| Buying a Home in Malta & Gozo The Republic of | | | | beach considering the size of the country. Gozo island |
| Malta is a small country located in the Mediterranean | | | | real estate will suitable for foreigners who love |
| Sea. This Southern European country encompasses | | | | leisurely way of life. Many properties here are in rural |
| Malta, Gozo, Comino and few other uninhabited | | | | surroundings and invariably overlook the sea. This is |
| islands. Malta is located at about 100 kilometers to | | | | an ideal place for retirement settling. With tourism |
| the South of the Italian island of Sicily and 300 | | | | activity increasing in the country, buying a property |
| kilometers to the east of North Africa. Malta is a | | | | for rental purposes is lucrative. Government approval |
| member country of the European Union since 2004. | | | | is required for foreigners to rent a property. Rental |
| Malta is blessed with beautiful sunny days almost | | | | returns of five to six percent are feasible and the |
| round the year and the temperature never goes | | | | returns are dependent on the location and condition |
| beyond comfortable levels. It rarely rains here and it | | | | of the property. Legal issues Real estate purchase in |
| never lasts for a long duration continuously. The | | | | Malta The legal system in Malta is based on the |
| annual rainfall in the country is only around 600mm. | | | | English system. The real estate purchase process is |
| Added to this is the low tax structure in the country | | | | straight forward and simple and should not be a |
| which will be an additional incentive for foreign | | | | hurdle, particularly for foreigners from UK. Foreigners |
| investment. Excellent and healthy weather conditions, | | | | have certain restrictions for purchasing property in |
| cosmopolitan society, beautiful sea coast landscapes, | | | | Malta. These restrictions are basically formulated to |
| friendly people and good health care facilities are the | | | | protect the interest of local residents and keeping in |
| factors fondly remembered by tourists visiting the | | | | view the limited property available for sale due to |
| country. Many tourists make Malta their annual | | | | small size of the nation. * People form EU countries |
| vacation destination. Valletta is the capital city of | | | | that are living in Malta continuously for more than five |
| Malta Malta economy Malta became popular a transit | | | | years can purchase more than one property in the |
| location for ships after the opening of Suez Canal in | | | | country. There is no need for any government |
| the middle of the eighteenth century. The county's | | | | approval * Other EU nationals who have lived for less |
| economy was at its peak during this period and | | | | than five years in Malta or living elsewhere can |
| sustained it for about a decade. With the advent of | | | | purchase single residential or commercial property |
| new generation sea liners, Malta lost its importance. In | | | | without any permission * All other foreigners need |
| recent times, lime stone business and tourism are the | | | | permission from the Ministry of Finance for buying a |
| major economic activities in the country. Statistics | | | | real estate property in Malta In some notified areas |
| indicate continuous increase in the number of foreign | | | | of Malta and Gazo where property prices are very |
| tourists visiting the country. The government has | | | | high, no foreigners can freely buy any number of real |
| catalyzed this growth by investing on infrastructural | | | | estate properties without any approval. In case of |
| facilities to suit the needs and lifestyles of foreign | | | | any doubt on this issue, it is necessary to check with |
| visitors. Liberalization and foreign direct investments | | | | Ministry of Finance before entering into any real |
| have accelerated this growth and now Malta is back | | | | estate contract in Malta Purchasing process |
| to its past economic glory. Financial transactions | | | | Preliminary agreement Once a property is identified |
| Maltese Lira (MLT) is the authorized currency in Malta. | | | | as suitable for buying, the price is negotiated |
| The conversion rate of this currency as on March 1, | | | | between the buyer and seller. The logical next step is |
| 2007 is: 1 Maltese Lira = 3.06899 US Dollars 1 Maltese | | | | to sign a preliminary agreement to seal the |
| Lira = 1.56507 British Pound 1 Maltese Lira = 2.32188 | | | | transaction. The buyer also deposits 10 % of the |
| Euro Exchange of foreign currency is not at all | | | | value of the property as a token of commitment for |
