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Advice when purchasing property in Malta
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Purchasing procedures for property in Malta or Gozo
As a foreigner, it is important to take a few minutes in order to read and understand the following notes so you will familiarise yourself with the buying cost and process here on the Maltese Islands.
Property in Malta and Gozo, purchase price requirements
The agreed price must not be less than €104,509 if one is purchasing an Apartment or Maisonette and not less than €174,133 for any other type of residential property. If the property in question is in shell form or requiring renovation may be purchased at a lower figure, providing that the estimated cost of works for completion, plus purchase price total not less than the above mentioned figures in given the chosen type of property, these figures (set by the Ministry of Finance) may be subject to change from time to time.
The above mentioned thresholds do not apply in the case of EU citizens who purchase property as a primary residence i.e. for permanent residency purposes.
Once a property has been chosen in Malta or Gozo
Upon finding a suitable property or having narrowed your search to multiple choice properties, we will negotiate a fair purchasing price and terms on your behalf. Once a selling price has been accepted an appointment for the 1st Contract (Preliminary Agreement or Promise of Sale Agreement) needs to be sought to secure the property subject to conditions stipulated during negotiations and those set by law. The choice of 'Notary Public' (Legal specialist for the conveyance of a property) is the purchaser’s (as they will pay the legal fees relating to the deeds). The Notary shall deal with legalities in terms of legal title, local searches as well as submitting the application to purchase to the Ministry of Finance. We can assist you in appointing an independent ‘Notary Public’ to act on your behalf and if required arrange a meeting prior to 1st Contract (Preliminary Agreement) in order to iron out any legal queries you may have.
Note: Contract terms can be written and read in English.
Preliminary agreement to purchase a property in Malta or Gozo.
The Preliminary Agreement (1st Contract) binds both parties to purchase/sell the property under the terms and conditions agreed upon, subject to legal title and the issue of any relevant permits to purchase.
Final Deed
Upon the signing of this final deed (2nd Contract), the balance is paid and keys are handed over and buyer takes possesion of the said property.
Preliminary agreement
Purchaser
• 10% Deposit. Is the Industry norm.
• 1% Stamp Duty (Property Purchase Tax) Initial payment of the 5%.
Final deed of transfer
Purchaser
• 90% Balance of purchase price.
• 1% Notary Public for legal services provided.
• 4% Stamp Duty (Property Purchase Tax) Balance remaining and due.
• Agent Fees are paid by the Seller.
• €233.00 (Lm100.00) 'A.I.P.' (Acquisition of Immovable Property, permit) required for non-resident. Notary will apply for on your behalf, takes 6 to 12 weeks to process.
Please note: Should you be taking up residency in Malta or Gozo the Stamp Duty (Property Purchase Tax) applicable will be 3.5% on the first €117,000 and 5% thereafter.
The Final Deed of Transfer is subject to:
The property complying with all legal searches, full and current legal title to sell. Works agreed to be completed in full prior to the final signing, fixtures or fittings listed in the preliminary agreement to be left or any other conditions as mutually agreed and documented on the said preliminary agreement.
Please note: In the event you are unable to appear at the Preliminary Agreement or Final Deed to sign, due to your commitments overseas, it is possible to give the power of attorney to a nominated person/company to sign on your behalf.
Finally we would like you to know that before, during and after the buying process we will do out upmost to make it as pleasant an experience as is humanly possible as I am a firm believer in referral business. Fully satisfied clients are far more valuable than any advertising campaign!
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