Malta

You need a Maltese tax identification number (TIN, often the tax registration number) if you will: register as tax resident, earn rental income in Malta, run a business, or file a Maltese tax return. For a one‑off property purchase only, a foreign buyer can usually proceed without immediate registration, but a TIN is effectively required once you start renting or applying for certain residence programmes.​

You apply to the Commissioner for Tax and Customs (Inland Revenue) by submitting an application form with your passport and basic details, either online or at a tax office. If you join a residence programme or register as self‑employed/company director, the TIN is usually issued as part of that process.​

You must pass strict KYC/AML checks. Banks typically require your passport, proof of address, proof of income or wealth (e.g. statements, tax returns), and information on the purpose of the account; some banks ask for a link to Malta (property, job, residence). Non‑residents can open accounts, but approval is discretionary and can take days or weeks.​

Yes. For significant inbound transfers related to property purchases, Maltese banks routinely request evidence such as bank statements, sale agreements, inheritance documents or company accounts to satisfy AML rules.​

Property title is checked through the Public Registry and, where applicable, the Land Registry. Your Maltese notary performs searches to confirm ownership, burdens, hypothecs and servitudes before the final deed; individuals normally access these records through a notary rather than directly.​

Buyers usually pay stamp duty of 5% on the property value, with reduced rates for first‑time buyers, certain family transfers, and properties qualifying under specific incentive schemes. The seller pays property transfer tax/capital gains; the buyer does not.​

New developments range from shell form (structure only), to semi‑finished (basic plastering, first fix), to fully finished and sometimes furnished; Maltese practice varies widely, so the promise of sale must clearly define what “finished” includes (tiles, bathrooms, doors, apertures, common parts).​

You submit an application with proof of income, tax documents, bank statements, property details, and sometimes a preliminary property valuation. The bank assesses affordability and may issue a sanction letter, after which the final mortgage deed is signed in front of the notary together with the purchase deed.​

Estate agency commission is typically around 3–5% of the sale price, usually paid by the seller; exact rates depend on the agency and the type of property.​

Short‑let tourist accommodation generally must be licensed with the Malta Tourism Authority (MTA), meet classification and safety standards, and be registered for tax on rental income. Registration of the rental contract and compliance with local planning/zoning rules are also required.​

Malta does not levy an annual municipal “property tax” like many countries. Instead, taxation arises mainly through stamp duty on acquisition, transfer tax/capital gains on sale, and income tax on rental income.​

Banks typically request: passport, proof of income (salary slips, tax returns), bank statements, employment or business contracts, details of existing debts, and full property documentation (promise of sale, plans, valuation). Non‑residents may be asked for additional information about their home‑country tax status.​

Ongoing costs include condominium/association fees for common areas, utilities (water, electricity, internet), waste and community charges, and optional insurance; exact amounts depend on building facilities and usage, but service charges in newer blocks can be significant.​

Commission is usually payable upon successful signing of the final deed and transfer of funds, so agents are normally paid promptly once completion occurs, according to their agreement with the seller.​

Commission is usually agreed as a fixed percentage of the sale price, which may differ between standard residential sales, luxury listings and new‑build projects.​

After the final deed is signed, the seller pays the agency according to the brokerage agreement, sometimes via deduction directly from funds handled by the notary, or by separate bank transfer.​

Yes. Sellers can negotiate lower commission for multiple listings or bulk unit sales, and developers often agree bespoke commission structures with agencies for large projects.​

Brokerage contracts typically entitle the agent to commission on any property introduced through the agency and sold to that client within a defined period, even if the client chooses a different unit the agent presented; exact entitlement depends on the agency agreement.​

Landlords can generally opt for a flat 15% tax on gross rental income from residential properties, instead of progressive personal income tax rates; conditions and exact rules are set out in Maltese tax legislation and budget measures.​

Expect: condominium fees (if in a block), utilities, routine maintenance and repairs, insurance if taken, professional fees for tax and compliance if you rent, and possible licence fees for tourist lets.​

What many call “enrichment tax” is effectively property transfer tax/capital gains tax on disposal. For most property transfers, a final tax of 8% of the transfer value applies, with alternative rates (e.g. 5%, 10%, 12%) for specific cases and exemptions for certain main‑residence sales or incentive schemes.​

Property managers typically charge a percentage of collected rent (often 10–20% for full service) or a fixed monthly fee, plus separate charges for cleaning and maintenance; holiday‑let management for tourists can be higher.​

