Q. What is the process of buying property in Malta?
A. Buying property in Malta requires the regular search for the property of your dreams followed by a Promise of Sale and then Final Contract. The Simon Mamo 5 Step Buying Process will give you a full guide on how to buy property in Malta.
Q. What is the Promise of Sale?
A. Known as the ‘kunvenju’ in Maltese, this step in the process requires notarial services where a document is drawn up to identify the terms in price, ground rent, deposit, payment terms, final contact date and any other additional terms as seen fit by the two parties.
Q. What professional services will I need when buying property in Malta?
A. At Simon Mamo we can give you all our Qualified Contacts for an easy and quick buying solution in Malta and Gozo. Our professionals, such as architects and notaries are all vetted by our expert real estate agents, some of whom with over 30 years of experience in the industry.
Q. What is the First Time Buyers’ Scheme?
A. Offered by the government of Malta to new property owners, the First Time Buyers’ Scheme allows those looking to enter the property market in Malta a number of benefits and perks; namely no stamp duty charges on the first €200,000 – saving up to €7,000
Q. What is the Second Time Buyers’ Scheme?
A. Offered to property owners who are looking to acquire another residential property. This only applies to persons owning a first property and will result in a €3,000 stamp duty refund.
Q. What is an Energy Performance Certificate?
A. An Energy Performance Certificate (EPC) is a document that is provided by the seller of the property to the new buyer and is required by law. The energy performance of the building is accessed by a Building Regulation Officer and is valid for 10 years unless significant changes are applied.
Q. Is there Property Tax in Malta for Expats?
A. Yes, if you are a resident with non-domicile status and an income of €35,000 or more per annum arriving in Malta through overseas sources, a minimum tax of €5,000 will be applied. If income is lower than €35,000 per year, regular tax laws apply.
Q. What is the Acquisition of Immovable Property Permit?
A. The Acquisition of Immovable Property Permit (AIP) applies to EU CItizens purchasing a property in Malta as their second home unless they have resided in Malta for more than 5 years. This is subject to minimum property values that are updated according to the Property Price Index. For updated information follow the government guidelines here.
Q. What are Special Designated Areas?
A.Special Designated Areas (SDAs) are areas that do not require an AIP Permit and are without restrictions. For a full list of the SDAs in Malta and Gozo, click here.
Q. Is there a beneficial tax rate when buying property in Gozo?
A. Yes, stamp duty is reduced from 5% to 2% when buying property in Gozo.
Q. How does property rental work in Malta?
A. At Simon Mamo we guide you in the steps needed to rent property in Malta and Gozo. We help you deal with tenants or landlords under our advice and support to ensure fair prices are achieved in a lawful manner. Learn more about rental in Malta and Gozo here.