Are you considering purchasing property in Malta? As a foreigner, it’s important to understand the various costs associated with buying property on this beautiful Mediterranean island. In this article, we’ll break down the costs and fees you can expect to encounter, so you can budget accordingly and avoid any surprises along the way.
One of the most significant costs associated with buying property in Malta is stamp duty. This is a tax that’s charged on property transfers and is based on the purchase price of the property. The current rates are as follows:
- Up to €180,000: 3.5%
- From €180,001 to €200,000: €6,300 plus 5% of the amount over €180,000
- From €200,001 to €424,000: €8,550 plus 5% of the amount over €200,000
- Over €424,001: €18,550 plus 5% of the amount over €424,000
In Malta, a notary is required to handle the legal documentation associated with property transactions. Notary fees are based on the purchase price of the property and are typically around 1% of the purchase price.
Once you’ve purchased a property in Malta, you’ll need to register the transfer with the Land Registry. This incurs a fee based on the purchase price of the property, which is typically around 0.5%.
If you use a real estate agent to help you find a property, you’ll typically be charged a commission fee. This fee is usually around 5% of the purchase price of the property.
If you require a mortgage to finance your property purchase, you’ll need to factor in additional fees, such as bank appraisal fees, arrangement fees, and legal fees.
Buying property in Malta involves various costs and fees that you’ll need to take into consideration when budgeting for your purchase. It’s important to work with a reputable real estate agent and consult with a lawyer to ensure you understand all of the fees and taxes involved. With the right preparation and guidance, you can successfully navigate the property purchasing process in Malta and start enjoying your new home in this beautiful Mediterranean paradise.