Yes, commercial real estate investment is common, but hotels, guesthouses and offices require compliance with planning, building, health and safety and, for tourism, MTA licensing; additional sectoral rules apply.​

Change of use generally needs planning permission from the Planning Authority and may require compliance upgrades (fire safety, access, sanitary rules); not all residential blocks permit commercial use under their condominium rules.​

Foreigners can inherit Maltese property; succession is formalised via a public deed of declaration of heirs or similar notarial act, and relevant foreign documents must be apostilled and translated, but there is no separate “foreigner prohibition” on inheriting.​

Maltese law and practice expect developers and contractors to stand behind structural works for a number of years, and building contracts often provide defect liability periods; exact scope and duration depend on the contract and general civil‑law rules on latent defects.​

Internal, non‑structural alterations within your unit are generally allowed but may require planning consent if they affect layout, drainage or services; works cannot endanger the structure or violate condominium regulations.​

Insurance is typically not legally mandatory for cash buyers, but banks require adequate building insurance as a condition for granting a mortgage. Owners commonly insure against fire, storm and liability.​

In theory a hypothec in favour of a foreign lender can be registered under Maltese law, but in practice it is rare and complex, and most foreign retail banks will not lend against Maltese collateral.​

Certain intra‑family donations and transfers enjoy reduced or exempt stamp duty, especially transfers of a main residence between close relatives, but conditions are strict and must be confirmed with a notary based on current budget measures.​

Income from short‑let tourist rentals is taxable; owners can often opt for the same flat 15% final tax on gross residential rental income, provided legal and licensing conditions are met, otherwise progressive rates apply.​

It is no longer “easy” in a walk‑in sense. Banks expect a clear economic rationale (property, employment, business), proof of identity and income, and often a link to Malta; residence or employment helps but is not always mandatory.​

Recent analyses indicate generally firm or rising prices in many segments, with strong demand in central and coastal areas, though growth rates vary by locality and property type.​

They may require higher down payments, stricter affordability ratios, and sometimes additional guarantees or collateral, especially for non‑resident borrowers with income earned abroad.​

You cannot legally rent a unit you do not yet own and which has not been completed and handed over; marketing future rentals is possible, but actual lease contracts normally start only after completion and delivery.​

Developers often provide a defect liability period (e.g. one to two years) on non‑structural works such as electrical and plumbing, during which they are obliged to fix defects; the exact duration and scope are contractual.​

Developers sometimes allow customisation of layout and finishes at pre‑construction or early construction stages, subject to feasibility, planning constraints and extra cost; such variations are usually documented as contract addenda.​

Existing hypothecs, privileges, servitudes and ground‑rent obligations may burden property, but thorough notarial searches in the Public and Land Registries are designed to uncover these before you sign the final deed.​

For first sales on new developments, the notary arranges registration of the new title and any condominium documentation as part of or immediately following the first deeds; you always sign a public deed that is registrable and forms the legal record.​

Yes. EU‑driven rules require energy performance certificates (EPCs) and minimum energy efficiency standards for new buildings and major renovations, which developers must comply with before sales and rentals.​

Malta has residence programmes (e.g. Malta Permanent Residence Programme, Nomad Residence Permit, Global Residence Programme) and former citizenship‑linked routes where property investment is one of several required components, combined with government contributions and due diligence.​

Yes. Major local agencies and consultancies (e.g. banks, big estate agencies and advisory firms) publish regular English‑language market reports, and Malta’s budget documents and official statistics also contain property data.​

Malta has specific rules for certain types of leases and tenant protections, but there is no general nationwide cap on rental levels like strict rent‑control regimes in some countries; contracts must be registered and meet statutory requirements.​

Insurance is mandatory if the property is mortgaged (to protect the bank’s security) and otherwise optional but strongly recommended; minimum cover usually includes the rebuild cost of the structure, with optional contents and liability cover.​

At completion or delivery, you or your representative inspect the unit, confirm that agreed finishes and services are in place, and then sign the final deed and any snag list or handover documentation; any defects are generally addressed under the developer’s snagging and warranty process.​

For married buyers, Maltese notaries will typically check marital status and may require the spouse’s consent or presence, especially if the purchase will form part of the community of property, but a separate “spousal consent agreement” is not a universal formal requirement like in some civil-law countries. Local notarial advice is essential, as the exact need depends on your matrimonial property regime and whether both spouses are on title.​

