The Malta real estate market is a reliable investment environment. Property prices are increasing by 5–8% and there is high demand for quality residential homes. It is possible to buy property in Malta as a foreign national, but the rules vary depending on your nationality and where you buy. EU citizens and long-term residents are free to purchase property with no limitations, but most non-EU buyers need an Acquisition of Immovable Property (AIP) permit, except in Special Designated Areas (SDAs).
Malta is also an attractive and well-sought-after country for property investment because of its Malta Permanent Residence Programme (MPRP), which gives non-EU citizens lifelong residency in exchange for a three-part investment, including real estate.
This article explains everything you need to know about buying property in Malta, including the real estate market, the step-by-step buying process, fees and taxes, financing options, and the best cities to invest.
Malta Real Estate: Key Takeaways
Malta Real Estate Market
The Malta real estate market is an important part of the national economy, as it maintains a steady price appreciation of 5–8% and a high demand for high-quality residential homes. The rise comes from the alive expat community and the tech and gaming industry. Popular areas like Sliema and St. Julian’s are expensive, but areas like the Three Cities and Gozo are growing and now offer good rental returns of 4–6% and great potential for growth.
Malta is also a European country that offers permanent residency through its Golden Visa, officially known as the Malta Permanent Residence Programme (MPRP), which grants indefinite residency and visa-free travel across the Schengen Area by requiring a three-part investment, including in real estate.
Why buy property in Malta?
- Residency pathways: Investing in property is an important requirement for the Malta Permanent Residence Programme (MPRP). This program allows non-EU nationals and their families to live in Malta permanently and travel visa-free within the Schengen Area.
- Tax efficiency: Taxes in Malta are friendly to real estate investors with no annual property tax, no wealth tax, and no inheritance tax on primary homes. The non-dom tax system can also allow qualifying applicants of the Malta Global Residence program to benefit from a flat 15% tax rate on foreign income that is brought into Malta.
- Investment security & growth: Malta’s property market has been stable for years. Property prices increase by about 5–8% per year. There is strong demand for rental homes, especially in tech and gaming areas, which helps investors earn rental returns of around 4–6%.
- Special Designated Areas (SDAs): In these special high-end areas, foreign nationals can buy more than one property and rent them out freely. They do not face the usual restrictions and do not need an AIP (Acquisition of Immovable Property) permit.
- Quality of life: Malta is a safe, English-speaking country with more than 300 days of sunshine each year. It has good healthcare and is only a short flight from many major European cities.
Can foreign nationals buy property in Malta?
Yes, foreigners can buy property in Malta, but the rules depend on your nationality and the location of the property. There are two main options:
- Special Designated Areas (SDAs): In luxury areas like Tigné Point or Portomaso, foreign buyers have the same rights as Maltese citizens. They can buy more than one property, rent it out right away, and do not need a special permit.
- Outside SDAs: If you buy property outside these areas, you will need an Acquisition of Immovable Property (AIP) permit. This allows you to buy only one home for personal use, and you cannot rent it out. The permit costs about €233 and takes around 35 days to be approved.
How to Buy Property in Malta: Step by Step Purchase Process
- Find a reputable agent: Find a real estate agent, or if you are buying through the Malta Permanent residency by investment program, speak to a Malta immigration lawyer at Global Citizen Solutions who will help determine your eligibility and guide you through the application process.
- Choose a property and agree on the price: Once you find a property you like, your estate agent will help you agree on the price and terms with the seller.
- Sign the “Konvenju” promise of sale: This is a legally binding preliminary agreement signed in front of a Notary Public. At this stage, you will pay a 10% deposit, which the notary will keep safely, and a 1% stamp duty, which is part of the total 5% property tax. This agreement reserves the property for you while legal checks are completed.
- The waiting period (3–6 Months): During this time, the most important checks will be conducted. The notary will verify that the seller legally owns the property and that there are no debts or legal problems attached to it.
- Apply for the AIP permit (if needed): If you are a non-resident buying outside a Special Designated Area, the notary applies for your AIP permit. This will most likely take about 35 days.
- Mortgage approval (if needed): If you are using a bank loan, the bank will do its own property valuation and issue the final approval.
- Sign the final contract (Final deed): Once everything is approved, all parties meet again to sign the final contract. Then the buyer will need to pay the remaining balance of the purchase price and the remaining 4% stamp duty.
- Registration and keys: The notary registers the sale with the Public Registry. After registration, you officially receive the keys and become the legal owner of your new home in Malta!
