Malta’s character and charming lifestyle and a good prospect of good return on the investment in the property industry continue to prove strong incentives for foreigners to invest in Maltese real estate.
Advocates Primei acts on behalf of several local and international clients who have bought immovable property in Malta. We assist clients with all aspects of such a purchase, including issues relating to title, tax implications of the purchase and of an eventual sale, contract drafting, and the attainment of any necessary acquisition permits. We also advise on the best solutions to safeguard the wishes of the person vis-à-vis the inheritance of the property in question.
A permit is necessary when the property which is being acquired is not in a Special Designated area and when the purchaser has not resided continuously in Malta for a period of five years or more.
Furthermore, any foreigners buying property in Malta need to get a good understanding of the various succession laws which may eventually come into play. We aid clients to achieve good estate planning, including with the drawing up of any wills or trusts which may be necessary.
Capital Gains of property situated in Malta is charged at either 35% on the gain (profit) if a transfer is done within the first 7 years from the acquisition OR at 12% on the transfer value. An exemption from capital gains exists when one is transferring one's sole ordinary residence as long as this has been used as such for the 3 years prior to the sale.
As a general rule, duty tax is paid by the person acquiring an immovable in Malta at the rate of 5% on the market value of the property being transferred. Similarly a 5% succession tax is paid by any person inheriting an immovable property situated in Malta.
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