No, you do not need Maltese residency to buy property. However, non-residents and EU citizens who have not lived in Malta for 5 continuous years usually face limits (one property outside Special Designated Areas and/or the need for an AIP permit).​

Yes, as an EU citizen you can buy, but if you have not resided in Malta for 5 years you normally may buy only one property outside Special Designated Areas and might need an Acquisition of Immovable Property (AIP) permit. In Special Designated Areas (SDAs) you can buy multiple properties without an AIP.​

Yes. Outside SDAs, most non-residents are limited to one property for own use and must meet minimum value thresholds and obtain an AIP permit; in SDAs there is no limit on the number of units and no AIP requirement.​

Yes, Maltese or foreign companies can buy property, though AIP rules and tax treatment differ from individuals and should be analysed with a local advisor.​

You do not need residence to buy, but specific residence programmes (e.g. Malta Permanent Residence Programme, Malta Global Residence Programme) require minimum property values or rents plus additional government contributions and donations. Real estate alone does not automatically give residence; it is one component of these schemes.​

No, simply buying property does not grant citizenship. Current routes involve residence plus substantial contributions, property investment, and donations under tightly regulated naturalisation-by-exception frameworks; the old “citizenship by investment” programme has been phased out or significantly changed.​

Yes outside SDAs (typically one property for personal use for most non-resident EU citizens and third-country nationals) and no limit inside SDAs.​

Yes in practice. Purchases almost always start with a “promise of sale” (konvenju) signed before a notary, with a deposit (often 10%), a fixed validity period (commonly 3 months, sometimes longer), conditions (financing, AIP permit, searches), and penalties if a party unjustifiably withdraws.​

There is no general 5‑year resale ban, but some residence/citizenship programmes and certain tax incentives require you to hold the property for a minimum period (often 5 years), otherwise benefits can be lost or clawed back.​

Yes, as long as you can make a SEPA or SWIFT transfer in EUR to the notary’s client account or the seller’s Maltese bank account. Always confirm bank details with the notary and be aware of fees and transfer limits. (General banking practice based on SEPA use in Malta.)​

Direct on-chain transfer to a notary or seller is not standard. Some private deals or developer arrangements may let you pay crypto to a third‑party payment provider who converts it to euros, but the notarial deed and tax base will always be in EUR and AML checks will be strict.​

For small amounts (e.g. reservation) cash might be accepted, but due to AML rules, the main purchase price is expected to go through the banking system and the notary’s client account. Large cash payments are heavily discouraged and may be refused.​

Typically by small bank transfer to the estate agency or developer, or by paying a preliminary reservation deposit which later forms part of the promise of sale deposit, as specified by the notary/agent.​

It is common for deposits and stage payments to go through the notary’s client account or directly to the developer as specified in the promise of sale; Malta does not use a universal statutory escrow system like some countries, so structure depends on the contract.​

17. Main buyer costs are:

• Stamp duty, usually 5% of the property value (with temporary reliefs in some cases).

• Notary and legal fees (roughly 1–2% combined, often quoted as a package).

• AIP permit fee of about €233 if required.
  There may be additional registration and search costs, but these are relatively small.

Stamp duty is normally paid in part on signing the promise of sale and the balance on final deed; notary fees and remaining taxes are payable at completion. Deadlines are built into the promise of sale and enforced at the final contract signing.​

Common structures include: reservation fee, 10% on promise of sale, then staged payments linked to construction milestones, and balance on completion. Exact schedules vary by developer and project.​

Yes. With a properly drafted and apostilled PoA, a proxy can sign both the promise of sale and the final deed, attend notary appointments, and collect keys on your behalf, even if you leave Malta before completion.​

Usually, yes. If the buyer cannot fulfil financing conditions within the promise of sale period and no financing condition protects them, the seller is typically entitled to retain the deposit as liquidated damages. If a financing clause is included and clearly drafted, the deposit may be refundable if the bank formally refuses the loan.​

If the buyer withdraws without a contractual reason, the deposit is usually forfeited. If the seller is at fault (e.g. cannot give good title), the buyer can usually reclaim the deposit and sometimes claim additional damages.​

There is no statutory cap; market practice is around 10% of the price as the promise of sale deposit.​

This is governed by the booking or hotel terms, not Maltese property law; standard travel and consumer rules apply (refundable vs non‑refundable rates, package travel rules, etc.).

