Voted as the country with the “Best Climate on Earth” in 2011 and regarded as the “Best Place to Retire in the World” in 2012, Malta has become an increasingly popular investment spot for both EU and non-EU citizens worldwide. A dream place of cultural attractions with magnificent beaches and world-class diving locations, Maltese real estates have been on the top of market trends for the past few years.
As opposed to what others might know, buying a property, especially in a foreign land, should not be a shot in the dark. Informed choices are what makes a good investment, and investing on such can be a pretty easy process when you have the right know-about of what it takes to buy a Maltese real estate. If you are interested in purchasing one, here are some facts Michael, an estate agent with shared with us today:
Assess your requirements and budget
The first important thing to do, just like in purchasing anything in life, is to know what you really want or need. It is essential to first determine whether you want a sea-view in a modern property or a classic house in a quiet village. Your requirements would be the top priority alongside your budget. If a mortgage is needed, your mortgage advisor or your bank can help you solidify your claim in a strong buying position. Contact the sales agent for some preliminary inquiry about the prospective property.
Get a notary and lawyer
A notary is a person licensed by the government to serve the public by performing acts in legal affairs, including the enrolment of purchase and sale of a property. Your lawyer should specialize in transactions regarding and should be knowledgeable of rules of owning, transferring and subletting properties if you are a foreign resident. The notary and lawyer should be impartial and are rarely connected to an estate agent.
EU citizens vying for a property intended to be their primary home do not need a permit for the purchase of the desired property. On the other hand, foreign residents and EU citizens who will buy estate properties that will not be their main residence require an acquisition of immovable property (AIP) permit granted by the Ministry of Finance.
To be granted the AIP permit, the prospective property should be at least MTL 30,000 for an apartment or MTL 50, 000 for other properties. Foreigners should also prove that the funds have been remitted abroad. The AIP permit allows you to purchase just one residential property for you and your family’s use.
The notary public will then lodge the AIP permit and assist in the legal aspect of buying.
Sign the preliminary agreement and pay the deposit and fee
Once the price, ground rent, features included, payment terms, work to be undertaken by the owner, and terms of promise of the sale agreement are in order, it is now time to sign the preliminary agreement, also known as Konvenju, of purchase. At this point, 10% of the total amount and 1% of the total stamp duty fee of 5% is paid by the buyer.
Check everything else for possible problems
During the Term of Konvenju, the notary public carries out necessary action to find possible discrepancies that may lead to problems in the future. It can be a defect in the title or a part subject to rights of other properties and structural defects or strange building methods that were not addressed in the preliminary agreement.
In case there is a discrepancy which cannot be resolved, you shall have the right to refund everything you paid for. If this discrepancy, however, is resolved within the Term of Konvenju, the sale should be completed.
Once everything else is in order, a final agreement would be scheduled to be signed. At this point, you would pay the balance of the agreed selling price, including the remaining 4% for the stamp duty and 1% for notary fees.
When you finally have your own luxury property in Malta, the next thing that may bother you is the unending taxes that would follow you forever. Tax is an integral part of any property, but it is a good thing that Malta’s tax regime does not impose a wealth tax and inheritance tax.
Your life’s hard work should be valued with utmost importance. Make your blood and sweat count up to the last penny you spend. Buying a luxury estate in Malta, Europe would be more worth it when you have the right knowledge and the right team behind you to support in every step of the way.