| difficult in Malta, indicating the true cosmopolitan | | | | the purchase. A reliable advocate can help in drafting |
| nature of the country. Popular foreign currencies can | | | | and finalizing this agreement This finalization of this |
| be exchanged easily in banks, foreign exchange | | | | agreement generally takes about three months. This |
| bureaus and large hotels. Some of the foreign | | | | time can be utilized fruitfully for getting the |
| exchange bureaus are open 24 hours for the benefit | | | | government approval for the purchase and to |
| of the customers. Automated foreign exchange | | | | complete the research on the property ownership |
| machines are also located at many places in the | | | | and registration. Purchase contract Once the buyer is |
| country. Many large shops and restaurants also | | | | satisfied that the property is legal and the permission |
| accept foreign currency. Traveler's cheque can be | | | | for the purchase is in place, the next step is to sign |
| exchanged in authorized foreign exchange agencies in | | | | the final contract. The buyer's lawyer generally |
| the country. American express, Visa, Master card and | | | | prepares this document. The contact is signed by |
| Diners club credit cards are accepted in the country. | | | | both the parties. All the payments that are due are |
| Malta has good number of ATM to take care of your | | | | settled by the buyer and the document is registered |
| cash liquidity, if the need arises. Infrastructural | | | | with the appropriate agency in order to legalize the |
| facilities Malta's healthcare services are among the | | | | change of ownership. Stamp duties, legal fees and all |
| best in the world. Services offered in general and | | | | other dues are settled by the buyer. The total time |
| private hospitals are excellent. Private schools in Malta | | | | taken for the entire process is normally around five |
| mostly follow British system of education and teach | | | | months. UK citizens will cherish the fact that the |
| in English. Roads in Malta are being improved to make | | | | complete documentation is in English language. Real |
| it suitable for international tourism development. The | | | | estate purchase finance The ideal arrangement to |
| main advantage for UK citizens is that British driving | | | | finance your purchase is through your own funds but |
| license is valid here and you drive on the left side of | | | | this is seldom the case. Property mortgage is readily |
| the road. Good ferry services connect the islands and | | | | available in Malta and the banks finance up to 90 % |
| there is also a helicopter service connecting Malta and | | | | of the funds. However the repayment period and |
| Gazo. Hotels, restaurants and bars are available in | | | | interest levels in Malta are higher than in the United |
| plenty in the country. Malta is also well known for its | | | | Kingdom. Banks in UK can also finance your real |
| carnivals and club outings. The infrastructure is so | | | | estate project in Malta. The quantum of funds |
| good that international level carnivals can be | | | | required, preferred repayment period, repayment |
| conducted here. The county's business infrastructure | | | | capacity, forecasted foreign exchange rates etc are |
| is excellent with good communication facilities. The | | | | some of the factors that can influence the final |
| government has formulated many incentive packages | | | | decision for the mortgages. It is preferable to consult |
| and tax concessions to attract foreign investment. | | | | an expert in the relevant area for calculated decision |
| Popular locations in Malta Malta is a small country and | | | | in this regard. Cost of purchasing Buyers often tend |
| all places within Malta can be covered within a day or | | | | to forget that additional costs, other than the |
| two. Total area of Malta is around 245 square | | | | negotiated purchase price can inflate the total cost |
| kilometers and Gozo has an area of just about 70 | | | | of the purchase. Buyers should always compare the |
| square kilometers. The length of Malta Island at the | | | | 'total' cost with their allowable budget to make the |
| widest point is about 25 Kilometers and width at the | | | | final decision on the purchase of the property. Real |
| maximum is just about 15 kilometers. In case of | | | | estate transactions attract a stamp duty of 5 % in |
| Gozo Island, the figures are 15 and 7 square | | | | Malta and notary fee of 1 %. In addition to this, if |
| kilometers respectively. Malta is frequented by many | | | | the services of an advocate or agents are utilized in |
