Malta has its own rules about how a property purchase is done. While it may seem complicated, with the right guidance it can be a smooth process.
Step 1: Select an Agent
When you’re working with an agent, everything becomes so much more straightforward. Purchasing a property is a big investment, so you want to make sure everything is done correctly right from the beginning. An agent can not only help you to find the right property, but also guide you through the legal process and help you with any querie
Step 2: Let the Search Begin
You can get an idea of your budget through local banks’ online home loan calculators (BoV and APS offer this service), however you should ultimately speak to the banks directly to find out which can offer you the best home loan.
Your agent will discuss your preferences and help to formulate a list of requirements, such as type of property, location, and number of bedrooms. Then they will prepare some options that might interest you, and the property hunt begins! This is an opportunity to enjoy the process, especially since you are in good hands.
Step 3: Decision Time
When you’ve found the right place and you’re ready to make an offer, you should first bring an architect to make sure that everything is as it should be according to the plans and that there are no elements that go against planning regulations.
Once you’ve put an offer on the property, your agent will help with the negotiation process.
Step 4: Promise of Sale
Once your offer is accepted, both the buyer and seller must sign a Promise of Sale Agreement as prepared by a notary. This is when 10% of the purchase price is left with the notary as a deposit, and 1% provisional duty is payable. The notary will carry out searches on the property to ensure it can be transferred.
Step 5: Final Contract
Upon signing the final contract, the balance of the price is paid to the seller and the remaining stamp duty is paid. Notary fees are also due. Then, congratulations you are a home owner!
Keep in Mind
If you are a foreign person purchasing property in Malta, you will need to obtain an Acquisition of Immovable Property (AIP) permit. However, if the property is located within a Special Designated Area, then the permit is not required. If you are purchasing property for residential purposes, this will be subject to minimum property prices.
Are you looking for a property in Malta? Get in touch with us to get started on your journey!