Buy Property in Malta to be eligible for the Malta Permanent Residency Program (MPRP). Purchase a Property – Apartment or Villa, in Valetta or Gozo for a minimum of 300,000 Euros.
Steps To Buy Property in Malta
1. Find a Property – Select an Immovable Property and negotiate the price.
2. Preliminary Agreement (Konvenju) – Sign the Preliminary Agreement, known as ‘Konvenju’. This is an agreement binding both the purchaser and the vendor to enforce the transaction within an established date (term of Konvenju) subject to the terms and conditions.
The Preliminary Agreement is usually valid for three months and after the signing (but before entering into a final deed of sale). The buyer would need to enagage a Notary to carry out the necessary searches into the property to confirm everything is in order before proceeding. At this stage, 1% of the 5% total stamp duty fee is payable to the Inland Revenue and a 10% deposit is paid by the buyer. The remaining 4% of the stamp duty will be paid with the publication of the final deed.
In addition, note that the 1% of stamp duty will be refunded if the final deal fails to materialize and that the deposit agreed on during the signing of the Preliminary Agreement will be handed over to the seller if the buyer does not sign the final deed without a valid reason at law.
The following terms must be agreed before the Preliminary Agreement is signed:
- Price
- Ground Rent
- Features included in the price
- Payment terms
- Works to be undertaken by the owner
- Terms of Preliminary Agreement / Promise of Sale
3. Provisional Stamp Duty – After signing the Kovenju, you must pay 1% provisional stamp duty as part payment of the full 5%, and the balance is due on signing of the final deed. If you are purchasing your first immovable property, the stamp duty on the first is removed as a concession and calculated at 5% on the remaining balance of the property.
4. Deposit – Pay an agreed deposit on the property, which is usually 10%.
5. Verify Legal Title – The Notary Public carries out the mandatory searches to verify legal title and to ensure that there are no outstanding debts, hypothecs 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.
6. Bank Account – Arrange meeting with a Malta Bank and open a bank account.
7. Sign the Final Deed – The final deed is read and agreed upon and the balances due will be paid accordingly. The balance payments are: balance of the selling price to the vendor; the balance due to the Commissioner of Inland Revenue for stamp duty as well as 1% Notary fees to the Notary Public.
Contact our Visa Consultants and Malta Immigration lawyers for advice and assistance with your Malta Property purchase!
See our web page for more information:
https://www.visaconnect.com/buy-investment-property-in-malta
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