Malta is truly a beautiful country, and even better it is surrounded by the sea. For those interested in a property in Malta, this article covers the basics of house hunting in Malta.
In the recent years, Malta’s housing market has been quite strong. Prices are rising and demand is steadily increasing. Second homes were highly sought after by foreigners; but now, due to many companies that employ foreigners setting up offices in Malta, many are also relocating. All these have resulted in an annual price increase of around 5% & 6% for the past 2 years on all types of properties.
Many foreigners have the tendency to buy either seafront apartments that are ready to move into or older palazzos that need to be renovated. Although prices in mainland Malta are increasing and are already somewhat high, prices in Gozo are much lower. Gozo is an 67 km2 island with a population of 37,342. It is more rural and less developed than Malta, but it is rich in historic locations and its nature is incomparable. In Gozo, a traditional villa might go for 25% to 50% less than what it would go for on the main island.
There are some restrictions on residential purchases that buyers outside of the European Union might be subject to. These buyers have 3 options to be able to buy a property in Malta. First, they can obtain a permit from the Ministry of Finance, this takes around 8 weeks. A second option is to buy a property in a designated area above a certain price threshold. Or finally, they can participate in Malta’s citizenship by investment program.
Buyers will have to pay for notary services, this usually costs between ½ a percent to ¾ of a percent of the sale price. Another fee that you might have is the lawyers one. It might be useful to hire a lawyer for drawing up a legally binding preliminary sale and purchase agreement, best before a notary is involved. The legal fee is normally 1% of the sale price. Other closing costs you might incur are searches by the notary; a stamp duty that is usually 5% (can be reduced in some cases); and finally an 18% VAT on notary or legal services.
Information gathered from: https://www.nytimes.com/2018/08/01/realestate/house-hunting-in-malta.html
