Procedures and Taxes
Buying a property
Once you have decided on your home and would like to preoceed in buying the property an appointment is set to sign the Preliminary Agreement or Promise of sale what is commonly known as ‘Konvenju’. This is an agreement binding both the purchaser and the vendor to conclude the deal within an established date (term of Konvenju) depending on many factors such as if the buyer is obtaining a bank loan or need building permits approved by MEPA, that is why the promise of sale is alway subject to a set of conditions that you have agreed on with the owner,depending on your requirements.On signing of the ‘Konvenju’ you will be required to pay 1% provisional stamp duty as part payment of the full 5% which the balance is due on signing of the final deed which the notary incharge of registering the promise of sale will register it too with the inland revenue department. In the case of those purchasing their first immovable property, the stamp duty on the first €150,000 has been removed as a concession, and calculated at 5% on the remaining balance of the property.
Notary Public carries out the necessary searches to verify legal title and to ensure that there are no outstanding debts, mortgages or liens on the property Purchaser is to complete all the special requirements e.g. organise bank loan, check on building permits, etc. as agreed upon with seller and stipulated in the konvenju Vendor will complete all remaining work to do if there is a need to do so.
Once all this is sorted , the notary or if in the case that the buyers are using the services of a bank, they will give you a date for the final deed,payments due will be settled and both parties will sign
You are now officially a home owner.
Buying a Property in Malta as a second home/Non-EU Resident
If you are a foreigner to the European Union or if you are a Citizen of a European Union and the property you are purchasing is not for a prime residence, to be able to purchase a property in Malta there is a minimum price that one must pay for an apartment as well as for a house or a villa to be able to obtain an (Acquisition of Immovable Property) permit which is granted by the Ministry of Finance and usually takes some 6-8 weeks. These prices are € 169,205 for a house or villa and € 101,551 for flats or maisonettes.
Buying a Property in Malta as a primary residence
Citizens of all European Union member states, who have resided in Malta continually for a minimum period of five years at any time preceding the date of acquisition, can buy more than one immovable property without necessity of obtaining a permit.EU Citizens, who have not resided in Malta for at least five years, but have the intention of purchasing their primary residence (take up residence in Malta), do not require a permit, nor do they require a permit to purchase immovable property required for their business activities.
Selling a property
When selling a property which has been your residence for over 3 years , no stamp duty is to be paid.
When selling a property which has been less that you acquired it , you will pay 8% stamp duty on the final deed.