BUYING PROPERTY
IN
MALTA

Maltese passport holders may buy property on exactly the same terms and conditions as local citizens. Purchasing costs (i.e legal fees, stamp duty, etc.) amount to approx. 5% of the purchase price.

Mortgage facilities are available over periods of 3-25 years at the current interest rate.

Foreign passport holders: there are no property taxes, rates or poll tax in Malta. One has to go through the formality of obtaining a permit from the Ministry of Finance. Purchasing costs total approx. 15% of purchase price.

CONDITIONS OF PURCHASING PROPERTY IN MALTA

Non-Maltese residents may purchase property in Malta for the use as a holiday home or for permamnent ressidence. Maain conditions for purchase are as follows:

	1)	The purchase price of the property must exceed 
		Lm15,000.
	2)	The funds for the purchase must originate from 
		outside Malta.
	3)	The property may only be used as a holiday or 
		permanent residence by the purchaser or his immediate
		family. Guests may be accomodated in the property
		when the owner or a member of the family is in 
		residence.
	4)	On resale of the property, a non-resident may 
		repatriate the full sale-price inccluding profit.

SALE PROCEDURE AND COST

A promise of sale or preliminary agreement is signed binding the vendor to sell, and the purchaser to acquire the property under terms and conditions agreed upon and subject to good title and issue of all relative permits. A 105 deposit is usually deposit ed with the estate agent on signing of this agreement.

A preliminary agreement is usually valid for 3 months or longer if agreeable to both parties. During the term, the notary public will undertake searches to prove clean title as well as submit applications to the relative government departments. Contracts are written in English.

The final contract is entered into by the parties or their attorney once researches have proved satisfactory and permits are issued. The full price and vendor will give vacant possession on contract.

Expenses are paid on contract

1) Legal fees and govt stamp duty		18%
2) Ministry of Finance fee			Lm100
3) Searches, registration, etc.		Lm20 to Lm50

N.B. Estate agent's brokerage fees are borne by the vendor.

Definitions of Residency Status

Non-residents; Persons who visit Malta and whose stay may not exceed 3 months. These are subject to local tax conditions.

Temporary residents; Persons who may stay for a period longer than 3 months after obtaining the necessary permit. These are subject to local tax conditions on income brought into the island only, if their stay exceeds 6 months in any one calendar year. P roperty purchased must exceed Lm15,000 in value.

Permanent residents: To qualify for a permit one must have a capital of Lm150,000 (held anywhere in the world) or an income of more than Lm10,000 on which Lm6,000 (plus Lm1,000 per dependent) must be remitted to Malta. Tax is payable at 15% with a minimum of Lm1,000. Property purchased must exceed Lm20,000 in the case of a flat and Lm3 0,000 in the case of a house. Alternatively, one must rent a property ata minimum of Lm1,200 per annum. One's car and all personal and household goods are exempt from customs duty.