There are a lot of people who want to buy property in Malta. Whether it be because you want to leave the old place behind and are seeking for a new adventure, going to the area for yearly holiday’s and renting there before finally deciding to buy an apartment, or anything else, you may find things pretty challenging. It is not because the property market of the place is unaffordable but because most of the individuals are unaware of the procedure and how things work. This iconic island has plenty to offer to anyone, and while there are many sites, you should ideally visit Karanja for checking out the apartments and houses. In the meantime, we will walk you through house buying process in Malta.
Buying a house in Malta as overseas: expenses
If you are a person who is not a Maltese citizen, you will have a simple property purchasing procedure. It will be safe and undemanding, and the security will be guaranteed. However, you have to keep your eye on a few things that include the expenses, residence type, and taxes.
The regular expenses include the stamp duty which is usually 5%. You have to pay 20% of total duty when there is a promise of the sale agreement. Rest 80% will be payable once the deed of purchase is done. Also, the government provides an incentive for people who are ‘first-time buyers’ as for them there is an exemption on stamp duty. The first 150,000 euros are free which means that you can save up to 5250 euros. Regardless of the fact that you are a foreigner or a Maltese national, you can benefit from it.
Apart from that, the restoration grants are present which, the first time buyers can claim up to as much as 100,000 euros that are relevant to expenses when you are restoring a house in UCA zone.
Moreover, there is a Notary fee which refers to the payment of an official (notary) who is appointed by buyer and acts for the government. Their job is to check the property for security and that there is no bank or other dues considering the land.
Lastly, there is a ground rent and registration fee that varies according to the value of your property.
Acquiring ordinary residence
For such purchasing, there are two variations. One is the EU or EEA national and other is non-EU and EEA national.
EU and EEA nationals
For the first category, i.e. EU and EEA nationals, you have to prove that you are economically independent and you do not rely on any assistance from any outsider or Maltese Government. If you are a single person, you have to have a weekly income of around 85 Euros while married couples must have combined weekly wage of approximately 94 Euros. Also, you should either offer employment, seek employment, or work with the label of self-employment. If not, you should be attempting to start your own business in the area.
Non-EU and non-EEA nationals
For people that fall into the second category, i.e., non-EU and EEA national, the criteria may vary. In such case, the government may ask for an employment license that states you are coming for work in Malta. It is granted in specific conditions (if you work in finance or IT sector, you will find it easy to get the permit as these positions are highly sought after).
If you are coming with the intention of starting your own business, there are certain restrictions. You have to show a capital of at least 100,000 euros that will be a fixed asset and will be immovable. It does not include any rental or legal fee or any salary consideration as you will have to put up a business plan along with your application. Also, you can be given a skilled innovator if you come up with a robust business plan and promise that you will hire at least 3 EU or EEA nationals within 18 months of your business startup. If you are looking to open a branch, you need to have a strong business history with at least three years of trading under the label of your company.
So, this is how you can acquire an ordinary residency in Malta. Apart from that, you can check for the long-term residence, educational residence, temporary residence, etc. for your stay in the area. What kind of property is available to you in Malta? Well, you can check it at Karanja.