 The
Maltese Islands (consisting of Malta, Gozo
and Comino) are the ideal home in the Mediterranean. Apart from their
natural beauty, the peaceful and safe way of life, rich cultural and
historical heritage and warm hospitality from its English speaking
population, Malta has much more to offer people looking for a home in
the Mediterranean.
Malta is not only a tax
efficient location with beautiful properties for sale or rental, but its
warm climate, beautiful sea and days full of sun will help you relax and
retire in a friendly and safe environment. You can enjoy your gin and
tonic on board your yacht berthed at one of the yacht marinas, on the
terrace of some of the best hotels in Europe enjoying the beautiful
Mediterranean Sea, not to mention year round golf in the sun.
This web site is intended to familiarise you with Malta and to help
non-residents take advantage of the tax incentives and the perfect
investment opportunity offered by purchasing property in Malta, even for
residency purposes.
Purchase Conditions
EU nationals and any other nationalities are entitled to purchase only
one residential property in Malta or Gozo (unless the second
property purchase is in a Special Designated Area such as Portomaso,
Tigne project, Cottonera Waterfront and Chambrai in Gozo. Here one may
acquire any number of properties and do not require any permit from the
government to purchase even if you are buying as a second home) and is
subject to the acquiring of an Acquisition of Immovable Property Permit
(A.I.P Permit) from the Ministry of Finance, which normally is issued
within three months, subject to the conditions listed below:
-
The purchase price must be at
least Lm 34,158 in the case of an apartment, masionette, penthouse and
Lm 56,930 in the case of any type of house.
-
Proof that funds for the
purchase of the property have originated from abroad.
In the case of E.U. citizens who will be resding
in Malta permanently there is no minimum purchase value requirements.
However, this only applies if you do not own another property within the
E.U. or if you have already resided permanently on the island for a
period of five years. E.U. citizens residing permanently in Malta for a
continuous period of 5 years may acquire a second property.
PLEASE NOTE THAT THE CONDITIONS FOR NON E.U.
CITZENS ARE AS POINTS 1 AND 2 ABOVE.
Purchase Procedure
The method of property purchase is
simple. On finding the right property and agreeing on a price a
preliminary agreement (convenium) is signed, binding the vendor to sell
and the purchaser to buy the property at the agreed price within a
stipulated time and under other terms agreed upon by the parties to the
agreement. The agreement must be subject to the acquisition of the
A.I.P. permit (in the case of non-residents). It is the practice that
10% of the purchase price is paid on the convenium either by way of
deposit or earnest as agreed between the parties. The preliminary
agreement is normally but not necessarily for a period of three months
during which period the Notary Public nominated by the purchaser carries
out searches to ascertain the validity of the title. On the expiration
of the agreed period if all the conditions of the preliminary agreement
are satisfied, a final deed of sale will be entered into between the
parties to the agreement and full ownership is attained.
Mortgage
The banking system in Malta is of a high international level, and the
main Banks are HSBC, Bank of Valletta, APS Bank and Lombard Bank. Loan
facilities from local banks are available for the purchase of property
by foreigners . The loan generally does not exceed 90% of the purchase
price and the completion costs of the property when the security given
for the loan is a hypothec on the property itself. The interest charged
is dependant on the security given.
Expanses
The Expenses involved in acquiring property in Malta
are the following:
- Duty on document or Transfer tax 5% of the
value of the property
- Legal Fees between 1% - 1.5%
- Ministry of Finance fee Lm100 on application
for an Acquisition of Immovable Property Permit (A.I.P Permit). This
is applicable only for non-residents.
Residency Conditions
Any E.U citizen may reside in Malta freely.
However with regards to working on the island one has to apply for a
work permit. Self-employed people can work freely but have to set up a
business on the island. Additionally, Malta also offers a permanent
residency scheme, with a beneficial income tax rate of 15 % for those
who qualify as described below:
Any non resident may submit an application for a permanent residency
permit. Subject to the following conditions:
· An annual income of Lm 10,000 or Capital of Lm 150,000.
· The annual remittence to Malta of Lm 6,000 in respect of the
applicants and Lm 1,000 for each dependant.
· Either purchase property valued at not less than Lm 56,930 in the case
of a house (Lm 34,158 in the case of an apartment etc). Alternatively to
lease or rent property for not less than Lm 1,800 per annum.
· Prohibited from working due to the tax concession.
Income tax – A flat tax rate of 15% on all income (less tax rebates as
applicable) received in or remitted to Malta, from either local or
foreign sources, subject to a minimum payment of Lm 1,800 per annum.
Double Taxation Agreements
Malta has entered into Double Taxation Agreements
with the following countries : ALBANIA, AUSTRALIA, AUSTRIA, BARBADOS,
BELGIUM, BULGARIA , CANADA, CHINA, CROATIA, CYPRUS, CZECH REPUBLIC,
DENMARK, EGYPT, ESTONIA, FINLAND, FRANCE, GERMANY, HUNGARY, INDIA,
ITALY, KOREA, KUWAIT, LATVIA, LEBANON, LIBYA, LITHUANIA, LUXEMBOURG,
MALAYSIA, NETHERLANDS, NORWAY, PAKISTAN, POLAND. PORTUGAL, ROMANIA,
SLOVAKIA, SLOVENIA, SOUTH AFRICA, SWEDEN, SWITZERLAND, SYRIA, TUNISIA,
UNITED KINGDOM and UNITED STATES
Vit Klima
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