| Buying a Home in Malta & Gozo | | | | Many properties here are in rural |
| | | | surroundings and invariably overlook the sea. |
| The Republic of Malta is a small country | | | | This is an ideal place for retirement |
| located in the Mediterranean Sea. This | | | | settling. |
| Southern European country encompasses Malta, | | | | |
| Gozo, Comino and few other uninhabited | | | | With tourism activity increasing in the |
| islands. Malta is located at about 100 | | | | country, buying a property for rental |
| kilometers to the South of the Italian island | | | | purposes is lucrative. Government approval is |
| of Sicily and 300 kilometers to the east of | | | | required for foreigners to rent a property. |
| North Africa. Malta is a member country of | | | | Rental returns of five to six percent are |
| the European Union since 2004. | | | | feasible and the returns are dependent on the |
| | | | location and condition of the property. |
| Malta is blessed with beautiful sunny days | | | | |
| almost round the year and the temperature | | | | Legal issues Real estate purchase in Malta |
| never goes beyond comfortable levels. It | | | | |
| rarely rains here and it never lasts for a | | | | The legal system in Malta is based on the |
| long duration continuously. The annual | | | | English system. The real estate purchase |
| rainfall in the country is only around 600mm. | | | | process is straight forward and simple and |
| Added to this is the low tax structure in the | | | | should not be a hurdle, particularly for |
| country which will be an additional incentive | | | | foreigners from UK. |
| for foreign investment. | | | | |
| | | | Foreigners have certain restrictions for |
| Excellent and healthy weather conditions, | | | | purchasing property in Malta. These |
| cosmopolitan society, beautiful sea coast | | | | restrictions are basically formulated to |
| landscapes, friendly people and good health | | | | protect the interest of local residents and |
| care facilities are the factors fondly | | | | keeping in view the limited property |
| remembered by tourists visiting the country. | | | | available for sale due to small size of the |
| Many tourists make Malta their annual | | | | nation. |
| vacation destination. | | | | |
| | | | * |
| Valletta is the capital city of Malta | | | | |
| | | | People form EU countries that are living in |
| Malta economy | | | | Malta continuously for more than five years |
| | | | can purchase more than one property in the |
| Malta became popular a transit location for | | | | country. There is no need for any government |
| ships after the opening of Suez Canal in the | | | | approval |
| middle of the eighteenth century. The | | | | |
| county's economy was at its peak during this | | | | * |
| period and sustained it for about a decade. | | | | |
| With the advent of new generation sea liners, | | | | Other EU nationals who have lived for less |
| Malta lost its importance. | | | | than five years in Malta or living elsewhere |
| | | | can purchase single residential or commercial |
| In recent times, lime stone business and | | | | property without any permission |
| tourism are the major economic activities in | | | | |
| the country. Statistics indicate continuous | | | | * |
| increase in the number of foreign tourists | | | | |
| visiting the country. The government has | | | | All other foreigners need permission from the |
| catalyzed this growth by investing on | | | | Ministry of Finance for buying a real estate |
| infrastructural facilities to suit the needs | | | | property in Malta |
| and lifestyles of foreign visitors. | | | | |
| Liberalization and foreign direct investments | | | | In some notified areas of Malta and Gazo |
| have accelerated this growth and now Malta is | | | | where property prices are very high, no |
| back to its past economic glory. | | | | foreigners can freely buy any number of real |
| | | | estate properties without any approval. In |
| Financial transactions | | | | case of any doubt on this issue, it is |
| | | | necessary to check with Ministry of Finance |
| Maltese Lira (MLT) is the authorized currency | | | | before entering into any real estate contract |
| in Malta. The conversion rate of this | | | | in Malta |
| currency as on March 1, 2007 is: | | | | |
| | | | Purchasing process |
| 1 Maltese Lira = 3.06899 US Dollars | | | | |
| | | | Preliminary agreement |
| 1 Maltese Lira = 1.56507 British Pound | | | | |
| | | | Once a property is identified as suitable for |
| 1 Maltese Lira = 2.32188 Euro | | | | buying, the price is negotiated between the |
| | | | buyer and seller. The logical next step is to |
| Exchange of foreign currency is not at all | | | | sign a preliminary agreement to seal the |
| difficult in Malta, indicating the true | | | | transaction. The buyer also deposits 10 % of |
| cosmopolitan nature of the country. Popular | | | | the value of the property as a token of |