Yes, as anywhere. Risk is mitigated by dealing with established developers, carefully drafted stage-payment structures, bank guarantees where available, and thorough due diligence by your notary.​

You may have contractual rights to rescind the contract, demand completion within a time limit, or claim damages. Enforcement is through Maltese courts or arbitration as specified in the contract.​

If the property delivered materially diverges from agreed specifications, Maltese contract and consumer law may allow you to demand rectification, a price reduction, or rescission, depending on severity and contractual terms.​

Budget measures for 2025 provide reliefs/exemptions on stamp duty and capital gains for qualifying properties (e.g. certain old, vacant, UCA, or traditional-style properties) up to €750,000, and there are ongoing schemes like first‑time buyer relief and renovation VAT refunds, subject to detailed criteria.​

On purchase, buyers usually pay 5% stamp duty (subject to reliefs). On sale, property transfer tax / capital gains is often charged at 8% of transfer value, with reduced rates or exemptions in certain cases (e.g. main residence, specific long‑held or incentive properties). You cannot rely on a blanket CGT exemption; eligibility depends on how long you held the property and whether it was your main home.​

No. Tax residency depends mainly on physical presence and other connecting factors; simply owning a property does not make you Maltese tax resident.​

Residential lettings are generally exempt from VAT, so input VAT recovery is limited. Certain commercial property activities may allow VAT deduction, but this depends on the company’s VAT-registered status and use of the property, so specialist advice is required.​

First‑time buyers can benefit from reduced or zero stamp duty up to a certain value, and there are also VAT refund schemes for building/renovating one’s own home, including extended measures under the 2025 budget. Details depend on buyer profile and property type/value.​

You can generally rent immediately, but for long‑let and especially short‑let/tourist rentals you must:

• Register the rental with the Housing Authority and obtain a rental registration number.

• Make sure the property meets minimum standards and certification requirements (e.g. energy performance certificate).

• Declare rental income and pay tax (often a flat 15% regime is available).

Malta offers an optional flat 15% tax on gross rental income from residential units, otherwise rental income is taxed at progressive income tax rates with deductions.​

Property is one element in residence schemes such as the Malta Permanent Residence Programme and Malta Global Residence Programme, which also require fixed government contributions, donations, and due diligence, but property purchase alone does not automatically give you a residence permit.​

In general, yes: Malta has a mature legal and notarial system, but you must still choose reputable developers and let an independent notary perform full title and planning searches.​

41. Key risks include:

• High entry prices and potential price corrections in specific segments.

• Possible future changes to tax or residency rules.

• Construction delays or quality issues in some projects.
  Malta has low natural‑disaster risk compared with many countries.

You cannot sell the entire property without all co‑owners’ consent. If no agreement is possible, a co‑owner may seek a court-ordered partition or sale, but that is a lengthy and costly process.

Yes, subject to any minimum holding period imposed by tax/residency incentives. Donations and intra‑family transfers can have specific duty and tax rules, which should be checked with a notary.​

Some intra‑family transfers enjoy reduced or exempt stamp duty, but conditions are strict (e.g. lineal relatives, main residence). These are reliefs, not automatic exemptions for all gifts.​

Yes, EU‑style consumer protections and Maltese contract law apply, especially for off‑plan buyers, though enforcement still depends on the contract and the courts.​

Yes in practice (see point 9): the promise of sale sets price, deposit, timelines, conditions (planning permits, AIP, bank finance), and penalties for default.​

Yes, if the property is completed and handed over, you can move in immediately.

There is no strict deadline, but reserving a property usually requires a deposit within a few days of making the decision.

Yes.

It is not necessary. The purchase can be made remotely, with documents signed through a notary and apostille certification.

Yes.

Yes.

No, accommodation is usually not included in the property price, but some developers may offer special packages for buyers.

There is no limit, but typically 3 to 5 properties per day are shown to ensure comfort and a thorough review of the options.

In case of absence, it is advisable to contact the DEVETOPER branch as soon as possible to reschedule appointments and set a new visit date.

You can book an apartment through the DEVETOPER branch or platforms like Airbnb and Booking.

The keys to the property are handed over after completing the transaction, signing the notarial deed, and settling all payments.

It depends on the booking terms. Many apartments and hotels offer refunds or date changes if cancellation is made with sufficient notice.

It is recommended to plan for at least 5-7 working days to view properties, meet with a notary, and sign documents.

No, you can grant power of attorney to a lawyer who will handle the formalities on your behalf.