Everything you need to know about buying your first home in Malta
When buying a property in Malta naturally there are certain minimal expenses involved just like the rest of the world. In comparison they are rather minimal and considering this is normally a long term investment these can be written off against a time period. Besides the purchase price the buyer incurs the following expenses:
1. Notarial fees – These are generally 1.5 % of the purchase price paid to the Notary of your choice. This fee covers the costs of the Notary’s services that include the searches on the property to ensure that the seller is the rightful owner and that the property is being transferred through peaceful possession to the buyer to ensure peace of mind. Money well spent! This also includes some costs involved to obtain the records from the government regarding that property any other relevant fees.
2. Ground Rent – In the case in which ground rent is applicable to the joint office or to the church the Notary will notify you of any fees which need to be paid. Your Real Estate Agent will inform you in this case during viewings to the property and is common practice in Malta as in the UK.
3.Stamp Duty – 3.5 % is applicable on your main residence on the first 150,000 euros. This is a policy to encourage first time buyers to get on the property ladder and was even reduced to zero during the course of 2015. The remaining balance is charged at 5 % of the purchase price. All non-EU nationals have to pay 5 % stamp duty unless they sell their property overseas and take up residence in Malta in that case the 3.5 % applies.