Malta offers a variety of extremely high-end and luxurious properties that have maintained their value throughout the 2008/2009 financial turmoil. The properties like villas or houses with character, as well as luxury apartments have proven to be a reliable and reliable investment for investors looking to earn a good yield on investment. As per the Central Bank, the advertised prices for properties have returned to positive territory since March. The data showed that during the first quarter of this year, the prices rose by 4.5 percent comparison to the previous year.
It is the Acquisition of Immovable Property Permit (AIP)
The citizens from all EU member states who have lived within Malta continuously for a minimum of five years in any period prior to the date of purchase can acquire immovable property without the requirement of the AIP Permit. However citizens of the majority of EU member states who haven’t lived continuously within Malta at least for a of five years can only buy their primary residence or any immovable property that is required to conduct business or the provision of services, while those who haven’t been for a period of five years in Malta at least for a 5 years need the AIP permit to purchase an immovable home for second purpose of living. Anyone who is not a citizen of the EU state are not able to buy any property of immovable value until they have been granted an AIP permit under Chapter 246 of the Laws of Malta.
Procedure for purchasing an investment property Malta:
Select a property and negotiate prices with sellers.
We draft and discuss an Preliminary Agreement of sale that is agreeable to both parties.
The Preliminary Agreement is signed in your office (or in the absence of you one of our attorneys on your behalf through a authority) and also by the seller.
It’s usually for 3 months, however the duration of a shorter or longer period can be agreed upon.
Usually, a deposit of 10 percent of the purchase cost is paid to us prior to signing the contract. The deposit is refunded to the seller, in the event that the sale is not concluded by you, without any legal reason.
The contract obliges the parties to maintain their commitment to the purchase subject to a list of conditions and processes being followed prior to the contract expires.
Signature of the final Deed of Sale and passing of the keys to new owners of the property.
We have the ability to offer a complete service for the preparation, review and negotiation of the preliminary agreements suggested by sellers. Our role throughout the term of three months of the Preliminary Agreement consists of:
Conducting the legal searches that are required and tracing the seller’s title to the property, to ensure that the property is legally owned to him, and is not impacted by any obligations (hypothecs or privileges.) which could affect the property.
Appointing an architect to verify whether all of the required permits for planning are in place. Also, make sure the property is empty in order to allow you to immediately take possession.
The application process for the AIP permit (the Government authorization needed by non-residents who wish to purchase properties in Malta. The process takes between 1-3 months.
Drafting the Maltese will that governs the property you own in Malta.
To offer our clients an unbeatable service, we’ve developed partnerships with property sales experts who provide the same high level of customer service and commitment that our customers are used to receiving from us. They will meet you at the hotel and drive around on different property viewings, maybe at weekends, if time is short.
The most common fee charged to buyers and sellers by private real estate brokers for their services is equal to one percent per. The brokerage commission charged from local agents for real estate is included in the cost and is payable only by the seller.
The purchase of properties for sale in Malta in Designated Areas
There are however designated areas in Mata which are known by the name of Special Designated Areas (SDAs) in which there are no limitations on acquisition. There are also no restrictions on inheritance-based acquisitions and there are a number of other exemptions. Different rules apply to acquisition of bodies of individuals.
There are many SDAs all over Malta in addition to Gozo. This includes Madliena village located in Madliena with a view of the landscape with views of the sea; San Lawrenz, Kempinski development in Gozo and Fort Cambridge in Sliema. A typical two-bedroom house in one of the desired areas of Sliema and St. Julians, near the beach and close to all amenities, could be priced between EUR 150,000 up to EUR 200 000, based on the quality of finishing and the area. Apartments in SDAs will typically range between EUR 180,000 for basic ones up to EUR 400 000 or more for luxurious villas.
Purchase of Property for sale in Malta Via Companies
It is becoming increasingly popular to purchase properties in Malta through an organization. This is generally done to make use of the profits that are retained inside an organization directly. It is not a distribution of the earnings from the company to the shareholders’ personal accounts so there is no further dividend tax. It can also be used to safeguard assets.
The purchase of property through trusts
Property in Malta can also be purchased through the use of trusts. The establishment of trusts in Malta is controlled under the Trusts and Trustees Act 2004. Malta has earned a name as a reputable and stable trust jurisdiction, founded on a contemporary trust legislation, appropriate authorization and regulation of trustees , and an established judicial system.
The trust is being increasingly used for various amounts of assets protection as well as estate planning. Local and foreign families alike are not afraid to let go of the glamor of ownership of their own property to focus on a carefully planned family plan and expert property management delivered by a professional trust firm, which is often recommended by the lawyer who is trusted by the family.
Thus, it’s now quite common for properties to be purchased through trust to be used by the newly-arrived Malta residents’ family and their friends. It is also to be managed and maintained to ensure the best interests of the beneficiaries in a way that maximizes the value of the property that is that is held in trust. As property trustees who specialize We are able to effectively manage a portfolio of real estate efficiently by bringing together knowledge not only in trusts and financial management, but as well in property development, investment and management as well with extensive knowledge of property deals in Malta.
Renting Property in Malta
Renting a house in Malta is a simple process. A rental contract can be completed in just a few days after all aspects are agreed upon by the lessor and the lessee.
Property Management
Residents of Malta who do not reside on the island for a long time, there is the option of employing a property management service. This will usually cover issues such as arranging rent collection, tax issues as well as insurance coverage key, utility bills, and inventory.