| foreign currencies can be exchanged easily in | | | | commitment for the purchase. A reliable |
| banks, foreign exchange bureaus and large | | | | advocate can help in drafting and finalizing |
| hotels. Some of the foreign exchange bureaus | | | | this agreement |
| are open 24 hours for the benefit of the | | | | |
| customers. Automated foreign exchange | | | | This finalization of this agreement generally |
| machines are also located at many places in | | | | takes about three months. This time can be |
| the country. Many large shops and restaurants | | | | utilized fruitfully for getting the |
| also accept foreign currency. Traveler's | | | | government approval for the purchase and to |
| cheque can be exchanged in authorized foreign | | | | complete the research on the property |
| exchange agencies in the country. | | | | ownership and registration. |
| | | | |
| American express, Visa, Master card and | | | | Purchase contract |
| Diners club credit cards are accepted in the | | | | |
| country. Malta has good number of ATM to take | | | | Once the buyer is satisfied that the property |
| care of your cash liquidity, if the need | | | | is legal and the permission for the purchase |
| arises. | | | | is in place, the next step is to sign the |
| | | | final contract. The buyer's lawyer generally |
| Infrastructural facilities | | | | prepares this document. The contact is signed |
| | | | by both the parties. All the payments that |
| Malta's healthcare services are among the | | | | are due are settled by the buyer and the |
| best in the world. Services offered in | | | | document is registered with the appropriate |
| general and private hospitals are excellent. | | | | agency in order to legalize the change of |
| Private schools in Malta mostly follow | | | | ownership. |
| British system of education and teach in | | | | |
| English. Roads in Malta are being improved to | | | | Stamp duties, legal fees and all other dues |
| make it suitable for international tourism | | | | are settled by the buyer. The total time |
| development. The main advantage for UK | | | | taken for the entire process is normally |
| citizens is that British driving license is | | | | around five months. UK citizens will cherish |
| valid here and you drive on the left side of | | | | the fact that the complete documentation is |
| the road. Good ferry services connect the | | | | in English language. |
| islands and there is also a helicopter | | | | |
| service connecting Malta and Gazo. | | | | Real estate purchase finance |
| | | | |
| Hotels, restaurants and bars are available in | | | | The ideal arrangement to finance your |
| plenty in the country. Malta is also well | | | | purchase is through your own funds but this |
| known for its carnivals and club outings. The | | | | is seldom the case. Property mortgage is |
| infrastructure is so good that international | | | | readily available in Malta and the banks |
| level carnivals can be conducted here. | | | | finance up to 90 % of the funds. However the |
| | | | repayment period and interest levels in Malta |
| The county's business infrastructure is | | | | are higher than in the United Kingdom. Banks |
| excellent with good communication facilities. | | | | in UK can also finance your real estate |
| The government has formulated many incentive | | | | project in Malta. |
| packages and tax concessions to attract | | | | |
| foreign investment. | | | | The quantum of funds required, preferred |
| | | | repayment period, repayment capacity, |
| Popular locations in Malta | | | | forecasted foreign exchange rates etc are |
| | | | some of the factors that can influence the |
| Malta is a small country and all places | | | | final decision for the mortgages. It is |
| within Malta can be covered within a day or | | | | preferable to consult an expert in the |
| two. Total area of Malta is around 245 square | | | | relevant area for calculated decision in this |
| kilometers and Gozo has an area of just about | | | | regard. |
| 70 square kilometers. The length of Malta | | | | |
| Island at the widest point is about 25 | | | | Cost of purchasing |
| Kilometers and width at the maximum is just | | | | |
| about 15 kilometers. In case of Gozo Island, | | | | Buyers often tend to forget that additional |
| the figures are 15 and 7 square kilometers | | | | costs, other than the negotiated purchase |
| respectively. | | | | price can inflate the total cost of the |
| | | | purchase. Buyers should always compare the |
| Malta is frequented by many foreign tourists | | | | 'total' cost with their allowable budget to |
| round the year, mainly from European | | | | make the final decision on the purchase of |
| countries. UK accounts for nearly 50 % of the | | | | the property. |
| tourists visiting the country. UK citizens | | | | |
| feel at home here because English is spoken a | | | | Real estate transactions attract a stamp duty |
