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There are some restrictions
on what types of real estate a foreign national can
own in Malta. Generally speaking, a foreign national
is able to buy one piece of residential property that
will be used as that person's primary residence or that
will be used by that person as a holiday residence during
part of the year.
With this in mind, an individual foreign national is
not able as a general rule to buy commercial or industrial
real estate in Malta. There are some instances in which
a foreign national will join with citizens of Malta
to form a joint legal venture -- usually in the form
of a limited liability company -- to by non-residential
real estate. It is important to keep in mind that this
type of arrangement does require approval from different
governmental agencies in Malta.
Even for EU member state nationals (Malta is now a part
of the European Union) the ability to own real estate
in the country is limited at this point in time. There
is some natural and necessary movement to relax different
real estate laws in regard to foreign nationals in the
future to bring Malta more inline with the open market
concept that is the centerpiece of EU membership.
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Investment Property in Malta |
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As has been set forth previously, there are some pretty stark
limitations on what type of real estate a foreign national
can purchase in Malta. With this in mind, the opportunities
for investment in real estate -- beyond the ownership of a
primary residence or a holiday home -- by a foreign national
are limited.
Again, and as was discussed, there are some instances in which
a foreign national will join together with citizens of Malta,
to develop a legal entity that will take possession of real
estate in that country for investment purposes. Even with
this noted, the number of foreign nationals who are involved
in such a venture is not significant due to the hurdles that
must be surmounted in order to win governmental approval and
authorization to purchase real estate beyond a residence.
There may be some relaxation in the laws governing investing
in real estate by foreign nationals who are from European
Union nations in the future. Of course, the concept behind
the EU is to allow for a free economic flow between member
nations. Thus, with Malta now a part of the EU, it is likely
that there will be changes in its real estate laws as they
same pertain to investment in different types of real estate
in the country by citizens from other European Union nations.
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Residential Property in Malta |
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Generally speaking, it is only residential real estate that
can be purchased at this time by foreign nationals in Malta.
Although Malta has joined the European Union, where there
can be found a broader ability of foreign nationals who are
from EU member countries to by real estate within the EU,
this barrier has not been fully surmounted in Malta.
The primary reason that there is a heavier restriction on
foreign investment in real estate arises from the fact that
there is, indeed, only a limited amount of real property available
to sale within the borders of that country. Unlike many other
nations, that still have undeveloped frontiers and a significant
amount of space still available for development, such is not
the case with Malta.
A foreign national, with relative ease, can make the purchase
of one piece of residential real estate -- either to be used
as a private and personal residence or as a holiday home.
This will be discussed in greater detail shortly.
Many Europeans have purchased larger homes in Malta that have
become favored second residences, holiday homes. A foreign
national can stay within Malta for a period of up to three
months at a stretch with no tax consequences or special filing
requirements. A foreign national can spend between three to
six months in consecutive succession in Malta with permission
of the government. Generally, there will be no additional
tax consequences on a foreign national in Malta until that
person remains in country for a period beyond six months .
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Apartments in Malta |
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Upscale apartments in Malta remain attractive choices for foreign nationals
looking to purchase property in Malta. As will be discussed
shortly, a foreign national can make the purchase of residential
real estate in Malta provided the property is valued at $50,000
MLT (the Maltese national currency) as is to be used only
as private primary residence or as a holiday home by the purchaser.
These apartments -- high end apartments -- are in significant
demand by foreign nationals at this point in time. These people,
who enjoy spending part of the year in Malta (with its idyllic
climate and easy lifestyle) are attracted to buying apartments in Malta.
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Holiday Property in Maltese Holiday Resorts |
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With its nearly perfect climate the entire year around, Malta
has long been a favored travel destination for men and women
from different countries around the world. The trend has continued
unabated into the present day and age.
As a consequence, there is a growing number of foreign nationals
who are interested in finding real estate to purchase in that
country for holiday or vacation purposes. Indeed, as will
be discussed shortly, there are general limitations on the
ability of a foreign national to purchase real estate in Malta,
generally restricting these men and women to being able to
purchase one piece of residential property that can be used
as a holiday home or as a permanent residence . |
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Specific Steps to Buying a Property in Malta |
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| Overview |
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Despite the fact that the real estate purchase process in
Malta is a relatively easy process, there are some definite
restrictions that apply to foreign nationals who are interested
in purchasing real estate in Malta.
Generally speaking, a foreign national can purchase a residence
in Malta that is going to be used either as a holiday home
or a that purchaser's primary residence into the future. In
addition to this general restriction, there are some more
specific requirements when it comes to a foreign national
investing in real estate in Malta.
First of all, the value of the real estate that is being purchased
must not be less than 50,000 MLT (the national currency in
Malta). Second, all of the funds that are used to purchase
this real estate must be derived from outside of the country.
Third, the real estate that is purchased cannot be rented
out to anyone else. This includes property that is purchased
for occupancy as a holiday home during only part of the year.
Unlike in many other countries around the world, a foreign
national buying such a residence in Malta cannot lease out
the property to someone else when it is not in use by the
purchaser and owner. There is one interesting exception to
this prohibition. The owner of a residence with a pool can,
in fact, lease or rent out the property to someone else when
he or she is not utilizing the property for his or her personal
benefit.
Finally, on resale, a foreign national can repatriate the
funds generated from the sale to his or her own country of
origin.
Once these restrictions are appreciated and understood, the
actual process of buying and selling real estate in Malta
is simple. The initial phase involves the execution of a contract
for sale. At this time, the buyer is obliged to post a deposit
that normally is in the amount of 10% of the overall purchase
price of the real estate.
The preliminary agreement normally is valid for a period of
three months. During this time period, the purchaser will
obtain financing and the seller will make sure that there
are no defects associated with the title that will prevent
a clear conveyance of the property to the purchaser when the
sale is concluded.
The final contract ultimately is entered into between the
parties. It is at this time that the buyer pays the remaining
balance due and owing on the property. Additionally, it is
at this juncture that the buyer will take physical possession
of the real estate.
There is some effort in Malta at the present time to relax
at least to some degree (and most likely for residents of
other EU member nations) the real estate laws in that country.
Most of the proposals that are being considered center on
allowing foreign nationals a bit broader usage with their
residential property. For example, there are proposed laws
being considered that would allow a person who owns a holiday
home or residence in Malta the ability to rent or lease that
property to someone else during those times of the year when
the owner is not personally utilizing the real estate in question.
Again, any such changes more than likely will be targeted
towards citizens from EU member nations
Property Abroad always recommends using a Solicitor
or Lawyer
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Further Information
on Malta |
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MALTA
