Useful information

The buying procedure is very simple and safe in Malta / Gozo. Once you have decided upon a property and price and conditions have been agreed, a Promise of Sale Agreement (Preliminary Agreement) is signed by both the Seller and Buyer. This is different to the UK in that the initial contract is signed at an early stage but this ensures that the price is fixed and cannot be increased at any time, nor can you be gazumped which is far more preferable to the UK system.

You will require the services of a Notary to carry out the conveyancing work and at completion you will use the Notary for the signing of the deeds.

On signing the preliminary agreement, a 10% deposit together with 1% of the stamp duty is paid to either the agent or notary. If the purchaser fails to complete the transaction for no valid reason at law, then the deposit is forfeited.

The preliminary agreement is usually valid for three months or as mutually agreed between the parties. During this period, the Notary will carry out various searches into the property to confirm good title and if the property is purchased for holiday purposes, not residency, the Notary will apply to the Ministry of Finance for an AIP permit.

Once the permit has been issued and the searches are clear, the final contract of sale is signed and the balance of the purchase price and stamp duty together with legal fees is paid and vacant possession and the keys provided to the purchaser.

On completion of the purchase procedure, the land registry will receive notification of the sale and the documentary evidence and the purchaser will be registered as the new owner.

In terms of Maltese Law, foreign nationals wishing to purchase property as a second residence, may do so as long as the value of the property is above Lm42,519 / €99,000 in case of Apartments/Maisonettes and Lm70,845 / €165,024 in case of houses. These thresholds do not apply in the case of EU citizens who purchase property as a first residence i.e. for permanent residence purposes.

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