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