| lot here and the weather is predominantly | | | | of 5 % in Malta and notary fee of 1 %. In |
| sunny. | | | | addition to this, if the services of an |
| | | | advocate or agents are utilized in the |
| Historical places | | | | process they have to be paid the appropriate |
| | | | fee. It is a good practice to define their |
| The country is proud of its long history and | | | | roles and fee in advance to avoid any |
| there are innumerable historically | | | | misunderstanding when the amount is paid. |
| significant locations all around Malta and | | | | Traveling expenses, hotel accommodation and |
| Gozo islands. The museums, the palace and | | | | all other incidental expenses also need to be |
| churches in Valletta are few representatives | | | | considered to arrie at the total cost. |
| of the history of the land. | | | | |
| | | | It is reasonable to allocate around 12 % of |
| Sight seeing | | | | the purchase price for additional costs and |
| | | | other expenses. You may finally end up with |
| Malta has a vast coastal line with beaches | | | | little surplus money in hand which will be a |
| that have crystal clear water, long sand | | | | good thing. |
| stretches and naturally formed small rocky | | | | |
| bays. Anchor bay and Paradise bay in the | | | | If the property requires remodeling, |
| north, Peter's pool and Pretty bay in the | | | | provision has to be made for such expenses |
| south and Ramla bay and blue lagoon in Gozo | | | | also in the budget. |
| and Comino are a few such beaches. City tours | | | | |
| can be a very beautiful experience. Country | | | | Malta property taxes |
| side tours are energizing due the unspoiled | | | | |
| natural beauty of the area and hospitality of | | | | Foreigners will be happy to note that there |
| local people. | | | | are no annual taxes on real estate properties |
| | | | in Malta. Malta does not levy any capital |
| Sports facilities | | | | gain tax. However one should be careful |
| | | | before selling the property. If the owner |
| Sports lovers will appreciate the sports | | | | sells a property that was not his primary |
| clubs located in the country offering variety | | | | residence for the last three years, a hefty |
| of sports facilities such as tennis, golf, | | | | amount is charged as transfer tax. |
| swimming, squash, cricket, indoor games and | | | | |
| general health and fitness facilities. Marsa | | | | There is no inheritance tax in Malta as long |
| Sports club and Union Club in Sliema are | | | | as there inherited property is not sold. But |
| frequented by foreign nationals as the | | | | transfer tax is levied if an inherited |
| facilities are excellent and of international | | | | property is sold. |
| quality. | | | | |
| | | | Travel documents |
| Sea diving enthusiasts will love Malta as the | | | | |
| sea temperature seldom goes beyond the | | | | As Malta is an EU member since May 2004, |
| comfortable range of 13 to 25 degree | | | | there is no restriction for EU nationals to |
| CentigradeÂÂ and the sea around the | | | | tour the country. Many country nationals can |
| country is quite calm without any major | | | | stay for up to three months as tourists in |
| tides. Excellent diving schools are available | | | | Malta with a valid passport with no visa. |
| in Malta and diving gear can be leased near | | | | Check with the embassy in the home country |
| the beaches. A diving permit is required for | | | | and get a complete list of the documents |
| divers in Malta. | | | | required before traveling to Malta. |
| | | | |
| Yachting is another popular sports activity | | | | Foreigners, who wish to reside permanently in |
| in Malta. Excellent maintenance and | | | | Malta, must apply for a residency permit. |
| sheltering facilities are available all | | | | Proof of sufficient funds or annual income |
| around the country for all yachts of all | | | | has to be provided as a support document when |
| sizes. | | | | applying for this permit. If a foreigner |
| | | | wants to work or start a business in the |
| Malta Real estate | | | | country, government permission is required. |
| | | | |
| Main considerations for buying a property in | | | | Malta may make a difference |
| Malta are the ambience and the price. In | | | | |
| rural surroundings, real estate prices are | | | | If you are looking for real estate in a sunny |
| much less than in the cities. Beach | | | | country, rich in culture, Malta is the right |
| properties are the costliest in Malta. | | | | choice. Low taxes, relaxed life styles and |
| However one is never very far away from the | | | | popularity of the English language are very |
| beach considering the size of the country. | | | | compelling reasons for a UK citizen to |
| Gozo island real estate will suitable for | | | | consider looking for a second home in Malta |
| foreigners who love leisurely way of life. | | | | and Gozo islands. |