Buying Property through the Malta Permanent Residence Program
The Malta Permanent Residence Programme (MPRP) is one of the best options for non-EU, non-EEA, and non-Swiss nationals who want permanent residency in Malta. The program gives you indefinite residency in return for a qualifying property investment, a government contribution, and a charitable donation. There are two main ways to qualify:
Option 1 – Renting a property
- Minimum rent: €14,000 per year in Malta
- Minimum rental period: 5 years
- Government contribution: €37,000
- Charitable donation: €2,000 to a registered Maltese NGO
The property must be rented within 8 months of receiving the Letter of Approval in Principle (LOA). After five years, subletting may be allowed, subject to the Residency Malta Agency’s rules.
Option 2 – Buying a property
- Minimum property value: €375,000 in Malta
- Minimum holding period: 5 years
- Government contribution: €37,000
- Charitable donation: €2,000 to a registered Maltese NGO
Property Taxes and Costs in Malta
Buyers need to budget to pay a total of 7% and 10% of the purchase price in costs and property taxes in Malta.
| Expense Category | Rate / Fee | Notes & Exemptions |
|---|---|---|
| Stamp Duty (Standard) | 5% | Paid in two stages: 1% at the Konvenju and 4% at the final deed. |
| First-Time Buyers | 0% on first €200,000 | 5% applies to any amount above €200,000. |
| Gozo Properties | 2% | Standard rate for residential property purchases in Gozo. |
| UCA & Heritage | 0% on first €750,000 | No stamp duty on the first €750,000 for homes in Urban Conservation Areas. |
| Notarial Fees | 1% – 2% | Based on the property value and covers legal drafting and advice. |
| Search & Registration | €600 – €1,200 | Covers Public Registry and Land Registry title searches. |
| AIP Permit Fee | €233 | Applies only to non-residents buying outside Special Designated Areas (SDAs). |
Financing Options for Non-Residents in Malta
Getting a mortgage in Malta as a non-resident is possible, but the rules are stricter than for residents. Banks will ask for a larger deposit and do a thorough check of your income and financial situation.
Mortgage terms for non-residents
Major Maltese banks like HSBC Bank Malta, Bank of Valletta, and APS Bank offer mortgages for non-residents with these conditions:
- Loan-to-Value (LTV): Banks lend 70% to 80% of the property value, so you need a 20% to 30% deposit.
- Repayment period: Loans run for 15 to 30 years, but they must be fully repaid by age 65 or 70.
- Interest rates: Rates are currently between 2.85% and 4.5%, depending on whether you choose a fixed or variable rate.
Property Prices in Malta
| Region | Property Type | Avg. Price per m² | Typical Price Range |
|---|---|---|---|
| Sliema / St Julian’s | Luxury Apartment | €5,000 – €7,500 | €500,000 – €900,000 |
| Valletta | Heritage Home | €4,200 – €6,500 | €450,000 – €900,000 |
| Central (Mosta/Attard) | Modern Apartment | €2,800 – €3,900 | €300,000 – €480,000 |
| South (Marsaskala) | Coastal Apartment | €2,500 – €3,200 | €250,000 – €420,000 |
| Gozo (Victoria) | Traditional House | €2,100 – €2,800 | €180,000 – €350,000 |
5 Best Cities to Buy Real Estate in Malta
1. Sliema & St. Julian’s
Sliema and St. Julian’s are the most commercial and lively areas in Malta. They are known for shopping, restaurants, offices, and nightlife. They are also home to some of the bigger Special Designated Areas (SDAs) like Tigné Point and Portomaso, which are exempt from foreign buying restrictions. Prices are high, but demand for luxury rentals is just as high, meaning profit is a given. These cities are safe and the most chosen areas for investment.
2. Valletta
Valletta is Malta’s historic capital and a UNESCO World Heritage Site, and because it is protected, there are limited properties available, which helps keep prices high. Many buyers look for renovated historic homes with sea views. The city is a top performer for short-term holiday rentals, and occupancy rates are consistent throughout the year.
3. Gżira
Gżira is located between Sliema and the university area. It has become more modern in recent years, with many new apartment buildings and waterfront homes. Prices are lower than in Sliema, but the area still provides a coastal lifestyle. Its residents are mostly young professionals and expats, especially those working in the tech and gaming industries.
4. St. Paul’s Bay
St. Paul’s Bay, including Qawra and Bugibba, is known for more affordable seaside property. Buyers can find good-value apartments close to the sea. It is also most popular for holiday homes and summer rentals, so it is a good investment option for first-time investors looking for consistent seasonal income.
5. The Three Cities (Birgu, Senglea, Cospicua)
The Three Cities, Birgu, Senglea, and Cospicua, are historic towns across the harbor from Valletta. They are full of traditional Maltese homes and narrow streets, and property prices are lower than in central areas. The region is becoming more popular as it continues to develop and attract buyers looking for unique homes, and the affordability makes it easy to meet the requirements for residency programs like the MPRP.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
