The right to buy property in Malta is governed by the Acquisition of Immovable Property (AIP) Act. Echoing the restrictive stance of earlier legislators, a general clause prohibits non-residents from acquiring immovable property by or under any title and in any manner which constitutes a transfer of real rights.[1]
Over the years, such restrictions have been lifted in order to adapt to Malta’s shift towards a country that is increasingly welcoming new start-ups, that is a leader in key industries and hosts an increasing number of expatriates seeking to locate their personal and business affairs to Malta.
The text below seeks to outline the key principles that outline the right of Maltese and non-Maltese citizens to acquire property in Malta, highlighting the instances where an AIP permit is required.
What is an AIP permit
Non-residents purchasing property in Malta require a permit issued under the Acquisition of Immovable Property Act (AIP Permit). An AIP permit allows non-residents to buy property in Malta subject to a number of conditions.
Maltese and EU citizens
Under Maltese law, citizens of Malta and the European Union (EU) residing in Malta for a minimum of 5 years preceding the acquisition have a right to purchase an unlimited amount of properties.
This does not extend to Maltese and EU citizens who have not resided in Malta for at least five years prior to the purchase. In this case, Maltese law makes a distinction between primary and secondary residences; no limitations apply in the event that the property is being purchased to serve as a primary residence ergo the residence where the purchaser lives the majority of the time.[2] In the case that the property being purchased will be a secondary property, that is, a residence used for vacationing or secondary living purposes, an AIP permit is required.
Spouses of Maltese and EU citizens
The rules applicable to Maltese and EU citizens are extended to spouses if the spouses are acquiring the property on the same deed.[3] In this case, the nationality or residency of the spouse is irrelevant and thus, the requirements of an AIP permit or otherwise would depend on the criteria set for the Maltese/EU nationals.
Non-EU citizens
A non-resident may not acquire immovable property in Malta unless the transaction is made in accordance with the criteria set in Maltese legislation.
