Whether you are seeking to lease or purchase immovable property in Malta,novolegal ’s team can guide your through the process and assist with all the regulatory and legal arrangements that may be required. This may include the drafting and reviewing of agreements, assistance with acquisition of immovable property permits, and other ancillary services.
Malta’s real estate market has been consistently on the rise, earning itself a reputation for its resilience, stability, and return on investment, even at times when international markets suffered significant losses.
The legal framework supporting the industry offers significant benefits, which includes the absence of taxation on ownership and wealth, thus bolstering the market’s attractiveness to both local and foreign investors.
Malta’s policies and political direction have also served as major contributors to the real estate market’s success. This takes into consideration the high-rise policy, supplementary expansion projects in specific areas, as well as strong efforts to attract high net worth investment through the Malta Individual Investor Programme (MIIP) and the Malta Residence and Visa Programme (MRVP).
The rental of immovable property in Malta is a straight-forward procedure. The market is also extremely fast-paced, whereby a property may be identified, and the lease agreement signed within a couple of days, subject to the agreement on the details between the lessor and the lessee.
In terms of taxation, the rental of immovable property in Malta may be taxed at a final rate of 15%, subject to the satisfaction of certain conditions. Such rental is normally also classified as being exempt without credit, whereby no VAT would be charged on the lease, although this also means that no VAT claims on expenses would be possible by the lessor. Nonetheless, exceptions to this rule do exist, and in certain instances the lease of property could be considered as a vatable supply with the option of credit. In the latter scenario, the lessor would be obliged to charge VAT and also claim VAT in the expenses that are directly related to the lease.
The acquisition of immovable property is subject to further measures than mere rental, with such measures varying depending on the nationality of the individual, and the duration of residence in Malta.
EU citizens who have continuously resided in Malta for at least 5 years may freely acquire immovable property in Malta. However, EU citizens who have not continuously resided in Malta for at least 5 years require an Acquisition of Immovable Property (AIP) permit, unless such property is being acquired as the person’s primary residence, business activities, or supply of services.
Non-EU citizens may still acquire immovable property in Malta under an AIP permit, subject to such property being their primary residence.
There are no restrictions related to citizenship or duration of residence in Malta, for the acquisition of property that is located in Special Designated Areas (SDA) around Malta. These are listed below:
For your information, please find the list of all Special Designated Areas in Malta:
novolegal ’s team of seasoned professionals is available to guide you through the process of acquiring or renting immovable property in Malta, whilst also assisting with all the regulatory and legal arrangements that may be required. This includes matters related to advice, drafting and reviewing of agreements, assistance with AIP permits, and other ancillary services.