Complete Guide to Navigating Real Estate Laws in Malta

The charm of Malta isn’t lost on anyone who’s ever visited or dreamt of residing in this Mediterranean gem. Its warm climate, picturesque landscapes, and rich history make it an attractive destination for property investors worldwide. However, navigating through real estate laws in a foreign country can be challenging. This comprehensive guide is designed to simplify Malta’s real estate laws for you, whether you’re an aspiring homeowner, an investor, or simply interested in the Maltese property market.

Buying Property in Malta

Complete guide to navigating real estate laws in Malta, purchase a property in Malta

  • Who Can Buy? In general, anyone can purchase property in Malta, regardless of their citizenship. However, non-residents might have some restrictions unless they are EU citizens.
  • Promise of Sale Agreement: Once both parties agree on a price, a “Konvenju” or promise of sale agreement, is signed. This binds both parties to a stipulated sale price and date.
  • Due Diligence: It is highly advisable for buyers to perform due diligence. This involves checking the property’s legal title, any outstanding debts, and ensuring the seller is the legal owner.

The Acquisition of Immovable Property (AIP) Permit

The AIP permit is a requirement for non-residents wishing to buy property in Malta. The permit, issued by the Ministry of Finance, is not required if the property is in a designated Special Designated Area (SDA).

Malta’s Real Estate Taxes and Fees

Malta real estate taxes and fees

Understanding the tax obligations and additional costs is crucial when purchasing property in Malta. These include:

  • Stamp Duty: The buyer typically pays a stamp duty of 5% of the property’s market value. However, first-time buyers may be eligible for certain exemptions or reductions.
  • Notary Fees: These fees vary but typically range from 1% to 3% of the property’s market value. Notaries in Malta are responsible for drafting and recording property deeds.
  • Estate Agent Fees: In Malta, the estate agent’s commission is usually 5% of the sale price, typically paid by the seller.

Renting Property in Malta

In 2020, a new law was introduced to regulate rental properties, protecting both tenants and landlords. Some key points of this law include:

  • Rental Contract Duration: All rental contracts in Malta must be in writing and have a minimum duration of one year.
  • Rent Price: The rent price can be freely negotiated. However, once agreed upon, it cannot be changed for the duration of the rental agreement.
  • Security Deposit: Landlords are entitled to request a security deposit, typically equivalent to one month’s rent.

Special Designated Areas (SDAs)

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SDAs are high-end developments where non-residents and foreigners have the same rights as Maltese citizens to purchase property. These areas, like Tigné Point, Portomaso, and others, were created to stimulate foreign direct investment.


Navigating Malta’s real estate laws can be complex, but with the right knowledge and professional advice, you can make informed decisions. This Mediterranean island offers a stable and lucrative real estate market, whether you want to settle, invest, or find a new holiday home. Just ensure to familiarize yourself with the country’s laws and regulations, or work with a local expert to make the process as smooth as possible.

Please note: This article doesn’t replace legal advice and is meant to provide general information. For detailed and personalized advice, please consult a Malta legal professional.