Are there any restrictions or special requirements for foreigners buying property in Malta?

As you embark on your Maltese property adventure, it’s essential to understand the restrictions and special requirements for foreigners investing in real estate on this picturesque island. While Malta generally welcomes international buyers, there are a few guidelines to keep in mind to ensure a smooth and successful purchase.

Everything you should know about restrictions and requirements for foreign buyers when purchasing a property in Malta

  1. Acquisition of Immovable Property (AIP) permit: If the property you’re eyeing is outside a Special Designated Area (SDA), you’ll need to obtain an AIP permit. This requirement applies to non-residents and EU citizens who haven’t resided in Malta for at least five continuous years. Your property lawyer or real estate agent will be able to guide you through the application process.
  2. Special Designated Areas (SDAs): Properties within SDAs, such as luxury developments, are exempt from the AIP permit requirement. This means that both EU and non-EU citizens can purchase property in these areas without restrictions, making them an attractive option for international buyers.
  3. Minimum value thresholds: The Maltese government has set minimum value thresholds for property purchases by foreigners. These thresholds may vary depending on the type of property and its location, so it’s crucial to consult with your real estate agent or property lawyer for the most up-to-date information.
  4. Primary residence vs. secondary property: If you’re an EU citizen who hasn’t lived in Malta for at least five continuous years, you can purchase a primary residence without restrictions. However, if you’re buying a secondary property or an investment property, you must meet the minimum value threshold.
  5. Financing options: While foreigners can access financing options through local banks, be prepared for a thorough assessment of your financial situation. Each bank has its own criteria, so it’s worth shopping around for the best mortgage terms and rates.
  6. Due diligence: As a foreign buyer, it’s essential to conduct thorough due diligence before finalizing your property purchase. Engage a reputable property lawyer to ensure the property is free from outstanding debts, legal issues, and has a clear title.

By understanding these restrictions and special requirements, you’ll be well-prepared to navigate the Maltese property market. Embrace the journey, and soon, you’ll be soaking up the sun in your very own Mediterranean haven.