Non-residents looking to purchase property in Malta may encounter certain challenges due to specific requirements that must be met. Individuals from outside the EU or Malta who are interested in buying Maltese property are permitted to do so, but they must first obtain an Acquisition of Immovable Property (AIP) Permit, as stipulated by Chapter 246 of the Laws of Malta. This permit grants non-residents the right to buy property in Malta, subject to fulfilling certain conditions.
Who is considered to be anon-resident?
Our AIP Act defines a non-resident person as:
- any individual who is not a citizen of Malta or of another Member State, excluding third country nationals holding long-term resident status in terms of the Immigration Act and subsidiary legislation thereof; or a citizen of Malta or of another Member State, who has not been resident in Malta for a minimum continuous period of five years at any time preceding the date of acquisition;
- any body or other association of persons if it is constituted, formed, established, incorporated or registered in, or under the laws of, a state other than Malta or another Member State; or it has its registered address, principal place of residence or of business in a state other than Malta or another Member State; or twenty-five per cent or more of its share or other capital is owned by a non-resident person or is registered in the name of a trustee for the benefit of a non-resident person; or it is in any manner and whether directly or indirectly controlled by one or more non-resident persons;
- any trustee in terms of a trust who is a non-resident person unless all the beneficiaries of the trust are determined and are residents of Malta and in case of a discretionary trust where the power of appointment or any discretion maybe exercised in favour of residents of Malta; a resident of Malta where any of the beneficiaries are non-resident persons and incase of a discretionary trust, where the power of appointment or any discretion may be exercised in favour of any non resident person.
What is the procedure to purchase immovable property in Malta?
Once the buyer selects the property they intend to acquire, they must formalize their intent through a written contract known as a promise of sale agreement. For non-residents, the completion of the purchase is contingent upon securing an AIP permit. In order to apply for the AIP permit, a copy of the promise of sale agreement must be attached to the AIP application form which may be obtained from Capital Transfer Duty (CTD) Department of the Commissioner for Revenue., alongside two passport sized photos and a copy of the applicant’s passport.
How long does it take for an application to be processed?
The AIP Section is committed to issue the requested permit within 35 days, subject to whether the application submitted is correct as per its Quality Service Charter.
What do I need to submit with an application to acquire immovable property in Malta?
Along with the relative application form which must be duly filled in, applicants must also attach the following documents:
- two passport sized photos;
- copy of promise of sale;
- photocopy of passport showing details.
What are the fees for an AIP Permit?
The fee payable on the issue of a permit is €233.
What is the minimum immovable property price for a non-resident to purchase immovable property?
In order for an AIP Permit to be granted, applicants must meet minimum property values. The minimum price is €€143,410 for the purchase of a flat or maisonette and € €247,701 for the purchase of any other immovable property (LN 308/2021: Immovable Property Price Index). Values are updated annually to reflect inflation rates pertinent to the sector.
Are there any conditions imposed on the permit?
There are three main conditions imposed on the permit:
- immovable property is to be used for residential purposes
- a copy of the notarial deed is to be submitted to the AIP section after its publication
- that the immovable property may not be sold in part, orotherwise into more than one dwelling house.
Can I rent my immovable property to third parties?
Property acquired by AIP permit cannot be rented out.
Can I acquire more than one immovable property in Malta?
Non-resident are allowed to purchase only one immovable property in Malta, unless it is situated in Special Designated Areas where there are absolutely no restrictions on acquisition. More information on Special Designated Areas (SDAs) is available here.
I am married to a Maltese; do I need a permit to acquire immovable property in Malta?
The spouse of a citizen of Malta/EU member state may acquire immovable property together with his or her spouse as they fall within the definition of a “resident of Malta” without the need to acquire an AIP permit
Acquisition by bodies of persons
Legal entities, except for commercial partnerships, established and operating within an EU member state and under direct control of EU citizens, are entitled to purchase property in Malta for their operational purposes.
Commercial partnerships established and operating from an EU member state can also acquire property, provided they are at least 75% owned by EU citizens and further provided that the EU citizens owning the commercial partnership satisfy the 5year residency requirement.
Otherlegal entities are generally restricted from buying property, but the Ministermay grant specific permits for properties needed for industrial or touristicprojects, or those contributing to Malta's economic development.
