permit to buy a property. EU citizens who have resided in Malta continually for five years may purchase more than one immovable property without obtaining a permit.
There is currently no law that imposes a property tax in Malta.
Revenue generated through the rental of assets is at a flat rate of 15%.
The Malta Residence Programme
The Malta Residence Programme has been in action since September 2014. This allows European Union citizens to reside in Malta as long as they rent or own a property locally (at qualifying minimum values that vary depending on the location on the Maltese islands). There is a charge of 15% tax on income from overseas which is transferred to Malta. There is a 35% tax rate for local income. The minimum annual tax liability is that of Eur15,000; this covers the applicant and dependents that are included on the same Malta Resident Programme application.
The Maltese Government have recently launched the Malta Residence and Visa Programme, 2015 through a Legal Notice published on 28th August 2015. These new regulations were necessary to further draw third-country national investors to Malta. This Programme will allow Identity Malta Agency, the Agency responsible for the Programme, to issue a Certificate that will entitle the beneficiary and his registered dependents to reside, settle or stay indefinitely in Malta, as well as to travel within the Schengen area without the need to apply for a visa.
The applicant must satisfy a three-tier structure: Contribution, Qualifying Property and Qualifying Investment. An individual interested in applying for this Programme is to make a donation of €30,000. Out of these, €5,500 is a non-refundable administrative deposit which you pay upon submission of the application. Once it is established that the beneficiary qualifies for such status, he/she is to pay the contribution.
Following the Property Regulations
Regarding these Regulations, an applicant must also obtain a qualifying property. An individual who chooses to benefit from this Programme must purchase a property in Malta for a price of not less than €320,000. On the other hand, properties in Gozo or the South of Malta, must have a minimum value of €270,000.
The applicant may opt to rent instead of purchasing property on the island. An applicant may choose to rent property in Malta with a minimum yearly rent of €12,000. If the property is in Gozo or the South of Malta, the annual minimum rent is €10,000.
The main aim of this Programme is to attract investment to Malta to create jobs and enhance the standard of living. In light of this, the applicant must make a qualifying investment, having an initial value of €250,000. This relies on the form determined from time to time by Identity Malta.
An applicant will start benefitting from the Programme after the necessary due diligence procedures have been carried out; these must follow the qualifications, general requirements, and eligibility criteria which the Regulations dictate.
The Certificate issued under these Regulations will be monitored for the first five years and every five years after that. Any individual interested in applying for this Programme needs to do so through a registered approved agent and accredited person. For more information about this application, please refer to Legal Notice 288 of 2015.