| foreign tourists round the year, mainly from European | | | | the process they have to be paid the appropriate |
| countries. UK accounts for nearly 50 % of the | | | | fee. It is a good practice to define their roles and fee |
| tourists visiting the country. UK citizens feel at home | | | | in advance to avoid any misunderstanding when the |
| here because English is spoken a lot here and the | | | | amount is paid. Traveling expenses, hotel |
| weather is predominantly sunny. Historical places The | | | | accommodation and all other incidental expenses also |
| country is proud of its long history and there are | | | | need to be considered to arrie at the total cost. It is |
| innumerable historically significant locations all around | | | | reasonable to allocate around 12 % of the purchase |
| Malta and Gozo islands. The museums, the palace and | | | | price for additional costs and other expenses. You |
| churches in Valletta are few representatives of the | | | | may finally end up with little surplus money in hand |
| history of the land. Sight seeing Malta has a vast | | | | which will be a good thing. If the property requires |
| coastal line with beaches that have crystal clear | | | | remodeling, provision has to be made for such |
| water, long sand stretches and naturally formed small | | | | expenses also in the budget. Malta property taxes |
| rocky bays. Anchor bay and Paradise bay in the | | | | Foreigners will be happy to note that there are no |
| north, Peter's pool and Pretty bay in the south and | | | | annual taxes on real estate properties in Malta. Malta |
| Ramla bay and blue lagoon in Gozo and Comino are a | | | | does not levy any capital gain tax. However one |
| few such beaches. City tours can be a very beautiful | | | | should be careful before selling the property. If the |
| experience. Country side tours are energizing due the | | | | owner sells a property that was not his primary |
| unspoiled natural beauty of the area and hospitality | | | | residence for the last three years, a hefty amount is |
| of local people. Sports facilities Sports lovers will | | | | charged as transfer tax. There is no inheritance tax in |
| appreciate the sports clubs located in the country | | | | Malta as long as there inherited property is not sold. |
| offering variety of sports facilities such as tennis, | | | | But transfer tax is levied if an inherited property is |
| golf, swimming, squash, cricket, indoor games and | | | | sold. Travel documents As Malta is an EU member |
| general health and fitness facilities. Marsa Sports club | | | | since May 2004, there is no restriction for EU |
| and Union Club in Sliema are frequented by foreign | | | | nationals to tour the country. Many country nationals |
| nationals as the facilities are excellent and of | | | | can stay for up to three months as tourists in Malta |
| international quality. Sea diving enthusiasts will love | | | | with a valid passport with no visa. Check with the |
| Malta as the sea temperature seldom goes beyond | | | | embassy in the home country and get a complete list |
| the comfortable range of 13 to 25 degree | | | | of the documents required before traveling to Malta. |
| CentigradeÂÂ and the sea around the | | | | Foreigners, who wish to reside permanently in Malta, |
| country is quite calm without any major tides. | | | | must apply for a residency permit. Proof of sufficient |
| Excellent diving schools are available in Malta and | | | | funds or annual income has to be provided as a |
| diving gear can be leased near the beaches. A diving | | | | support document when applying for this permit. If a |
| permit is required for divers in Malta. Yachting is | | | | foreigner wants to work or start a business in the |
| another popular sports activity in Malta. Excellent | | | | country, government permission is required. Malta |
| maintenance and sheltering facilities are available all | | | | may make a difference If you are looking for real |
| around the country for all yachts of all sizes. Malta | | | | estate in a sunny country, rich in culture, Malta is the |
| Real estate Main considerations for buying a property | | | | right choice. Low taxes, relaxed life styles and |
| in Malta are the ambience and the price. In rural | | | | popularity of the English language are very compelling |
| surroundings, real estate prices are much less than in | | | | reasons for a UK citizen to consider looking for a |
| the cities. Beach properties are the costliest in Malta. | | | | second home in Malta and Gozo islands. |
| However one is never very far away from the | | | | |