For foreigners dreaming of owning a cozy retreat on the picturesque island of Malta, a common question arises: “Can I buy property in Malta?” The answer is yes. However, for non-EU citizens or foreigners wishing to purchase property in Malta, there are specific conditions that must be adhered to.
1. Obtaining an AIP License
In Malta, foreign buyers looking to purchase real estate must first follow local legal procedures, which include obtaining a crucial document from the Maltese Ministry of Finance known as the “Acquisition of Immovable Property” (AIP) license. Securing this license is a vital step in the home-buying process, as it not only serves as the legal basis for foreign buyers to acquire property in Malta but also ensures the legality and transparency of the entire transaction. The AIP license application process involves background checks on the buyer and scrutiny of the source of funds for the purchase, aimed at preventing illegal activities such as money laundering.
2. Minimum Property Value Requirements
According to Legal Notice 308 of 2021, foreign buyers intending to purchase apartments or townhouses must meet a minimum property value of €143,410. For other types of properties, the minimum value must reach €247,701. It is important to note that these value thresholds are subject to annual adjustments based on Malta’s property price index.
3. Restrictions on Residential Use
In Malta, there are clear restrictions on the intended use of properties purchased by foreign buyers, emphasizing that the acquired property must be used for residential purposes. This regulation requires foreign buyers and their families to use the purchased property as their primary residence, rather than as a venue for commercial activities or as an investment tool for rental income. Such restrictions aim to ensure that properties meet the living needs of buyers while preventing excessive commercialization and speculation in the Maltese real estate market, thereby maintaining stability and healthy development in the residential sector.
This means that foreign buyers cannot use the property for any form of commercial activity, including but not limited to office space, retail, or any type of business operation. Additionally, the regulation prohibits renting out the property, whether short-term or long-term, and buyers cannot derive rental income from it.
4. Limitations on the Number of Properties Purchased
Both EU and non-EU citizens are generally allowed to purchase only one property in Malta. An exception exists for properties located within Special Designated Areas (SDA). In these specific zones, foreign investment is encouraged, allowing buyers to purchase multiple properties without the need for an AIP license.
5. Processing Time for the AIP License
Once the application materials are complete and accurate, the AIP license is typically issued within thirty-five days. This efficiency streamlines the purchasing process, enabling foreign buyers to realize their dream of owning property in Malta more quickly.
For foreign buyers, purchasing property in Malta is a process filled with opportunities but also requires adherence to regulations. Understanding and complying with the AIP license requirements, particularly the minimum property value stipulations, is a crucial step toward achieving the dream of property ownership in Malta. Through this process, foreign buyers can not only find their own piece of paradise on this beautiful Mediterranean island but also enjoy Malta’s unique culture and natural beauty.
Copyright © Malta-life.com
